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E-commerce 101

By MacKenzie Internet Consulting

Good day, gentle reader. Today's performance will make some smile uncontrollably and it will make others weep and tremble in fear. The most amazing aspect of this show is that the authors need only utter one word, no more than nine letters! Brace yourselves, for now we will utter the word to start this powerful magic. The word is "e-commerce".

The word seems simple enough, and we all have some general idea of what it means, but how do you explain it? By sheer definition, e-commerce is just a method of conducting commerce electronically -- pretty simple. In fact, through our credit cards and our debit cards, don't we all engage in some form of e-commerce? In essence, they are just a form of ecommerce. We use a card with a magnetically encrypted signature to connect to the computer system at the bank in order to pay for a transaction.

Some forward thinking individuals combined several technologies in order to come up with a method to allow people to view items online in a catalog, and then allow people to pay for the transactions using their credit cards (or their debit cards in the US Marketplace). The system makes use of the world wide web to allow potential clients to view a merchant's catalog. When the client sees something that they want, they click on a button and place their order. It is fast, convenient, and quite simple really. Why does e-commerce frighten so many businesses, organizations, as well as individuals then?

We must get past the fear factor

Everyone has heard the horror stories, you know, the one that goes something like, "I gave out my Visa number on the web and the next thing I knew someone was buying concert tickets in Redondo Beach using that number". Or "my 13 year old son used my credit card number and the next thing I knew we were getting in email from every porn site on the net."

While we would like to give a resounding answer that fraud on the internet never happens, that would not be accurate. Part of the consumer's fear is that somehow, someway, a transaction is not secure. While security concerns have been drastically reduced over the last several years, from time to time, there are disreputable merchants who misuse information they receive from people visiting their site. A good rule of thumb is to stick with a well-known company name, or with a group that clearly displays their privacy and information policies.

Some companies allow COD orders from their web site. In fact, there are some consumer groups who recommend that a credit card number never be given out online and only COD orders be accepted. To the client, it shows that the merchant is offering some measure of trust in the consumer. Secondly, by shipping COD, it insures that the merchant either gets their money or their goods are returned. Perhaps the best example of a system that followed this method is the Sears Catalog.

Getting started on your own e-commerce site

So, how does one succeed at e-commerce? You should follow a few rules of thumb to increase the odds of succeeding at marketing on the web. These rules also apply to both nonprofits and business efforts.

  1. Have a clear plan for your e-commerce site.
    Many people believe that this should be left in the hands of the consultant hired to design the site. Don't forget, the consultant works best with a clear plan in hand. Furthermore, the consultant is a programmer. They will not have your expertise in selling your product and they may not know the details of your audience demographics. By working as a team, you are sure to achieve the best of both worlds.

  2. Carefully choose the products in your catalog.
    You want to present your products in the best possible light. Think about placement within the site carefully. You don't want to frighten people away with a big ticket item at the outset, but you do want to draw them into the site, so that they may see it eventually.

  3. Make sure that you can update your database yourself.
    The key to getting return visitors and business is to keep your site fresh and dynamic. To make your site dynamic, you need the flexibility to add or remove products at a moment's notice and update information quickly. Make sure to have the essential updating skills in house.

  4. Listen to your consultant
    While some people may like a particular graphic image because of their attachment to a company or organization, not everyone will have the same opinion. Make sure that your web pages load quickly and then ask people for their honest opinion of the site. More important than simply getting their opinion, is to LISTEN to it.

  5. Examine the traffic reports on your site.
    The traffic report will tell you how may people are going to your site, as well as what times they go there and what they are looking at on the site. This information is critical for planning new developments, and can help you examine the way that people are using the site. Do you have donation information buried so that no one is finding it? Put a link in from one of the main pages to make sure that people can find it.

  6. Keep the bells and whistles down and focus on selling your product, or service.
    Remember, animations slow down a page. As a rule of thumb, if a page takes more than 20-30 seconds to load, people will leave your site because they find it too slow.

  7. Treat your web site as additional retail space.
    If you treat your web site as an additional storefront operation, you'll be less likely to use poor design and "cutesy" toys. Make it an extension of your existing service and information efforts and you'll be much more successful.
MacKenzie Internet Consulting 1999, All Rights Reserved
Phone 902-832-1496 Web: http://mic.ns.ca

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