E Commerce Explained - A Research Paper

E-CommerceIntroductionAn e-commerce solution forwonder that Wired magazine, the magazine of choice
a business is the incorporation of all aspects of theto the Internet community, has no problem getting
business operation into an electronic format. ManyLexus and other high-end marketer's advertising. Even
well-established businesses have been selling on-linewith the addition of the commercial on-line
for years. For example, Dell Computers Corp., hascommunity, the demographic will remain high for
been selling computers directly to end-users formany years to come.10. To Answer Frequently
years. Currently, Dell is selling excessive of 1 millionAsked QuestionsWhoever answers the telephones in
dollars worth of computers everyday on the Worldone's organization can tell one that their time is
Wide Web (WWW).When a business hasusually spent answering the same questions over and
incorporated an e-commerce solution, the businessover again. These are the questions customers and
will experience a lower operation cost while at thepotential customers want to know the answer to
same time increasing its profit. The e-commercebefore they deal with one. Post them on a WWW
solution will allow businesses to eliminate unnecessarypage and one will have removed another barrier to
paperwork. All paperwork and data can bedoing business with one and freed up some time for
transformed into an electronic format. Thus, it willthat harried phone operator.11. To Stay in Contact
eliminate valuable shelf space and data can searchedwith SalespeopleOne's employees on the road may
and accessed in matter of seconds. E-commerce willneed up-to-the-minute information that will help them
also automates the sales process. Customers canmake the sale or pull together the deal. If one knows
"point & click" on the products they wish towhat that information is, one can keep it posted in
purchase, fill out the customer information, and thecomplete privacy on the WWW. A quick local phone
product will be shipped and received in a matter ofcall can keep one's staff supplied with the most
few days. The administration department does notdetailed information, without long distance phone bills
have to fill out any paperwork because the customerand tying up the staff at the home office.12. To
had done it already. Thus, the efficiency will beOpen International MarketOne may not be able to
greatly improved. With an e-commerce solution, themake sense of the mail, phone and regulation
business will be open 24 hours a day, 7 days a week.systems inall the potential international markets, but
People from anywhere in the world with an Internetwith a e-commerce solution, one can open up a
access will be able to visit the site at any time. Theydialogue with international markets as easily as with
will not be restricted to the "normal" businessthe company across the street. As a matter-of-fact,
operating hours. A "brick + mortar" business isbefore one goes onto the Web, one should decide
normally limited to serving the customers in its localhow one wants to handle the international business
geographical location. With an e-commerce solution,that will come one's way, because one's postings are
that business will not be limited a geographicalcertain to bring international opportunities to one's
restriction, rather it opens itself to the global on-lineway, whether it is part of one's plan or not. Another
market. Essentially, the business' market exposure willadded benefit; if one's company has offices
be greatly increased.In conducting my study, I haveoverseas, they can access the home offices
researched extensively on the Internet for resources.information for the price of a local phone call.13. To
I chose the Internet as my primary research mediumCreate a 24 Hour ServiceIf one has ever
because e-commerce is still a fairly new technology.remembered too late or too early to call the
Since it is technology related, the Internet will provideopposite coast, one knows the hassle. Not all
the most recent data available. Printed publications willbusinesses are on the same schedule. Business is
not be able to adapt to changes as fast and efficientworldwide but one's office hours aren't. Trying to
as electronic publications. I researched manyreach Asia or Europe is even more frustrating.
e-commerce related web sites along with someHowever, Web pages serve the client, customer and
companies that conduct statistical studies. Some ofpartner 24 hours a day, seven days a week. No
the e-commerce web sites that I looked into areovertime either. It can customize information to
E-Commerce Times, eRetail, and eMarketer. Thematch needs and collect important information that
statistical research firms that I researched arewill put one ahead of the competition, even before
Forrester Research and Jupiter Communication. Boththey get into the office.14. To Make Changing
firms provided valuable statistical data that shows theInformation Available QuicklySometimes, information
rise of consumers shopping on-line and the predictedchanges before it gets off the press. Now one has a
dollar amount that will be spent in the comingpile of expensive, worthless paper. Electronic
years.MethodsIn conducting my study, I completedpublishing changes with one's needs. No paper, no ink,
the following tasks:- I searched extensively on theno printer's bill. One can even attach one's web page
Internet for sites that are e-commerce related. Uponto a database which customizes the page's output to
visiting the sites, I evaluated each sites for thea database one can change as many times in a day
contents, thoroughness, and objectiveness. Thereas one needs. No printed piece can match that
are literally hundreds of sites that are devoted toflexibility.15. To Allow Feedback From CustomersOne
e-commerce. However, after my careful examinationpasses out the brochure, the catalog, the booklet.
