Presentation on theme: "The Effects of E-Commerce on Entrepreneurship Chapter 9."— Presentation transcript:
The Effects of E-Commerce on Entrepreneurship Chapter 9
1. More people accessing the Internet, more often during the day. Most Americans get on the Internet daily, as opposed to 36% in 2002. $268 billion in sales are projected to be made online this year Americans use the Internet more than any other country in the world Only 8% of Americans fully use the interactivity and connectivity of the Internet and their cell phones (are “wired”). Information overload!
2. Expectations of businesses regarding e- commerce People expect, at the very least, for businesses to have an informational web site Becoming a measure of quality Place to pay/buy online Nearly 10% of the world has shopped online at least once.
Customers are easy to please and easy to find Web entrepreneurs spend 65% of their revenue in advertising!! Customers have gotten over fears regarding their privacy Strategy isn’t important on the web. It’s too late to get on board with this trend. Customer service and support isn’t important in a web-based business. Order fulfillment is not a problem. Older people don’t use it. 69% of baby boomers get on the Internet DAILY However, once businesses make it on the web, they ARE more profitable than other businesses!
New sales channel 72% of companies selling online say it increases sales International possibilities Unmanned sales time, 24 hours a day Information opportunity New business opportunities
70% of small business owners have an online presence Others say their products aren’t suitable online or they don’t see any benefits to selling online. Every company should have a plan for integrating the Internet SOMEHOW into its operations. Creating long-term relationships and long-term success on the Net could take more time than doing the same thing face-to-face.
We have a cheesecake store, called Tennessee Cheesecakes. What are some of the applications that the web could offer us? What are some of the considerations that we need to keep in mind while developing those applications?
Give Away Freebies Could be just information! Email carefully Wednesday is the best day for sending informational emails Utilize social networking Work on your SEO strategy. Make your website easy to navigate. Give customers a reason to return. Give customers a way to contact a person.
What is it that the Internet is supposed to do for our company? How much are we going to be able to put into this? Will our products sell on the web? How? How will you handle spikes in orders? Visits? How are you going to host the site? How are you going to guarantee security of customer information? How do you plan to market your site? How will you set up your site? Who will you get to design your site?
1. Focus on serving a market niche. 2. Develop a community with common interests. 3. Don’t use people’s information to spam. 4. Somehow tie into a partner’s community. 5. Promote, promote, promote! Marketers are increasingly using video advertising on the Net. 6. Get onto the best search engines Yahoo!, Google, MSN,
Web Analytics Tools that measure ability to attract customers, generate sales, and get customers to return. Commerce metrics, segmentation information, content reports, process measurements Recency, click-through rate, cost per acquisition, conversion rate Log analysis software
Privacy How your company uses the data customers give it. Security Security 40% of companies experience hacking. 70% of customers have left a site because they feared a security problem. Properly developed firewall and intrusion detection software Credit card payment acceptance