The document provides guidance for small businesses on expanding from physical stores to online commerce. It discusses reasons for businesses to establish an online presence, including reaching more customers. It then outlines the steps to launch an e-commerce website, including obtaining a domain name and hosting, designing the site, and choosing e-commerce software. Examples of dot-com successes that integrated physical and online operations like Amazon and Tesco are provided, as are failures that lacked proper planning.

1. GOING FROM bricks-n-mortar TO clicks-n-mortar: EXPANDING YOUR SMALL BUSINESS

2. Module I E-Commerce: The Global Frontier for Small Businesses Dot com failures and successes Why should you be online? Advantages of E-Commerce for Small Business B2C Implementation Framework E-Commerce and your Business Strategy Module II Step-by-step guidance for launching a web-based business Domain Services Hosting Services Website Design Website Marketing, Promotion & Analytics Module III Software solution providers Local Service Providers National Service Providers

3. Dot Com Failures Webvan.com (1999-2001) Online grocer In a mere 18 months, expanded from the San Francisco Bay Area to eight U.S. cities, and built a gigantic infrastructure from the ground up Grocery business has razor-thin margins to begin with, so it was never able to attract enough customers to justify its spending spree FAILED - Lack of proper cost/benefit analysis Go.com (1998-2001) Go.com was a combination of Disney's online properties and Infoseek, in which the Mouse had previously acquired a controlling interest Though it was meant to be a "destination site" much like Yahoo, Go.com had its own little quirks, such as content restrictions against adult material. Disney was never able to make Go.com popular enough to validate the millions spent on promotion FAILED - Lack of proper cost/benefit analysis

4. Dot Com Failures Pets.com (1998-2000) Pet supplies sold online After they ordered kitty litter, a customer had to wait a few days to get it FAILED - Selling the wrong product or service Boo.com (1998-2000) Founded in the United Kingdom as an online fashion store It’s complicated website was very slow to load at a time when dial-up Internet was the norm FAILED - Poor website GovWorks.com (1999-2000) Web site for citizens to do business with municipal government Personalities and egos clashed, technology was stolen, software never worked as it should have FAILED - Poor human resource management

5. Dot Com Successes Staples.com Online arm of Staples Inc. To compete and improve online customer service there was a complete revamp of the office supplier's 18-month-old site Staples .com streamlined the checkout process, installed two new search tools, added several small-business services, and improved purchasing management SUCCESS – Good customer service Tesco.com World's biggest online grocery service The key to Tesco's success has been to piggy-back its internet business on its existing supermarket operation This means it picks and delivers orders from its network of stores rather than from a handful of purpose-built depots SUCCESS – Good business plan

6. Dot Com Successes Amazon.com Amazon's initial business plan was unusual: the company did not expect to turn a profit for four to five years Amazon grew at a steady pace in the late 1990s while many other internet companies grew at a blindingly fast pace When the Internet "bubble" burst and many e-companies went out of business, Amazon remained profitable and maintained revenues of over $1 billion per fiscal quarter SUCCESS – Good business plan Dressbarn.com Dress Barn, in Suffern, N.Y., has many offline advantages - a back end fulfillment system, catalog and database architecture and an eager online customer base Web-site lets customers order store merchandise online. Customers will also be able to return merchandise bought online to any of Dress Barn's 700 stores SUCCESS – Brick-n-mortar to support online business

7. Dot Com Successes Formula1.com Grand Prix coverage As the season shifts into gear, the site attracts one million users Revenue comes from advertising, ticket sales and merchandise sales SUCCESS – Good promotion SmarterKids.com Focuses on helping parents understand a child's learning abilities and purchase the appropriate toys and software SmarterKids.com realized that spending hundreds of thousands of dollars in marketing for strong brand recognition wouldn't amount to much if customers didn't come back It would take quite an effort to put the brand ahead of the likes of KB Kids and Toys "R" Us, and even dot-coms like Amazon.com What it could do was make it clear that SmarterKids.com was more than just a toy site SUCCESS – Good business plan

8. Why should you be online? 68% of Americans and 12.3% of ‘Rest of the world’ use the Internet each day -- Internet World Stats 2006 $192.8 million: U.S. Internet revenue from single online purchases for the first half of 2005 --Online Publishers Association/ComScore Networks, November 2005 83% of small- and medium-sized businesses with websites containing e-commerce features are receiving monthly revenue from it --Interland, September 2005 Integration between physical stores and the Web site is an important part of any brick-and- mortar's online success -- Chris Correia, www.informationweek.com 53% of small businesses with websites say their sites are primarily to provide company credibility; 49% use it to generate sales; 38% brand awareness; 33% generate leads; 29% it provides a critical building block for developing the products and services they sell --Interland, September 2005

9. Advantages of E-Commerce for Small Business Small Businesses have just as much space in the heavily used Web search engines as large Corporations Internet is considered to be the least expensive way for Small Businesses to market their goods and services globally Small Businesses can demonstrate the company’s products and services in a multimedia Format They can reach younger, more affluent buyers They can maintain full scale after sales customer service They can maintain continuous contact with the customer for all aspects of business activities

