Chapter 15 E-Commerce.ppt

E-Commerce and the Entrepreneur The Internet: Changing the Face of Business The most successful companies embrace the Internet as a mechanism for transforming their companies and for changing everything about the way they do business. In the world of e-commerce, size matters less than speed and flexibility. High-volume, low-margin commodity products are best suited for selling on the Web. Benefits of Selling on the Web Opportunity to increase revenues Ability to expand into global markets Ability to remain open 24 hours a day, seven days a week Capacity to use the Web’s interactive nature to enhance customer service Benefits of Selling on the Web Power to educate and inform Ability to lower the cost of doing business Ability to spot new business opportunities and capitalize on them Power to track sales results E-Commerce Survey: 3 out of 4 small businesses do not yet have a Web site. Small companies account for more than 50% of all retail sales in the U.S., but they generate only 9% of online retail sales. By 2003, small companies will generate just 6% of online retail sales. Why? Factors to Consider Before Launching into E-Commerce How a company exploits the Web’s interconnectivity and the opportunities it creates to transform relationships with suppliers, customers, and others is crucial to its success. Web success requires a company to develop a plan for integrating the Web into its overall strategy. Factors to Consider Before Launching into E-Commerce Developing a deep, lasting relationship with customers takes on even greater importance on the Web. Creating a meaningful presence on the Web requires an ongoing investment of resources – time, money, energy, and talent. Measuring the success of a Web-based sales effort is essential to remaining relevant to customers whose tastes, needs, and preferences constantly change. 12 Myths of E-Commerce Myth 1: Setting up a business on the Web is easy and inexpensive. 12 Myths of E-Commerce Myth 1: Setting up a busi