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How to Do E-commerce
A Guide to the Internet article
E-commerce has become a major segment of our economy.
There are nearly 50 million sites on the Web.1
80% of small businesses have an Internet presence.2
Over 60% of U.S. Internet users buy online.3
Online retail sales topped $43 billion in 2003.4
Too Late?
If so many businesses are already selling online, you may be wondering, is there room for me? Do
I have to try to lure customers away from the big online retailers? No.
About 10% of the world is on the Internet.5
In industry life cycle terms, we have moved through the first 10% of the Internet's life. This
first 10% is the hardest segment in which to do business. It involves working without
technological standards and doing a lot of experimentation. And, for all the work put into it,
only the consumers referred to as "innovators" and "early adopters" are there to buy things.
The next two segments of an industry life cycle are the most profitable: the "early majority"
and the "late majority." The majority groups together compose 80% of the market.
Those businesses that are already on the Web have done the groundwork from which your business
can prosper. They have done the experimentation and established the technological standards. Now
you can use their experience to sell your products and services.
How Do I Start?
OK, so there's still room for another small business on the Internet. How do I start, you ask.
Before thinking about site hosting, domain name registration, site certificates, and so forth,
solidify your business' strategy. How will your business grow? How do you sell?
"Including the Internet in Your Business Strategy," from ActivePage
Design's Guide to the Internet series, will help you work the Internet into your overall
business strategy.
Next, think about your customers. Are your current customers on the Internet? Will you target
new types of customers over the Web? What are your customers' browsing and buying habits? To learn
about online customers, look at "Your Target Customer on the Internet"
from the Guide to the Internet series.
Once you've solidified your strategy and researched your customers, you're ready to build your
Internet presence.
One: The Virtual Storefront
Now that you know to whom you are trying to sell, and you know how they buy, you should decide
how to make your products visible to them. Depending on your products and your customers, you may:
- Establish your own Web site to advertise your products
- Display your products on an online auction site or store, such as Amazon.com, eBay, or Yahoo!
- Use online advertising, such as banner ads
Each method has its advantages and challenges. ActivePage Design would be happy to help you sort
through the options.
Two: The Virtual Sale
Once your customers see your products, they need to have convenient ways to purchase them.
Again, you have a number of options. You may:
- Sell through online auctions and stores
- Register with an online purchasing service, such as PayPal
- Implement your own ordering system on your Web site
One method may be better than others for your business. ActivePage Design will gladly help you
determine which would be best and help you implement your chosen option.
Three: After the Sale
Now you must prepare for a number of after-sale activities.
Customer service activities include working with returned merchandise, providing technical
or mechanical support, offering improved products, etc.
Follow up activities include targeting advertising to your current and past customers for
repeat sales, keeping your advertising up-to-date, and so forth. The Internet can help with all of
these activities, allowing you to know your customers more completely than you ever have before.
Help is Available
ActivePage Design is trained and experienced in business management. We will gladly talk with
you about your business strategy. Then we'll work with you to develop a solution that successfully
integrates e-commerce into your business. Contact
ActivePage Design...
1. Netcraft, "February 2004 Web Server Survey."
2. CyberAtlas, "Small Biz Worried About Success."
3. Pew Internet and American Life.
4. BizStats.com, "Estimated Retail Online Sales."
5. CyberAtlas, "Population Explosion!"
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