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Internet Commerce: Enabling Web Storefronts presented by: David Strom David Strom, Inc. USA david@strom.com Why This Tutorial The Internet is moving from a collection of technologies to a set of commercial services To use the Internet successfully: you need to know how it works; but,

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internet commerce enabling web storefronts
Internet Commerce: Enabling Web Storefronts

presented by:

David Strom

David Strom, Inc. USA

david@strom.com

(c)David Strom Inc. 1998

why this tutorial
Why This Tutorial
  • The Internet is moving from a collection of technologies to a set of commercial services
  • To use the Internet successfully:
    • you need to know how it works; but,
    • you must also understand why it works…
  • A fun topic, things changing quickly!

(c)David Strom Inc. 1998

course topics
Course Topics
  • What Becomes Success?
  • Choosing the Right eCommerce Path
  • Installing and Operating Your Own Storefront
  • Examples of various products

(c)David Strom Inc. 1998

course approach
Course Approach
  • Discuss technology
  • Provide pointers
  • Give examples
  • Provide insight into various approaches and technology choices

(c)David Strom Inc. 1998

what this course is not about
What This Course is Not About
  • Nuts and bolts of payment systems
  • In-depth on security

(c)David Strom Inc. 1998

some disclaimers
Some Disclaimers
  • I’ve lived in the Internet for a long time
  • Fundamental aspects of Internet dynamics are unavoidable
  • I have consulted to some of the vendors mentioned

(c)David Strom Inc. 1998

today s topics
Today’s Topics
  • I: What Becomes Success
  • II: Choosing the Right eCommerce Path
  • III: Installing and Operating Your Own Storefront

(c)David Strom Inc. 1998

topic i what becomes success
Topic I: What Becomes Success?
  • Overview of eCommerce market
  • Review physical storefront success factors
  • Propose some definitions
  • Define success for the web
  • Draw up five eCommerce principles

(c)David Strom Inc. 1998

overview of ecommerce market
Overview of eCommerce Market
  • Predictions
  • Success factors
  • Five principles

(c)David Strom Inc. 1998

and not very believable
IDC says the web will become a mass market in the US by 12/98!

With 100 million users!

Let’s not confuse web users with eCommerce BUYERS!

And Not Very Believable

(c)David Strom Inc. 1998

ticketmaster
US$5 million/month via the web in sales

Started 11/96

Generating lots of new buyers, who wouldn’t ordinarily use their service

Ticketmaster

(c)David Strom Inc. 1998

then there is disney com
Then there is Disney.com
  • Web site Daily Blast signing up 15k members/month
  • Sales via web are equal to 3x-5x of physical Disney store!

(c)David Strom Inc. 1998

and of course there is the porn industry
And of Course, There is the Porn Industry
  • “However, extensive interviews with adult site owners yield a picture of a highly charged market of approximately 10,000 sites generating about $1 billion in revenue per year, most through electronic credit card transactions.”
  • from Interactive Week

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

critical success factors for physical storefronts
Critical Success Factors for Physical Storefronts
  • Location
  • Branding
  • Good service
  • Good product selection
  • Proper pricing and margins
  • Traffic

(c)David Strom Inc. 1998

first problem
First Problem:
  • None of these translate on the ‘net!

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

an example of bad location montana meats
An Example of bad location: Montana Meats
  • www.imt.net/~lingerie/buffalo/buffalo.html
  • Can’t they afford their own domain name?
  • www.company.com/~anything is BAD NEWS!

(c)David Strom Inc. 1998

another case buying toner and batteries
Another Case: Buying Toner and Batteries
  • www.cartridgesusa.com, www.batterybarn.com
  • Catalog shows pictures of parts
  • Easy to find relevant item
  • But payment acknowledgement incomplete

(c)David Strom Inc. 1998

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!

(c)David Strom Inc. 1998

traditional advertising doesn t apply anymore
Traditional Advertising Doesn’t Apply Anymore
  • Can’t measure anything
  • Every site has its own banner sizes
  • The Web is not TV

(c)David Strom Inc. 1998

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.

