Ecommerce presentation

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A presentation on building an Ecommerce site targeted at MBA students - an overview of the business processes and constituents involved in Ecommerce site development.

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Ecommerce presentation

  1. 1. www.os-cubed.comECOMMERCEBUILDING E-COMMERCE SITES IN 2013
  2. 2. www.os-cubed.comLEE DRAKE, CEO, OS-CUBED INC.• CONTACT INFO: LDRAKE@OS-CUBED.COM ∙ @LEEDRAKE ∙ LINKEDIN.COM/IN/LEEDRAKE• BUSINESS: OS-CUBED, INC. ( WWW.OS-CUBED.COM )• THIS PRESENTATION: HTTP://BIT.LY/OS3COMMERCE
  3. 3. www.os-cubed.comTYPES OF ECOMMERCE SITES• B2B – BUSINESS TO BUSINESS• B2C – BUSINESS TO CONSUMER• B2G – BUSINESS TO GOVERNMENT• B2D – BUSINESS TO DISTRIBUTION CHANNEL
  4. 4. www.os-cubed.comB2B – BUSINESS TO BUSINESS SITES• FOCUSED ON MARKETING AND CUSTOMER SERVICE• TYPICALLY ENABLED FOR SETTING INDIVIDUAL DISCOUNT LEVELS BY CLIENT• CREDIT CARD AS WELL AS PO AND NET TERMS• MAY INTEGRATE DIRECTLY WITH ERP SYSTEM TO ADD ORDERS TO WORKFLOW• SELLING TO THE BUYER AND TO THE CONSUMER• PROVIDED AS A CUSTOMER SERVICE OPTION
  5. 5. www.os-cubed.comB2C SITES• MUST BE SEO FOCUSED TO DRAW IN CLIENTS FROM SEARCH ENGINES• GOING FOR VOLUME• ADD-ON SALES IMPORTANT• MAY TAKE A LOSS ON ONE PRODUCT LINE AND MAKE UP FOR IT BY SELLING ACCESSORIES,WARRANTIES AND OTHER PLANS• ALL ABOUT PRICE
  6. 6. www.os-cubed.comB2G – BUSINESS TO GOVERNMENT• CONTRACT ORIENTED• PROVIDED FOR CORPORATE BUYERS• TYPICALLY CONCENTRATES ON GOVERNMENT DEBIT CARD SPENDING• GSA CONTRACTS PREDOMINANTLY• MAY HANDLE MORE THAN ONE CONTRACT, POTENTIALLY AT DIFFERENT DISCOUNT RATES
  7. 7. www.os-cubed.comB2D – BUSINESS TO DISTRIBUTION CHANNEL• 2 SUBTYPES –• MANUFACTURER TO DISTRIBUTOR OR SALES NETWORK• DISTRIBUTOR TO RESELLER• LARGE NUMBERS OF ITEMS IN THE CATALOG – MAY WELL BE COMING FROM MORE THAN ONEMANUFACTURER• ORDERS ARE MANY TIMES FOR LARGE QUANTITIES• MUST BE INTEGRATED WITH STOCK STATUS ON THE BACK END
  8. 8. www.os-cubed.comB2C E-COMMERCE – THE SERVICE CONTINUUMECOMMERCE – FROM DEAD SIMPLE TO DOWNRIGHT COMPLICATED• BASIC PLATFORMS – YAHOO STORES, EBAY, AMAZON RESELLER, SINGLE ITEM PAYPAL SITES, ETSY, ETC. –• IMPLEMENTATION COSTS LESS THAN $10,000 (CAN BE LESS THAN $1000)• LIMITED FUNCTIONALITY, SCALABILITY AND FLEXIBILITY• CUSTOMIZABLE PLATFORMS USING PLUG-INS – MOST BASED ON A CMS SYSTEM• MUCH MORE FLEXIBLE, SCALABLE AND FUNCTIONAL• IMPLEMENTATIONS IN THE $10K - $250K RANGE• LEVERAGE EXISTING CODE AND SERVICE PROVIDERS• FULLY CUSTOMIZED ECOMMERCE• $50,000 AND UP (AND BY UP I MEAN OVER $5M IN COSTS)• DO WHATEVER YOU WANT• HUGE INVESTMENT IN INFRASTRUCTURE AND OVERHEAD• MUCH MORE SCALABLE
