eCommerce

The Internet has become a venue for eager sellers seeking new delivery channels. This shouldn’t be surprising, since eCommerce (selling online) can offer many benefits over conventional sales methods.

Advantages of eCommerce

• eCommerce can lower up front set-up costs and operational costs with online store-fronts and reduce staffing needs
• eCommerce provides an online store that is ‘open 24/7’ to access a global marketplace.
• eCommerce can automate order processing, and improve order tracking capabilities
• eCommerce can develop cheaper online catalogues that allows the online store owner to update product lists on the fly
• eCommerce enables an online store to allow customers to shop in different ways, building their orders over time, saving their favourites in a wish list, customizing their orders, comparison shopping and searching large catalogues.
• eCommerce can increase brand awareness that will enable the online store owner to compete with larger, well established eCommerce eBusiness.

eCommerce Solutions

There are several eCommerce tool options:

• Online Payment Systems – Paypal and WorldPay are the two most recognized forms of online payment systems. Other options include Canadian based companies such as:
  • Beanstream
  • Versapay
  • E-xact
  • Moneris
• Online Shopping Carts– Shopping carts are eCommerce tools that allow customers to record, buy, and catalogue their online store purchases. Applications that are available for your online store includes:
  • OSCommerce  - open source eCommerce Shopping Cart
  • Zen Cart – open source eCommerce Shopping Cart
  • Design Cart – premium eCommerce Shopping Cart
  • X-Cart – premium eCommerce Shopping Cart
• Online Stores – Consists of pre-packaged but customizable online store software for eCommerce applications which includes:
  • eBay Stores – an online store application by eBay
  • ProStores – an online store application also by eBay
  • Sell Online – an online store application by Canada Post
  • Online Mart – an online store application by TD

eCommerce Success Tips

• Create a solid business model, and consider whether or not if the business model adapts well to eCommerce. Shoes may be a good example here. Test market the product first to ensure eCommerce sales is right for the online store.
• Ensure people can find the eCommerce website – this is where search engine optimization and Internet marketing are critical Ideally, the eCommerce website should be ranked on the first page of a search engine results for maximum amount of traffic.
• Create a professional looking; obviously secure eCommerce websites that are functional and fast. Intuitive online stores take into consideration sensory persuasion, the instant gratification that often comes with shopping. 
• Consider client retention. Persuading people to buy once in an online store is no guarantee that they will return to purchase again. As a result, client-focused customer service policies are a must for an eCommerce website.
• Ask for the sale. The eCommerce channel will test online store user clicks. Industry research has found that up to seventy-five percent of shoppers abandon their online shopping carts before completing the checkout process.
• Do not underestimate security risk management. Mark Gartenberg at Computerworld warns the risks of venturing into eCommerce without adequate security. Things to consider are “fraud, loss of intellectual property, damaged customer and partner relationships, unforeseen costs, public relations debacles, and business disruptions”.

Always balance the advantages against the risks before jumping into an eCommerce venture. Do your research, test market your product, and develop a user-friendly, secure online store shopping experiencethat is secure. Tapping into eCommerce can be lucrative -- if you’ve done your homework and understand how it can work for you.

Copyright © 2007, eBusiness Connection.