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New eCommerce Trends and Technologies. David Strom [email protected] +1 (516) 944 3407 Centra Presentation 2/9/2000. Agenda. Build or buy your web storefront? What becomes success? Future trends . Topic 1: Build or Buy Your Web Storefront. Rent : outsource to a CSP Buy suite of software

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New ecommerce trends and technologies l.jpg

New eCommerce Trends and Technologies

David Strom

[email protected]

+1 (516) 944 3407

Centra Presentation 2/9/2000

Centra presentation (c) David Strom Inc. 2000


Agenda l.jpg
Agenda

  • Build or buy your web storefront?

  • What becomes success?

  • Future trends

Centra presentation (c) David Strom Inc. 2000


Topic 1 build or buy your web storefront l.jpg
Topic 1: Build or Buy Your Web Storefront

  • Rent: outsource to a CSP

  • Buy suite of software

  • Build it yourself

Centra presentation (c) David Strom Inc. 2000


Evaluating csps l.jpg
Evaluating CSPs

  • Do they offer storefront design?

  • Have in-house programmers?

  • Hosting of your own web server machine?

  • How many payment systems do they support?

  • What kinds of accounting reports do they offer?

Centra presentation (c) David Strom Inc. 2000


Some csp examples l.jpg

www.psi.net/web/ecommerce.shtml

www.Best.com/bizcomm.html

www.Brainlink.com/html/saleslink.htm

www.Earthlink.net

IBM: mypage.ihost.com

www.Netcom.com

business.Mindspring.com/prod-svc/smbiz/

www.outer.net/ONCommerce (OuterNet)

Some CSP Examples

Centra presentation (c) David Strom Inc. 2000


Earthlink pricing explained l.jpg
Earthlink pricing explained

Centra presentation (c) David Strom Inc. 2000


Csp approaches l.jpg
CSP Approaches

  • GeoShop/Yahoo

  • ViaWeb/Yahoo

  • iCat/Intel

  • Encanto

  • iTool

  • Others entering a very crowded field

Centra presentation (c) David Strom Inc. 2000


Geoshop yahoo l.jpg
GeoShop/Yahoo

Builds on GeoCities “communities” but for merchants (www.geocities.com/join/geoshops)

$25/month for just commercial listings

$180/month (or more!) for actual transactions

working with Internet Commerce Services Corp. who uses Open Market Transact servers (www.icoms.com/pp.htm)

Centra presentation (c) David Strom Inc. 2000


Viaweb yahoo l.jpg

$100/month (<50 items) or $300/month options

CyberCash processing $500 setup

Solid reporting and admin options

ViaWeb/Yahoo

Centra presentation (c) David Strom Inc. 2000


Icat intel commerce online hosting solution l.jpg

Free for <10 items, $99/mo. for 100 items

No per-transaction fees

Email and browser-based notifications of purchase completion

Advanced items like upsell, featured products, cybercash gateways

iCat/Intel Commerce Online Hosting Solution

Centra presentation (c) David Strom Inc. 2000


Itool demo l.jpg
iTool Demo

  • www.itool.com/admin/controlpanel.cfm

  • $25-$100/mo.

Centra presentation (c) David Strom Inc. 2000


S i te matic l.jpg
Sitematic

  • Flat rate for $40/mo

  • Staging/production site concept

  • More templates and controls

Centra presentation (c) David Strom Inc. 2000


Encanto l.jpg

Turnkey server/software for free!

Payment gateway included ($50 initial, $70/month)

Web storefront, shopping cart, catalog system

Also need secure cert, merchant bank account

All managed via browser, steps are clearly documented

Encanto

Centra presentation (c) David Strom Inc. 2000


The suite approach l.jpg
The Suite Approach

  • Leading contenders

  • What is part of the suite and what isn’t

  • Prices and platforms

Centra presentation (c) David Strom Inc. 2000


Popular ecommerce suites l.jpg
Popular eCommerce Suites

Centra presentation (c) David Strom Inc. 2000


Popular ecommerce suites con t l.jpg
Popular eCommerce Suites (con’t)

Centra presentation (c) David Strom Inc. 2000


Four typical elements l.jpg
Four Typical Elements

  • Catalog

  • Storefront designer

  • Ordering/inventory system

  • Shopping cart/check out system

Centra presentation (c) David Strom Inc. 2000


The cold hard reality of suites l.jpg
The Cold Hard Reality of Suites

  • Suites are nothing more than collection of products

  • Lack integration among various elements

  • Difficult to setup, customize, and use

  • Require you to live “inside” their structure

  • Limited payment options

  • Sounds like early MS Office

Centra presentation (c) David Strom Inc. 2000


Payment systems included in each suite l.jpg
Payment Systems Included in Each Suite

