E-business

  E-business is doing business online.  Doing business on the Web allows even small companies to reach international customers.  To sell on the web, the firm usually needs a website, an address and the ability to have customers order stock online.  Since online orders are usually completed with credit cards, a firm also needs to make access to their files and the other process secure from hackers and thieves. E-business Websites

  Organizations try to measure if their web expenditures are worthwhile.  One measure used is to count the number of times a web page is hit or visited.  Other measures include how many different people visit a site during a time period or how much online business the site produces. E-business Websites

  Fido’s Fancy makes and sells dog treats. They decide to expand their sales by selling on the Internet. Fido’s contracts with E-biz Inc., a web hosting service to create and maintain an e-business website with online ordering. E-biz charges Fido’s $12,450 to create the webpage and $450 a month for server space for website and mailbox. They also charge $650 a month to maintain the website and $250 a month for high speed internet access. What is the first year cost? Example 1

  12 x 450 = $5,400 = $5,400 annual fee for server  12 x 650 = $7,800 = $7,800 annual fee for web site maintenance  12 x 250 = $3,000 = $3,000 annual fee for Internet access  $12, ,400 + $7, ,000 = $28,650 total first year cost Solution

  Laver Corporation creates a website using its own information systems department and outside consultants. The startup costs for the website are: web server and software, $25,740; Internet connection hardware and software, $12,300; consulting services, $12,800; web page development, 125 hours at $53 an hour, installation costs, 25 hours at $73 an hour, other costs, $3,590. What is the total cost of starting a website? Example 1

  Cassons Inc. wants to advertise on the Internet but not provide for online orders. Their web hosting firm charges them $2,580 to develop the website and $65 a month to maintain it. They also charge $25 annually to register the company’s website address and $55 a month for web server space and an Internet connection. What is the total cost for the first year to Casson’s website? If their website had 7,356 visitors in the year, what was the cost per hit? Example 2