eCommerce can take various forms like business-to-business, business-to-consumer, and consumer-to-consumer. It uses information technology to enhance business processes and achieve objectives. While some products like travel/tourism and retail items work well online, others requiring a physical touch are more challenging for eCommerce. Setting up an effective online presence requires planning content, designing a user-friendly website, managing transactions and delivery expectations, and marketing the site through online and offline strategies.

1. IT for Decision Makers
e Commerce Overview
By Taholo Kami
for UNESCO

2. What is e Commerce?
e commerce is enabling or achieving
your business objectives by using
information technology to enhance
or transform your business
processes.
Kami, 2000

3. e commerce
Business to business (B2B)
 automating supply
increasing business efficiency
Car manufacturing ordering tires from
supplier
Business to Consumer (B2C)
Retail Sales ,Ordering books online
Customer Support
Consumer to Consumer (C2C)
Online Auctions of second hand articles,
antique pieces

4. eCommerce
ecommerce is more then just an
online shop selling goods….
Businesses make huge savings by
more efficient interaction with their
suppliers or buyers.
A local pharmacist orders 60% of his supplies
from an overseas pharmaceutical suppliers
website and saves 5% in his purchases - is this
ecommerce?
A remote Fiji resort attracts guests from the
USA after several exchanges of email. Is this
ecommerce?

5. Global
400 million users of Internet worldwide
1999 US online retail sales - US$20bn.
Forrester Research
2000 US online retail sales - US$30bn+
Forrester Research
2004 US Online retail sales US$6.9
trillion. Forrester Research
electronic payment of bills and banking
will cost US Postal Service $17bn over
10 years.

6. Interpretation ?
Consumers are willing to spend money on
online transactions.
Despite the recent dot.com drop in
investment - consumers continue to use
the Internet in growing numbers.
The US figures are only part of the global
picture.

7. What is working?
Travel / Tourism
 Retail - items that don’t need personal touch -
objectivity in product quality and performance
music, books, gifts, Computers, electronic
items
Auctions
Real Estate - houses and investment properties.
Customer support services
More efficient and effective processes between
businesses (B 2 B)

8. What is not working?
Items which require “touch and trial”
Luxury goods
Clothes
Groceries - it works for some people
but market is restricted
Note: Many OFF line factors determine
success of Online service.
Eg. Transport network, customer profiles,

9. Demonstrations - Tourism
Tourism:
www.tongaonline.com/sailingsafaris
Sailing Safaris - Tonga
One boat operation in 1996 from small island
base
 Competing with 2 multinational yacht
companies with global marketing network
Since 1997 - 80% of business from web site.
This statistic 60-80% of bookings from web
inquiries is common to Tourism operators in
the Pacific.

10. Objectives?
Why get online?
Promote awareness of your Organization
Sell a product
Customer support
Information and contact page
Networking
Everyone else has a web page

11. Plan
What is your product?
Electronic, Services or physical
Portable and inexpensive to deliver
Tourism
Who is your market?
Overseas buyers
Upper income art collectors
Budget travellers / Up market
Obstacles, Implementation and
deadlines.

12. Getting Online
Hosting Your Website
Fast Access
Cost, Support, Space and Services
Choosing a Domain Name (web address)
www.myname.com / .nu / .to / .tv / .fj /
Calling Card
Choose name that relates to product
Reflects on organization
Easy to remember

13. Design Issues
Often Simple Is Better
E.g. National PNG, Yahoo
Complexity depends on your website
objectives
Planning content
How do you keep content fresh and relevant
 Who Develops your website?
Professional Services
Do it Yourself

14. Web Site Software
Web-site Creation
Common Software Tools.
Image Editing
 Adobe Photoshop
Jasc.com
Web Page Development
Paint shop Microsoft Front page - $150
Dream Weaver - $150 – 200
Netscape Communicator-Free
Note: There are a lot of cheaper software online.

15. Managing your Web Site
Managing your website can take TIME!
Adapting Business processes
Customer expectations
Limitations of the medium (non face to face)

16. Transactions
1. Getting paid online is very difficult in some countries.
Many banks will need a large deposit or a strong
relationship to allow a SME to open a merchant /
credit card processing account at a bank.
Alternatives include:
 Bank transfer
 Credit Cards
 Merchant account
 Manual / Automated processing
 Third party processing
 paypal.com

17. Delivery
Delivering an artifact after online purchase or
attracting visitors to an eco tourism resort -
managing expectations is essential
People are used to guaranteed delivery but
more importantly, communicate reality so
expectations are realistic.
E.g. Implement a 2 week guarantee for
goods
Ensure online advertisement meets
expectations
Use a reliable delivery service (TNT, FedEx)

18. Marketing Web site
How do people find your website?
ONLINE Strategy
Links from related and / or popular web sites
Search Engines
Online Advertisements
Informed by other users

19. Marketing Your Website
OFFLINE Strategy - Show Your URL
www.MYCOMPANY.com
Stationary
Advertising on conventional media
Trade shows

20. Making a contract
What terms do you want to include?
What risks are you trying to avoid?
How will disputes about contract be dealt
with?
What is the governing law?
Who will sign it?

21. Conclusion
Despite infrastructure limitations, the target
market in developed countries are likely to be
Internet users.
If unsure, start small. An existing website helps
develop your capacity to interact with
customers and measure web potential.
Lobby Government for effective IT Strategy
that develops infrastructure and builds local
capacity.