An e-commerce solution for a business is the incorporation of all aspects of thebusiness operation into an electronic format. Many well-established businesseshave been selling on-line for years. For example, Dell Computers Corp., has beenselling computers directly to end-users for years. Currently, Dell is sellingexcessive of 1 million dollars worth of computers everyday on the World Wide Web(WWW). When a business has incorporated an e-commerce solution, the businesswill experience a lower operation cost while at the same time increasing itsprofit.
The e-commerce solution will allow businesses to eliminate unnecessarypaperwork. All paperwork and data can be transformed into an electronic format.Thus, it will eliminate valuable shelf space and data can be searched andaccessed in matter of seconds. E-commerce will also automates the sales process.Customers can "point & click" on the products they wish topurchase, fill out the customer information, and the product will be shipped andreceived in a matter of few days. The administration department does not have tofill out any paperwork because the customer had done it already.
Thus, theefficiency will be greatly improved. With an e-commerce solution, the businesswill be open 24 hours a day, 7 days a week. People from anywhere in the worldwith an Internet access will be able to visit the site at any time. They willnot be restricted to the "normal" business operating hours. A"brick + mortar" business is normally limited to serving the customersin its local geographical location. With an e-commerce solution, that businesswill not be limited a geographical restriction, rather it opens itself to theglobal on-line market.
Essentially, the business' market exposure will begreatly increased. In conducting my study, I have researched extensively on theInternet for resources. I chose the Internet as my primary research mediumbecause e-commerce is still a fairly new technology. Since it is technologyrelated, the Internet will provide the most recent data available. Printedpublications will not be able to adapt to changes as fast and efficient aselectronic publications.
I researched many e-commerce related web sites alongwith some companies that conduct statistical studies. Some of the e-commerce websites that I looked into are E-Commerce Times, eRetail, and eMarketer. Thestatistical research firms that I researched are Forrester Research and JupiterCommunication. Both firms provided valuable statistical data that shows the riseof consumers shopping on-line and the predicted dollar amount that will be spentin the coming years. Methods In conducting my study, I completed the followingtasks: - I searched extensively on the Internet for sites that are e-commercerelated. Upon visiting the sites, I evaluated each site for the contents,thoroughness, and objectiveness.
There are literally hundreds of sites that aredevoted to e-commerce. However, after my careful examination of most of them, Inarrowed down to four sites that I will research for this report. - I have alsoresearched many firms that conduct statistical researches. The two firms that Iwill be utilizing for this report are Forrester Research and JupiterCommunication. Both firms are known for their preciseness, non-objectiveness,and thoroughness. The statistical data I collected from these two firms willsupport my recommendation that every business should have an e-commerce solutionimplemented.
Results From my research, I have developed fifteen reasons whyevery business should incorporate an e-commerce solution into the businessoperation. They are listed below. 1. To Establish A Presence There areapproximately 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 70million people.
To be part of that on-line community, one would need to be onthe WWW for them. Because if one doe not do it, one's competitor definitelywill. 2. To Network A lot of what passes for business is simply nothing morethan making connections with other people. Every smart businessperson knows, itis not what one knows, it is whom one knows. Passing out one's business card ispart of every good meeting and every businessperson can tell more than one storyhow a chance meeting turned into the big deal.
Well, what if one could pass outthe business card to thousands, maybe millions of potential clients andpartners, 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 businessinformation? Think of a Yellow Pages ad. What are one's business hours? Whatdoes one do? How can someone contact the business? What method of payment doesone take? Where is the business located? Now think of a Yellow Pages ad whereone can have instant communication.
What is today's special? Today's interestrate? Next week's parking lot sale information? If one could keep one's customerinformed of every reason why they should do business with them; doesn't onethink one could do more business? One can on the WWW. 4. To Serve the CustomersMaking business information available is one of the most important ways to servethe customers. But if one looks at serving the customer, one will find even moreways to use WWW technology. How about making forms available to pre-qualify forloans, or have one's staff do a search for that classic jazz record one'scustomer is looking for, without tying up one's staff on the phone to take downthe information? Allow the customer to punch in sizes and check it against adatabase that tells him what color of jacket is available in one's store? Allthis can be done, simply and quickly, on the WWW.
5. To Heighten Public InterestOne won't get Newsweek magazine to write up about one's local store opening, butone might get them to write up one's Web Page address if it is something new andinteresting. Even if Newsweek would write about one's local store opening, onewould not benefit from someone in a distant city reading about it, unless ofcourse, 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 apotential visitor to one's Web site and a potential customer for one'sinformation there. 6. To Release Time Sensitive Material What if one's materialsneed to be released no earlier than midnight? The quarterly earnings statement,the grand prize winner, the press kit for the much-anticipated film, the mergernews? Well, one sent out the materials to the press with"The-do-not-release-before-such-and-such-time" statement and hope forthe best.