10. B2C Implementation Framework

11. E-Commerce and your business strategy Mission Decide clearly how to make the Website relevant to your business Audience Know exactly who will visit your site Audience relationship Find out the characteristics and Internet habits and preferences of your customers Objectives Do you want to build your brand or conduct online commerce? Will you provide customer support through technical information or in-house staff? Current Web presence Analyze whether limited success with an existing site is a result of concept, content, design or marketing Identify what the new/improved website should accomplish for your company in three months, six months and one year after it is implemented; Quantitatively measure success of your website

12. E-Commerce and your business strategy (continued)

13. Step-by-step guidance for launching a Web-based business Step I : Domain Services Domain name registration Top level domains (TLD) are .com, .net, .biz, .us, .ca, .info etc. http://www.icann.org/registrars/accredited-list.html has a list of accredited domain name registrars Domain name availability Check can be performed using Allwhois™ ( http://www.allwhois.com ), a free service provided by MarkMonitor Domain name hosting Ensure that the Domain name you have purchased points to the website being hosted by your web hosting provider Features of a good domain registrar: No cost domain forwarding or domain parking No cost for change of Registrant Domain Name Locking DNS Server Changes

14. Step-by-step guidance for launching a Web-based business Step II : Hosting Services Web Hosting Service Front Page site hosting Ecommerce Hosting Key considerations to evaluate the web host provider: History and reputation Choice of operating system (Windows NT/2000, Unix) Amount of server space, traffic limits allowed (Bandwidth) Scalability of the web host service, up-time and money back guarantees Amount of backup and restore capabilities Site creation, management and commerce tools, development and technical support Web based email accounts (e.g. [email_address] ) Security features Cost

15. Step-by-step guidance for launching a Web-based business Step III : Website Design Eight most important guidelines for designing your Website

16. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Build your Website/Web Store Purchase software 'out of a box' Use software provided by an ecommerce hosting company Create your own system, writing the code necessary Companies offering low-cost, out-of-the-box solutions: freemerchant.com Yahoo Store bigstep.com

17. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) The 7 C’s Framework CONTEXT CONNECTION COMMUNITY CUSTOMIZATION COMMERCE CONTENT COMMUNICATION

18. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Context Aesthetically dominant Functionally dominant Integrated

19. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Content Digital information (text and multimedia) Streaming media Streaming media can add value to your new website It may include audio clips, video clips, or other media formats that the viewer can access while on your website It allows viewers to consume (view or listen) to media without downloading Can provide viewers with stimulating and informative information with a click of the mouse Can be used as an advertisement or mini-commercial on your website or as an instructional video Content classification: Product dominant – primary purpose is to sell physical goods Information dominant – houses vast archives of information and tools for finding specific topics Service dominant – perform a service for its users, often for a fee

20. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Community Feeling of membership in a group and sense of involvement and shared interests Community classifications: Nonexistent - sites that have no community offer no way for users to interact with one another, on either a one-to-one basis or one-to-many basis Limited - sites that offer features such as reading and posting information, stories, or opinions (non-interactive tools) Strong - sites that offer interactive community functions such as chat rooms and message boards Customer feedback One of the best tools for improving the quality of your site or product An interactive website makes your visitors feel more comfortable and increases your chances of making a sale. For e.g. a simple feedback form in the "Contact Us" section of your website Message boards, posted customer feedback or reviews, a question-and-answer forum, or a blog can encourage customer involvement Have a strategy for dealing with the different kinds of feedback you receive Listen to what users have to say and be prepared to rethink your product based on their comments

21. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Customization A website's ability to tailor itself to each user or to be tailored by the user Customization classification: Generic – website presents same face to each user Moderately customized – site does not vary widely among users Highly customized – make extreme efforts to give each user an individualized experience Communication The dialogue between a site and its users Communication classification: One-to-many, non-responding user broadcast communications to defined audiences One-to-many, responding user – sends messages to registered users and invites them to submit comments and response One-to-one, non-responding user sends personalized messages to address users’ specific needs One-to-one, responding user – site sends a personalized message to which the user may respond

22. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Connection Ability to link to other sites Connection classification: Destination site – predominately self-generated content with few links to other sites Hub site – combination of self-generated content and selective links to related websites Portal site – almost exclusively outsourced content and links to other sites Commerce Use website to sell goods, products or services Commerce classification: Low – have the ability to process transactions, but few or no e-commerce tools Medium – allow financial transactions but without all the ‘e-commerce bells and whistles’ High – equipped with all or almost all e-commerce tools Security SSL Encryption allows a secure session that guarantees privacy SSL Certificates can be purchased through several companies. 93% of Fortune 500 use VeriSign on their sites

23. Step-by-step guidance for launching a Web-based business Step III : Website Design (continued) Mapping the Seven C’s Framework High Medium Low Commerce Portal Hub Destination Connection One-to-one, responding user One-to-one, nonresponding user One-to-many, responding user One-to-many, nonresponding user Communication Highly customized Moderately customized Generic Customization Strong Limited Nonexistent Community Service- dominant Information-dominant Product-dominant Content Integrated Functionally dominant Aesthetically dominant Context