(c)David Strom Inc. 1998

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 (Cisco)
  • Require faxes or telephone calls!
  • Some merely have catalogs
  • A good example: Singapore Power Authority www.spower.com.sg/readmeter.cgi?cmd=form

(c)David Strom Inc. 1998

good ecommerce examples
Good eCommerce Examples
  • Easy to find merchandize
  • Good service
  • Individual customization is key
  • Simple navigation
  • Business-to-business focus

(c)David Strom Inc. 1998

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!

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

amp connect ampincorporated com
AMP connect.ampincorporated.com

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

save in translation costs
Save in Translation Costs
  • AMP catalog in several languages
  • Translation cost was US$100,000
  • Versus US$1.5MM to produce separate translations of print editions

(c)David Strom Inc. 1998

silicon investor www techstocks com
Silicon Investor www.techstocks.com
  • Difficult to find anything
  • Incomplete database of companies
  • Companies are arranged poorly

(c)David Strom Inc. 1998

first principle of ecommerce
First Principle of eCommerce:
  • It is easy to find what you are selling!

(c)David Strom Inc. 1998

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 books to choose from

(c)David Strom Inc. 1998

amazon
Amazon

(c)David Strom Inc. 1998

update your directories
Update your directories!
  • This one is almost a year old
  • www.asiapage.com/alist.html#jewellery

(c)David Strom Inc. 1998

non secure servers
Non-secure servers
  • Many SG sites collect credit cards on them
  • GoodWood Florist
  • www.asiapage.com/goodwood

(c)David Strom Inc. 1998

second principle of ecommerce
Second Principle of eCommerce:
  • Deliver solid service!

(c)David Strom Inc. 1998

slide40
Dell
  • Most notable site for computer buyers
  • Customize the features you want via a web form
  • Simplifies and personalizes the shopping experience
  • WYSIWYB (buy)
  • >US$1MM/day in sales!

(c)David Strom Inc. 1998

slide41
Dell

(c)David Strom Inc. 1998

canadiantire com
Canadiantire.com
  • eFlyer uses email notification along with web forms
  • Customize exactly what coupons and deals are sent to you

(c)David Strom Inc. 1998

third principle of ecommerce
Third Principle of eCommerce:
  • Individual customization is key

(c)David Strom Inc. 1998

bmw motors
BMW Motors
  • Example of what not to do
  • Use gratuitous graphics
  • Cheesy low-res videos
  • Toys, not tools

(c)David Strom Inc. 1998

slide45
BMW

(c)David Strom Inc. 1998

compare with subaru
Compare with Subaru
  • Find specific information about each car
  • Can price options to your particular needs

(c)David Strom Inc. 1998

how not to design a payment screen
How NOT to Design a Payment Screen
  • www.netmar.com/~hamorder/cshorder.shtml

(c)David Strom Inc. 1998

how not to take advantage of bandwidth
How NOT to take advantage of bandwidth
  • www.clickdiz.com
  • Two different pages, one for SG ONE, one for all others
  • But SG ONE page has just heavy graphics -- why?

(c)David Strom Inc. 1998

a better example fishing licenses
A better example: fishing licenses
  • Simple, quick, and does the job with a minimum of clutter
  • www.permit.com

(c)David Strom Inc. 1998

fourth principle of ecommerce
Fourth Principle of eCommerce:
  • Make navigation simple!
  • Use small graphics, site maps, indexes
  • Avoid clutter, frames

(c)David Strom Inc. 1998

int l commerce exchange system
Int’l Commerce Exchange System
  • Matches overstocked sellers with buyers
  • B2B exclusively
  • Uses faxes to notify potential customers

(c)David Strom Inc. 1998

ices www icesinc com
ICES www.icesinc.com

(c)David Strom Inc. 1998

fifth principle of ecommerce
Fifth Principle of eCommerce:
  • Business-to-business focus

(c)David Strom Inc. 1998

four approaches
Four Approaches:
  • Join an eMall
  • Outsource to an ISP
  • Buy suite of software
  • DIY

(c)David Strom Inc. 1998

joining an emall
Joining an eMall
  • Only if you don’t have any in-house programming staff
  • Don’t want or can’t trust consultants to do it for you
  • Want someone else to handle payment processing
  • Don’t care whether your store is tied into your own financial system

(c)David Strom Inc. 1998

the mall of emalls
The Mall of eMalls
  • malls.com, of course!

