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  1. Topic 1 Basics of e-Commerce: Getting Started

  2. Objectives of Topic 1 • What is e-commerce? • Differences from traditional commerce • Advantages, statistics, & benefits of e-commerce • Roadmap of getting started in e-commerce Delta e-Commerce Connection Louisiana Tech University

  3. Objectives of Topic 1 CONTINUED • Types of e-commerce • Example of e-commerce • Technology requirements of e-commerce • Evaluate whether e-commerce is right for YOUR individual business situation Delta e-Commerce Connection Louisiana Tech University

  4. So, what is e-commerce? E-commerce is defined as: the buying and selling of goods and services on the “World Wide Web” Delta e-Commerce Connection Louisiana Tech University

  5. Differences between e-commerce and traditional commerce: • Traditional commerce • transactions consist of person-to-person contact -- in person, over the phone, or via “snail” mail • E-commerce • transactions are transmitted over a computer network [world wide web] Delta e-Commerce Connection Louisiana Tech University

  6. Differences between e-commerce and traditional commerce: CONTINUED • Traditional commerce • transactions handled manually • E-commerce • automates transactions • Customers go to a web site • Get information • Click a button to make a purchase • Can choose and order products & services, make payments, and even monitor their order status Delta e-Commerce Connection Louisiana Tech University

  7. Differences between e-commerce and traditional commerce: CONTINUED • Traditional commerce • constrained by physical location and/or business hours • E-commerce • global market • 24 hours-a-day, 7 days-a-week Delta e-Commerce Connection Louisiana Tech University

  8. Advantages of e-Commerce: • A small business can … • Provide better service to existing customers • Reach out to new markets • Reduce cost of sales, and • Grow its bottom line! Delta e-Commerce Connection Louisiana Tech University

  9. e-Commerce Statistics: Source: ActivMediad Delta e-Commerce Connection Louisiana Tech University

  10. e-Commerce Statistics: CONTINUED • Service industry quote requests have increased by 180 percent in the past 14 months”NUA Internet Surveys • “Sales in the nine leading on-line categories have the potential to grow from $34 billion in 2000 to $168 billion by 2005”The Boston Consulting Group Delta e-Commerce Connection Louisiana Tech University

  11. Benefits of e-Commerce: • By using e-commerce, ANY business, regardless of size, can reach out to new markets that might otherwise be unobtainable • Products and services sold over the web are available to customers all over the world anytime Delta e-Commerce Connection Louisiana Tech University

  12. Benefits of e-Commerce:CONTINUED • E-commerce can increase the speed, accuracy and efficiency of business transactions by reducing errors and duplicated work, and minimizing product returns Delta e-Commerce Connection Louisiana Tech University

  13. Benefits of e-Commerce: CONTINUED • E-commerce also lowers the cost of sales by allowing customers to create and send purchase orders on-line • This reduces both time and expensive overhead costs of sales processing Delta e-Commerce Connection Louisiana Tech University

  14. Benefits of e-Commerce: CONTINUED • Finally, businesses can use e-commerce data to refine product offerings and forecast product sales • This lets them focus on their best-selling products, thereby controlling procurement expenses Delta e-Commerce Connection Louisiana Tech University

  15. .com E-Commerce Roadmap While developing an E-Commerce presence, it is important to know where you are now as well as the appropriate destination for your business Level 5 • End-to-end • Fulfillment • Workflow • Seamless connectivity to back-end system(s) • Minimize/eliminate manual input on transactions. • B2B automated processes Level 4 Integrated • Online orders, payments • Order tracking, queries • Funds transfer Transactional Level 3 • Registration • Forms • E-mail • Secure transaction processing • Online payment authorization • Authentication and validation Level 2 Interactive • Advertising • Marketing • Information • Web site connectivity to database application(s) and email accounts Static Level1 • No company web site • Can access other sites • Web site • Content development & updates Access • Internet access through ISP • E-mail accounts • Legend • - Functions at Level • - Requirements to achieve next level No Capability Delta e-Commerce Connection Louisiana Tech University Adapted from: www.mepcenters.nist.gov/public/ecommerce-summit.nsf

  16. Level 0: NO CAPABILITY Where we are ... • No Internet Access • Internet access through ISP • E-mail accounts ? To Get to Next Level ... Delta e-Commerce Connection Louisiana Tech University

  17. Level 1: ACCESS Where we are ... • No company web site • Can access other sites • Web site • Content develop-ment & updates e-mail To Get to Next Level ... Delta e-Commerce Connection Louisiana Tech University

  18. Level 2: STATIC Where we are ... • Advertising • Marketing • Information • Web site connectivity to database appli-cation(s) and e-mail accounts FOR SALE To Get to Next Level ... Delta e-Commerce Connection Louisiana Tech University

  19. Level 3: INTERACTIVE Where we are ... • Registration • Forms • E-mail • Secure transaction processing • Online payment authorization • Authentication and validation To Get to Next Level ... ORDER FORM Delta e-Commerce Connection Louisiana Tech University

  20. Level 4: TRANSACTIONS Where we are ... • Online orders, payments • Order tracking, queries • Funds transfer • Seamless connectivity to back-end system (s) • Minimize/eliminate manual input on transactions • B2B automated processes ON-LINE ORDERING To Get to Next Level ... Delta e-Commerce Connection Louisiana Tech University