  9. 9. www.os-cubed.comOTHER ECOMMERCE MODELS• AUCTION (TRADITIONAL BLIND AUCTION – EBAY)• REVERSE AUCTION (USED BY A VENDOR TO GET THE LOWEST BID)• QUALIFY AND QUOTE (GATHER INFORMATION NEEDED AND PROVIDE A CUSTOM QUOTE)• MICRO-TRANSACTIONS (EARNING MONEY A TINY BIT AT A TIME)• GAMING (USING GAMES TO SELL VIRTUAL AND ACTUAL PRODUCTS)• SOFTWARE SALES AND LICENSING (SELLING SOFTWARE USING ECOMMERCE)
  10. 10. www.os-cubed.comWHAT MAKES UP AN ECOMMERCE SITE• EVERY ECOMMERCE SITE CREATES A SALES FUNNEL• THE SALES ARE WHAT DRIPS (OR HOPEFULY POURS) FROM THE SPIGOT AT THE BOTTOM OF THEFUNNEL
  11. 11. www.os-cubed.comTHE E-COMMERCE FUNNELGeneral interest - contactsResearch and refineChoose and compareShopBuyRetainSEO and MarketingManaged contentShopping CartPayment solutionOrder trackingCustomer service
  12. 12. www.os-cubed.comWHAT FEEDS THE FUNNEL• ORGANIC SEARCH ENGINE TRAFFIC• PAID ADVERTISING• PAID SEARCH• PAID CONTENT• SOCIAL MEDIA• PUBLIC RELATIONS
  13. 13. www.os-cubed.comWHAT IS THE ECOMMERCE SITE’S GOAL• LET AS FEW PEOPLE EXIT THE FUNNEL AS POSSIBLE AT EACH STAGE• CREATE NEW LEADS TO MARKET TO – NOT JUST SELL – MARKET• ENGAGE CONSUMERS• PROVIDE CUSTOMER SERVICE• INFORM CONSUMERS
  14. 14. www.os-cubed.comBUDGET ELEMENTS• SPECIFICATION• RESEARCH• PROTOTYPING• UI SURVEYS• DESIGN• PROGRAMMING• DATABASE WORK• INTEGRATION• HOSTING• CONTENT CREATION• GRAPHICS• PHOTOGRAPHY• MARKETING AND SALES• CUSTOMER SERVICE• TESTING• MULTIPLE PLATFORM INTERFACES
  15. 15. www.os-cubed.comA TYPICAL BUDGET – LARGE ECOMMERCE SITE
  16. 16. www.os-cubed.comTASK BREAKOUT FOR ONE TASK
  17. 17. www.os-cubed.comWHO IS INVOLVED IN BUILDING A SITE• MARKETING• SALES• CUSTOMER SERVICE• ORDER PROCESSING• MANUFACTURING• ENTERPRISE RESOURCE PLANNING• IT• SOFTWARE DEVELOPMENT• SHIPPING AND RECEIVING• INVENTORY MANAGEMENT AND CONTROL• HOSTING COMPANY• MANAGEMENT• SECURITY ASSESSOR• INSURANCE AND LIABILITY PROVIDER• OTHERS AS NEEDED