(c)David Strom Inc. 1998

different kinds of emalls
Collection of independent links elsewhere

Landlord/hosting provider

Become a sales representative and Make Money Fast!

Different Kinds of eMalls

(c)David Strom Inc. 1998

evaluating emalls
Evaluating eMalls
  • Do they offer storefront design?
  • Have in-house programmers?
  • Hosting of your own web?
  • How many payment systems do they support?
  • What kinds of accounting reports do they offer?
  • Who are the other tenants and do you like them?

(c)David Strom Inc. 1998

the truth about internet malls
Read your contract

Check your site for errors

Evaluate your content

Measure your results

Promote your site

(from www.netrageous.com/reports/thetruth.html)

The Truth about Internet Malls

(c)David Strom Inc. 1998

reasons not to join an emall
Reasons Not to Join an eMall:
  • You know and like perl
  • Don’t have to take payment via the web
  • Want complete control over your site

(c)David Strom Inc. 1998

the results so far haven t been encouraging
Many store owners haven’t sold anything from the mall!

Over 90% dissatisfied with mall operator

Basic HTML errors and unresponsive staff to fix problems

The Results So Far Haven’t Been Encouraging

(c)David Strom Inc. 1998

the catch 22 of ecommerce
The Catch-22 of eCommerce:
  • To be successful, a software vendor has to promote his products via the Internet.
  • But this means eating one’s own dog food!

(c)David Strom Inc. 1998

leading usa emalls
Leading USA eMalls

(c)David Strom Inc. 1998

leading singapore emalls
shop.bnn.com.sg

www.shoppingvillage.com.sg

Leading Singapore eMalls

(c)David Strom Inc. 1998

find an isp
More ISPs are offering eCommerce solutions

Have to use their software standards and payment schemes

Could be pricey

Just catching on in USA

Find an ISP

(c)David Strom Inc. 1998

some examples
www.psi.net/web/ecommerce.shtml

www.Best.com/bizcomm.html

www.Brainlink.com/html/saleslink.htm

www.Earthlink.net/company/webservices.html

IBM: mypage.ihost.com

www.Netcom.com

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

Some Examples

(c)David Strom Inc. 1998

price comparison for isp hosting
Price Comparison for ISP hosting

(c)David Strom Inc. 1998

price comparison assumptions
10 Mb disk storage

Single email account

InterNIC $100 fee included for domain name

Price Comparison assumptions

(c)David Strom Inc. 1998

new approaches geoshop tripod
Builds on GeoCities “communities” but for merchants

$25/month for just commercial listings

$100/month for actual transactions

working with Internet Commerce Services Corp.

Tripod will offer something similar this summer

New Approaches: GeoShop, Tripod

(c)David Strom Inc. 1998

one way to support lots of payment systems
Wired-2-Shop

www.wired-2-shop.com/TestDrive/Admin/PaymentList.asp

One Way to Support Lots of Payment Systems

(c)David Strom Inc. 1998

the suite approach
The Suite Approach
  • Leading contenders
  • What is part of the suite and what isn’t
  • Prices and platforms

(c)David Strom Inc. 1998

popular ecommerce suites
Popular eCommerce Suites

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

four typical elements
Four Typical Elements
  • Catalog
  • Storefront designer
  • Ordering/inventory system
  • Shopping trolley/check out system

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

payment systems included in each suite
Payment Systems Included in Each Suite
  • Microsoft: Verifone, Buy Now
  • IBM: Verifone, SET, eTill
  • iCat: None (but many third parties)
  • OpenMarket: Verifone
  • WebSite Pro: InternetSecure, CyberCash
  • Intershop: CyberCash, ICVerify, others

