CS28310 E-commerce

On-Line Selling  eCatalogues  eMarketplaces  Implement an eCatalogue   Implement On-line Selling  On-line Payments  International business  Affiliate programmes

eCatalogues  Easy to understand  Good for paper based catalogue companies  Must be database driven sites   

eCatalogues – Business Issues  Company has a paper based or CD catalogue that consumers use to purchase goods  Customers are used to paying by credit or debit cards  Selling a considerable amount of recognisable products as a manufacturer or re-seller to consumers  One or more employees spends a considerable amount of their time taking orders by 'phone or fax

eCatalogues - Benefits  Receive new revenue  Reduction in employee time spent dealing with customers or processing orders  HTML Web pages considerably more time consuming than using an database driven site  There is also potential saving for companies who produce printed catalogues to distribute to customers.

eMarketplaces  Connects buyers to suppliers  B2B (Business-to-Business) exchanges, and on-line trading hubs.  Types –Buyer Managed –Supplier Managed –Independent Exchange

Buyer Managed  A consortium of buyers  Most of them private  Usually with technology partners.  Management of more efficient procurement process  Lower administrative costs  Ensure more uniform pricing

Supplier Managed  Set-up by a consortium of suppliers –Aerospace –Automotive Electrics  These are usually B2B(Business-to- Business) but have the potential to be B2C (Business-to-Consumer) –DIY –Gardening

Independent Exchanges  Not dominated by either buyers or sellers.  Venture-backed or were early dot.com innovators.  Thrive off order matching and transaction fees.  Public marketplaces – that are open to all participants –pay for the marketplace services. –pay for the marketplace services.

Examples  –Supplier-led exchange whose members include Kraft and Unilever.  –eProcurement marketplace providing on-line tendering services and a large database of suppliers across Europe.  –Allows firms to trade electronically with any customer or supplier and also allowing full integration to its back- office systems. This is an example of an independent exchange not driven by either the supplier or the seller

Implementing an eCatalogue  Own Build –Skills –Risk  Software House –Expensive  Package –Restricted

Packages  Features –Ease of use –No technical knowledge required –Load photos and descriptions easily –Import from database, spreadsheet or text –Run shopping cart  VAT  Shipping –Order tracking

Online Selling Concept  Displaying product information  Enabling customers to place orders  Providing a secure environment to collect payment card details  Processing the payments  Other considerations

Shopping Trolley  “Place" purchases into the electronic equivalent of a shopping basket.  Shopping trolley –Integrated –Purchase separately.  Separate eCatalogues and shopping trolleys should be avoided or left to professional designers - YOU  Should maintain a summary of all the articles placed in it –by an individual customer –together with the individual product prices –total value of goods in the trolley (usually including any tax and shipping charges).  The customer decides whether to purchase – If they decide to proceed to purchase, they would need a way of entering payment card details

A Rough Guide  Third party payment processing system, could be charged: –An initial set up fee - about £50 –An annual fee - about £145 (and which might include processing 2 or 3 different currencies) –An additional fee for every currency being processed –A percentage charge for every credit card transaction of % –A fee of 25p for every debit card transaction –Examples Visa, Mastercard, Banks etc

Another Option  This is an option for start-up eCommerce companies. –Companies may have no trading history –Difficulty obtaining their own Internet Merchant Account. –They also want to fully automate the whole payment process –Worldpay accept 90% of applications, likewise PayPal  Down-side is the average cost per transaction is higher  Service charge per transaction will be higher, and payments could be made 4 weeks in arrears.

Considerations  Charge backs –Customer cancels –Customer never received goods –Can take out insurance