of most of them, I narrowed down to four sitesBut it doesn't work. No sales, no calls, no leads. What
that I will research for this report.- I have alsowent wrong? Wrong color, wrong price, wrong
researched many firms that conducts statisticalmarket? Keep testing, the marketing books say, and
researches. The two firms that I will be utilizing forone will eventually find out what went wrong. That's
this report are Forrester Research and Jupitergreat for the big boys with deep pockets, but who is
Communication. Both firms are known for theirpaying the bills? One is and one doesn't have the
preciseness, non-objectiveness, and thoroughness.time nor the money to wait for the answer. With a
The statistical data I collected from these two firmsWeb page, one can ask for feedback and get it
will support my recommendation that every businessinstantaneously with no extra cost. An instant e-mail
should have an e-commerce solutionresponse can be built into Web pages and can get
implemented.ResultsFrom my research, I havethe answer while its fresh in one's customers mind,
developed twenty reasons why every businesswithout the cost and lack of response of business
should incorporate an e-commerce solution into thereply mail.16. To Test Market New Services and
business operation. They are listed below.1. ToProductsTied into the reason above, we all know the
Establish A PresenceThere are approximately 70cost of rolling out a new product. Advertising,
million people worldwide that have access to theadvertising, advertising, press release and advertising.
World Wide Web (WWW). No matter what industryExpensive, expensive, expensive. Once one has been
or business one is in, one can not ignore 70 millionon the Web and know what to expect from those
people. To be part of that on-line community, onewho are seeing one's page, they are the least
would need to be on the WWW for them. Becauseexpensive market for one to reach. They will also let
if one doe not do it, one's competitor definitely will.2.one knows what they think of one's product faster,
To NetworkA lot of what passes for business iseasier and much less expensively than any other
simply nothing more than making connections withmarket one may reach. For the cost of a page or
other people. Every smart businessperson knows, it istwo of Web programming, one can have a crystal
not what one knows, it is whom one knows. Passingball into where to position one's product or service in
out one's business card is part of every goodthe marketplace.17. To Reach The MediaEvery kind
meeting and every businessperson can tell more thanof business needs the exposure that the media can
one story how a chance meeting turned into the bigbring, as I touched on in reason #5 "To Heighten
deal. Well, what if one could pass out the businessPublic Interest", but what if one's business is reaching
card to thousands, maybe millions of potential clientsthe media, as a newswire, a publicist or a public policy
and partners, saying this is what I do and if you aregroup. The media is the most wired profession
ever in need of my services, this is how you cantoday, since their main product is information and
reach me. One can, 24 hours a day, inexpensivelythey can get it more quickly, cheaply and easily
and simply, on the To Make Business Informationon-line. On-line press kits are becoming more and
AvailableWhat is basic business information? Think ofmore common, since they work with the digital
a Yellow Pages ad. What are one's business hours?environment of more and more pressrooms. Digital
What does one do? How can someone contact theimages can be put in place without the stripping and
business? What method of payment does one take?shooting of the old pressrooms and digital text can
Where is the business located at? Now think of abe edited and outputted on tight deadlines. All these
Yellow Pages ad where one can have instantcan be made available on an e-commerce solution.18.
communication. What is today's special? Today'sTo Reach The Education and Youth MarketIf one's
interest rate? Next week's parking lot salemarket is education, consider that most universities
information? If one could keep one's customeralready offer Internet accesses to their students and
informed of every reason why they should domost K-12's will be on the Internet within the next
business with them, doesn't one think one could dofew years. Books, athletic shoes, study courses,
more business? One can on the To Serve Theyouth fashion and anything else that would want to
CustomersMaking business information available is onereach these overlapping markets needs to be on the
of the most important ways to serve the customers.WWW. Even with the coming of the commercial
But if one looks at serving the customer, one will findon-line services and their somewhat older populations
even more ways to use WWW technology. Howthere will be nothing but growth in the percentage of
about making forms available to pre-qualify for loans,the under 25 market that will be on-line.19. To Reach
or have one's staff do a search for that classic jazzThe Specialized MarketSell fish tanks, art
record one's customer is looking for, without tying upreproductions, flying lessons? One may think that the
one's staff on the phone to take down theInternet is not a good place to be. Well, think again.
