1. Know where to begin

Transcription

1 Guideline for E-Commerce Merchants แนะแนวผ ประกอบการในการท าการค าแบบพาณ ชย อ เล กทรอน กส By Dr. Chonchanok Viravan, President United Nations Convention Center, Bangkok, Thailand 15 December 2006 Chonchanok Viravan, President 1 1. Know where to begin Where to begin depend on your own status: Individual, don t know Internet? Individual, not yet own a business? SME Business owner, not yet have web site? Enterprise with web site & back office? Entrepreneur with bright ideas on how to do special e-service online? etc. Chonchanok Viravan, President 2

2 2. Check your Business Model Does it require additional registration / or certification? Is it legal? Is it permitted by rules and regulation of credit card companies? Is it really financially viable? For example, the cost of shipping can exceed the cost of goods. Chonchanok Viravan, President 3 Examples of improper and/or illegal e-businesse Sell tobacco. Sell prescription drugs or illegal drug. Sell child pornography. Sell goods or services in violation of Intellectual Property Right. Gambling Sex trade Money laundering Any illegal business etc. Chonchanok Viravan, President 4

3 3. Design the web site properly Offer multiple languages web site (at least local language + English). Web site should be develop in ways that it is easy to find with search tool. Easy to access goods and services with a few click. Must display Business contact address Term and condition and policy must be be available. Chonchanok Viravan, President 5 4. Operating E-BusinessE MARKETING & e-marketing: Crucial success factors! Keep information and online catalog up-to-date Offer Online customer services. Back Office: Handle online inquiry, online complaint, fraud detection. Keep up-to-date with laws, rules and regulations regarding e-commerce. Other usage of ICT that can help reduce cost and improve services such as Voice over IP. Chonchanok Viravan, President 6

4 5. Add Payment Gateway Accept payment via credit card online: The service is provided by banks, financial institution or Third Party Provider with fee. Negotiate fee (Merchant Discount Rate - MDR). Usually require merchant to put up security deposit. Get service from legal or properly registered provider. Chonchanok Viravan, President 7 6. Manage the Payment Online Good practice: Don t create your own payment page on top of bank payment gateway service! Authenticate card owners, with extra security such as CVV checking, match shipping and credit card address, etc. Chonchanok Viravan, President 8

5 7. Handle Fraud / Chargeback Situation: E-Commerce customers disputed that he/she did not make the purchase, even after the goods are shipped and services have been render. As a result, chargeback occurs. Merchant is usually liable, not the bank. So the acquiring bank can take back the money it advanced to the merchant at the time the payment was settle. Chonchanok Viravan, President Reduce chargeback Register Payment Gateway Service that offer: Verified by Visa (VbV) MasterCard Secure Code These services would offer additional authentication of card holders. Buyers cannot deny making the purchase. Check shipping address vs. Card address. Chonchanok Viravan, President 10

6 7.2 Reduce Fraud Dedicate staff to monitor transaction to detect fraud. Track Fraud-to-Gross Sale performance. Establish fraud database Record similar patterns and identify same person or group by nationality, shipping addresses, telephone numbers, card numbers Check validity of phone no (caller id) physical address (postal code) address (order confirmation) contact customer Chonchanok Viravan, President Reduce Chance for Hacking Don t keep sensitive information worth hacking for, like your customers credit cards numbers. Assess security of your computer and network. Initial free online assessment are available at Get Payment Card Industry (PCI) Certified. (This can be expensive). Chonchanok Viravan, President 12

7 7.4 Avoid unnecessary disaster READ YOUR CONTRACT FOR PAYMENT GATEWAY SERVICE CAREFULLY! E-Commerce merchant may face liabilities, suspension, termination, penalties as stated in the contract between payment gateway service provider and the merchant. Some known regulations of the bank, the credit card companies and the law may be embedded in the contract. Chonchanok Viravan, President Measure Performance Measure the performance of web site: Page Views Number of Visits Conversion rate Identify potential problems in certain part of a web site and solve them. Chonchanok Viravan, President 14

8 9. After Sale Services Like any business, need people to handle: Return goods / Refund Disputes in payment. Customer complaints Survey of customer satisfaction Chonchanok Viravan, President 15 ADVISE Internet, if use wisely, can help business save a lot of money as well make a lot of money. Always, Always, Always - Be careful. Chonchanok Viravan, President 16

9 GOOD LUCK Chonchanok Viravan, President 17