  18. 18. www.os-cubed.comMOST COSTLY PARTS OF SITE DEVELOPMENT• DESIGN CAN BE VERY COSTLY• CUSTOMIZATION OF UI/CART EXPERIENCE• CREATION OF INVENTORY AND MAINTENANCE OF SAME• INTEGRATION WITH BACK END SYSTEMS• ADMINISTRATIVE, PROJECT MANAGEMENT AND PLANNING COSTS• MARKET RESEARCH AND DEVELOPMENT• PAID DEMAND GENERATION ACTIVITIES• ONGOING MAINTENANCE AND UPDATES
  19. 19. www.os-cubed.comECOMMERCE SWOT• STRENGTHS• ENGAGES CONSUMERS WITH “INSTANT BUY” CAPABILITIES• CREATES A STRONG LINK BETWEEN MARKETING AND SALES STATISTICS• ENABLES PRICING, AVAILABILITY ETC TO RESPOND DIRECTLY AND INSTANTLY TO MARKET PRESSURE• REDUCES THE COST OF ROLLING OUT NEW PRODUCTS• INCREASES CUSTOMER ENGAGEMENT• CREATES STRONG DRIVE FOR ADD-ON SALES
  20. 20. www.os-cubed.comECOMMERCE SWOT• WEAKNESSES• ENTERING THE ONLINE MARKET REQUIRES YOU TO BE COMPETITIVE GLOBALLY AND HAVE THE HIGHESTLEVELS OF CUSTOMER SERVICE IN PLACE• REVIEWS AND NEGATIVE COMMENTS CAN SPREAD QUICKLY AND DAMAGE CUSTOMER BRAND – MUSTSTAY ON TOP OF BOTH CUSTOMER SERVICE AND MEDIA RESPONSE• COST OF ENTRY CAN BE HIGH – YOU MUST SELL A LOT TO RECOVER INITIAL LABOR AND DOLLARINVESTMENT• DOING IT POORLY CAN BE WORSE THAN NOT DOING IT AT ALL• ONLINE MARKET MAKES IT EASY FOR CUSTOMERS TO COMPARISON SHOP• REAL-TIME NATURE REQUIRES CONSTANT ATTENTION• WEB CHANGE (NEW BROWSERS, TECHNOLOGIES, CAPABILITIES, COMPETITIVE ADVANTAGES ETC) REQUIREWEB DEVELOPMENT TO BE AN ONGOING NOT ONE-TIME EXPENSE
  21. 21. www.os-cubed.comECOMMERCE SWOT• OPPORTUNITIES• FIRST TO MARKET ECOMMERCE SITES CAN CAPTURE MARKET SHARE SWIFTLY• NEW CUSTOMER INFORMATION CAN BE USED TO IDENTIFY AND EXPLOIT NEW MARKETS• RESPONSIVE MARKETING AND SALES CAN DRIVE NEW SALES OPPORTUNITES• INTEGRATION WITH BACK END SYSTEMS CAN IMPROVE TRANSACTON TURN AROUND AND INCREASEPRODUCTIVITY• AUTOMATED PROCESSING AND SYSTEMS CAN KEEP CUSTOMER WELL INFORMED
  22. 22. www.os-cubed.comECOMMMERCE SWOT• THREATS• BEING 2ND OR LATER TO MARKET REQUIRES SIGNIFICANT DIFFERENCE OR IMPROVEMENT FROMEXISTING SITES TO OVERCOME FIRST-TO-MARKET• LEARNING WEB TECHNOLOGIES AND HOW TO LEVERAGE THEM CAN BE DAUNTING – NOT KNOWINGTHEM CAN BE DISASTROUS• BIG PLAYERS CAN BE ALMOST IMPOSSIBLE TO COMPETE WITH (EVEN BY OTHER BIG PLAYERS) – YOUARE UNLIKELY TO BE THE NEXT E-BAY, THE NEXT AMAZON, THE NEXT STEAM• COPY AND REFINE IS A NORMAL DEVELOPMENT STRATEGY• YOUR BACKEND SYSTEMS MUST BE ABLE TO HANDLE THE FRONT END TRAFFIC, AND BE INTEGRATED
  23. 23. www.os-cubed.comGENERATING DEMAND• PAID ADVERTISING• PPC• SYNDICATED CONTENT• SEARCH• PPI• PLACEMENT ADS• PARTNER ADVERTISING
