E Commerce
An e-commerce solution for a business is the incorporation of all aspects of
the
business operation into an electronic format. Many well-established
businesses
have been selling on-line for years. For example, Dell Computers
Corp., has been
selling computers directly to end-users for years. Currently,
Dell is selling
excessive of 1 million dollars worth of computers everyday on
the World Wide Web
(WWW). When a business has incorporated an e-commerce
solution, the business
will experience a lower operation cost while at the
same time increasing its
profit. The e-commerce solution will allow
businesses to eliminate unnecessary
paperwork. All paperwork and data can be
transformed into an electronic format.
Thus, it will eliminate valuable
shelf space and data can be searched and
accessed in matter of seconds.
E-commerce will also automates the sales process.
Customers can "point
& click" on the products they wish to
purchase, fill out the customer
information, and the product will be shipped and
received in a matter of few
days. The administration department does not have to
fill out any paperwork
because the customer had done it already. Thus, the
efficiency will be
greatly improved. With an e-commerce solution, the business
will be open 24
hours a day, 7 days a week. People from anywhere in the world
with an
Internet access will be able to visit the site at any time. They will
not be
restricted to the "normal" business operating hours. A
"brick + mortar"
business is normally limited to serving the customers
in its local
geographical location. With an e-commerce solution, that business
will not be
limited a geographical restriction, rather it opens itself to the
global
on-line market. Essentially, the business' market exposure will be
greatly
increased. In conducting my study, I have researched extensively on
the
Internet for resources. I chose the Internet as my primary research
medium
because e-commerce is still a fairly new technology. Since it is
technology
related, the Internet will provide the most recent data available.
Printed
publications will not be able to adapt to changes as fast and
efficient as
electronic publications. I researched many e-commerce related
web sites along
with some companies that conduct statistical studies. Some of
the e-commerce web
sites that I looked into are E-Commerce Times, eRetail,
and eMarketer. The
statistical research firms that I researched are Forrester
Research and Jupiter
Communication. Both firms provided valuable
statistical data that shows the rise
of consumers shopping on-line and the
predicted dollar amount that will be spent
in the coming years. Methods In
conducting my study, I completed the following
tasks: - I searched
extensively on the Internet for sites that are e-commerce
related. Upon
visiting the sites, I evaluated each site for the contents,
thoroughness, and
objectiveness. There are literally hundreds of sites that are
devoted to
e-commerce. However, after my careful examination of most of them, I
narrowed
down to four sites that I will research for this report. - I have
also
researched many firms that conduct statistical researches. The two firms
that I
will be utilizing for this report are Forrester Research and
Jupiter
Communication. Both firms are known for their preciseness,
non-objectiveness,
and thoroughness. The statistical data I collected from
these two firms will
support my recommendation that every business should
have an e-commerce solution
implemented. Results From my research, I have
developed fifteen reasons why
every business should incorporate an e-commerce
solution into the business
operation. They are listed below. 1. To Establish
A Presence There are
approximately 70 million people worldwide that have
access to the World Wide Web
(WWW). No matter what industry or business one
is in, one can not ignore 70
million people. To be part of that on-line
community, one would need to be on
the WWW for them. Because if one doe not
do it, one's competitor definitely
will. 2. To Network A lot of what passes
for business is simply nothing more
than making connections with other
people. Every smart businessperson knows, it
is not what one knows, it is
whom one knows. Passing out one's business card is
part of every good meeting
and every businessperson can tell more than one story
how a chance meeting
turned into the big deal. Well, what if one could pass out
the business card
to thousands, maybe millions of potential clients and
partners, saying this
is what I do and if you are ever in need of my services,
this is how you can
reach me. One can, 24 hours a day, inexpensively and simply,
on the WWW. 3.
To Make Business Information Available What is basic business
information?
Think of a Yellow Pages ad. What are one's business hours? What
does one do?
How can someone contact the business? What method of payment does
one take?
Where is the business located? Now think of a Yellow Pages ad where
one can
have instant communication. What is today's special? Today's interest
rate?
Next week's parking lot sale information? If one could keep one's
customer
informed of every reason why they should do business with them;
doesn't one
think one could do more business? One can on the WWW. 4. To Serve
the Customers
Making business information available is one of the most
important ways to serve
the customers. But if one looks at serving the
customer, one will find even more
ways to use WWW technology. How about
making forms available to pre-qualify for
loans, or have one's staff do a
search for that classic jazz record one's
customer is looking for, without
tying up one's staff on the phone to take down
the information? Allow the
customer to punch in sizes and check it against a
database that tells him
what color of jacket is available in one's store? All
this can be done,
simply and quickly, on the WWW. 5. To Heighten Public Interest
One won't
get Newsweek magazine to write up about one's local store opening, but
one
might get them to write up one's Web Page address if it is something new
and
interesting. Even if Newsweek would write about one's local store
opening, one
would not benefit from someone in a distant city reading about
it, unless of
course, they were coming to one's town sometime soon. With Web
page information,
anybody anywhere who can access the Internet and hears
about one's site is a
potential visitor to one's Web site and a potential
customer for one's
information there. 6. To Release Time Sensitive Material
What if one's materials
need to be released no earlier than midnight? The
quarterly earnings statement,
the grand prize winner, the press kit for the
much-anticipated film, the merger
news? Well, one sent out the materials to
the press with
"The-do-not-release-before-such-and-such-time" statement and
hope for
the best. Now the information can be made available at midnight or
any time one
specifies, with all related materials such as photographs, bios,
etc. released
at exactly the same time. Imagine the anticipation of "All
materials will
be made available on our Web site at 12:01 AM". The scoop goes
to those
that wait for the information to be posted not the one who releases
one's
information early. 7. To Sell Things Many people think that this is the
number
one thing to do with the World Wide Web. However, I have made it
number seven to
make it clear that I think one should consider selling things
on the Internet
and the World Wide Web after one has done all the things
above. Why? Well, the
answer is complex but the best way to put it is, does
one consider the telephone
the best place to sell things? Probably not. One
probably considers the
telephone as a tool that allows one to communicate
with one's customer, which in
turn helps one sell things. Well, that's how I
think one should consider the
WWW. The technology is different, but
before people decide to become customers,
they want to know about one, what
one does and what one can do for them. Which
one can do easily and
inexpensively on the WWW? Then one might be able to turn
them into customers.
