e-commerce allows businesses to enhance processes through information technology. It includes business-to-business, business-to-consumer, and consumer-to-consumer transactions online. While some physical goods are difficult to sell online, services and digital goods are well-suited for e-commerce. Developing countries face barriers like isolation and small markets, but e-commerce provides access to global markets. Successful e-commerce for Pacific Island businesses requires identifying niche products and skills, and ensuring expectations meet capabilities.

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 Business to Consumer (B2C) Retail Sales Customer Support Consumer to Consumer (C2C) Online Auctions

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 US Online buying will reach US$6.9 trillion 2004. 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? Pornography 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 - beyond Tshirts 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. e commerce and the Pacific Traditional Barriers Isolation – distance from market Small local markets Limited human capacity Opportunity Internet provides “instant” access to global market

10. e commerce adoption in Pacific Tourism small operators and multi nationals expatriate owned businesses due to better awareness of communications possibilities. Online retailers - often overseas based, some Pacific based exporters. Generally for the Pacific it has been ad hoc entry with ecommerce/

11. Lessons from experience Popular Sites Not = Revenue Online Advertising Market is immature especially in the Pacific. What visitors do on a website is more important then inflated “hits” figures Income models based on advertising must be supported by online sales. Start with a strategy know your market and how to reach them Traditional Off line issues determine profitability management, product, operations and financing.

12. e Commerce and Pacific The challenge is identify market niches for products unique to the Pacific (core competencies) EcoTourism, trade niches, island goods Identify skill industries where local capacity can be developed and product transferred electronically. (insurance, banking, drafting etc) Avoid entry in IT labor market - call centers, credit card processing without an exit plan because these IT niches will be the world’s most MOBILE industries and governed by cost of labor.

13. 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.

14. Example 2 - Tourism Pacificnavigator.com - Travel Portal One stop shop for travel info and bookings. 9 Pacific Island Countries Travel Information and Bookings Sticky Items - bring people back to site message boards for comments News Postcards

15. Example 3 - Retail Www.Fijilive.com - Portal Popular site and daily local news. immature advertising market – difficult to get local advertisers. Sticky Features News Numerous in-house websites sells through www.fijionsale.com uses credit card transactions with manual batch processing Kava, music, Jewelry, etc.

16. Example 4 - Retail Artifacts - Papua New Guinea www.niugini.com - PNG Portal Sticky Features Forums, News, Chat, Postcards, Info pages Sells PNG artifacts. Transactions via email and bank transfers Great product but management and operation issues and no online transactions.

17. Remember The Internet is the best opportunity for Pacific Island business since the Jet Plane however: traditional business principles still matter online. Value to the customer comes first. Be realistic about revenues and costs For the Pacific the initial market is overseas Initiative and creativity are premium .

18. PART II An ecommerce strategy for a Small Pacific Island Business By Taholo Kami for UNESCO

19. 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

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

21. 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

22. 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

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

24. Managing your Web Site Managing your website can take TIME! Adapting Business processes Good Samaritan Inn example Look at employee time Customer expectations Limitations of the medium (non face to face)

25. Transactions Getting paid online is very difficult in the Pacific. 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 / wire Credit Cards Merchant account Manual / Automated processing Third party processing paypal.com

26. 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)

27. 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

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

29. Conclusion Despite infrastructure limitations in the Pacific, 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.