E-Commerce


THE IMPORTANCE OF IMPLEMENTING AN E-COMMERCE SOLUTION FOR AN EXISTING BUSINESS:

A RECOMMENDATION REPORT



Contents







Introduction???????????????????????????. 2



Methods????????????????????????????? 2



Results?????????????????????????????.. 3



Charts?????????????????????????????... 8



Conclusion???????????????????????????? 10



Recommendation?????????????????????????..10



Works Cited???????????????????????????. 11



Introduction



An e-commerce solution for a business is the incorporation of all aspects of the business operation into an electronic format. Many well-established businesses have been selling on-line for years. For example, Dell Computers Corp., has been selling computers directly to end-users for years. Currently, Dell is selling excessive of 1 million dollars worth of computers everyday on the World Wide Web (WWW).

When a business has incorporated an e-commerce solution, the business will experience a lower operation cost while at the same time increasing its profit. The e-commerce solution will allow businesses to eliminate unnecessary paperwork. All paperwork and data can be transformed into an electronic format. Thus, it will eliminate valuable shelf space and data can searched and accessed in matter of seconds. E-commerce will also automates the sales process. Customers can "point & click" on the products they wish to purchase, fill out the customer information, and the product will be shipped and received in a matter of few days. The administration department does not have to fill out any paperwork because the customer had done it already. Thus, the efficiency will be greatly improved. With an e-commerce solution, the business will be open 24 hours a day, 7 days a week. People from anywhere in the world with an Internet access will be able to visit the site at any time. They will not be restricted to the "normal" business operating hours. A "brick + mortar" business is normally limited to serving the customers in its local geographical location. With an e-commerce solution, that business will not be limited a geographical restriction, rather it opens itself to the global on-line market. Essentially, the business' market exposure will be greatly increased.

In conducting my study, I have researched extensively on the Internet for resources. I chose the Internet as my primary research medium because e-commerce is still a fairly new technology. Since it is technology related, the Internet will provide the most recent data available. Printed publications will not be able to adapt to changes as fast and efficient as electronic publications. I researched many e-commerce related web sites along with some companies that conduct statistical studies. Some of the e-commerce web sites that I looked into are E-Commerce Times, eRetail, and eMarketer. The statistical research firms that I researched are Forrester Research and Jupiter Communication. Both firms provided valuable statistical data that shows the rise of consumers shopping on-line and the predicted dollar amount that will be spent in the coming years.



Methods



In conducting my study, I completed the following tasks:

- I searched extensively on the Internet for sites that are e-commerce related. Upon visiting the sites, I evaluated each sites for the contents, thoroughness, and objectiveness. There are literally hundreds of sites that are devoted to e-commerce. However, after my careful examination of most of them, I narrowed down to four sites that I will research for this report.

- I have also researched many firms that conducts statistical researches. The two firms that I will be utilizing for this report are Forrester Research and Jupiter Communication. Both firms are known for their preciseness, non-objectiveness, and thoroughness. The statistical data I collected from these two firms will support my recommendation that every business should have an e-commerce solution implemented.







Results



From my research, I have developed twenty reasons why every business should incorporate an e-commerce solution into the business operation. They are listed below.



1. To Establish A Presence



There are approximately 70 million people worldwide that have access to the World Wide Web (WWW). No matter what industry or business one is in, one can not ignore 70 million people. To be part of that on-line community, one would need to be on the WWW for them. Because if one doe not do it, one's competitor definitely will.



2. To Network



A lot of what passes for business is simply nothing more than making connections with other people. Every smart businessperson knows, it is not what one knows, it is whom one knows. Passing out one's business card is part of every good meeting and every businessperson can tell more than one story how a chance meeting turned into the big deal. Well, what if one could pass out the business card to thousands, maybe millions of potential clients and partners, saying this is what I do and if you are ever in need of my services, this is how you can reach me. One can, 24 hours a day, inexpensively and simply, on the WWW.



3. To Make Business Information Available



What is basic business information? Think of a Yellow Pages ad. What are one's business hours? What does one do? How can someone contact the business? What method of payment does one take? Where is the business located at? Now think of a Yellow Pages ad where one can have instant communication. What is today's special? Today's interest rate? Next week's parking lot sale information? If one could keep one's customer informed of every reason why they should do business with them, doesn't one think one could do more business? One can on the WWW.



4. To Serve The Customers



Making business information available is one of the most important ways to serve the customers. But if one looks at serving the customer, one will find even more ways to use WWW technology. How about making forms available to pre-qualify for loans, or have one's staff do a search for that classic jazz record one's customer is looking for, without tying up one's staff on the phone to take down the information? Allow the customer to punch in sizes and check it against a database that tells him what color of jacket is available in one's store? All this can be done, simply and quickly, on the WWW.



5. To Heighten Public Interest



One won't get Newsweek magazine to write up about one's local store opening, but one might get them to write up one's Web Page address if it is something new and interesting. Even if Newsweek would write about one's local store opening, one would not benefit from someone in a distant city reading about it, unless of course, they were coming to one's town sometime soon. With Web page information, anybody anywhere who can access the internet and hears about one's site is a potential visitor to one's Web site and a potential customer for one's information there.



6. To Release Time Sensitive Material



What if one's materials need to be released no earlier than midnight? The quarterly earnings statement, the grand prize winner, the press kit for the much anticipated film, the merger news? Well, one sent out the materials to the press with "The-do-not-release-before-such-and-such-time" statement and hope for the best. Now the information can be made available at midnight or any time one specifies, with all related materials such as photographs, bios, etc. released at exactly the same time. Imagine the anticipation of "All materials will be made available on our Web site at 12:01 AM". The scoop goes to those that wait for the information to be posted, not the one who releases one's information early.



7. To Sell Things



Many people think that this is the number one thing to do with the World Wide Web. However, I have made it number seven to make it clear that I think one should consider selling things on the Internet and the World Wide Web after one has done all the things above. Why? Well, the answer is complex but the best way to put it is, does one consider the telephone the best place to sell things? Probably not. One probably considers the telephone as a tool that allows one to communicate with one's customer, which in turn helps one sell things. Well, that's how I think one should consider the WWW. The technology is different, but before people decide to become customers, they want to know about one, what one does and what one can do for them. Which one can do easily and inexpensively on the WWW. Then one might be able to turn them into customers.



8. To make picture, sound and video available



What if one's widget is great, but people would really love it if they could see it in action? The album is great but with no airplay, nobody knows that it sounds great? A picture is worth a thousand words, but one does not have the space for a thousand words? The WWW allows one to add sound, pictures and short movie files to one's company's info if that will serve one's potential customers. No brochure will do that.



9. To Reach a Highly Desirable Demographic Market
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