Online+Business+Strategies

An e-commerce business must develop strategies to serve its markets better than its competitors. Let’s look at e-commerce functions.

Any business engages in e-commerce must undertake seven marketing functions in an online environment. E-commerce firms must design effective web sites that communicate well and allow for product searches and ordering. These businesses must be able to fill and deliver orders in a timely manner. they must also be able to meet the individual needs of their customers. In most cases, a business’s web site acts as the point of contact for customers. The web site must allow the customer to find products or services, arrange for distribution, communicate benefits to promote and sell the product, collect information on the buyers, display prices, and allow for online payments.
 * __//E-COMMERCE FUNCTIONS //__**

__//**E-Commerce Site Design **//__ The decision process that consumers use to shop online is the same as in a brick-and-mortar store. Customers will most likely want to browse for products, compare prices, and evaluate service options before they buy. E-commerce sites must allow for the same types of activities.

E-commerce businesses have an advantage in their ability to use information technology such as web sites, search systems, databases, and e-mail to aid in the shopping process. an online environment enhances the ability to search for information and compare products and prices.

A typical business-to-consumer e-commerce transaction might consist of the following steps: 1.  A buyer uses a web site as the main communication source for information on a company and its products. 2. A buyer uses the web site search feature to find products on the site. web site search engines link to inventory databases. This link allows for word searches to locate products. 3. The buyer searches for the same or similar products available through other e-commerce businesses. The buyer compares products and prices. 4. The buyer uses a credit card to pay for the order. The credit card company acts as the financier for the purchase. 5 <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">. the business communicates with the buyer by sending an e-mail to confirm the sale. <span style="background-color: transparent; color: #0000ff; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">6. <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;"> As part of its service, the business sends an e-mail to notify the buyer when the product ships and when it should arrive. <span style="background-color: transparent; color: #0000ff; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">7. <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;"> The business’s database collects the transaction information. This information is used to aid in future marketing to the buyer.

__//**<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: underline; vertical-align: baseline;">Personalization **//__ <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Understanding and meeting customers’ needs fulfills the marketing concept. Knowing individual customers on a personal level is one of the advantages of a brick-and-mortar business. Databases are helping e-commerce businesses serve customers at the individual level. Firms such as Amazon.com customize their web sites for the individual based on past interaction and purchases at the site.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">A web site provides personalization when it uses information collected from the customer to provide content that is specific to the individual. The web site may suggest products or provide information that would be of interest to the individual. Personalization can increase the chances of future sales. Amazon.com displays related products that other customers have purchased in addition to the product you are buying. When revisiting, the site initially displays and suggests products by the same author or in the same category as your previous orders.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The online collection of personal information has led to concerns about privacy. In the United States, the data a business collects belongs to that business. A business can sell this information.

__//**<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: underline; vertical-align: baseline;">Portals **//__ <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Some web sites act as “windows” to online content. A customer portal, such as AOL, MSN, or Yahoo!, designs its site to allow individuals to find a variety of online content on its and others’ sites. These portals make money from advertising revenue and the sale of products.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Shopping portals such as Amazon.com and Buy.com allow consumers to find and purchase products online. Specialized portals allow individuals to find content in more narrowly defined areas. For example, Kelly blue Book’s site offers information on automobile prices, reviews, tips, and advice, and allows a buyer to find cars at local dealers.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Many portals want to develop long-term relationships with customers. To aid in this process, they generate customized web sites based on the individuals’ personalized profile information.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Business portals support B2B e-commerce. Covisint.com is a portal for the automotive industry. It allows major automotive companies to act as buyers and lets the suppliers engage in online commerce and inventory control.

__//**<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: underline; vertical-align: baseline;">Fulfillment **//__ <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Traditional businesses that have retail outlets allow you to purchase and receive a product immediately. Online businesses must also deliver products in a timely manner. This is especially true for B2B e-commerce companies. Businesses typically want their products or parts delivered just in time, or just before they are needed in the manufacturing process. Consequently, the business can delay payment and reduce the amount of space needed for parts in inventory.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Fulfillment, or the order delivery process, usually works the same for both individual and business buyers. The buyer uses online search systems to look for products in stock. An online order form, often called a shopping cart, is used to place an order. When the order is submitted, an e-mail notification confirming the order is sent to the buyer. Once the order is ready to be shipped, a second e-mail notification announces the expected delivery time. The shipment is automatically deducted from inventory records. As stock gets low, a purchase order is triggered to replenish the business’s inventory. These fulfillment processes are cost effective but can be expensive to build and implement. Just on of Amazon.com’s six warehouses has over 840,000 square feet dedicated to fulfillment.

__//**<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: underline; vertical-align: baseline;">E-Commerce Products **//__ <span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">Physical products sold over the Internet are the same as those found in any retail location. Digital products are sold and transferred directly over the Internet to the customer. Digital products include multimedia entertainment, online information services, published documents, games, music, and video. Digital services are sold and performed online. Many service businesses, such as banks, stockbrokers, and schools are making their services available over the Internet for the convenience of their customers.

<span style="background-color: transparent; color: #000000; font-family: Arial; font-size: 15px; text-decoration: none; vertical-align: baseline;">The Internet delivers digital products directly to the user, but copyright violations and the unwillingness of individuals to pay for digital content have slowed the growth of this market.