(c)David Strom Inc. 1998

sample stores included in each suite
Sample Stores Included in Each Suite
  • Microsoft: 4 stores
  • IBM: 5 stores that are part of an eMall
  • iCat: 1 hardware store
  • OpenMarket: none
  • WebSite Pro: 1 bookstore
  • Intershop:3 stores

(c)David Strom Inc. 1998

databases supported in each suite
Databases Supported in Each Suite
  • Microsoft: SQL Server
  • IBM: DB2
  • iCat: 4D, Sybase SQL Anywhere
  • WebSite: Access
  • Intershop: Sybase SQL 11

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

store wizards included in each suite
Store Wizards Included in Each Suite
  • WebSite Pro (but doesn’t do much)
  • net.Commerce v3 (11/97)
  • MS Commerce
    • create appearance
    • navigation
    • registration, check out flows
    • payment methods

(c)David Strom Inc. 1998

slide82
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?
  • Don’t install anything before making sure you have everything!
  • Downloads for free, but they expire
  • Can you export existing files to these systems?

(c)David Strom Inc. 1998

website professional website ora com
WebSite Professional website.ora.com
  • Version 2, shipping since 9/97
  • US$799!
  • NT (or 95)
  • Supports Cybercash OR Internet Secure (Visa, MC)
  • One sample store (bookstore)

(c)David Strom Inc. 1998

sample storefront
Sample storefront
  • http://merchant.inline.net/admin/

(c)David Strom Inc. 1998

website configuration sheet
WebSite Configuration Sheet

(c)David Strom Inc. 1998

store properties
Store Properties
  • Only can operate a single payment system
  • Run on a series of Access databases
  • Built-in tax table, but for N.Americans!
  • Well documented data structures in typical O’Reilly fashion

(c)David Strom Inc. 1998

recommendations
Recommendations
  • Lowest priced suite by far!
  • iHTML is robust, but will take some learning
  • Nice store setup and organization of catalog
  • Good low-end solution

(c)David Strom Inc. 1998

intershop
Intershop
  • demo at presentation.intershop.com (admin/admin for store)
  • Includes Sybase SQL 11
  • US$5000 for NT, higher for Unix, includes 3 mos. support

(c)David Strom Inc. 1998

six different managers
Six Different Managers
  • Catalog
  • Products
  • Store
  • Purchases
  • Inventory
  • Customers

(c)David Strom Inc. 1998

characteristics
Characteristics
  • Everything managed via browser, which can get tedious
  • But you already have a database behind it

(c)David Strom Inc. 1998

payment options galore
Payment Options galore

(c)David Strom Inc. 1998

recommendations92
Recommendations
  • Most flexible payment options of any suite
  • Better at processing orders than site creation
  • Not good for large catalogs

(c)David Strom Inc. 1998

microsoft commerce nee merchant
Microsoft Commerce (nee Merchant)
  • Still evolving
  • More of a development platform than a suite
  • Closely tied to IIS, SQL Server et al.

(c)David Strom Inc. 1998

the many microsoft servers
The many Microsoft servers

(c)David Strom Inc. 1998

shopping with ms commerce
Shopping with MS Commerce

(c)David Strom Inc. 1998

ms commerce
MS Commerce

(c)David Strom Inc. 1998

microsoft upsells
Microsoft Upsells

(c)David Strom Inc. 1998

recommendations98
Recommendations
  • If you are going to use any other MS apps
  • If you believe developers will follow
  • If you must stay on the cutting edge of MS products

(c)David Strom Inc. 1998

commerce server specifics
Commerce Server Specifics
  • NT, fast Pentium with 128 M RAM essential
  • US$5000
  • www.microsoft.com/commerce

(c)David Strom Inc. 1998

icat electronic commerce suite
iCat Electronic Commerce Suite

(c)David Strom Inc. 1998

icat process
iCat Process
  • Use four-step process
  • Make changes to staging db
  • Use designer and built-in catalog
  • Then post changes to production db

(c)David Strom Inc. 1998

create your database
Create Your Database
  • Can use bundled Sybase SQL Anywhere
  • Enter upsells, promotions, and discounts

