Question

1. The factors an entrepreneur should consider before launching into e-commerce.
2. What are the 11 myths of e-commerce and how you will avoid falling victim to them.
3. What are some basic strategies entrepreneurs should follow to achieve success in their e-commerce efforts.
4. What are some techniques of designing a killer Web site.
5. How will you track the results from your Website. Describe common metrics that e-companies use to track the effectiveness of their Web sites
6. Describe how e-businesses ensure the privacy and security of the information they collect and store from the Web.

Answer 1

1. Following are important factors to be considered before launching an ecommerce business:

• How to exploit web interconnectivity to transform relationships with crucial customers. E-commerce integration helps in reporting details like customer data, web orders, payment methods and shipments. With the help of this you can get important infprmation about the customers like their likes, dislikes, buying patterns etc and thus can establish positive relations with them.
• Developing a successful plan for web integration into an overall business strategy. E Commerce integration is when a merchant connects their eCommerce site to their other online sales channels and back-end systems like an ERP or POS system. Instead, data flows automatically into one system, allowing for data to be entered only once into the designated system.You can upload the details of the inventory and item in particular from the ERP to the e-commerce platform, thus eliminating the need of adding the same data once again. This helps in saving time, money, improving efficiency and reducing costs.
• Developing deep, lasting relationships with customers. This is the most crucial step. Responding to the positive and negative feedbacks of customers, responding to their queries, suggestions, providing after sales services etc helps in retaining existing customers, acquiring new customers and building long term relations.
• Creating a meaningful presence on the web, which takes time and money. It involves increasing the website presence with a focus on SEO and also dedicating resources to being featured on other websites that are credible in your industry or niche. It is time consuming and expensive process.
• Measuring success on the web is crucial to remaining relevant to changing customer needs. It involves keeping a track record of the number of visitors on the website each month, measuring bounce rate, conversion rate, average time spent by visitor on page, studying funnel visualization etc.

2.11 Myths of Ecommerce Business:

• Online customers are easy to please. Infact online customers are more difficult to please. You dont have physical contact with them. So, it is more difficult to please them and satisfy them. Moreover they may be present globally following different cultures, languages and tarditions which is another challenge.
• If i launch a website, customers will flock to it. Launching a website is not a difficult task. Infact attracting customers to website is a big challenge and requires time, effort and well planned strategy.
• Making money on the web is easy. Nothing is easy. In reality, there will be obstacles to overcome. Customer service fires that need to be put out, charge backs that will require attention, and technical issues you need to get help to solve. So it’s not easy but is doable with persistence.
• Privacy is not an important. It is the most important issue. Once the important data realted to cutsomers is leaked, not only customers will loose trust in you but also the company will have to face legal consequences.
• Technology is the most important factor in ecommerce. Techology ia an important part of Ecommerce but not the most imoprtant part. The most imoportant part is attracting customers, satisfying them and incresaing sales and profits.
• I don't need a strategy. If you think startegy is not imoprtant then you are out of business. A well planned and developed strategy is the essence of ecommerce business. The pricing startegy to be followed, the marketing techniques to be used, sales promotions etc are all important aspect of ecommerce business.
• Customer service is not important. Even a kid will agree that customer service is the most important aspect. Customer is the king. Solve their problems, respond to their feedbacks, maintaing good relations with them is of utmost importance.
• Flashy websites are better than simpler ones. It is wrong. People love simple, informative and easy to use websites. Websites should be simple but creative, attractive, easy to undertsand and use, informative.
• No Experience needed.You may not need e-commerce experience; however, experience in starting a business, marketing, merchandising and branding will all help you succeed.
• Only price matters.Competing on price has been successful for the few, but unrealistic for the majority since it requires that you generate a massive volume of sales for substantial profit. Setting yourself apart as a leader and authority, or offering stellar customer service and ease of shopping, can allow you to command a higher price.
• It’s not a business.E-commerce is e-business which means this IS a business. You need products or services, marketing, company policies, accounting, IT, fulfillment, customer support and more.

3.Key Success Strategies for e-Commerce Businesses:

• Knowing the target Audience. Have a proper undertanding of niche market. Have a clear idea who yoour target audience are, what they want, their likes and dislikes, their buying pattern, their earning potential etc.
• Promoting the brand. Brand promotion is very essential for increasing business. Get to know on which social media websites your target audience spend most of the time. Increase your presence on those websites.
• Knowledge about Competitors. Knowing your competition is as important as knowing your customers. Find out what makes your competitors successful and where they are lacking. You can do this by regularly visiting their website and social media pages, using their services and talking to their customers.Use this knowledge to improve your business model and avoid repeating their mistakes.
• Give best shopping experience. In this highly competitive you have to be ahead of your competitors. Provide an awesome shopping experience to customers.Make sure that your website is user-friendly and runs smoothly; provide a search function to make browsing your merchandise quick and easy; and provide online customer support.
• Be Adapatble. This could mean changing your content, ditching or adding certain products, going mobile, embracing new forms of social media or trying new styles of marketing as per the needs and requirements of customers.

4. Techniques of Designing Killer websites:

• Understand you target customer.
• Give customers what they want.
• Select a domain name that is consistent with the image you want to create for your company and register it.
• Make your web site east to navigate.
• Create a gift idea center.
• Build loyalty by giving online customers a reason to return to your web site.
• Establish hyperlinks with other businesses, preferably those selling products or services that complement yours.
• Include an email option and a telephone number in your site.
• Give shoppers the ability to track their orders online.
• Offer web shoppers a special all their own.
• Follow a simple design for your web page.
• Create fast, simple check out process and assure customers that their transactions are secure.