Intro to California Resources and Training - CARAT

Transcription

1 E-Commerce

2 Intro to California Resources and Training - CARAT CARAT is a private nonprofit founded in 1994 to integrate and build the capacity of the Technical Assistance industry in California. In September 2010, CARAT was awarded stimulus grant funds from the US Department of Commerce in partnership with the California Emerging Technology Fund (CETF). The Access to Careers in Technology (ACT) funding made possible by the Broadband Technology Opportunities Program was awarded to compete Phase II of the Small Business Broadband Initiative. The goal of these funding programs is to close the digital divide by encouraging small business owners in unserved and underserved communities to adopt broadband and use the technology tools taught in these trainings. This project is aimed at building the technological capacity of small business owners. The proper employment of these technology tools will result in stronger businesses, increased profits, operational efficiencies and job creation. This project was Funded by the US Department of Commerce and the California Emerging Technology Fund. 2

3 Instructor David Bokash Business Advisor, Alameda County SBDC Business consultant for Internet, application software or Supply Chain Management projects Prior Experience IT Project Manager/Consultant for application implementations and Supply Chain Strategy Projects Product Manager, E-Commerce (CRM & SRM) Applications, SAP Labs Field Engineer, FedEx Express IT Project Manager, FedEx Logistics & Electronic Commerce Sr. Consultant, Price Waterhouse Strategic Consulting Group Education Honors Certificate, Project Management, UC Santa Cruz MBA, Harvard University BS & MS Engineering, Purdue University

4 Course Overview Goal Expose small business owners to the fundamental concepts of ecommerce as well as how to use ecommerce technology, tools and strategies to improve their marketing and sales activities and enhance their bottom line. 4

5 Course Overview This course will cover: How businesses use ecommerce tools to increase sales, lower operating costs, and attract and retain customers How ecommerce solutions can be used to support marketing and sales How to select and implement an ecommerce solution appropriate for your business including a survey of popular ecommerce products and services 5

6 Course Outline Part 1 Making the Case for ecommerce The Business Case for ecommerce Keys to a Successful Project Fundamentals of ecommerce Part 2 Selecting an ecommerce Solution Building a Decision Matrix Types of ecommerce Solution 6

7 Course Outline Part 3 ecommerce Solutions ecommerce Product Comparisons ecommerce Product Demonstrations Payment Processors Part 4 Discussion Best Practices Practical Applications for Your Business Q&A 7

8 Poll A Little About YOU Does your company have a web site today? Do you use or 3rd party service to sell your products? (e.g. Etsy.com) Do you have an online store or catalog? Do you take payments via your web site? 8

9 Remember the Four P s of Marketing? Product What you offer is what they need Pricing Aligned with sense of value and competition Place Make it easy to buy! Promotion Express your value proposition! 9

10 How Do You Use the Internet? Web browsing (e.g. search) Enter a checkmark in the blank square next to any of the ways that you most commonly use the Internet. Shop online Download music Watch videos Read the news 10

11 Keys to a Successful ecommerce Project 1. Define Your Goals 2. Establish a Budget 3. Set a Timeframe 4. Set Your ROI* Expectation 5. Define Key Performance Indicators (KPIs) 6. Select a Solution that Matches Your Needs 7. Offer a Compelling Value Proposition 8. Offer a secure, high-trust shopping experience * ROI = Return on Investment 11

12 Fundamentals of ecommerce Fundamentals of e-commerce 12

13 The Process of Retail Commerce Production Manufacturing Shipping Storage Marketing Placement Advertising & Promotion Sales Opportunity (Customer) Decision Purchase Fulfillment Transaction Processing Fulfillment Delivery 13

14 Traditional Retail Sales Offline commerce is Retail Stores ( brick & mortar ) Catalog & Mail Order Sales Open Markets (e.g. farmers markets) Door-to-Door Sales 14