(c)David Strom Inc. 1998

design your templates
Design Your Templates
  • Look and feel of storefront
  • Design views of catalog

(c)David Strom Inc. 1998

setup your hard disk
Setup Your Hard Disk
  • Locate your files
  • Setup your web server

(c)David Strom Inc. 1998

set misc options
Set Misc. Options
  • Matching sales tax rates to zip codes
  • Use registration and indexing tools

(c)David Strom Inc. 1998

icat demo catalogs www icat com catalogs democats htm
iCat Demo Catalogs www.icat.com/catalogs/democats.htm
  • Demonstrate variety of options
  • Several different stores to view

(c)David Strom Inc. 1998

recommendations107
Recommendations
  • No wizards, all browser-based forms
  • Tedious but straightforward
  • Lots of third-party add-on tools
  • Best for people new to db or the ‘net
  • Best if you don’t have computer-based accounting system yet

(c)David Strom Inc. 1998

icat specifics
iCat Specifics
  • NT, fast Pentium with 128 M of RAM
  • US$9000 for professional version
  • www.icat.com

(c)David Strom Inc. 1998

ibm net commerce
IBM Net.Commerce

(c)David Strom Inc. 1998

included
Included
  • IBM’s Web Server
  • DB2 database
  • Shopping trolley system
  • Credit card verifier

(c)David Strom Inc. 1998

setup four basic web forms
Setup Four Basic Web Forms
  • System Configuration, web server directories
  • Access Control, user identities
  • Server Control, start/stop servers
  • Database Management, setup

(c)David Strom Inc. 1998

recommendations112
Recommendations
  • Great if you already use DB2 for inventories
  • Most security-conscious suite
  • More depth than iCat

(c)David Strom Inc. 1998

net commerce specifics
Net.Commerce Specifics
  • NT, fast Pentium with 64 M of RAM
  • AIX too!
  • US$5000
  • www.internet.ibm.com/net.commerce

(c)David Strom Inc. 1998

coming in version 3
Coming in version 3
  • “Intelligent Catalog”
  • Recognizes shopping preferences
  • New SET payment server
  • Integration with Domino Merchant

(c)David Strom Inc. 1998

openmarket
OpenMarket
  • High end solution
  • Worldnet offers hosting of OM servers
  • Still needs customization!

(c)David Strom Inc. 1998

recommendations116
Recommendations
  • If you can afford it ....
  • Really the price covers lots of consulting time
  • High transactions and throughput needs

(c)David Strom Inc. 1998

openmarket specifics
OpenMarket Specifics
  • Various Unix
  • US$250,000 and up!
  • www.openmarket.com

(c)David Strom Inc. 1998

do it yourself path
Do it Yourself Path
  • Traditional merchant banking approach
  • More risk, especially when your payment system is on the ‘net

(c)David Strom Inc. 1998

steps involved for diy ers
Steps Involved for DIY’ers
  • Get a web server
  • Get merchant software
  • Integrate with your back end systems
    • catalogs
    • inventory
    • customer accounts
  • Be prepared to do lots of coding

(c)David Strom Inc. 1998

the 90s help wanted
Wanted: Webmaster

Required skills: High proficiency in various web based programming, development tools, CGI, cookies, DNS, eCommerce, FTP, HTML 2.0 through 3.02, IIS Server admin, Javascript, Java, MS SQL, Netscape server admin, NT Server admin, perl, Unix admin, web security

The 90s Help Wanted

(c)David Strom Inc. 1998

but first consider the customer
But First: Consider the Customer

(c)David Strom Inc. 1998

how customers buy stuff
How Customers Buy Stuff
  • Sometimes have partial orders
  • Sometimes cancel orders
  • Sometimes inventory systems lie
  • Sometimes shipments are returned

(c)David Strom Inc. 1998

purchasing stages
Purchasing Stages
  • One product has a 14-stage process!
  • Need to gather so many items:
    • Shipping info
    • Item inventory, pricing
    • Order pricing
    • “Last chance” (upsells, cancel out)
  • All this means: get thee to a database!

