BA 65 Hour 5 ~ Creating an Ecommerce Site

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  • 1. Creating an Ecommerce Site Planning and Managing Your Business Web Site BA 65
  • 2.
    • "A lot of advertisers lined up to throw money at this stuff because they were caught up in the hysteria about the Web.
    • But now they want to know how you make money selling a $1.59 bottle of dish detergent on the World Wide Web.“
    • Karen Burka
  • 3. Business Basics
    • Proof of Concept - look before you leap
    • Cost of online presence
    • Is your business suited for online?
    • Great Job @ 80% vs. Poor Job @ 100%
    • Usability - work hard on this one
    • Customer Service - anytime, anywhere
    • Make your choices carefully and deliberately
  • 4. What is Ecommerce?
    • “ Using the Internet to transact business with your customers”
    • Web site must justify costs
    • Monitor success from the start
    • Competition may influence decisions
    • Market share - you need it - study competitors
  • 5. Web Storefronts
    • Ecommerce and Web storefront - obvious
    • Not everything sells on the web
    • Significant sales requires aggressive marketing
      • Traditional and non-traditional
    • 3 elements to storfront
      • Catalog
      • Order
      • Payment
  • 6. The Catalog Element
    • Displays information about your product or services
    • Build online catalog two ways:
      • Individually designed Web pages - static pages
      • Pages generated from database by Web Software
  • 7. The Order Element
    • Keeps track of your customers’ catalog selections
    • Buy Now - straight to payment - one product
    • Cardinal rule of ecommerce
      • “ Always make it easy for your customers to BUY”
    • Multiple purchase with shipping, taxes
    • Bring on the Shopping Cart
  • 8. The Payment Element
    • Lets your customers pay for their orders
    • Low tech - phone call - not ideal
    • Most people want to purchase on your site
    • Third party payment processors - PayPal
      • Low end, low cost option
      • Basic HTML
      • Could cost you in the long run - per transaction
    • Web software - high end - payment gateway
  • 9. Storefront Options
    • Simplify matters
    • Do you require a shopping cart?
    • How much control do you need over the appearance of the storefront?
    • Do you want to accept credit card payments over the internet?
  • 10. How Do You Decide?
    • Are you in business to make a profit?
    • Estimate the value of a Web storefront and budget accordingly - ROI
    • If using a shopping cart - get experienced help
    • Options, options, options
  • 11. The ASP Question
    • Application Service Provider - access to specialized software that runs on the server
      • Storefront services - “hosted”
    • Login to service provider’s Web site - to edit
    • Product Data stored in database on service provider’s network
  • 12. The ASP Question
    • Host part or all
    • Vendor maintains service - advantage
    • You do not have 100% control - disadvantage
    • With ASP the total cost of your storefront is lower
  • 13. Shopping Cart Software
    • More control over appearance than ASP
    • You will need some professional help
    • Buy license and avoid monthly fees (ASP)
    • More complex - more expensive
    • Two distinct elements:
      • An Administration site - interface to manage
      • A public site - the customer side
      • Both share a database
  • 14. Shopping Cart Software
    • Hunting for shopping cart
      • Different prices, features, configurations
    • Your shopping cart should support your Web site goals, Web site plan and storyboard
    • Does your Host offer to install?
    • Focus on both customer and admin sides
    • Shopping cart should make your life easier!
  • 15. Shopping Cart Features
    • Try before you buy - all carts are not the same
    • Categories - Subcategories
    • Product Listing and Detail
    • Shipping
    • Taxes
    • Price Levels
    • Coupons
    • Product Options
    • Payment Gateway Support
    • Customization
  • 16. Understanding Online Payments
    • Mind-boggling array of chopping carts
    • Complexity is high - easily confused
    • Most misunderstood element of ecommerce
    • Pay for too much, too little, or wrong things
    • Become knowledgeable - your work is not done with this class
  • 17. Accepting Credit Cards
    • Compare payment processing to traditional point-of-sale scenario to understand
    • Goal - transfer money from customer credit card account to your merchant account
    • Need to establish merchant account 1 st
  • 18. What is a Merchant Account?
    • A special account you set up with your bank for receiving credit card payments
    • Where all payments are deposited
    • May take a few weeks to setup - Internet Merchant services
    • Two types of merchant accounts
      • Card Present - point of sale card swipe
      • Card Not Present - MOTO
    • All Internet transactions are Card Not Present
  • 19. Understanding How Credit Card Payments Work
    • 3 steps:
      • Authorization - verifies that the customer’s card is good for transaction
      • Capture - collects the transactions you are ready to settle into batch
      • Settlement - transfers the money from your customer’s credit card account to your merchant account
    • Purchase - Authorization - Capture - Batch
  • 20. Why the Payment Gateway is Important
    • No face-to-face
    • Payment Gateway - Internet payment processor
      • VeriSign - Authorize.net
    • Acquiring Financial Institution - arranged your merchant account - may be bank or other
    • Economic sense - you may get discount
    • Payment Gateway - connects Web site with merchant account’s banking network
  • 21. How Internet Payment Works
    • Getting paid - Authorization and Fulfillment
    • Customer enters credit card information
    • Shopping cart software process the order
    • Payment gateway requests authorization from customer’s financial institution
    • Merchant uses admin tools to capture payments
    • Payment gateway settles capture payments
  • 22. How Internet Payment Works
  • 23. Merchant Interface
    • Capture, void, and refund charges
    • Browser-based from payment gateway
    • Login (daily) - review - process
    • Settle payments, transfer funds from issuing financial institution (customer) to acquiring financial institution (your bank)
    • Process refunds
  • 24. Potential Payment Trouble Spots
    • Not to complicated is it?