15 Commerce on the Internet ecommerce is Electronic commerce or ecommerceconsists of buying and selling products or services via Internet and computer networks 15

16 What You Need Products! Photos Descriptions Prices Supporting Information Shipping Details Warranties & Guarantees Return Policy Upsell Recommendations 16

17 Basic Product Display Computer-generated product display: photo, name, price (Boring! No descriptions, no branding messages, no calls to action!) 17

18 Basic Purchase Transaction Customer Online Store Shopping Cart Issuing Bank Payment Processor Credit Card Institution Gateway Merchant Bank 18

19 Basic Purchase Fulfillment Shipping Order Fulfillment Service Your Warehouse Delivery Service Customer 19

20 Part 2 Selecting a Solution Building a Decision Matrix Determining Requirements 20

21 1. Define Your Business Goals What are your business goals? For example: Increase sales Increase the number of customers in a key category Increase the sale of specific products Leverage existing infrastructure Extend and expand your business reach DON T throw solutions at undefined problems! 21

22 2. Establish a Budget Costs to consider: Cost of acquisition (e.g. price or monthly fees) Installation Configuration Training Inventory Management Fulfillment Tech support Make sure to factor in the costs of consultants! 22

23 3. Set a Timeframe DO plan ahead! DO allow time for installation, configuration, testing, staff training DO budget time for employees to play with the system DON T schedule the project launch for a busy time of year 23

24 4. Set Your ROI Expectation e-commerce must have a positive impact on your bottom line or it s not worth it! Total project cost: XX Expected annual increase: % and $ Expected annual savings: % and $ Total annual ROI on CRM: [months/years] Total project cost / annual ROI ROI = [months/years] to recover total project cost Set benchmarks to track progress (KPIs!) 24

25 5. Define Your KPIs KPIs = Key Performance Indicators Aligned with mission & goals Quantifiable Data is cost-effective to collect and analyze Used by management to measure progress and effectiveness Source: 25

26 Poll: Which of these have you completed? Defined your business goals? Established a budget? Set a timeframe? Defined your ROI expectations? Defined your KPIs? 26

27 Considerations: Business Business needs vs. feature set Scalability Productivity tools (e.g. inventory mgmt) Single source solution or multi-vendor? Can the project be phased? Does the project provide a competitive advantage? 27

28 Considerations: Financial Price of acquisition Recurring costs (e.g. monthly fees, transaction fees) Maintenance costs (e.g. support costs) Installation and configuration costs Estimated ROI vs budget 28

29 Considerations: Users Ease of use Technical abilities of team members Accessibility (e.g. via the Web, via smartphone) Ability to be customized Specific needs (e.g. ability to generate specialized reports) 29

30 Considerations: Technical Ability to export data Update/upgrade process Flexibility, scalability Need/ability to integrate with other systems and databases Stability of vendor/source Ability to accept bulk uploads of products, text and images 30

31 Technical Support Needs In-house/on-site technical resources? What does your team need? What can you afford? What does the vendor offer? On-call: 24/7 or restricted support Online or web help Built-in help On location assistance On-site/off-site training 31

32 Build vs Buy vs Customize Options: Buy a product, adapt your business processes Build a custom solution to conform to your business processes Hybrid: buy and customize Risks: Custom development is very expensive! Rarely on time and under-budget. Who will support your custom solution? If you over-customize a commercial product, what will happen when a new version is released? 32

33 Stay Tuned for the Second Training Technology Tools for E-Commerce will be starting in 5 minutes You must join the audio conference to participate in the webinar. Call-In Number: (510) , Pass Code: # Or see message for local numbers in your service area Skype ID: TurboBridge Experiencing any connectivity problems? Call WebEx Technical Support at (866)

34 Part 3 ecommerce Solutions Types of ecommerce Solution ecommerce Examples & Comparisons Payment Processors Back Office Services 34

