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eCommerce : Something You SHOULD Know. 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!. What is eCommerce ?. Definition: [n] the business of buying and selling goods and services on the Internet.
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eCommerce: Something You SHOULD Know Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
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
What is eCommerce? Definition: [n] the business of buying and selling goods and services on the Internet 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. • Transactions carried out via an electronic platform • Major functions of eCommerce: • Buying & selling of goods (tangible & non-tangible) • Financial transactions processing (banking) • Secure document processing / exchange, etc. (legal) Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
eCommerce: Comparison Traditional High Street Shop 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… • Open from 9 am -5 pm • Minimum staff required to operate • Higher Overheads • Consequential Expenditure Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
eCommerce: The Figures (UK) 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
eCommerce – The Figures (cont’d..) 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
eCommerce – The Benefits Merchant 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 • 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 Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
eCommerce Models Business Models Trends: eCommerce & Online retail “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-credit-card 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
eCommerce: Flow Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
Cost Determining Factors FRONT-END BACK-END
How much would it cost? Off-the-Shelf Implementation 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 • 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 Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
Any Questions? Contact us via our online contact form: http://www.intellitechitsolutions.com/contacts.html Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com
The End! Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com