Now the information can be made available at midnight or any time onespecifies, with all related materials such as photographs, bios, etc. releasedat exactly the same time. Imagine the anticipation of "All materials willbe made available on our Web site at 12:01 AM". The scoop goes to thosethat wait for the information to be posted not the one who releases one'sinformation early. 7.
To Sell Things Many people think that this is the numberone thing to do with the World Wide Web. However, I have made it number seven tomake it clear that I think one should consider selling things on the Internetand the World Wide Web after one has done all the things above. Why? Well, theanswer is complex but the best way to put it is, does one consider the telephonethe best place to sell things? Probably not. One probably considers thetelephone as a tool that allows one to communicate with one's customer, which inturn helps one sell things. Well, that's how I think one should consider theWWW. 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.
Whichone can do easily and inexpensively on the WWW? Then one might be able to turnthem into customers. 8. To make picture, sound and video available What if one'swidget 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? Apicture is worth a thousand words, but one does not have the space for athousand words? The WWW allows one to add sound; pictures and short movie filesto one's company's info if that will serve one's potential customers. Nobrochure will do that. 9.
To Reach a Highly Desirable Demographic Market Thedemographic of the WWW user is probably the highest mass-market demographicavailable. Usually they are college-educated or being college educated, making ahigh 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 Lexusand other high-end marketer's advertising. Even with the addition of thecommercial on-line community, the demographic will remain high for many years tocome. 10.
To Answer Frequently Asked Questions Whoever answers the telephones inone's organization can tell one that their time is usually spent answering thesame questions over and over again. These are the questions customers andpotential customers want to know the answer to before they deal with one. Postthem on a WWW page and one will have removed another barrier to doing businesswith one and freed up some time for that harried phone operator. 11. To Stay inContact with Salespeople One's employees on the road may need up-to-the-minuteinformation that will help them make the sale or pull together the deal. If oneknows what that information is, one can keep it posted in complete privacy onthe WWW.
A quick local phone call can keep one's staff supplied with the mostdetailed information, without long distance phone bills and tying up the staffat the home office. 12. To Open International Market One may not be able to makesense of the mail, phone and regulation systems in All the potentialinternational markets, but with an e-commerce solution, one can open up adialogue with international markets as easily as with the company across thestreet. As a matter-of-fact, before one goes onto the Web, one should decide howone wants to handle the international business that will come one's way, becauseone'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 companyhas offices overseas, they can access the home offices information for the priceof a local phone call. 13.
To Create a 24 Hour Service If one has everremembered too late or too early to call the opposite coast, one knows thehassle. Not all businesses are on the same schedule. Business is worldwide butone's office hours aren't. Trying to reach Asia or Europe is even morefrustrating.
However, Web pages serve the client, customer and partner 24 hoursa day, seven days a week. No overtime either. It can customize information tomatch needs and collect important information that will put one ahead of thecompetition, even before they get into the office. 14. To Make ChangingInformation Available Quickly Sometimes, information changes before it gets offthe press. Now one has a pile of expensive, worthless paper.
Electronicpublishing changes with one's needs. No paper, no ink, no printer's bill. Onecan even attach one's web page to a database, which customizes the page's outputto a database one can change as many times in a day as one needs. No printedpiece can match that flexibility. 15.
To Allow Feedback from Customers Onepasses out the brochure, the catalog, and the booklet. But it doesn't work. Nosales, no calls, no leads. What went wrong? Wrong color, wrong price, wrongmarket? Keep testing, the marketing books say, and one will eventually find outwhat went wrong. That's great for the big boys with deep pockets, but who ispaying the bills? One is and one doesn't have the time or the money to wait forthe answer. With a Web page, one can ask for feedback and get it instantaneouslywith no extra cost.
An instant e-mail response can be built into Web pages andcan get the answer while its fresh in one's customer’s mind, without the costand lack of response of business reply mail. Conclusion After detailed analyzingand studying of the effects and benefits of incorporating an e-commerce solutionto an existing business, it is clear that an e-commerce solution will benefitthe business in every aspect. The implementation of an e-commerce solution willgenerate a brand new revenue stream, expand the market exposure, and decreasethe operation cost. Many Fortune 500 companies, such as Dell Computer Corp.
,have already adapted e-commerce into their business operation. As I havementioned earlier, Dell Computer Corp. is currently generating over 1 milliondollars in revenues from their web-site. Many well-known "brick &mortar" businesses are starting to establish their presence on the web. Forexample, Barnes & Noble Booksellers, the top book retailer in North Americahas just launched their web-site earlier this year following the success ofAmazon.com.
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