ECommerce

Introducing ECommerce

Request Free Consultation For Your ECommerce Site

Are SMEs missing an opportunity in ECommerce - find out more

Electronic commerce or ECommerce is buying and selling products or services over computer networks – particularly the Internet. ECommerce between businesses is referred to as B2B. The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce meant technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).

When the Web first became well-known it was forecast that ECommerce would soon be big, but it has taken about 15 years for that to be true, but now well over £100 billion is dealt with by Ecommerce in the UK.

Ecommerce has lowered barriers to entry in the selling of many types of goods and services as it allows small and medium sized businesses to compete – the web is not the high street.

Getting in to ECommerce is like getting in to any other business. You must do some basic business planning……products or services, funding, target customers, customer service management, purchasing etc. It’s important to define your expectations from the outset. Put targets in place so that you can measure success.

Benefits of ECommerce

ECommerce has a number of advantages over conventional retail:

• Savings in set-up and operational costs. No shop assistants, rent, premises

• Reducing order-processing costs - automatic orders processing into stock database from the website

• Reaching a global audience increasing sales opportunities

• Competing with larger businesses being open 24/7.

• Improving offers using customer purchase tracking
  

Basics of ECommerce

You can use ECommerce for the direct selling of most goods or services online, but not all products and services an be sold over the Internet. If they require face-to-face selling or cost a lot to ship for example.

For intangible products, like software or music, the whole process can be done online. But goods need to be delivered so you may need to rethink some processes and work out how every aspect of any transaction is handled - order confirmation, invoicing and payment, and deliveries and returns. Make sure you can deliver goods or services fast or you will get a poor reputation and more work sortu=ing out the problems. Find out how to keep shipping charges low.

Automate aspects of your customer support to reduce the number of routine customer service calls by using your site to answer the most frequently asked questions, or by putting technical information online. However, you must be ready to deal with calls, emails and queries and you may need extra staff.

No matter how well designed your ECommerce site is or how competitive your products and prices, if customers don’t know about it then you will fail. So Search Engine Optimisation and Pay Per Click advertising must be considered in your business plan.

Ease of use is probably the most important route to success once you can be found on the web. Most important here are the design and navigation so that customers can find what they are looking for quickly. One click website navigation to making sure they don’t go to an alternative site.

Once customers have filled their basket checkout must be clearly signposted, so that they can pay. The site must process the order fast and provide a summary of where in the process you are and be clear about packing, shipping and terms. It should also generate a printable receipt and send a confirmation email to the customer.

Changes in product details, product ranges, special offers, up-to-date advertisements and sales information all need to be quick and easy so the more successful you are the more you need to consider supply chain management to have the right inventory in the right place, at the right time and in the right condition.

So the larger the business the more you have to think about integrated stock and advertising management.

Security is also important on the net just like it is in a real store. Instead of shoplifters there are hackers and card fraud to consider and combat as well as other risks such as server downtime.

There are, as ever, regulations and legislation with which you need to be familiar.

• The Data Protection Act 1998
• The Consumer Protection (Distance Selling) Regulations 2000
• The Electronic Commerce Regulations 2002
• The 2006 Companies Act