(c)David Strom Inc. 1998

what is needed
What is Needed
  • A way to track orders
  • Provide shipping status
  • Provide payment status

(c)David Strom Inc. 1998

our recommendation email
Our Recommendation: email!
  • Capture that email address
  • Use it for status reports
  • Outcalls and future upsells
  • Reminders
  • But how do you valid the address these days?

(c)David Strom Inc. 1998

payment system considerations
Payment System Considerations
  • Do customers need accounts and profiles?
    • yes: reduces the amount a visitor has to type
    • no: less of a privacy concern
  • Should shopping be persistent across the session?
    • yes: use accounts or cookies
  • Should all communications be via SSL?
    • yes: then you’ll need the appropriate browsers and servers
  • Do I want to have multiple stores on a single server?

(c)David Strom Inc. 1998

merchant back end integration
Merchant Back-end Integration
  • Financial interactions
  • Clerical interactions

(c)David Strom Inc. 1998

credit card issues
Credit Card Issues
  • Separate authorization from settlement
    • authorize when order received, but
    • ship within 24 hrs of settlemen, and
    • beware of stale backorder data
  • Consumers can chargeback
    • either need a physical signature or
    • evidence of verified shipping address
  • Opening a merchant account (see www.shopsite.com/help/payment.merchant.html)

(c)David Strom Inc. 1998

electronic bill presentment
Electronic Bill Presentment
  • Saves on paper but requires lots of coordinated systems
  • Can show bills with nice fonts, interactive applications
  • Is separate process from the actual payment system

(c)David Strom Inc. 1998

electronic bill presentment issues
Electronic Bill Presentment Issues
  • Does the processor use EBP with merchant bank?
  • Can users browsers support these new applications
    • Java applets
    • Active X controls etc.
  • Reconciliation requires access to both dispute and payout information

(c)David Strom Inc. 1998

microsoft s msfdc
Microsoft’s MSFDC
  • A means to standardize on presentment
  • Have both web-based access and special consumer-based software
  • Former “Marble” server, read white paper at: www.microsoft.com/finserv/marblewp.htm
  • Requires NT, SQL Server, IIS, etc.

(c)David Strom Inc. 1998

other ebp efforts
Other EBP efforts
  • Open Financial Exchange (www.ofx.net)
  • www.Integrion.Net
  • CheckFree’s E-Bill (getbills.checkfree.com)

(c)David Strom Inc. 1998

ebill
Most popular and in widest practice

Schwab and Intuit/Quicken are supporters

Most threatened by MSFDC

eBill

(c)David Strom Inc. 1998

slide134
Started with Intuit

Trying to standarize on too much at once:

data transfers

account inquiries

financial applications and transactions

Verisign Financial Server (US$1200) digitalid.verisign.com/ofxIntro.htm

OFX

(c)David Strom Inc. 1998

integrion
Banking-intensive plus IBM

No other software supporter, BUT…

Combining forces with CheckFree

Trying to establish their “Gold Standard” vs. OFX

Integrion

(c)David Strom Inc. 1998

what about obi
Open Buying on the Internet

A bunch of standards: SSL, X12 EDI, X.509 PKI

Exchange of purchase order info

Unresolved issues:

who owns the catalog?

how much infrastructure is really needed?

knitting together a solid solution is more than enumerating standards!

What about OBI?

(c)David Strom Inc. 1998

what about set
IBM, Verifone having second thoughts

Specs still at 1.0 (barely)

Just handles the buyer authentication piece

Trial with Citibank/SG

www.visa.com

What about SET?