  • Microsoft: Verifone, Buy Now

  • IBM (Net.Commerce): Verifone, SET/eTill

  • OpenMarket: Verifone

  • WebSite Pro: IC Verify, PC Authorize, CyberCash, others

  • Intershop: CyberCash, ICVerify, others

Centra presentation (c) David Strom Inc. 2000


Sample stores included in each suite l.jpg
Sample Stores Included in Each Suite

  • Microsoft: 4 stores

  • IBM: eMall, simple and advanced sample stores

  • OpenMarket: none

  • WebSite Pro: 1 bookstore

  • Intershop: 3 stores

Centra presentation (c) David Strom Inc. 2000


Database support l.jpg
Database Support

Centra presentation (c) David Strom Inc. 2000


Dealing with odbc l.jpg
Dealing With ODBC

  • Have to understand how to set up data sources

  • Intimate knowledge of your data structure

  • Re-install ODBC drivers at least once!

  • Best to start with built-in database

Centra presentation (c) David Strom Inc. 2000


Store wizards included in each suite l.jpg
Store Wizards Included in Each Suite

  • Net.Commerce (the best)

  • WebSite Pro (but doesn’t do much)

  • Intershop (various wizards)

  • MS Commerce (although you’ll really need to know COM!)

Centra presentation (c) David Strom Inc. 2000


Slide24 l.jpg
Tips

  • Don’t install anything before making sure you have everything!

  • Downloads for free, but they expire

  • Can you export existing files to these systems?

Centra presentation (c) David Strom Inc. 2000


Prices of diy products l.jpg
Prices of DIY Products

Centra presentation (c) David Strom Inc. 2000


Putting together your own solution l.jpg
Putting Together Your Own Solution

  • SQL Server database

  • CyberCash payment system

  • WebCatalog 3.0 (supports CCash)

  • IIS web server

  • Total price: <US$10,000

Centra presentation (c) David Strom Inc. 2000


Topic 2 what becomes success l.jpg
Topic 2: What Becomes Success?

  • Overview of eCommerce market

  • Review physical storefront success factors

  • Propose some definitions

  • Define success for the web

  • Draw up eCommerce principles

Centra presentation (c) David Strom Inc. 2000


Sad state of today s ecommerce marketplace l.jpg
Sad State of Today’s eCommerce Marketplace

  • Poor quality tools

  • Hard-to-find stores

  • Limited payment methods

  • Credit card snooping perceptions

  • Older browser versions can’t view latest sites

Centra presentation (c) David Strom Inc. 2000


Case in point buying a bike rack l.jpg
Case in Point: Buying a Bike Rack

  • Item not carried: outdated catalog

  • Telesales not familiar with web

  • No cross-sell or substitutions online

  • Needed three phone calls to complete purchase

Centra presentation (c) David Strom Inc. 2000


Another case buying theater tickets l.jpg
Another Case: Buying Theater Tickets

  • Web site doesn’t carry event information in real time

  • Orders are fulfilled weeks later

  • No indication on web site of sold-out or nearly so events

Centra presentation (c) David Strom Inc. 2000


Let s learn from the real world l.jpg
Let’s Learn From the “Real World”

  • Compare what works for physical stores

  • Try to extend to the web

Centra presentation (c) David Strom Inc. 2000


Critical success factors for physical storefronts l.jpg
Critical Success Factors for Physical Storefronts

  • Location

  • Branding

  • Good service

  • Good product selection

  • Proper pricing and margins

  • Traffic

Centra presentation (c) David Strom Inc. 2000


First problem l.jpg
First Problem:

  • None of these translate on the ‘net!

Centra presentation (c) David Strom Inc. 2000


Now try to agree on definitions for web stores l.jpg
Now Try to Agree on Definitions for Web Stores

  • What determines a good location?

    • Position on a search page

    • Nearness to popular destination

    • Ad on a popular server

  • What determines branding?

    • Memorable domain name

    • Popular search category destination

Centra presentation (c) David Strom Inc. 2000


An example of bad location montana meats l.jpg
An Example of bad location: Montana Meats

  • Link

  • Can’t they afford their own domain name?

  • www.company.com/~anything is BAD NEWS!

Centra presentation (c) David Strom Inc. 2000


Determining traffic l.jpg
Determining Traffic

  • Hard to do -- is it hits, page views, registered users?

  • [HITS = How Idiots Track Success]

  • Hard to measure -- do you count gifs? Use log files?

  • No general agreement on any metrics!

Centra presentation (c) David Strom Inc. 2000


One working definition of success l.jpg
One Working Definition of Success:

  • SURVIVAL!

  • If a site is still running after 12 months, and getting more traffic, it is a success.