8. To make picture, sound and video available What if one's
widget is great,
but people would really love it if they could see it in action?
The album
is great but with no airplay, nobody knows that it sounds great? A
picture is
worth a thousand words, but one does not have the space for a
thousand words?
The WWW allows one to add sound; pictures and short movie files
to one's
company's info if that will serve one's potential customers. No
brochure will
do that. 9. To Reach a Highly Desirable Demographic Market The
demographic of
the WWW user is probably the highest mass-market demographic
available.
Usually they are college-educated or being college educated, making a
high
salary or soon to make a high salary. It is no wonder that Wired
magazine,
the magazine of choice to the Internet community, has no problem
getting Lexus
and other high-end marketer's advertising. Even with the
addition of the
commercial on-line community, the demographic will remain
high for many years to
come. 10. To Answer Frequently Asked Questions Whoever
answers the telephones in
one's organization can tell one that their time is
usually spent answering the
same questions over and over again. These are the
questions customers and
potential customers want to know the answer to before
they deal with one. Post
them on a WWW page and one will have removed another
barrier to doing business
with one and freed up some time for that harried
phone operator. 11. To Stay in
Contact with Salespeople One's employees
on the road may need up-to-the-minute
information that will help them make
the sale or pull together the deal. If one
knows what that information is,
one can keep it posted in complete privacy on
the WWW. A quick local phone
call can keep one's staff supplied with the most
detailed information,
without long distance phone bills and tying up the staff
at the home office.
12. To Open International Market One may not be able to make
sense of the
mail, phone and regulation systems in All the potential
international
markets, but with an e-commerce solution, one can open up a
dialogue with
international markets as easily as with the company across the
street. As a
matter-of-fact, before one goes onto the Web, one should decide how
one wants
to handle the international business that will come one's way, because
one's
postings are certain to bring international opportunities to one's
way,
whether it is part of one's plan or not. Another added benefit; if one's
company
has offices overseas, they can access the home offices information
for the price
of a local phone call. 13. To Create a 24 Hour Service If one
has ever
remembered too late or too early to call the opposite coast, one
knows the
hassle. Not all businesses are on the same schedule. Business is
worldwide but
one's office hours aren't. Trying to reach Asia or Europe is
even more
frustrating. However, Web pages serve the client, customer and
partner 24 hours
a day, seven days a week. No overtime either. It can
customize information to
match needs and collect important information that
will put one ahead of the
competition, even before they get into the office.
14. To Make Changing
Information Available Quickly Sometimes, information
changes before it gets off
the press. Now one has a pile of expensive,
worthless paper. Electronic
publishing changes with one's needs. No paper, no
ink, no printer's bill. One
can even attach one's web page to a database,
which customizes the page's output
to a database one can change as many times
in a day as one needs. No printed
piece can match that flexibility. 15. To
Allow Feedback from Customers One
passes out the brochure, the catalog, and
the booklet. But it doesn't work. No
sales, no calls, no leads. What went
wrong? Wrong color, wrong price, wrong
market? Keep testing, the marketing
books say, and one will eventually find out
what went wrong. That's great for
the big boys with deep pockets, but who is
paying the bills? One is and one
doesn't have the time or the money to wait for
the answer. With a Web page,
one can ask for feedback and get it instantaneously
with no extra cost. An
instant e-mail response can be built into Web pages and
can get the answer
while its fresh in one's customer’s mind, without the cost
and lack of
response of business reply mail. Conclusion After detailed analyzing
and
studying of the effects and benefits of incorporating an e-commerce
solution
to an existing business, it is clear that an e-commerce solution
will benefit
the business in every aspect. The implementation of an
e-commerce solution will
generate a brand new revenue stream, expand the
market exposure, and decrease
the operation cost. Many Fortune 500 companies,
such as Dell Computer Corp.,
have already adapted e-commerce into their
business operation. As I have
mentioned earlier, Dell Computer Corp. is
currently generating over 1 million
dollars in revenues from their web-site.
Many well-known "brick &
mortar" businesses are starting to establish
their presence on the web. For
example, Barnes & Noble Booksellers, the
top book retailer in North America
has just launched their web-site earlier
this year following the success of
Amazon.com. Amazon.com, the top book
& music seller on the web, has been
referred to have one of the most
efficient business operation in the
world
today.
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