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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

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
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
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
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
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
Earthlink pricing explained

Centra presentation (c) David Strom Inc. 2000

csp approaches
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
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
$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
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
iTool Demo
  • www.itool.com/admin/controlpanel.cfm
  • $25-$100/mo.

Centra presentation (c) David Strom Inc. 2000

s i te matic
Sitematic
  • Flat rate for $40/mo
  • Staging/production site concept
  • More templates and controls

Centra presentation (c) David Strom Inc. 2000

encanto
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
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
Popular eCommerce Suites

Centra presentation (c) David Strom Inc. 2000

popular ecommerce suites con t
Popular eCommerce Suites (con’t)

Centra presentation (c) David Strom Inc. 2000

four typical elements
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
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
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
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
Database Support

Centra presentation (c) David Strom Inc. 2000

dealing with odbc
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
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
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
Prices of DIY Products

Centra presentation (c) David Strom Inc. 2000

putting together your own solution
Putting Together Your Own Solution
  • SQL Server database
  • CyberCash payment system
  • WebCatalog 3.0 (supports CCash)
  • IIS web server
  • Total price:

Centra presentation (c) David Strom Inc. 2000

topic 2 what becomes success
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
AMP Old Screen

Centra presentation (c) David Strom Inc. 2000

amp connect con t
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
First Principle of eCommerce:
  • Make it easy to buy!

Centra presentation (c) David Strom Inc. 2000

amazon com
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
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
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
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
Update your directories!
  • This one is more than a year old!

Centra presentation (c) David Strom Inc. 2000

another side of service repeat business
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
Second Principle of eCommerce:
  • Deliver solid service!

Centra presentation (c) David Strom Inc. 2000

dell positives
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
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
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
Third Principle of eCommerce:
  • Individual customization is key

Centra presentation (c) David Strom Inc. 2000

bmw motors
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
You Never Want To See This Screen!

Centra presentation (c) David Strom Inc. 2000

compare with subaru
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
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
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
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
Fifth Principle of eCommerce:
  • Make payments easy!

Centra presentation (c) David Strom Inc. 2000

perceptions of credit card snooping still exist
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
Sixth Principle of eCommerce:
  • Make the buyer feel secure!

Centra presentation (c) David Strom Inc. 2000

how should you use email
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
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
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
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
Seventh Principle of eCommerce:
  • Communicate effectively and frequently!

Centra presentation (c) David Strom Inc. 2000

communicate effectively and frequently
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
Topic 3: Future Trends
  • eWallets and secure transactions
  • Caching technologies
  • Internet Appliances

Centra presentation (c) David Strom Inc. 2000

ewallet trends
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
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
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
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
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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