E-Commerce and Shopping Cart

To sell online You need two things: hardware and software hardware means technological infrastructure Domain Name Website Database Shopping cart SSL Software means operational aspects Strategy for online business How to acquire new customers Search engine optimization Online Advertisement Marketing All other offline activities in regard to running a business

Today we will deal with… You need two things: hardware and software hardware means technological infrastructure Domain Name Website Database Shopping cart SSL Software means operational aspects Strategy for online business How to acquire new customers Search engine optimization Online Advertisement Marketing All other offline activities in regard to running a business

Selling Online 2 types of online selling open market place eBay, Amazon Having my own site Pre-made service Using free shopping cart osCommerce, zen cart Build up a e-commerce site customized as your needs

B2B or B2C B2C (Business to Customer) B2B (Business to Business) Advertisement: expensive Customers tend to be very picky (especially for not well-known site) B2B (Business to Business) Offline Payment Not accurate inventory ok If you have already your store (for wholesale), B2B ecommerce will boost your sales Ex: LA jobber handbag store, 400K website sales, 1M store sales Mixture of B2B and B2C B2C is done on Amazon or eBay B2B is done on own website

Online Credit Card Processing Web site Merchant Bank Account Payment Gateway Customer Customer’s Credit Card Issuing Bank Credit Card Network Merchant Bank Processor Card Processing Settlement

Payment Gateway Paypal Authorize.Net Paypal Express During checkout, users go to paypal site and come back to your site after payment Website Payment (Standard/Pro) Usual credit card processing Adaptive payment Advanced payment such as chained and multiple payment Do not need to create Internet Merchant Account Account Type Basic/Premier/Business Premier and Business accounts can accept payment Authorize.Net More simple to implement than Paypal

Security SSL/Digital Certificate Web Server Credit Card Number 1234 5678 9012 3456 1234 5678 9012 3456 Web Server Credit Card Number 1234 5678 9012 3456 #45Ab!098X89^&%W08FG

Calculation Shipping Charge UPS Provides estimated shipping charge for submitted package info Tracking info USPS Provides web services too FeDex DHL

Data Exchange CSV (Comma Separated Values) XML 12, ‘our new lunch special’, 12.50 XML HTML is a kind of XML <product> <id>12</id> <produtname>our new lunch special</productname> <price>12.50</price>

Open Market Amazon eBay The world’s biggest open market Zen Cart to Amazon Uploader Revenue: $24 Billion (2009) King of online shopping mall If you consider or run online business, then you have to study two sites: Amazon and Facebook On July 2010, they created partnership relation eBay Auction-based market Owns Paypal (acquired verisign) Revenue: $8 Billion (2009) Seller Manager Pro Turbo Lister 2.0

Having Your Own Shopping Mall Open markets are good places to start but They are very competitive They take away fee Having your own shopping mall may be better choice Web shopping mall project costs you more than $3,000 Free shopping mall software are already out there Zen Cart (PHP/MySQL) osCommerce (PHP/MySQL) nopCommerce (ASP.NET)

Acquiring New Customer Online Advertisement Google AdSense Facebook If you have your offline business, your number one priority is to get email addresses from your customers at all cost

Search Engine Optimization Search Engine Optimization means all efforts aiming to make search engine like Google rank your site high for a certain search keyword Google page ranking factors Positive Inbound links (links to your website from outside) Big size Age of site Negative Too many keywords (keyword stuffing) Age of page Slow speed

Making Customers revisit Email Marketing Remind your customers of you About 50% of all people visiting a site do not come back (Neiman Report, Tracking Behavior Changes on the Web) We will practice email marketing with Mail Chimp Next class

Homework Download and install dream weaver from class website, if you have not yet done Making Simple marketing HTML page New product advertising Coupon Special event (discount) Real 2 emails pretending your customers If you have not yet registered with the Mail Chimp, create an account