What Parts of E-Commerce Should You Consider Outsourcing?

presented by:

David Strom David Strom, Inc.

(516) 944-3407 [email protected]

Interop Atlanta 99 C30 © David Strom Inc.

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Summary

 Outsourcing is not really a black or white decision  Types of outsourcing services available  Typical vendors involved Interop Atlanta 99 C30 © David Strom Inc.

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Buy, Build or Rent?



Buy

suite of software 

Build

it yourself 

Rent or

outsource to a eCommerce ISP and other service providers Interop Atlanta 99 C30 © David Strom Inc.

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Why Buy or Build Your Store?

 Control, trust issues   You have the staff and skills involved Delusions: “I could do that myself” Interop Atlanta 99 C30 © David Strom Inc.

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The Cold Hard Reality of Suites

 Suites are nothing more than a collection of products  Lack integration among various elements   Difficult to setup, customize, and use Require you to live “inside” their structure  Limited payment options  Sounds like early MS Office Interop Atlanta 99 C30 © David Strom Inc.

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Types of Outsourcing

 Web server hosting  Payment processing  Storefront creation  Email and customer management  Shopping carts  Catalog and inventory fulfillment  Ad banner, one-click networks Interop Atlanta 99 C30 © David Strom Inc.

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Web Hosting c. 1996

 You used ISP’s hardware and web server software  Not a lot of choices: Unix and Netscape  Who knew from eCommerce?

Interop Atlanta 99 C30 © David Strom Inc.

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Web Hosting Today

 BYO server hardware  Cobalt Qube, Encanto e.go and others  Apache is the standard server  Store providers such as Yahoo and iCat  Every ISP wants to host your store Interop Atlanta 99 C30 © David Strom Inc.

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Evaluating eCommerce ISPs

      Do they offer storefront design?

Have in-house programmers?

Hosting of your own web server machine?

How many payment systems do they support?

What kinds of accounting reports do they offer?

What prices and packages offered?

Interop Atlanta 99 C30 © David Strom Inc.

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Earthlink eCommerce Pricing

Program Starter Site Total Access Acct.

SSL cert.

Domain fee eCommerce

TOTAL

Interop Atlanta 99 C30 © David Strom Inc.

Monthly fee $20 20 20 0 40

$100

Setup fee $25 (waived) 10 75 175

$210 10

Payment Processing Options

 Use gateway to banking network, existing POS devices  Install PC POS software and link to web storefront  Use third-party address verification service:

www.plugnpay.com/page1.html

 Outsource everything Interop Atlanta 99 C30 © David Strom Inc.

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Storefront Creation Options

 Create all HTML yourself, using page or text editors  Use tools from eCommerce ISP, such as AOLpress (AOL) or Home Page Creator (IBM)  Use third-party package, such as StumpWorld/Alpha or Sitematic Interop Atlanta 99 C30 © David Strom Inc.

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Email Options

 Use third-party list processing firms, such as eGroups  Install email/customer contact management software, such as Mustang’s IMC  Outsource all email services, such as to Criticalpath Interop Atlanta 99 C30 © David Strom Inc.

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Shopping Cart Options

 Build your own cart using perl or other tools  Buy cart software and run on your own server  Make use of eCommerce ISP and their cart  Best resource: PoorRichard.com

Interop Atlanta 99 C30 © David Strom Inc.

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Catalog Options

 Run your own catalog or use a service provider?

 Fees are steep, sometimes 15% of total sales  Useful if you are selling physical goods overseas  Typical vendors: Eliancecorp.com, Evergreen Interop Atlanta 99 C30 © David Strom Inc.

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Ad Banner, One-click Network Options

 Who will serve your site’s ad banners?

 Should you enable 1Click-type purchasing?

 Typical vendors: qPass, 1ClickCharge, LinkExchange, NetCentives, Doubleclick Interop Atlanta 99 C30 © David Strom Inc.

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Decision Tree

  To evaluate your various eCommerce outsourcing options newmedia.com/NewMedia/99/07/techreport/commerce.h

tml Interop Atlanta 99 C30 © David Strom Inc.

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Panelists

 Tom Saichek, Director, Operations Remedy Corporation  Martin Roscheisen, CEO eGroups  Jackie Magno, Dir. Customer Service Systems Novell  Scott Blum, Senior VP, K-Tel Interop Atlanta 99 C30 © David Strom Inc.

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