    • Easy process - logistics of implementing process that causes all the problems
    • Forewarned is Forearmed
  • 25. Potential Trouble Spot #1
    • Your Customer and Your
    • Shopping Cart Don’t Get Along
    • Which credit cards do you accept?
    • Communication problem not technology
    • Visa, MasterCard - for sure
    • American Express, Discover - maybe
    • Shopping cart designed for optimum usability
  • 26. Potential Trouble Spot #2
    • Your Shopping Cart Software Won’t Work With Your Payment Gateway
    • Not all shopping carts support all gateways
    • VeriSign vs. Authorize.net
    • Each payment gateway has its own rules for how transactions must be formatted
  • 27. Potential Trouble Spot #3
    • Your Merchant Account Doesn’t Accept Online Payments
    • Must be able to accept Internet payments
    • Internet transactions considered more risky than tradition point-of-sale transactions
    • Financial institutions use different fee schedules to accommodate the risk
  • 28. Potential Trouble Spot #4
    • Your Payment Gateway Won’t Work With Your Merchant Account
    • Question: Will my payment gateway communicate with my financial institutional banking network?
    • Ask before your purchase - move forward
  • 29. Small Budget Payment Alternatives
    • Setup charges and monthly fees with merchant account may be too steep
    • Cheapest method? - don’t do transactions over the net - phone, store, mail
    • Manual labor has it’s cost!
    • Internet shoppers participate in “Web Culture”
    • Solutions exist to suit your needs
  • 30. The PayPal Alternative
    • PayPal is the third most popular third-party Internet payment processor (no setup fees, monthly charges)
    • eBay liked it so much they bought it!
  • 31. The PayPal Alternative
    • How it works:
      • PayPal establishes account for you
      • Customer get directed to PayPal with special code
      • Customer pays - PayPal deducts service charge and deposits the payment into your PayPal account
      • Your request payment from PayPal - check, deposit
  • 32. PayPal IPN
    • IPN - Instant Payment Notification
    • Used for delivering electronic payload (eBooks, files, etc)
    • Secure way to guarantee that customers paid for your product before they received access to a download
    • Shopping cart will need to support IPN
    • Use of gateway page to deliver product
  • 33. Payment Security
    • “ Internet is a global network of computers with a large community of hackers”
    • Hackers have all the latest toys and tools
    • Don’t use email to send critical passwords or any other confidential information
    • Online protection for yourself, and your customers, is as important as offline security
  • 34. SSL and Digital Certificate
    • Secured Sockets Layer (SSL) - exists to take normal online forms and make them secure
    • To apply SSL to Web site you must acquire a digital certificate authority
    • Unique key that your Web host installs on server
  • 35. SSL and Digital Certificate
    • Encryption of data - hard to crack
      • 40-bit - Shopping sites use (most browsers support
      • 128-bit- Banks may use - (older browsers my not support
    • Your shopping cart host may provide a common checkout facility for all vendors
    • $50 - $350 a year (multiple-year/renewal discount
  • 36. Understand Customer Concerns
    • Hackers
    • Spam
    • Upfront about security and privacy with customers
    • Allow your customers to feel comfortable as quickly and easily as possible by addressing issues
  • 37. How Secure is my credit card information?
    • Provide easily accessible security link that explains your why your site is secure
    • Explain the techniques you use such as SSL
    • Display logo of authority digital certificate
    • Make sure site switches to secure mode before information is sent
    • Liability - don’t store credit card numbers - customers will reenter - and feel safe
  • 38. What do you do with my personal information?
    • Write and provide your privacy policy
    • Don’s share customer information with others
    • Don’t use email address for others to see
    • Opt-in approach to electronic communications
    • Opt-out approach - customer must do something
    • Most customers see something they didn’t ask for as junk
  • 39. How long will it take for my order to arrive?
    • Customers expect quick order fulfillment
    • Tell your customers upfront how long it will take to process and ship the order
    • Ideally you should ship in 24 hours
    • Rapid delivery choice
    • Charging credit card
  • 40. What is happening with my order?
    • Let customers know you have received order
    • Let customers know you have shipped order
    • Email will work for this
    • If you offer custom merchandise maybe you should allow customers to check on order through your Web site
  • 41. Am I really getting a good deal here?
    • Price is not only concern to customers
    • Give your customers information that explains why buying from you is better than buying from your competition
    • “ I offer only the highest quality merchandise!”
    • Remind customers of excellent return policy, free shipping, or whatever else makes your product or service superior - be creative!
  • 42. What if there is something wrong with my order?
    • Online purchasing doesn’t allow for your customer to touch, feel, and see your product before they purchase
    • Make your return policy very clear - and be generous - You want customers to purchase again
    • Comfortable customers comeback for more
    • First impressions work on the Internet
  • 43.
    • "If anything, e-commerce will cause mom-and-pop-like businesses to proliferate. E-commerce redefines the neighborhood, the community, and the customer relationship. Instead of creating limits, it creates access to opportunities."
    • "Mark," Decatur, Illinois, Fast Company, September 1999