Transcript eCommerce: What you SHOULD know

Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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You have 5 mins to buy a laptop on a £500 budget. Where would you go?
Work => Search Function
Work => A lot of browsing & asking!
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Definition: [n] the business of buying and
selling goods and services on the Internet
 Transactions carried out via an
electronic platform
 Major functions of
eCommerce:
i) Buying & selling of goods
(tangible & non-tangible)
ii) Financial transactions
processing (banking)
iii) Secure document processing
/ exchange, etc. (legal)
eCommerce in Daily Life
• Council Tax Payment
• Online Banking
• Online Auctions (e.g. eBay)
• Professional Subscriptions
• Electronic Billing (Invoicing)
• Credit Applications
• Motor Vehicle Road Tax
Payments, etc, etc.
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Traditional High Street Shop
• Open from 9 am -5 pm
• Minimum staff required to
operate
• Higher Overheads
• Consequential Expenditure
eCommerce “Shop”
• Open – 24hrs, 7 days a
week & 365 days per year
• Less staffing requirements
• Lower Overheads
• Fast turn-around on goods
• Can Drop-ship products
• Etc…
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Adults who have accessed the Internet by purpose of Internet use
(personal use only)
Activities
January 2001
April 2001
Per cent
Finding information about goods/services
67
73
Using e-mail
65
71
General browsing or surfing
54
61
Finding information related to education
28
38
Buying or ordering tickets/goods/services
30
35
Personal banking/financial/investment activities 23
25
Looking for work
18
18
Downloading software, including games
20
25
Using chat rooms or sites
13
17
Playing or downloading music
15
20
Using or accessing government/official services
18
20
Other things
5
4
Source – UK National Statistics Censuses Survey - April 2001
Note: percentages do not add to 100 per cent as respondents may give more than one
answer
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Online Research
40% of all European online shoppers have changed their mind about which brand
to buy following research on the web
Online shoppers in the UK are the most likely to be influenced by information on
the internet (49%) while Italians are the least likely to change their mind (27%)
Online Sales
A massive 80% of European internet users have bought a product or service
online, up 3% since 2006 and double the 2004 figure (40%)
These European online shoppers made 1.3 billion purchases in just a six month
period, spending an average of €747 each online
-The UK (486m) and Germany (342m) made the most purchase
-Norway (€1203) and the UK (€1195) spent the most money online per
Person
Source: EIAA Mediascope Europe - Online Shoppers Report 2008
http://www.eiaa.net/Ftp/casestudiesppt/EIAA%5FOnline%5FShoppers%5F2008
%5FExecutive%5FSummary%2Epdf
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Merchant
• Higher Targeted Sales (using
SEO, PPC, etc)
• Reduced Costs (storage,
overheads, etc.)
• Easier Marketing to
preferred clients
• Easier management reports
• Almost instantaneous
pricing updates
• Instant stock flow view
Consumers
• Very Convenient (in terms
of WHEN and WHERE to
shop)
• Aids in getting THE “deal”
for the item they are
looking for – via price
comparison sites
• Wider selection to choose
from
• Easy to compare BETWEEN
shops / brands / products
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Trends: eCommerce & Online
retail
Business Models
B2C – Business to
Consumer
B2G –
Business to
Government
B2B –
Business to
Business
C2C – Consumer to
Consumer (e.g. auction
sites)
“2006 was a year of squeezing more out
of existing eCommerce conversion rates,
but Forrester predicts that 2007 will bring
a keen focus on squeezing more out of a
company's bottom line. Specifically, we
expect significant efforts in 2007 to focus
on the improvement of Web site
operations, the integration of non-creditcard payment vehicles, and the
enhancement of the product discovery
process. Additionally, the coming year will
reflect the voice of the customer as a
sales tool for products more clearly than
ever before.”
Source:
http://www.forrester.com/Research/Document/Excerpt/0,7211,40650
,00.html
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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FUNCTIONALITY
SECURITY
PLATFORM
FRONT-END
BACK-END
ADMINISTRATION
INTEGRATION
MANAGEMENT
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Off-the-Shelf Implementation
• Can cost anything from £300
upward…
Pros:
- Fast Implementation
- Few details required
- Good if you have a strong IT
knowledgebase
Cons:
- May not fit every business
model
- Customisation can sometimes
be very costly
Bespoke Implementation
• Can cost anything from
£500 upward …
Pros:
- Fully customisable
- Fully integrate-able
- Can handle any payment
gateway system
Cons:
- Longer time from design –
implementation
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Contact us via our online contact form:
http://www.intellitechitsolutions.com/contacts.html
Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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Intellitech I.T. Solutions Ltd. http://www.intellitechitsolutions.com
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