E-marketplace / E-storefront

1. Catalog Fulfillment Management Hosting Transaction On-Line E-marketplace / E-storefront • E-marketplace / E-storefront is like a molecular compound made up of different elements. Each element is required for the compound to retain its unique properties.

2. Intuitive Catalog • Intuitive online catalog makes shopping and selling easy. • Satisfy your customers by providing a catalog and shopping cart that fits their needs. • You can organize products by multiple categories so it is easy for customers to find what they are looking for. • Cross-sell up-sell feature allows you to sell more by presenting customers with information on related products. • Recognize return customers • A persistent shopping cart, information on previous purchases and status on recent purchases will help personalize your customer’s shopping experience. • Stay competitive by updating your catalog instantly

3. Store Management • Store management tools gives you the ability to manage your store yourself. • Stay competitive by adding or removing products and categories, uploading product pictures or editing product information all in real-time. • Analyze the effectiveness of your marketing efforts. Real-time integrated reports make it simple to find out who your customers are, what they are buying and how often. • Ability to track the status of orders to ensure that inventory is available and orders are being shipped properly. • Password protected/ E-cert authorized access

4. Real-Time Transactions • Credit card preauthorization and reservation of funds • Automatic transfer of funds to your merchant bank account • Automatic tax calculation, if applicable • Calculation of shipping and handling costs • The ability to catch consumer fraud before it happens, saving you time and money • Control over where your product is distributed worldwide • The ability to offer digital products for customers to download • Track shipping status with integrated fulfillment messaging • Reduced returned shipments through real-time Delivery Address Verifier • Customization of order confirmation messages • Shipping confirmation messages that include the UPS tracking number • Custom transactions that can be built into your application.

5. Fulfillment Messaging • Automated fulfillment messaging will keep both you and your customers in touch with the shipment of orders. • Customers will be informed automatically the status of their order via email, or they can check their account on the merchant website. • Merchants can track orders to make sure they are shipping properly. This enables merchants to more easily address inventory problems.

6. Web Hosting • Physical Environment, Bandwidth and Security • Properties of an essential e-commerce element, Web Hosting. • Server System • Information Security • Internet Data Center • Redundancy • 24 x 7 Monitoring • Bandwidth

7. Physical Environment • A custom designed Internet data center provides the physical environment necessary to keep our servers up and running 24 hours a day 7 days a week. • Features for an Internet Data Centre: • Raised floors • HVAC temperature control with separate cooling zones • Seismically braced racks • State-of-the-art smoke detection and fire suppression systems • Motions sensors • 24x7 secured access • Video camera surveillance • Security breach alarms

8. Bandwidth • A nation-wide high performance, dedicated and redundant backbone network • Multiple high-speed OC-3 and OC-12 lines • LAN architecture that scales based on anticipated customer demand • Advanced Internet node architecture

9. Security • Regular data backup • Complete system redundancy at multiple levels • The necessary physical environment to ensure that servers are safe • Firewall protection • SSL encryption

10. Server System • Firewalls: keeps your site secure from unwanted visitors • Load balancing: prevents overload by equalizing traffic flow across multiple web servers • Hardware: provides industry-leading hardware for our web servers and database cluster • Networking software: enables management, automated event detection and correction of distributed NT environments • Operating System: Windows NT Server, Enterprise Edition: The best platform for building and deploying large-scale applications.

11. Always Online • 24 x 7 maintenance and operational support at all critical levels so that your site will be live, transacting and operating properly.

12. E-catalog • The presentation of your product and the just sufficient information for customers to conclude a purchase • Product Image • A picture says • a thousand words • Brief description • Price, • Terms, • Weight, • Lead time

13. E-ordering • Shopping cart • On-line order form • Customer information • Shipping information • Payment information • Return policy

14. E-payment • Credit Cards • Online Payment • Electronic Fund Transfer (EFT) • E Check • E Banking • Digital Cash • Magnetic Cards • Smart Cards

15. Mechanism of Credit Card • Present credit card • Swipe through an electronic transaction terminal • Authentication. If passed…... • Transaction is captured in both client and merchant credit account • The key of the transaction is the credit card number

16. Online Payment • Send credit card no. to the merchant securely • SET and SSL • In SSL, credit card number is transmitted to Merchant and encrypted with Merchant’s key • In SET, credit card number is encrypted by key of the Merchant’s Bank

17. Digital Cash Examples • Magnetic Stripe Cards • Invented in 1960s • Example: Common Store Value Ticket (CSVT) in HK transport (1981 - 1995) • Smart Cards • Plastic card with embedded microchip that can be loaded with data. • In 1974, Roland Moreno (French) designed TMR (Take-Money-and-Run) System • Contact / Contactless cards

18. Introduction of Smart Card • A credit card-sized plastic card with embedded memory and microprocessor chips • Patented in 1975 & originated from France • Widely used in mobile phone to store and process information

19. Fast Food Bar Cafeteria Parking Lots Vending Telecom-munications Retail Transportation Area of Applications

20. Problems of Existing Systems • Credit card’s processing fee is too expensive • No effective payment method for “pay-per-use” goods • Growing demands on B2C payment • Credit card is un-common to teenage

21. Future Trend • Beenz (www.beenz.com) • eCash (www.digicash.com) • CyberGold (www.cybergold.com) • MyPoints (www.mypoints.com ) • Dot (www.idclub.com) - Hong Kong • TOM$ (www.tom.com) - Hong Kong

22. What Is Beenz? • Introduced in March 1999 • Developed by Beenz Company • An internet-only currency • Token based

23. Merchant A Site visit, Referral… Buy Beenz for one cent per each Shopping, Auction… Customer Merchant B Registration Beenz Customer Merchant A Merchant B How Merchant Buy Beenz?

24. Site visit, Referral… Registration How Customer Earn Beenz? Merchant A Shopping, Auction… Buy Beenz Customer Merchant B Beenz Customer Merchant A Merchant B

25. How Customer Use Beenz? Merchant A Site visit, Referral… Shopping, Auction… Buy Beenz Customer Merchant B Registration Beenz Customer Merchant A Merchant B

26. Impacts • Legal • Taxation, Central Bank/Monetary Policy, Crimes • Users Advantage • More convenience, freedom of choice on payment method • Banks Advantage • Lower operation cost, minimized fraud loss

27. Impacts • Merchants • Lower operation cost, faster cash flow, more business opportunities • Security concerns • Security issues are not yet prefect, users not aware of the risk • Privacy concerns • Electronic payment transactions are traceable

28. Activity 3: Form yr org • Form into group of 3-4 • Get a name for your company • You will assign with a product group • Start preparing for your business plan