  21. Level 5: INTEGRATION Where we are ... • End-to-end • Fulfillment • Workflow • At “.com” Level $$$$ $$$$ We're There!! Delta e-Commerce Connection Louisiana Tech University

  22. .com E-Commerce Roadmap While developing an E-Commerce presence, it is important to know where you are now as well as the appropriate destination for your business Level 5 • End-to-end • Fulfillment • Workflow • Seamless connectivity to back-end system(s) • Minimize/eliminate manual input on transactions. • B2B automated processes Level 4 Integrated • Online orders, payments • Order tracking, queries • Funds transfer Transactional Level 3 • Registration • Forms • E-mail • Secure transaction processing • Online payment authorization • Authentication and validation Level 2 Interactive • Advertising • Marketing • Information • Web site connectivity to database application(s) and email accounts Static Level1 • No company web site • Can access other sites • Web site • Content development & updates Access • Internet access through ISP • Email accounts • Legend • - Functions at Level • - Requirements to achieve next level No Capability Delta e-Commerce Connection Louisiana Tech University Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf

  23. Types of e-Commerce: • Business-to-consumer [B2C] • Business-to-business [B2B] • Business-to-government [B2G] Delta e-Commerce Connection Louisiana Tech University

  24. Let’s Look at Newly Developed e-Commerce Site … www.techfarmsales.latech.edu Delta e-Commerce Connection Louisiana Tech University

  25. Home Page Clickable Delta e-Commerce Connection Louisiana Tech University

  26. Clickable Delta e-Commerce Connection Louisiana Tech University

  27. Clickable Delta e-Commerce Connection Louisiana Tech University

  28. Delta e-Commerce Connection Louisiana Tech University

  29. Map Delta e-Commerce Connection Louisiana Tech University

  30. Background Info Delta e-Commerce Connection Louisiana Tech University

  31. FAQ's Delta e-Commerce Connection Louisiana Tech University

  32. Subscription Services Delta e-Commerce Connection Louisiana Tech University

  33. Other Methods of Contact Delta e-Commerce Connection Louisiana Tech University

  34. Clickable Content is still being added ... Delta e-Commerce Connection Louisiana Tech University

  35. Clickable Delta e-Commerce Connection Louisiana Tech University

  36. Delta e-Commerce Connection Louisiana Tech University

  37. Delta e-Commerce Connection Louisiana Tech University

  38. Delta e-Commerce Connection Louisiana Tech University

  39. Delta e-Commerce Connection Louisiana Tech University

  40. Tech Farm Salesroom • What characteristics of the web-site are similar to your needs? • What characteristics are differentfrom your needs? Delta e-Commerce Connection Louisiana Tech University

  41. Tools to Get Started • Internet Software – • Browsers • Internet Explorer® • Netscape ® • Other • e-mail Clients • MS Outlook ® • Netscape ® Mail • Pegasus ® Other Delta e-Commerce Connection Louisiana Tech University

  42. Tools to Get Started • Web Site Design Software • Dream Weaver ® • FrontPage ® • Other WYSIWYG html editor • FTP (File Transfer Protocol) Software • [optional if you have Dream Weaver ® or FrontPage ®] • Graphics Software • Photoshop ® • Other Delta e-Commerce Connection Louisiana Tech University

  43. Estimated e-CommerceHardware Requirements • Personal Computer $700 • Printer 75 • Scanner 100 TOTAL HARDWARE $875 Delta e-Commerce Connection Louisiana Tech University

  44. Estimated e-CommerceSoftware Requirements • Microsoft ® FrontPage ®$ 169 • Microsoft ® Office XP Pro ®328 • Photoshop ® 325 • Winzip ® 35 • WS_FTP ® 40 TOTAL SOFTWARE $897 Delta e-Commerce Connection Louisiana Tech University

  45. Estimated e-CommerceServices Requirements • Internet Service Provider [ISP] $ 420 • Web Hosting 350 • Domain Name Registration 35 TOTAL SERVICE FOR 1 YR. $ 805 Delta e-Commerce Connection Louisiana Tech University

  46. Estimated Fees for Transaction Processing Technologies • Storefront Shopping Cart $895 - one time • Secure Certificate 128/40 bit $895 ($349) - annual • Payflow Pro ® $895 - one time • OR SSL ID + Payflow Pro ® $1395 - one time • iBill ® charges 15% of sales flat fee for all of the above – No merchant account required Delta e-Commerce Connection Louisiana Tech University

  47. Estimated Fees for Transaction Processing Technologies • Setup fee: VeriSign ® $0 • Visa/Mastercard rate: 2.3% • Visa/Mastercard transaction fee: $0.30 • Minimum monthly payment: $25 • Monthly service fee: $10 • Non-Visa/Mastercard $0.30 transaction fee: Delta e-Commerce Connection Louisiana Tech University

  48. Tools to Get Started • If you want to accept checks and credit cards online you will need … • An Internet merchant account • A secure server layer ID • Transaction processing software • Shopping cart software Delta e-Commerce Connection Louisiana Tech University

  49. Thank You!! Are there any questions? Delta e-Commerce Connection Louisiana Tech University