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You have 5 mins to buy a laptop on a £500 budget. Where would you go? Work => Search FunctionWork => A lot of browsing & asking! 2 Intellitech I.T. Solutions Ltd. -

Definition: [n] the business of buying and selling goods and services on the Internet  Transactions carried out via an electronic platform  Major functions of eCommerce: i)Buying & selling of goods (tangible & non-tangible) ii)Financial transactions processing (banking) iii)Secure document processing / exchange, etc. (legal) eCommerce in Daily Life Council Tax Payment Online Banking Online Auctions (e.g. eBay) Professional Subscriptions Electronic Billing (Invoicing) Credit Applications Motor Vehicle Road Tax Payments, etc, etc. 3 Intellitech I.T. Solutions Ltd. -

Traditional High Street ShopeCommerce “Shop” Open – 24hrs, 7 days a week & 365 days per year Less staffing requirements Lower Overheads Fast turn-around on goods Can Drop-ship products Etc… Open from 9 am -5 pm Minimum staff required to operate Higher Overheads Consequential Expenditure 4 Intellitech I.T. Solutions Ltd. -

Adults who have accessed the Internet by purpose of Internet use (personal use only) Activities January 2001 April 2001 Per cent Finding information about goods/services Using General browsing or surfing Finding information related to education Buying or ordering tickets/goods/services Personal banking/financial/investment activities Looking for work Downloading software, including games Using chat rooms or sites Playing or downloading music Using or accessing government/official services Other things 5 4 Source – UK National Statistics Censuses Survey - April 2001 Note: percentages do not add to 100 per cent as respondents may give more than one answer 5 Intellitech I.T. Solutions Ltd. -

 40% of all European online shoppers have changed their mind about which brand to buy following research on the web  Online shoppers in the UK are the most likely to be influenced by information on the internet (49%) while Italians are the least likely to change their mind (27%) Online Research Online Sales  A massive 80% of European internet users have bought a product or service online, up 3% since 2006 and double the 2004 figure (40%)  These European online shoppers made 1.3 billion purchases in just a six month period, spending an average of €747 each online -The UK (486m) and Germany (342m) made the most purchase -Norway (€1203) and the UK (€1195) spent the most money online per Person Source: EIAA Mediascope Europe - Online Shoppers Report %5FExecutive%5FSummary%2Epdf 6 Intellitech I.T. Solutions Ltd. -

Merchant Higher Targeted Sales (using SEO, PPC, etc) Reduced Costs (storage, overheads, etc.) Easier Marketing to preferred clients Easier management reports Almost instantaneous pricing updates Instant stock flow view Consumers Very Convenient (in terms of WHEN and WHERE to shop) Aids in getting THE “deal” for the item they are looking for – via price comparison sites Wider selection to choose from Easy to compare BETWEEN shops / brands / products 7 Intellitech I.T. Solutions Ltd. -

Business Models B2C – Business to Consumer B2B – Business to Business C2C – Consumer to Consumer (e.g. auction sites) B2G – Business to Government Trends: eCommerce & Online retail “2006 was a year of squeezing more out of existing eCommerce conversion rates, but Forrester predicts that 2007 will bring a keen focus on squeezing more out of a company's bottom line. Specifically, we expect significant efforts in 2007 to focus on the improvement of Web site operations, the integration of non-credit- card payment vehicles, and the enhancement of the product discovery process. Additionally, the coming year will reflect the voice of the customer as a sales tool for products more clearly than ever before.” Source: 8 Intellitech I.T. Solutions Ltd. -

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FUNCTIONALITYPLATFORMINTEGRATIONMANAGEMENTADMINISTRATION SECURITY FRONT-END BACK-END 11

Off-the-Shelf Implementation Can cost anything from £300 upward… Pros: -Fast Implementation -Few details required -Good if you have a strong IT knowledgebase Cons: -May not fit every business model -Customisation can sometimes be very costly Bespoke Implementation Can cost anything from £500 upward … Pros: -Fully customisable -Fully integrate-able -Can handle any payment gateway system Cons: -Longer time from design – implementation 12 Intellitech I.T. Solutions Ltd. -

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