Ecommerce Basics Standard 2 Objective 1

Ecommerce Business conducted on the internet

4 Major Types of Ecommerce B2B – Business to Business –Companies sell their online goods to other companies without being engaged in sales to consumers. B2C – Business to Consumer –Companies sell their online goods to consumers who are the end users of their products or services. Usually, web shops have an open access for any visitor. C2C – Consumer to Consumer –Consumers sell their online goods to other consumers. A well-known example is eBay. C2B – Consumer to Business –Consumer posts a needed product or service and companies post bids. Consumer then reviews bids and selects a company.

Domain Name The easy to read name used to identify an IP address of a server that distinguishes it from other systems on the World Wide Web. –Examples:

Top Level Domain.com – commercial use.org – non profit organization.gov – governmental use.net – commercials use.edu – educational institution *There are literally hundreds more. Each day more are released.

Basic Measurement Tools Used by ecommerce sites to track and improve website functionality

Bounce Rate The number of people who view one page, then leave a website without viewing any other pages. “Is the right audience coming to your website?” Common actions –Clicks the back button (most common) –Closes the browser (window/tab) –Types a new URL –Does nothing (session times out after 30min)

Conversion Rate The number of conversions divided by the number of visitors.

Example: Sims 3 wanted to get people to register on their website. This was the original website.

They change the website. Visitors to the website who registered for games increased 128% (Conversation Rate). Adding the word FREE can change everything!

Conversions Completing an action or actions that a website wants the user to take. Example: Call to action – Changing from “Store” to “Shop Now” increased monthly revenue by 16%.

Conversion Funnel The track a consumer takes through an Internet advertising or search system, navigating an ecommerce website and finally converting to a sale.

Example: Groupon advertises on other websites. A consumer sees a deal they like, goes to Groupon, registers, and buys the deal. Groupon now promotes to that consumer.

Cart Abandonment Rate The number of people who intended to buy by clicking on the cart button divided by the number of customers who actually buy.

billions-of-dollars-in-lost-sales Example: 74% of all online shopping carts are abandoned. This is approximately $4 trillion worth of merchandise abandoned.

Page Views The amount of views a website is getting. –Example: If you click this link it will count as a page view. If you click it 20 times, it will count as 20 page views.

Click Path The journey a user takes through a website. Type in Go to Google. Type in Disney. Click on Companies track how visitors get to their website.

Unique Visitors The number of distinct visitors that visit a website for a particular period of time. Example: If you visit a link once today, you will be counted as a unique visitor. If you come back to that site 20 more times today, you are still counted as one unique visitor. If you visit that site from another computer or device (or another browser) it will count as a new visitor.

Repeat Visits The number of visitors who return to a website.

Examples: Personalize Greetings. Have interactions. Give away freebies. Feature customers on the website.

Exit Pages The pages on a website that drive customers away.

Example: Pop-ups drive people away.

Importance of Ecommerce on a Business More customers can be reached Can reach customers faster Small business can compete with large businesses Creates another form of contact with customers and potential customers

Importance of Ecommerce on a Business (continued) Can potentially be a more cost effective way to reach customers Help create and maintain brand image Provide better customer support Customers can purchase product 24/7