1. E-Commerce and Shopping Cart

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. Security SSL/Digital Certificate Web Server Credit Card Number
Web Server
Credit Card Number
#45Ab!098X89^&%W08FG

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

10. 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>

11. 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

12. 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)

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

16. 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

17. Making Customers revisit
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 marketing with Mail Chimp Next class

18. 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 s pretending your customers
If you have not yet registered with the Mail Chimp, create an account