e-Commerce: Buying and Selling on the Internet

The Internet and Selling How has the internet changed the way that items are bought and sold? How can farm business owners take advantage of the internet for buying or selling? Ask the audience to answer these questions. You may want to write responses on a flipchart or white board. Some key points to hit on… Geographic limitations are less important. Items can be bought or sold from anywhere in the world. Items can be purchased at any time of day or night. Some items are cheaper online because often these sellers have significantly lower overhead costs to cover.

What We’ll Cover Selling on the Internet Buying on the Internet We will focus most heavily on selling, although the business owner can learn a lot about how to sell their products based upon their experiences in buying things on the internet

Selling on the Internet Unless they have done it before, few know how to use the internet as a sales tool. There are different ways to use your website for sales. You may also use a third-party site to make sales The steps in selling on the internet are different from other outlets. Understanding them will help the business owner to establish a useful interface for selling goods or services. We will cover several methods for using one’s own website. These range from very high-tech to relatively low-tech. We will wrap up the section on selling with a review of how other sites can be used to facilitate a sales transaction.

What steps are necessary to make a sale in any format? Question… What steps are necessary to make a sale in any format? This question will lead into the discussion on the next slide.

Selling on Your Website Conceptually no different from any other sales outlet Display products Answer questions Provide price information Allow customer to make the purchase Accept payment Provide product & receipt Displaying a product allows the buyer to see it Some questions can be answered with a verbal description. Others may need to be addressed via email or some other sort of communication. Shoppers should be able to see your prices as well as your shipping rates. The buyer must initiate a transaction. Once the buyer initiates the transaction, then the seller must be able to process the payment, either by credit card or cash (including checks) After receiving payment, the seller must provide the product and a receipt of payment

Selling on Your Website To display your products, you should have a “catalog” that provides photo & written description with price Thumbnail photos (Database or static interface) Electronic Publication (Can print & view offline) There are essentially two types of catalogs commonly used. The first is a series of thumbnail photos and the second is “published” catalog. Thumbnail photos, which can be displayed using a database or a static interface, often display a very short description with the photo. When the user clicks on the photo, they are likely to see more information. For example, a short description that accompanies a photo of a small jar of peach preserves may simply read “Peach Preserves, 12 oz.” Clicking on it may lead to a more detailed description of the product along with a larger photo. An electronic publication, such as a .pdf file, can be developed and made viewable online. These are developed just like any other publication, although they may never actually be printed. These have the advantage of being printable by potential buyers. However, if graphic-heavy, they may be quite large.

Selling on Your Website Facilitating the Transaction Two basic options Traditional sales options (phone, fax, email…) Online “shopping carts” This slide is meant to introduce the discussion on the next few slides.

Selling on Your Website Traditional Sales Options Phone Fax Email “Snail Mail” Ask the audience about the pros and cons of each of these options. What makes them attractive or unattractive?

Selling on Your Website Online Shopping Carts View order details Change order Provide running total Process sales tax if applicable

An Example Shopping Cart from Amazon.com

Selling on Your Website Online Shopping Carts You could buy or develop your own shopping cart technology Most use a third party’s services See “A Primer on Shopping Cart Technology” in text.

Selling on Your Website Considerations for Making the Sale Don’t ask the buyer to do too much! Security is vital! Shopping cart technology also facilitates order processing The more a buyer is asked to do, the less likely they will be to make the purchase from you. Will they fax or call an order in? The buyer must feel confident that the purchase is secure. Shopping cart technologies typically use the latest security measures. However, some buyers believe that other options, like a phone call, may be more secure. Processing the order can be simplified using shopping cart technologies. Most generate an order form. This addresses issues associated with handling a piece of paper too many times.

Selling on Other Websites On-line malls – similar to consignment shops, most provide Tools to build & maintain your shop Credit card processing (with security) Advertising for the mall The ability to easily interface with on-line auction services Flexible fee structure, depending upon your needs Online malls may be useful to you, although not many agricultural business owners use them. They tend to be targeted more to larger scale food manufacturers. However, if the seller is able to locate one that may be useful, they can be a low-cost substitute for developing a sales mechanism on one’s own website.

Buying on The Internet Perform research before determining which products are right for you Be sure that the purchase is secure! You may be able to track your order You should receive an electronic receipt As you make purchases, note what you like and what you don’t like. Reiterate that research is a key attribute offered by the internet. Online security is very important. Unless you are sure that the purchase is secure, do not make the purchase. Many sellers use technologies that will allow you to track your order as it is shipped via, UPS, USPS, Fedex, or some other shipper. This is a very nice feature that allows for easy resolution of issues that may arise with customers or shippers. The seller generally provides an electronic receipt in the form of a special screen that can be printed and/or an email sent to the buyer’s address. As the business owner makes purchases, they should take notes about what they like or dislike about the process. Incorporating those things that make the purchase easier into one’s own selling interface is a good idea.

Section Wrap-Up Selling on the internet can be beneficial There are several different ways to make sales on the internet When buying, make note of good and bad items. Incorporate the good into your own selling interface.