Introduction to E-commerce Principles By Dr. Gabriel

Why Companies Go Online? Expand customer base Up-selling/cross-selling Order fulfillment cost reduction

Expanding Customer Base Not as easy as it sounds Site awareness –Marketing –Public relations –Search engine optimization –Web analytics –Pay-per-click campaigns –Usability –Customer support –No cost for the company to allow “window shopping” –Etc –$$$$$

Up-selling/Cross-selling Convenience –Open 24/7 –No need to travel –Etc Suggestions/recommendations Instant promotions Automatically analyze customers buying habits

Order Fulfillment Cost Reduction Low overhead cost –Staff –security guards –rent in busy area –etc

E-commerce Risks and Threats Hacking and identity theft Credit card scams Hardware failures Unreliable shipping services Software errors Changing laws Etc Company need to understand them in order to mitigate them

Minimize Financial Risk Keep initial investment as low as possible –“test waters” –Design/develop in phases –Start generating income before expanding

Questions ?