Centra presentation (c) David Strom Inc. 2000


Does a site actually have to sell something l.jpg
Does a site actually have to sell something?

  • Many actual eCommerce sites don’t do the complete transaction

  • Require faxes or telephone calls!

  • Some merely have catalogs

  • Examples: Singapore Power Authority

  • Cisco Connection Online

Centra presentation (c) David Strom Inc. 2000


Principles of good ecommerce l.jpg
Principles of Good eCommerce

  • Easy to find merchandize

  • Good service

  • Individual customization is key

  • Simple navigation

  • Make payments easy

  • Make buyer feel transaction is secure

  • Communicate effectively and frequently

Centra presentation (c) David Strom Inc. 2000


Amp connect l.jpg
AMP Connect

  • Have customers in 100 countries

  • Speak many languages

  • Produce 400 catalogs covering 135,000 items

  • Mailings cost US$7MM/yr

  • Fax back cost US$800,000/yr

  • But you can’t buy anything directly!

Centra presentation (c) David Strom Inc. 2000


Solution step searching l.jpg
Solution: “Step Searching”

  • Saqqara.com software to enhance Oracle database

  • Provide user feedback as they type in the query

  • Show how many matches in the database

  • Different mechanisms for searching:

    • by part number

    • by alphabetical names

    • by part family

    • by picture even

Centra presentation (c) David Strom Inc. 2000


Amp old screen l.jpg
AMP Old Screen

Centra presentation (c) David Strom Inc. 2000


Amp connect con t l.jpg
AMP Connect (con’t)

  • And can set to list parts that are available in specific countries!

  • Updated daily with over 200 item changes

  • Detailed drawings saves time for customers to pick the right item

  • Saved AMP over US$5MM in production costs

  • Saved US$1MM in translation costs

Centra presentation (c) David Strom Inc. 2000


First principle of ecommerce l.jpg
First Principle of eCommerce:

  • Make it easy to buy!

Centra presentation (c) David Strom Inc. 2000


Amazon com l.jpg
Amazon.com

  • Services frequent readers with a variety of programs

    • Editorial comments

    • If you liked this book, you’ll like...

    • Notification of new books by author, topic

    • Simplified “1-Click” ordering

  • Uses simple pages and email

  • Associates program for commission kickbacks

  • Gift certificates via email

  • And ... lots of stuff to choose from

Centra presentation (c) David Strom Inc. 2000


Use affiliates programs wisely l.jpg
Use Affiliates Programs Wisely

  • They bring traffic to your doorstep

  • Nice revenue sharing model

  • Lots of them to choose from to model your own on:

    • AssociatePrograms.com

    • Refer-it.com

  • Shopnow.com(payment processing)

Centra presentation (c) David Strom Inc. 2000


A different take on affiliates clickrewards l.jpg
A Different Take on Affiliates: ClickRewards

  • Pays you in airline miles for your patronage

  • Accrue miles on many sites

  • You redeem benefits on their site

Centra presentation (c) David Strom Inc. 2000


Amazon vs borders l.jpg
Amazon vs Borders

  • Borders link

  • Cookies vs logins

  • Who makes it easier to buy books?

Centra presentation (c) David Strom Inc. 2000


Update your directories l.jpg
Update your directories!

  • This one is more than a year old!

Centra presentation (c) David Strom Inc. 2000


Another side of service repeat business l.jpg
Another Side of Service: Repeat Business

  • Make the shopper feel part of the family

  • Shopping as entertainment (online auctions)

  • “Do what I mean” search function (Amazon again looks at common misspellings made in the previous 24 hours for book searches)

  • Periodic targeted email updates and reminders

Centra presentation (c) David Strom Inc. 2000


Second principle of ecommerce l.jpg
Second Principle of eCommerce:

  • Deliver solid service!

Centra presentation (c) David Strom Inc. 2000


Dell positives l.jpg
Dell positives

  • Most notable site for computer buyers

  • Customize the features you want via a web form

  • Simplifies and personalizes the shopping experience

  • WYSIWYB (buy)

Centra presentation (c) David Strom Inc. 2000


Dell problems l.jpg
Dell problems

  • Site is now very complex

  • Print ads contain “eValue” codes

  • Too many pages to get to actual PC configuration

Centra presentation (c) David Strom Inc. 2000


Now compare with other pc makers l.jpg
Now Compare with Other PC Makers

  • Gateway

  • IBM

  • Compaq

  • Micron

  • … which is easiest to customize your PC?

Centra presentation (c) David Strom Inc. 2000


Third principle of ecommerce l.jpg
Third Principle of eCommerce:

  • Individual customization is key

Centra presentation (c) David Strom Inc. 2000


Bmw motors l.jpg
BMW Motors

  • Example of what not to do

  • Use gratuitous graphics

  • Cheesy low-res videos

  • Toys, not tools

Centra presentation (c) David Strom Inc. 2000


You never want to see this screen l.jpg
You Never Want To See This Screen!

