101 E-Cmmerce Start-up Checklist 1. Wh are yu and what d yu want t d? (1) Define yur business activity (r what yur business is). (2) What are yu three main business bjectives? (3) Wh are yur custmers? Have yu segmented yur custmers? (4) Are yur custmers cnsumers, ther businesses, r bth? (5) Where are yur custmers lcated gegraphically, in sci-ecnmic terms, and Internet readiness? (6) Hw d yu want peple t experience yur e-business: As the mst trustwrthy. The mst cmpetent. The mst innvative. The mst sphisticated. What make yur business and yur site unique? Why wuld smene shp at yur site instead f at a cmpetitr s? 2. This is the first stage f analysis. The aim is t define yur business prcesses. 2.1 What Business are yu in? (7) What range f prducts/services will yu ffer nline? (8) What prducts/services d yu plan t keep in stck? (9) What prducts/services represent the tp 20 f yur business? (10) What kind f gds/services will yu sell? Physical gds? What are the characteristics f yur gds? Intangible gds (e.g. training, materials, warranties, service agreements and guarantees.) Electrnic gds that will be available fr dwnlad thrugh the Internet (e.g. Electrnic Sftware Distributin (ESD).) (11) Hw many unique prducts/services will yu ffer? (12) Will there be variatin n the prducts e.g. size, clur, weight etc.? (13) D yu use a stck cntrl scheme? (14) Will yu be dealing in prducts/services that need special handling r delivery? (E.g. hazardus gds, perishable gds, religius artefacts etc.?) (15) What are the care requirements fr yur prducts (if any)? (16) Will the prduct need assembly r cnfiguratin? (E.g. furniture and cmputers.) (17) What are the dimensins/weight f each prduct? (18) What is yur package size? Will yu have a range? In ther wrds, have yu wrked ut hw many prducts will fit int a package and the size f packages yu will be sending? 2.2 Hw much will yur prduct r service cst? (19) Will yu ffer different prices t different types f custmers? E-Cmmerce Applicatins 2007-08 1
(20) D yu ever have sales, prmtins, buy ne get ne free r ther temprary price reductins? (21) Will yu ffer vlume discunt? (22) Will yu ffer subscriptin r club rates, bundled deals r ther incentives? (23) D yu have a system fr managing errrs and pricing cnflicts? 2.3 Digital Wrapping (24) Will yur prducts be rganised fr suggesting accessries, up-selling, crss selling, r substitutin? (25) Have yu planned a digital wrapping strategy? D yu have any ideas t keep yur custmers cming back t yur site? (E.g. netwrks, free stuff, advice, hits and tips, virtual dressing rm etc.) 2.4 Navigatin: i.e. will yur custmer find yur prduct/service? (26) Have yu dne any research int the wrds yur custmers use t search fr prducts in yur business? (27) Hw will yu rganise yur classificatin (index system)? (28) Have yu undertaken an analysis f a cmpetitrs site? (29) Des yur business already have a website? (30) Is there a strybard f the hme page r the structure f yur e-cmmerce site? 2.5 Custmer Cntact Pints (this will need t be revisited) (31) Wh will respnd t emails frm custmers? (32) Will yu accept cntact frm custmers by phne, fax, r letter? Wh will talk t custmers just asking, abut t place rders, chasing an rder already placed and s n. (33) D yu use standard scripts fr frequently asked questins (FAQs)? (34) D yu have written plicies and prcedures fr handling custmer questins? (35) Will yu have free phne, guest bk, live chat r ther cmmunicatin facility? If yes, have yu made arrangements fr the cntent t be mnitred? (36) D yu have a minimum respnse time specified? (37) What are yur escalatin prcedures fr reslving prblems? Have they been tested? D yu have enugh staff? 2.6 Order Prcessing (Tackle the questins nw but yu may need t revisit later). (38) What kind f system d yu need s yur custmers can cllect and review items befre they buy? (39) Will yu ffer alternative shipping /delivery ptins at rder time? (40) Wuld yu want yur site t calculate the mst cst effective shipping methd fr yur custmer and that rder? (41) Hw will yu deal with tax and shipping csts in advance f the custmer placing the rder? E-Cmmerce Applicatins 2007-08 2
(42) Fr business-t-business selling d yu plan t ffer autmatic replenishment r rerdering facilities? (43) Will registered users have access t their shpping histry s they can rerder r find cmpatible gds? (44) Have yu carried ut research int different reginal taxes and hw these apply t the prducts/services yu plan t sell. 2.7 Payment system (revisited) (45) What payment ptins d yu have? D yu have merchant status already? D yu have e-merchant status? Hw will yu get it if yu need it? What are the alternatives? Which will yu g fr? Why? (46) Will yu ffer real-time credit card authrisatin? If s: Which cards will yu accept? Hw will yu mange the risk frm fraud and charge back? What are the rates and plicies fr each f the credit card cmpanies yu will be dealing with (American Express, Visa, Discver, etc.)? (47) Have yu investigated the rates and ptins fr different credit card cmpanies? Which nes will yu implement? (48) Have yu cnsidered micr-payment, business accunt, and invice custmers ffline? (49) D yu custmers need yu t use Electrnic Data Interchange (DEI)? (50) Will yu be handling purchase rders? Autmatic replenishment? (51) Are there any server security r ther standards that yu must cmply with? 2.8 Shipping (52) Will yu be selling items which are small enugh t ship by airmail? (53) What will yu d if yu have part f the rder in stck? Will yu ship smaller items mre than nce? (54) Hw will yu ship larger prducts? Trucklad? Other carriers? (55) What is the relatinship between yur suppliers, carriers, the rder-taking system and yur e-cmmerce site? (This is a big questin. It is raised elsewhere in this checklist but it is wrth raising yet again)! 