  24. 24. www.os-cubed.comGENERATING DEMAND• WORD OF MOUTH• SOCIAL MEDIA• BLOGGING FOR WORD OF MOUTH• GENERATING WORD OF MOUTH REFERRALS THROUGH SALES PROCESSES• TESTIMONIALS AND REVIEWS
  25. 25. www.os-cubed.comGENERATING DEMAND• DRIP MARKETING – GENERATING NEW DEMAND FROM EXISTING CUSTOMERS• TIMED SALES – CREATING EVENT DRIVEN SALES MECHANISMS• CUSTOMER SERVICE DRIVEN SALES OPPORTUNITIES• IMPROVEMENTS AND UPGRADES• SERVICE RENEWALS
  26. 26. www.os-cubed.comCREATING ADD-ON SALES OPPORTUNITIES• RELATED PRODUCTS• RECOMMENDED PRODUCTS• ACCESSORIES• WARRANTIES AND SERVICE CONTRACTS• EXPEDITED SHIPPING• ADDITIONAL SERVICES OR CUSTOMIZATION• TEND TO BE HIGHER MARGIN, NOT COMPARISON SHOPPED AS MAIN ITEM WILL BE
  27. 27. www.os-cubed.comSECURITY• PCI COMPLIANCE• IF YOU STORE, PROCESS OR TRANSMIT CARDHOLDER DATA YOU MUST BE PCI COMPLIANT• PCI LEVEL 1 AUDIT REQUIRED• DIFFERENCE BETWEEN AUDITS AND FIXES• IMPORTANCE OF CARRYING ELECTRONIC LIABILITY INSURANCE• REGULAR SCANNING AND AUDITING REQUIRED FOR ONGOING ASSURANCE
  28. 28. www.os-cubed.comSECURITY• HIPAA COMPLIANCE• ANY WEBSITE THAT STORES, TRANSMITS, OR COLLECTS PERSONALLY IDENTIFIABLE MEDICALINFORMATION• STANDARDS ARE INCLUSIVE OF PRACTICES FOR PCI BUT HIGHER THAN PCI• MUST CONTROL WHO HAS ACCESS AND RECORD/MAINTAIN RECORDS AND LOGS• MUST RECEIVE HIPAA INFORMATION RELEASE FROM CLIENT• MINIMIZING RISK IS ESSENTIAL AS PER-INCIDENT/PER-REVELATION FINES CAN BE ASTRONOMICAL
  29. 29. www.os-cubed.comANALYTICSMEASURING THE FUNNEL – YOU NEED TO UNDERSTAND THE TERMS• VISITS• PAGE VIEWS• PAGES/VISIT• BOUNCES• UNIQUE VISITORS• VISIT DURATION• PERCENT NEW• TRAFFIC SOURCES• CONTENT AND SITE SPEED• FREQUENCY, RECENCY, ENGAGEMENT• TECH FACTORS:PLATFORM, BROWSER, DEMOGRAPHICS, GEOGRAPHY• MOBILE• DESIGNING AND MONITORING ANALYTICS PIPELINES• ANALYTICS FOR ADVERTISING RETURN ON INVESTMENT
  30. 30. www.os-cubed.comSOME LINKS• WWW.OS-CUBED.COM• WWW.TMTSAFETYPRODUCTS.COM• HTTP://ENTREPRENEUR-BLOG.OS-CUBED.COM• WWW.DOTNETNUKE.COM• WWW.GOOGLE.COM/ANALYTICS• WWW.GVCSHRM.ORG• WWW.SPECTRACOMCORP.COM
  31. 31. www.os-cubed.comLEE DRAKE, CEO, OS-CUBED INC.• CONTACT INFO: LDRAKE@OS-CUBED.COM ∙ @LEEDRAKE ∙ LINKEDIN.COM/IN/LEEDRAKE• BUSINESS: OS-CUBED, INC. ( WWW.OS-CUBED.COM )• THIS PRESENTATION: HTTP://BIT.LY/OS3COMMERCE

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