35 Components of an Online Store Website Shopping Cart Payment Processor Policy Statements Business Information 35

36 Types of ecommerce Solution Locally installed & hosted Server, Website & Software Vendor-hosted Web-based Online Marketplaces Online Store Builders Online Stores 36

37 Online Store Solutions Online Marketplace Online Auction Online Merchant Service Online Retail Store Online Payment Processor 37

38 Online Marketplace A web site that you sells your products as well as many others Examples: Amazon (everything!) Iron Planet (heavy equipment) Stubhub(tickets) 38

39 Amazon Marketplace Sell directly on the product detail page where Amazon.comsells the same item new. Listing is free -you only pay a fee if you sell. Product categories include: Books Music Video DVD Video Games Electronics Office Products Tools & Hardware Kitchen & Housewares Outdoor Living Sports & Outdoors Musical Instruments 39

40 Amazon Marketplace 40

41 Amazon Marketplace 41

42 Online Merchant Service An online service that allows you to set up an online store to sell your products Examples: Shopify.com Yahoo Stores Volusion 42

43 Example: Volusion.com 43

44 Example: Shopify 44

45 Shopify: Alpine Exposures 45

46 Yahoo Store: Scootertronics 46

47 Yahoo Stores: Cost 47

48 Issues with Stores Benefits: All in one solution Wide array of design templates Drawbacks: May limit customizing & branding Takes time to learn the store builder 48

49 Online Auctions: ebay Good Example: Popular, low-tech, inexpensive 49

50 Online Retail Store A branded web site that is owned by a company and sells only its lines of selected products Examples: Target.com Macys.com <YourDomainName.com> 50

51 Design Counts! Good Example: Modern Layout Visually Attractive 51

52 Selling Customized Merchandise Examples: Zazzle Blurb Printfection 52

53 Example: Zazzle Make and Sell Customized Merchandise 53

54 Zazzle: Travel Bureau 54

55 Payment Processors Companies that process credit card transactions. Systems that accept credit card information from the customer and transfer funds to your merchant account 55

56 Typical Services Shopping Cart Online Credit Card Processing Virtual Terminal Merchant Account Gateway Checks by Web, Phone and Fax 56

57 Typical Fees Service Fee (e.g $30/month) Gateway Fee (e.g. $20/month) Transaction Fee -%(2.5% to 5.5+%) Transaction Fee Flat (e.g. 15 cents) Return Fees Report Fees 57

58 Payment Processors Examples 58

59 2Checkout Payment Processor 59

60 2Checkout Getting Started 60

61 2Checkout Cost 5.5%! Very pricey! plus 45 cents! 61

62 Square: Payments via iphone 62

63 Square - Costs 63

64 Back Office Services Systems dedicated to running thebusiness such as: Accounting Distribution Inventory Management Shipping 64

65 Back Office Services Examples 65

66 Stamps.com Back Office 66

67 Stamps.com Getting Started 67

68 Stamps.com Cost 68

69 Part 4 Discussion Best Practices Practical Applications for YOUR business Q&A 69

70 References 1 of 3 Description: 2Checkout.com Amazon Alpine Exposures Authorize.Net Blurb FedEx Google Checkout Intuit Web Address:

71 References 2 of 3 Description: Iron Planet Nochex PayPal Printfection ProStores Shopify Stamps.com Stubhub Web Address:

72 References 3 of 3 Description: UPS Volusion Yahoo Zappos Zazzle Web Address:

73 Evaluation Thank You for participating in this CARAT webinar! When you log off the webinar, don t forget to check the box to download the course materials. A short evaluation survey will pop up shortly. Help us improve the program by letting us know what you think. 73

74 Next Steps Thank You for participating in this CARAT webinar! More CARAT Technology Trainings Offered Free Training Courses offered until December 2012 Training topics include: Collaboration Management Customer Relationship Management E-Marketing E-Commerce E-Procurement Online Communications Online Financial Management Purchasing & Inventory Website Development Project Management Tools Social Media for Small Business For more information go to CARAT 74