(c)David Strom Inc. 1998

topic iii installing and operating your own storefront
Topic III: Installing and Operating Your Own Storefront
  • What you need to know
  • What you need to buy

(c)David Strom Inc. 1998

you need to be a superhero
You Need to be a Superhero:
  • Part web designer
  • Internet technologist
  • SQL database admin
  • Payment system maven

(c)David Strom Inc. 1998

things you ll need to discover
Things You’ll Need to Discover
  • Are your sales and marketing staff web-savvy?
  • Is your accounting system adaptable to web purchases?
  • How do you reconcile these accounts?
  • Does your business owner understand Internet culture?
  • Can anyone find you

(c)David Strom Inc. 1998

dealing with search engines
Dealing with search engines
  • Some use <META>, some use <TITLE>
  • Keep descriptions at top of your home page short and sweet
  • Web Review article: webreview.com/97/10/17/webmaster

(c)David Strom Inc. 1998

the most under rated skill
The Most Under-rated Skill:
  • PATIENCE!

(c)David Strom Inc. 1998

components needed to operate a web storefront
Components Needed to Operate a Web Storefront
  • Database of items to sell and current inventories
  • Secure web server
  • Searchable catalog server
  • Connections to backend payments and financial servers
  • Shopping trolley system
  • Checkout/payment system

(c)David Strom Inc. 1998

which database server
Which Database Server?
  • Pick before anything else
  • Core of your store revolves around the database:
    • inventory system
    • accounting system
    • catalog system

(c)David Strom Inc. 1998

database server recommendations
Database Server Recommendations
  • Use existing client/server db if possible
  • SQL Server: best with MS tools
  • Oracle: if you know pSQL already
  • Informix: all other situations

(c)David Strom Inc. 1998

database web tools
Database/web Tools
  • Develop your own forms
  • Query your database
  • Develop your own catalog

(c)David Strom Inc. 1998

why is a catalog important
Why is a Catalog Important?
  • Your customers view of your store
  • Current with your own inventory and offerings
  • Don’t want to sell what you don’t have

(c)David Strom Inc. 1998

catalog software
Catalog Software
  • Cadis.com, US$1500
  • Centor.com, US$50,000
  • Dataware.com, US$1800
  • Elekom.com, US$25,000
  • Isadra.com, US$10,000

(c)David Strom Inc. 1998

other catalogs
Other catalogs

(c)David Strom Inc. 1998

another choice outsourced catalog
ShopSite

IBM Home Page Creator mypage-products.ihost.com (N. America only)

Mindspring with Mercantec

Another choice: outsourced catalog!

(c)David Strom Inc. 1998

shopsite demo
www.reliablehost.com/cgi-bin/bo/start.cgi

username: test8

password: test

ShopSite demo

(c)David Strom Inc. 1998

tool recommendations
Tool Recommendations
  • Cold Fusion, www.allaire.com
  • Sapphire/Web, www.bluestone.com

(c)David Strom Inc. 1998

which web server
Which Web Server?
  • Hundreds to choose from
  • Must support SSL and/or SHTTP
  • Platform isn’t important, really

(c)David Strom Inc. 1998

get your certificates in order
Get Your Certificates in Order
  • Bring up form inside web server
  • Send to Verisign on letterhead with credit card (!)
  • Receive cert from Verisign
  • Install on your web server

(c)David Strom Inc. 1998

what can a shopping trolley do
What can a Shopping trolley do?
  • Simplify ordering process
  • Track multiple purchases for a single visitor
  • Display items purchased
  • Calculate total prices, tax, shipping charges
  • Track item attributes (colors, styles, sizes)

(c)David Strom Inc. 1998

different shopping trolley methods
Different Shopping Trolley Methods
  • Account-based
  • Cookie-based; see www.cookiecentral.com
  • Encoded URLs

(c)David Strom Inc. 1998

shopping trolley programs
Shopping Trolley Programs
  • S-Mart: www.rcinet.com/~brobison/scripts
  • Minishop: www.egrafx.com/minishop
  • mvend: www.iac.net/~mikeh/mvend.html
  • PerlShop: www.arpanet.com/perlshop

(c)David Strom Inc. 1998

commercial programs
Commercial Programs
  • Internet Shopping Cart Server: www.webisland.com/cart
  • Rent-A-Cart: www.rent-a-cart.com
  • CyberCart: www.lobo.net/~rtweb
  • AutoCart: www.autocart.com/Autocart
  • WebCart: www.staff.net/webcart.html
  • SoftCart: www.mercantec.com
  • WWWOrder: www.virtualcenter.com/scripts2/WWWOrder.html