24. Step-by-step guidance for launching a Web-based business Step IV : Website Marketing, Promotion and Analytics Marketing What is Link Popularity? Measurement of links to your website from other websites Example: The Pantagraph, B-N Web guide Why do you need Link Popularity? Search engines rate your website based on Link Popularity Determines what order your website is ranked in a given search How to get Link Popularity Link Exchange - Find sites that you would like to have your link on and email a Link Exchange request Important to look for high quality links that would have a high rating

25. Step-by-step guidance for launching a Web-based business Step IV : Website Marketing, Promotion and Analytics Promotion Gift certificates for coming to your site Discount codes offered at your site Both will cause interest in what you are selling E-Newsletters Cost effective way of getting news about your company out to customers Drive people to your website using the E-Newsletter Websites with templates/tutorials: www.seniortechservices.org www.sparklist.com www.alderconulsting.com/enews.html

26. Step-by-step guidance for launching a Web-based business Step IV : Website Marketing, Promotion and Analytics Analytics Service available to monitor your website Provides statistics on what visitors are looking at on your site Will give you the best feedback for what works and what doesn’t

27. Software Solution providers There is a lot to consider when choosing who will develop and host your site. It is important to evaluate your options before choosing your Provider. Local/Full Service Providers: Offer most if not all services May offer more personal service and customer support May tend to be more expensive National Service Providers: Not many are full service providers Individual companies or sites that specialize in specific services (Web hosting, website design e-commerce) There might not be much interaction between you and your provider

28. Local Service Provider: A5 (Bloomington, IL) www.A5.com Started in 1996 as Dave’s World and changed to A5 in 2001 Claim to be one of the oldest and most experienced companies in Central Illinois Specifically provide web solutions to the small company market Provides many web services: Website Development $100-125 hourly rate Full site productions typically range between $2,000-$15,000 Web Hosting Variety of web hosting packages Range anywhere from $9.95 a month to $99.95 a month depending on client’s Website Consulting Guide clients to build a productive and efficient website Charges are $125 an hour

29. Local Service Provider: CTech Services (Normal, IL) www.ctechinternet.com Started in 1994 as a computer service and training center In 1998 widened its business scope to include website development services Business model is to work with small to medium size businesses - Allow their clients to focus on the business core competencies and not the website Provides many web services: Website design - Will build websites for any size to fit the clients needs. All sites are custom designed E-Commerce – Offers total ecommerce solutions Can build from the ground up or integrate a commerce system into an already existing site Web Hosting Offers a variety of plans to suit different sites; Ranges from $10 to $35 a month for plans

30. Local Service Provider: Webpresence group (Peoria, IL) www.webpresencegroup.net Offers many different services to a growing and existing businesses Web services (Design, Hosting, ECommerce) Development (Software and Multimedia) Network (Servers and Security) Provides many web services: Website Design Gets to know your business before designing the site Understands the goals of your business to enhance the effect of the new site Web Hosting 4 different solutions to fit the clients’ needs Ranges from a standard simple solution to a complex e-commerce solution

31. National Service Provider: Yahoo Small Business www.smallbusiness.yahoo.com Offers web design and web hosting Many different options for the user Website design: Allows you to design your own website using Yahoo! SiteBuilder (free) Can also have their partner, Website Pros develop your site Different packages ranging from a simple 1 page site for $99.99 to a fully customized 10 page site for $2099 Web Hosting: Offers 3 different plans; Starter, Standard, and Professional Prices range from $11.95 a month to $39.95 a month - Includes free domain name, business emails, and many other options

32. National Service Provider: Apollo Hosting www.Apollohosting.com Website hosting since 1999 Winner of best e-commerce hosting award in 2005 and many other hosting awards Primarily focuses on providing a genuine, dedicated hosting plan to fit their client’s needs Also allows for the client to order software for do-it yourself web design Many different hosting plans: Simple, basic plan that serves as almost as an electronic business card; information only - $6.96 a month Business plan for those who are just starting to sell their products online - $13.96 a month E-commerce Pro Plan for advanced hosting and successful e-businesses - $20.96 a month

33. Questions ???

34. References: Poon, Pak-Lok & Lau, Amy, H. L. (2006). The PRESENT B2C Implementation Framework. Communications of the ACM, 49(2) , 96-103. Clyman, John (2003, Feb 8). Even easier e-commerce. PC Magazine , 118-127. Rayport, J., & Jaworski, B.H. (2004). Introduction to e-Commerce . McGraw Hill Irwin. Information on ‘Considerations to evaluate web host providers” retrieved March 01, 2006, from Web site: http://www.hostpulse.com/hosting Information on ‘Prepare a strategy for your website” by Mary Ann Chapman, retrieved March 10, 2006, from Web site: http://www.workz.com Information on ‘Web Solution providers’ retrieved March 10, 2006, from following Websites: www.A5.com www.ctechinternet.com www.webpresencegroup.net www.smallbusiness.yahoo.com www.Apollohosting.com