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eCommerce:Something

You SHOULD Know

Intellitech I.T. Solutions Ltd. - http://www.intellitechitsolutions.com


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You have 5 mins to buy a laptop on a £500 budget. Where would you go?

Work => Search Function Work => A lot of browsing & asking!


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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.

What is eCommerce?


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Traditional High Street Shop eCommerce “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

eCommerce: Comparison


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Adults who have accessed the Internet by purpose of Internet use(personal use only)Activities January 2001 April 2001Per centFinding information about goods/services 67 73Using e-mail 65 71General browsing or surfing 54 61Finding information related to education 28 38Buying or ordering tickets/goods/services 30 35Personal banking/financial/investment activities 23 25Looking for work 18 18Downloading software, including games 20 25Using chat rooms or sites 13 17Playing or downloading music 15 20Using or accessing government/official services 18 20Other things 5 4Source – UK National Statistics Censuses Survey - April 2001Note: percentages do not add to 100 per cent as respondents may give more than one answer

eCommerce: The Figures (UK)


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40% of all European online shoppers have changed their mind about which brandto buy following research on the webOnline shoppers in the UK are the most likely to be influenced by information onthe internet (49%) while Italians are the least likely to change their mind (27%)

Online Research

Online SalesA massive 80% of European internet users have bought a product or serviceonline, up 3% since 2006 and double the 2004 figure (40%)These European online shoppers made 1.3 billion purchases in just a six monthperiod, 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 perPerson

Source: EIAA Mediascope Europe - Online Shoppers Report 2008 http://www.eiaa.net/Ftp/casestudiesppt/EIAA%5FOnline%5FShoppers%5F2008%5FExecutive%5FSummary%2Epdf

eCommerce – The Figures (cont’d..)


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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

eCommerce – The Benefits


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Business Models

B2C – Business to Consumer

B2B – Business to Busin

ess

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: http://www.forrester.com/Research/Document/Excerpt/0,7211,40650,00.html

eCommerce Models

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Sample Site


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eCom

mer

ce: F

low

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Cost Determining FactorsFUNCTIONALITY

PLATFORM

INTEGRATION

MANAGEMENT

ADMINISTRATION

SECURITY

FRONT-END

BACK-END


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Off-the-Shelf Implementation• Can cost anything from £300

upward…Pros:- Fast Implementation- Few details required- Good if you have a strong IT

knowledgebaseCons:- 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 systemCons:- Longer time from design –

implementation

How much would it cost?


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Any Questions?Contact us via our online contact form:

http://www.intellitechitsolutions.com/contacts.html

http://www.intellitechitsolutions.com/contacts.html


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The End!

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