ECommerce Jennifer Bui Aaron Coyle Arthur Pham Luke

E-Commerce Jennifer Bui Aaron Coyle Arthur Pham Luke Lamarra Nick Milosavljevic

Introduction • E-Commerce= “…buying and selling of products or services over electronic systems as the Internet and other computer networks. ” (Pornwasin, 2007) – “…the ability of purchasing various goods through the Internet using secure protocols and electronic payment services. ”(Wikipedia, 2008) – E-mail, spreadsheets, databases, systems used in accounting or finance firms, order and shipment information, on-line shopping, online banking.

• Regulated by Federal Trade Commission (FTC) – Protect consumer privacy – Private information is secured – Meet advertising standards – Scans e-commerce at both consumer level and institutional level • Consumer level= World-wide web; buying textbooks, stocks, or payments made online. • Institutional level= use internet to do business both internationally and domestically.

Secure Socket Layer • Introduced in 1994 • “https” • SSL-Evading Trojans: – credential-stealing – bogus SSL – transaction-based • SSL Certificates= “used to encrypt the data and to identify the Web Site…prove the site belongs to who it says it belongs to and contains information about the certificate holder…”(Webopedia. co m, 2005) – Protects the web site – Prevents fraudulent actions

Different E-Commerce Methods • Different businesses use different ecommerce methods. • Pay. Pal • Cube. Cart • Actinic • Pay. Pal – Ebay – receive payments over the internet from clients by phone, mail, or by fax • Cube. Cart – My. SQL and PHP – manage multiple online stores single database • Actinic – Used by medium or small sized companies. – Powered by Windows

E-Commerce Marketing Aspect • Ecommerce marketing is all about enticing web surfers to your site and, once there, to becoming a customer. • Ecommerce marketing is broken down into three primary division that are considered marketing priorities. 1. Enticing Visitors 2. Converting Visitors 3. Site Effectiveness

Enticing visitors (non-customers) to come to the site • Search engine registration (natural search results) • Pay-per-click • Public relations – news releases, articles and stories • Online advertising (banners, links / cross-links, directories, newsletter placement, etc. )

Converting visitors (noncustomers) into customers • In-site promotions • Sales / Special Offers • In-store Coupons • Associated Products • Customer Recommendations • Opt-in Email Promotions

Site Effectiveness • Enticing appropriate • Increasing pervisitor behavior customer purchases • Establishing • After sale marketing emotional context • After sale • Building relationship building relationships

Advantages of E-commerce • Brand Recognition • Marketing • Access to Global Markets • Personalized Customer Service • Increased Customer Interaction • Greater Availability • Increased Efficiency • Greater Access to Suppliers

Small vs. Large Companies • Smaller the Company – Greater the “realized benefits” • Leveling the Playing Fields Why? • Larger Companies Have – Less flexibility – Higher Conversion costs

Online Retail • Started with Commercialization of Internet – 1991 – Major developments from 1994 onward • Just a Few Examples

Sales Volume Growth • 2001 3 rd Quarter Sales – $7. 742 Billion • 2008 3 rd Quarter sales – $34. 4 Billion • 2001 3 rd Quarter % of Total Sales –. 6% (less than 1%) • 2008 3 rd Quarter % of Total Sales – 3. 4%

% of Total Sales Growth

Using E-commerce Effectively • An E-business should use established business knowledge for all it is worth, to balance out the uncertainty of the new playing field. • Case Study: VS

JRSMX • Before E-Commerce • After E-Commerce • large retail site, with unused floor-space. • Sales have increased exponentially for both businesses

Mitch’s Surf Shop • Before E-Commerce • After E-Commerce • Sales down due to competitors advantage. • With website - International sales now easy and profitable

E-Commerce and Bridal Registry • New market trend: EBridal Registry • Della & James receives 45 Million in funding. • Online wish list with general hints, sizing information or personal interests that can be accessed by friends and family members.

Future Structural Changes in E-Commerce • A move from purely • Explosive growth in internet based solutions industry will toward multi-channel consolidate into large integrations competitive firms • As the sophistication of • A change from the market develops, revenue-share providers will begin to business model to flatoffer specific functions fee pricing model to single industries

Future Social Changes in E-Commerce • Providers will begin • Emergence of mobile focusing more on commerce conducted increasing services and through cell phones and incorporate modern other mobile devices marketing techniques to • Integration with social attract customers networks and media to • Development of provide a more websites from utility interactive experience based functionality to ones that are more visually appealing and simplified

Future Social Changes in E-Commerce • A larger amount of personalization between customers and clients as the market becomes more developed • A rise in multi-language websites as global merchants begin to expand into local markets

Problems in the Future of E-Commerce • Global Literacy • Delivery Time • End of Free Shipping • Customer Service and Relations • Primitive Search Engines

Thank you for viewing our Presentation Questions ?