(c)David Strom Inc. 1998

shopping trolley example www asizip com softcart
Shopping Trolley Example www.asizip.com (SoftCart)
  • Shopping basket
  • Cookies to track purchases
  • Simple navigation

(c)David Strom Inc. 1998

payment systems for ssl
Payment Systems for SSL
  • ICVerify, www.icverify.com
  • Worldpay/PSI www.psi.net/worldpay

(c)David Strom Inc. 1998

icverify process
ICVerify Process
  • Customer submits 16+4 through SSL browser connection
  • Merchant swre records to a file
  • ICVerify submits to bank
  • ICVerify receives response from bank, creates answer file
  • Merchant swre retrieves answer, sends response to customer
  • No per transaction fee!

(c)David Strom Inc. 1998

supported merchant servers for icverify
Supported Merchant Servers for ICVerify
  • MS Merchant, Commerce
  • Oracle Payment
  • Mercantec SoftCart
  • Internet Factory Merchant
  • InterShop Online

(c)David Strom Inc. 1998

icverify demo download
ICVerify Demo Download
  • www.icverify.com/library/downloads/icvdemo20.html

(c)David Strom Inc. 1998

worldpay and psi
WorldPay and PSI
  • Multicurrency payments
    • >100 for product prices
    • 16 different ones for settlement
  • Have to host your web at PSI
  • Includes SoftCart and iCat software as well
  • US$1000 + US$1400/yr

(c)David Strom Inc. 1998

worldpay demo
WorldPay Demo
  • www.worldpay.com/demo/store.html

(c)David Strom Inc. 1998

prices of typical products
Prices of Typical Products

(c)David Strom Inc. 1998

inex demo
Financial backend strength

Store front and some aspects of suite

www.inex-corp.com

Inex Demo

(c)David Strom Inc. 1998

don t forget about security
Don’t Forget About Security
  • Make sure you protect your web site!
  • See “Ten ways” article from Winn Schwartau
  • Limit access, isolate servers, lock down scripts, so forth
  • See www.nwfusion.com/netresources/0202hack1.html

(c)David Strom Inc. 1998

what about web server load balancing
Resonate, HydraWeb, Cisco

IBM Interactive Network Dispatcher, www.ics.raleigh.ibm.com/netdispatch

Packeteer PacketShaper, www.packeteer.com

Others at www.techweb.com/se/directlink.cgi?NWC19970801S0026

What About Web Server Load Balancing?

(c)David Strom Inc. 1998

putting together your own solution
Putting Together Your Own Solution
  • Mercantec shopping trolley
  • SQL Server database
  • ICVerify payment system
  • WebCatalog
  • IIS web server
  • Total price: <US$10,000

(c)David Strom Inc. 1998

don t forget the process and people
Don’t Forget the Process and People
  • Put together policies and procedures book that describe what you did
  • Gather forms for your business partners to sign up for ISPs if needed
  • Document how to make changes to your product catalog via the web
  • Approach your trading partners with solutions, not problems!

(c)David Strom Inc. 1998

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

(c)David Strom Inc. 1998

some ecommerce resources
Some eCommerce Resources
  • Windows Sources reviews of 3 eCommerce suites: web1.zdnet.com/wsources/content/0697/ntadmin.html
  • My Infoworld reviews www.strom.com/pubwork/iworld.html
  • www.webcompare.com, all the web servers you could ask for
  • PC Magazine review of various products www5.zdnet.com/products/content/pcmg/1620/pcmg0024.html

(c)David Strom Inc. 1998

copy of this presentation
Copy of This Presentation
  • www.strom.com/pubwork/spore98w1.ppt
  • links at www.strom.com/pubwork/spore.html

(c)David Strom Inc. 1998

conclusion
Conclusion
  • Review
  • Q&A
  • David Strom
  • +1 516 944 3407
  • david@strom.com

(c)David Strom Inc. 1998