Centra presentation (c) David Strom Inc. 2000


Compare with subaru l.jpg
Compare with Subaru

  • Find specific information about each car

  • Can price options to your particular needs

Centra presentation (c) David Strom Inc. 2000


A better example fishing licenses l.jpg
A better example: fishing licenses

  • Simple, quick, and does the job with a minimum of clutter

Centra presentation (c) David Strom Inc. 2000


How not to design a payment screen l.jpg
How NOT to Design a Payment Screen

  • http://www.netmar.com/new/norderform.shtml

Centra presentation (c) David Strom Inc. 2000


Common mistakes with payments l.jpg
Common mistakes with payments

  • Provide too few or too many order confirmation pages

  • Confusing methods and misplaced buttons on order page

  • Make it hard for customers to buy things

  • Don’t make your customers read error screens

Centra presentation (c) David Strom Inc. 2000


Fifth principle of ecommerce l.jpg
Fifth Principle of eCommerce:

  • Make payments easy!

Centra presentation (c) David Strom Inc. 2000


Perceptions of credit card snooping still exist l.jpg
Perceptions of Credit Card Snooping Still Exist

  • But are largely popularized by media, not consumers!

  • Internet fraud stories are still common from both buyer and seller sides

  • Just starting to see authentication services (such as Cybersource) ramp up

  • Trust will take a long time

Centra presentation (c) David Strom Inc. 2000


Sixth principle of ecommerce l.jpg
Sixth Principle of eCommerce:

  • Make the buyer feel secure!

Centra presentation (c) David Strom Inc. 2000


How should you use email l.jpg
How Should You Use Email?

  • When to communicate?

  • What to communicate?

  • When is email helpful and when is it spam and annoying?

Centra presentation (c) David Strom Inc. 2000


Email uses in ecommerce l.jpg
Email Uses in eCommerce

  • Sending order acknowledgement

  • Sending shipping notification

  • Purchase receipt

  • Telling customer when item is in stock or on sale

  • Responding to specific queries about service issues

Centra presentation (c) David Strom Inc. 2000


Email receipts should contain the following items l.jpg
Email Receipts Should Contain the Following Items

  • Total price, including shipping

  • Your address and the store’s

  • Items ordered

  • Whether they are in stock or not

  • When they shipped

  • Bonus: order number and URL to view this info online, link to UPS/Fedex tracking system

Centra presentation (c) David Strom Inc. 2000


When to send a customer email l.jpg
When to Send a Customer Email?

  • To acknowledge the order was placed

  • To say items shipped (or not ) and money changes hands

Centra presentation (c) David Strom Inc. 2000


Seventh principle of ecommerce l.jpg
Seventh Principle of eCommerce:

  • Communicate effectively and frequently!

Centra presentation (c) David Strom Inc. 2000


Communicate effectively and frequently l.jpg
Communicate Effectively and Frequently

  • Get your response systems in place

  • Tie in your storefront with any existing customer relationship management tools and call centers

  • Send replies within an hour of initial order, within 24 hours of any query

Centra presentation (c) David Strom Inc. 2000


Topic 3 future trends l.jpg
Topic 3: Future Trends

  • eWallets and secure transactions

  • Caching technologies

  • Internet Appliances

Centra presentation (c) David Strom Inc. 2000


Ewallet trends l.jpg
eWallet Trends

  • eWallets will eventually go away

  • SET becomes a server-side issue

  • SSL still dominates eCommerce transactions for many years

Centra presentation (c) David Strom Inc. 2000


Caching trends l.jpg
Caching Trends

  • More caching appliances as time goes on

  • Better and cheaper caching devices appear

  • Most ISPs will use them within a few years if they want to retain customers

Centra presentation (c) David Strom Inc. 2000


Internet appliance trends l.jpg
Internet Appliance Trends

  • More of them and cheaper too

  • Still for SO/HO environments mainly, although that is changing

  • Already some vendor consolidation

Centra presentation (c) David Strom Inc. 2000


Conclusions l.jpg
Conclusions

  • eCommerce crosses many different skill sets

  • Software is still too dicey in many areas

  • Standards aren’t much use right now

  • Suites don’t offer much in the way of integration

  • DIY may be the best solution

Centra presentation (c) David Strom Inc. 2000


Thanks l.jpg
Thanks!

  • David Strom

  • +1 516 944 3407

  • [email protected]

  • Copies of this presentation and other eCommerce resouces can be found at http://strom.com/pubwork/ecommerce

Centra presentation (c) David Strom Inc. 2000


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