2.9 Internatinal E-Cmmerce (56) Will yu be shipping internatinally? If s: Which cuntries will yu take rders frm? Which cuntries will yu ship t? Hw will yu calculate the cst? Hw lng will it take fr an rder t be delivered t varius wrldwide lcatins? (57) What are the currency issues yu need t cnsider? (58) Are there any; cultural, language r religius issues yu shuld be aware f? (59) Fr each cuntry yu are targeting have yu researched unexpected taxes r duties, which need t be added t the cst f the rders? (60) Are any prducts subject t exprt restrictins? (61) Hw will yu ffer the custmer a full, itemized list f csts invlved in each sale, with a clear designatin f the currency invlved, terms f delivery r perfrmance, and terms, cnditins, and methds f payment? E-Cmmerce Applicatins 2007-08 3
(62) Hw will yu handle internatinal custmer inquiries? 2.10 Fraud-Checking, Validatin, and Transactin Clearing (63) Will yu emply any autmated fraud-checking algrithms against yur custmers' credit cards, r buy the services frm a third party prvider? What types f authenticatin methds will yu use? (64) Hw much risk d yu want t assume? (65) What services des yur payment prcessr ffer? Hw des this cmpare with ther prcessrs? (66) D yu want t authrize cards and transactin amunts with a bank and reserve the funds befre issuing the custmer an rder cnfirmatin number? 1. Integrating with Inventry and Fulfilment 2.11 Prduct Availability (67) Will yu have enugh immediate inventry t fulfil the first wave f nline rders? (68) Will yu be sending shipping rders direct frm manufacturers r suppliers? What agreements d yu have in place with each manufacturer in terms f prduct availability? (69) Hw and when will yu ntify custmers when prducts are ut f stck r discntinued, r cannt be back rdered? Will yu be ntifying the custmer nline, befre the rder is placed, that an item is ut f stck? (70) Hw will yu cmply with the distance-selling directive n cling ff perid. (71) Will yu ffer prduct substitutins in thse cases when the prduct rdered is ut f stck? (72) What are the nline messages that yu want the custmer t see fr different prduct situatin? (73) Will yu set stck level n yur site? If yes, at what level: when the safety stck level is lw r when there are nne left in inventry? (74) What are yur rerder plicies fr each prduct? 2.12 Prcessing Orders (75) What are the custmer expectatins yu will set in relatin t rder prcessing and delivery? (We have gne thrugh the 28-day barrier). (76) Will yu allw vernight rders up until 5:00 pm r set an earlier cut ff time? (77) Will yu utsurce yur rder management r will yur business d it all? (78) Are yu set up t perfrm real-time rder prcessing, r will yu send rders t rder entry fr manual re-input? (79) Hw ften will yu prcess rders? Hurly? Daily? 2.13 Prviding Custmer Service (revisited) (80) Since email and phne are the mst preferred frms fr custmer cntact with custmer service, hw will yu handle these types f inbund cmmunicatin? E-Cmmerce Applicatins 2007-08 4
(81) What kind f prduct infrmatin will yu ffer n site? Hw will it be updated? (82) What are yur custmers' mst frequently asked questins? What are the answers? (83) What are the mst frequently asked questins abut invice issues, receipts, and the checkut prcess? Hw will yu prvide the answers? (84) Will yu ffer nline technical supprt fr any prducts? (85) Will yu sell custmer training classes, service cntracts, r ther intangibles as prducts? 2.14 Prduct Returns (86) Under what cnditins will yu accept prduct returns? What are yur return plicies fr each prduct? (87) Where will yu direct the custmer t return the prduct? (88) Will yu instruct custmers t return a prduct t its crrespnding manufacturer? (89) Hw will yu facilitate prduct returns? Enclsed return-shipping labels? Paid shipping? (90) Hw will yu track the dispsitin f the returned prducts? 2.15 Warranties and Guarantees and Legal Issues (91) What are the rules abut warranties n prducts wrth? Hw d they apply t yu? (92) D yu have a 100 percent satisfactin guarantee? (93) What legal prduct disclaimers must yu make? (94) What are the terms and cnditins f each sale? D these terms differ based n prduct? (95) Will yu ffer full r limited warranties n prducts? Which prducts? (96) Are there any lcatins where yu cannt legally sell yur prducts and services? (97) Are yu aware f e-cmmerce cntract issues? (98) What are yur privacy, security, and marketing plicies? (99) What plicies d yu have in place fr accepting custmer rder, prduct return, delivery expectatins, redress? 2.16 Measuring Success (100) Hw will yu define success in terms f yur e-cmmerce sites? (101) Hw much d yu knw abut yur custmers? Wh exactly are they? E-Cmmerce Applicatins 2007-08 5
References Bayles, D. (2001) E-Cmmerce Lgistics & Fulfillment. NJ 07458:Prentice Hall PTR. Kallkta, R and Rbinsn, M (2001) e-business 2.0 Radmap fr Success. Bstn:Addisn-Wesley. Hwell, D (1999) Successful E-Cmmerce. Institute f Management: Hdder & Stughtn. Cumming, T (2001) little e BIG COMMERCE. Lndn: Virgin Publishing. E-Cmmerce Applicatins 2007-08 6