Effective Online Business: Hosting, Marketing, and Management Strategies Workshop #I - Introduction Presenters: Kelly Burke – University of Hawaii at Hilo Steven Parente – Aina Hawaiian Tropical Products Supported by a USDA Cooperative State Research, Education and Extension Service Grant through the University of Hawaii at Hilo and College of Business and Economics Dean Dr. Marcia Sakai
Ecommerce and the Internet: Introduction to Online Retail Overview
Merchant submits credit card transaction to the Payment Gateway on behalf of a customer via secure connection from a Web site.
Payment Gateway receives the secure transaction information and passes it via a secure connection to the Merchant Bank’s Processor.
The Merchant Bank’s Processor submits the transaction to the Credit Card Interchange (a network of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions).
Credit Card Interchange routes transaction to customer’s Credit Card Issuer.
Credit Card Issuer approves / declines the transaction based on customer’s available funds and passes transaction results, and if approved, the appropriate funds, back through the Credit Card Interchange.
Credit Card Interchange relays transaction results to Merchant Bank’s Processor.
Merchant Bank’s Processor relays transaction results to Payment Gateway.
Payment Gateway stores transaction results and sends them to customer and/or merchant.
Credit Card Interchange passes appropriate funds for the transaction to Merchant’s Bank, which then deposits funds into the merchant’s bank account.
Effective Online Business: Hosting, Marketing, and Management Strategies Workshop #2 Presenters: Kelly Burke – University of Hawaii at Hilo Steven Parente – Aina Hawaiian Tropical Products Supported by a USDA Cooperative State Research, Education and Extension Service Grant through the University of Hawaii at Hilo and Dr. Marcia Sakai
Effective Online Business Marketing and Management Strategies
Marketing your Internet business
Monitoring your site’s performance
Extending business opportunities - online exchanges / cooperatives
<title>Sore Okole Mountain Bikes - Home Page</title>
<META NAME = “description” CONTENT = “Sore Okole Mountain Bikes is the place for all of your biking needs, including frames, components, accessories, gear and popular brands like Cannondale, Trek and Specialized”>
<META NAME = “keywords” CONTENT = “mountain, bike, bikes, Cannondale, Trek, Specialized, components, gear, frames”>
<h1> Sore Okole Mountain Bicycles </h1>
Example of HTML source at Sore Okole Bicylcles
Search Engine Marketing: Optimization Using Meta Tags
Search Engine Marketing: Bid for Placement and Keywords
Determine how much gross profit (after costs) you make per sale
Is there a ‘lifetime’ value per customer or
Do you value a customer as ‘one time’ only?
Calculate ‘conversion’ rate
Shop.org estimates retail industry average at 2.4%
When possible use your own site statistics
Calculate PPC value – also called Conversion Cost
If your gross profit is $10 per sale
And your conversion rate is 4% (4 sales per 100 click-throughs)
Then your PPC value is $10 X .04 = $0.40 - that you would be willing to pay per visitor (PPC)
In other words, you can pay $0.40 per click through and after 25 of them you would have paid 25 X $0.40 = $10.00 but you’d expect 1 of the 25 visitors (4%) to buy something - giving you that $10.00 gross profit, covering your PPC costs
Search Engine Marketing: Cross-linking and Other Issues