1 / 30

Starting an E-business

Starting an E-business. Dr. John P. Abraham Professor UTPA. Pre-requisite. Finish studying how to start a business in Texas. Complete all necessary requirements to start a business in texas. Determine what model of ecommerce. Most common is Business to consumer

zeke
Download Presentation

Starting an E-business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Starting an E-business Dr. John P. Abraham Professor UTPA

  2. Pre-requisite • Finish studying how to start a business in Texas. • Complete all necessary requirements to start a business in texas.

  3. Determine what model of ecommerce • Most common is Business to consumer • If you are a manufacturer, business to business is the way to go. • If you are a manufacturer, selling directly to the customers might impede your growth.

  4. Selling directly to consumers • It appears starting a business with either eBay or Amazon (or both) initially would be easier. • Consumers are now used to going to one or both of these websites for purchases. • You have a built in customer base.

  5. Before launching your business • Get registered with a name • Network solutions, or another registrar • Try to get a .com. Hard to get. .co would be your second choice. • Choose a name that is short and easy to remember.

  6. Agencies that controls • ICAAN (internet corporation for assigned names and numbers) oversees the domain registration. • W3C (weld wide web consortium) sets standards for HTML and web • IETF (internet engineering task force) sets standards for Internet architecture.

  7. Get a broadband service • ISDN – integrated services digital network 128 Kbps • DSL digital subscriber line 144 Kbps to 8 Mbps. It is asynchronous. • T1 – 1.5 Mbps up and down • T2 is a combined foru t1 lines to give over 6Mbps • T3 is comnbination of 28 t1 lines– up to 44.736 Mbps

  8. Build a website • Start with Static (passive) web presence • Just showing your presence • Advertise on the web to generate traffic. This is what you gain from being on eBay or Amazon. • When advertising know how many people will be exposed to your ad, and how long. Checkout google, ebay, microsoft, aol, ask, etc. for advertising • Register with search engines • Titles and metatags are important for each page.

  9. Create a Web Service • Other web services can integrate with yours.

  10. Determine how to collect payments • Bank accounts • Wire transfer • Setup credit card services • Paypal • Google payment

  11. Accounting • Integrated with online sales • Payroll • Automatic completion of reporting forms (sales tax, w-2, 941s and so on) • Inventory control, ordering (PO), receiving, RMAs • Must collect tax if sold in Texas.

  12. Shipping • Determine how you want to ship • Trucking • UPS, FedEx, USPS • Create volume shipping rates

  13. Web programming • Move up to interactive dynamic web pages • This is what we have been covering so far • AJAX, PHP, Ruby on Rails, ASP, etc.

  14. Alliances • If you are a BtB, register with an alliance such as the airline alliances, hospitality, hotels, etc. • Become a business at social networks, such as Facebook, Twitter, etc.

  15. Other issues

  16. Marketing Issues • E-Mail marketing • Cheap • Must know target (reach) • Use customer names where possible • Different languages (www.logos.it - does translations to 20 languages) • Consider outsourcing – Boldfish.com, messagemedia.com, digitalimpact.com, ilux.com, etc.

  17. Marketing Issues (2) • Promotions • Netcentives.com • Frequent miles • Directcoupons.com, coolsavings.com, etc. • Advertising • TV, movies, newspapers, magazines • Online advertising • Linking your site, banner ads, search engine ads, etc.

  18. Marketing Issues (3) • Buying and selling ads on the web • Put your ad on other popular sites that sells similar products • Sell banner ads on your site. • Cost is based on hits, pay-per-lead, pay-per-click, pay-per-lead,etc. • www.valueclick.com • Webcasts (Victoria Secret).

  19. Public Relations • Chat sessions • Crisis management (within company) • Press releases www.prweb.com • CRM customer relationship management – www.datadistilleries.com, egain.com • Datamining • Record customers’ behavior

  20. Online Monetary Transactions • Credit-card • Merchant account with a bank • www.cybercash.comwww.icat.com will set up accounts so that you can accept credit cards online. • COD • Debit Cards and debit-it.com (just give bank account info). • Digital currencty – ecash.com – internetcash.com • Paypal.com • Smart cards

  21. Monetary transactions (2) • Micropayments – save on credit card fees • Combining many small charges into one charge, like a telephone bill. • Check free • Electronic Fund transfer (for large amounts) • Bank credit line

  22. Legal Issues • Privacy – a major concern in web practices. • Tracking devices • Cookies – advantages of cookies come at the price of security. • Keystroke cops (employer/employee tension) • Defamation • Child pornography • Intellectual property – napster • Spam • Internet taxation

  23. Advertising related

  24. Traditional Advertising • Print, TV, Radio, Direct Mail, Yellow Pages • National Advertising • Dominated by large holding companies like Omnicom or WPP • Local Advertising • Small businesses • Pricing vary based on quantity.

  25. Online Advertising • Banner Ads • Some relevance to content viewed, may be directed to locality. • Search Linked Ads • Related search terms • Context linked Ads • Related Content on the page • Up to Google, or Yahoo’s capability to determine content

  26. Advertising money (year 2006) • 220 to 240 billion with 1-2% growth per year • $17 billion spent for internet advertisingwith rapid grown. • (Google’ revenue is ~7billion)

  27. Search share Google 46% Yahoo 23% MSN 11% AOL 7%

  28. Search Engine Marketing • Per click cost per keyword • Example laptop $2.00 per click • Bid on this, based on bid an ad may go first place to second place, etc. • Bid is the determinant of ad position • Bidding on the word takes place continuously

  29. Auction for keyword • Internet user enters a search term • Gets a page with results • Also shows ads to the side • If a user click on ad – pay for click • Top ads are clicked most • Advertisers submit bids stating maximum pay for click • Ad with highest bid is displayed on top • Advertisers can change their bid frequently

  30. Generalized Second Price Auction (GSP) • New mechanism used by search engines to sell online advertising. • Advertiser submit bids stating their maximum willingness to pay for a click for a key word. • If a user click an advertiser that is not on top, the advertiser pays an amount equal to the next highest bid (bid for advertiser i+1) • http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1015&context=berkeley_econ221

More Related