information? Allow the customer to punch in sizesThe Internet isn't just for computer science students
and check it against a database that tells him whatanymore. With the 70 million and growing users of
color of jacket is available in one's store? All this canthe WWW, even the most narrowly defined interest
be done, simply and quickly, on the To Heightengroup will be represented in large numbers. Since the
Public InterestOne won't get Newsweek magazine toWeb has several very good search programs, one's
write up about one's local store opening, but oneinterest group will be able to find one's company, or
might get them to write up one's Web Page addressone's competitors.20. To Serve One's Local
if it is something new and interesting. Even ifMarketI've talked about the power to serve the
Newsweek would write about one's local storeworld with a e-commerce solution. How about one's
opening, one would not benefit from someone in aneighborhood? If one is located in San Francisco Bay
distant city reading about it, unless of course, theyArea, the Raleigh NC area, Boston or New York,
were coming to one's town sometime soon. Withthere is probably enough local customers with
Web page information, anybody anywhere who canInternet access to make it worth one's while to
access the internet and hears about one's site is aconsider Web marketing. A local Palo Alto, CA
potential visitor to one's Web site and a potentialrestaurant even takes lunch orders through the
customer for one's information there.6. To ReleaseInternet! But no matter where one is, if the big client
Time Sensitive MaterialWhat if one's materials needhas Internet access, one should be there
to be released no earlier than midnight? The quarterlytoo.ConclusionAfter detailed analyzing and studying of
earnings statement, the grand prize winner, the pressthe effects and benefits of incorporating an
kit for the much anticipated film, the merger news?e-commerce solution to an existing business, it is clear
Well, one sent out the materials to the press withthat an e-commerce solution will benefit the business
"The-do-not-release-before-such-and-such-time"in every aspect.The implementation of an
statement and hope for the best. Now thee-commerce solution will generate a brand new
information can be made available at midnight or anyrevenue stream, expand the market exposure, and
time one specifies, with all related materials such asdecrease the operation cost. Many Fortune 500
photographs, bios, etc. released at exactly the samecompanies, such as Dell Computer Corp., have already
time. Imagine the anticipation of "All materials will beadapted e-commerce into their business operation. As
made available on our Web site at 12:01 AM". TheI have mentioned earlier, Dell Computer Corp. is
scoop goes to those that wait for the information tocurrently generating over 1 million dollars in revenues
be posted, not the one who releases one'sfrom their web-site. Many well-known "brick &
information early.7. To Sell ThingsMany people thinkmortar" businesses are starting to establish their
that this is the number one thing to do with thepresence on the web. For example, Barnes & Noble
World Wide Web. However, I have made it numberBooksellers, the top book retailer in North America,
seven to make it clear that I think one shouldhas just launched their web-site earlier this year
consider selling things on the Internet and the Worldfollowing the success of Amazon.com, the top book
Wide Web after one has done all the things above.& music seller on the web, has been referred to
Why? Well, the answer is complex but the best wayhave one of the most efficient business operation in
to put it is, does one consider the telephone the bestthe world today.RecommendationBased on the
place to sell things? Probably not. One probablyconclusion of this study, I recommend the following:-
considers the telephone as a tool that allows one toEvery business should implement an e-commerce
communicate with one's customer, which in turn helpssolution into the business operation.Works
one sell things. Well, that's how I think one shouldCited"E-Commerce Times: Everything You Wanted to
consider the WWW. The technology is different, butKnow About Doing Business Online." E-Commerce
before people decide to become customers, theyTimes. 1999. (9 August 1999)."E-Marketer, Where
want to know about one, what one does and whatBusiness Begins On-line." E-Marketer. 1999. (9 August
one can do for them. Which one can do easily and1999)."E-Retail, News and Information for Internet
inexpensively on the WWW. Then one might be ableRetailers." E-Retail. 1999. (9 August 1999)."The
to turn them into customers.8. To make picture,Electronic Commerce Guide." Internet.com's Electronic
sound and video availableWhat if one's widget isCommerce Guide. 1999. . (9 August 1999)."Forrester
great, but people would really love it if they couldResearch: Helping Businesses Thrive on Technology
see it in action? The album is great but with noChange." Forrester Research. 1999. (9 August
airplay, nobody knows that it sounds great? A picture1999)."Jupiter Communication: Market Research on
is worth a thousand words, but one does not havethe Consumer Online Industry." Jupiter
the space for a thousand words? The WWW allowsCommunication. 1999. (9 August 1999).Doctor Mike
one to add sound, pictures and short movie files toCooper has been a college level instructor since 1986.
one's company's info if that will serve one's potentialHe has a Ph.D. in Computer Information Systems and
customers. No brochure will do that.9. To Reach aa Master's Degree in Data Communications. He is a
Highly Desirable Demographic MarketThe demographicretired Army Officer and a veteran of 33 months
of the WWW user is probably the highestservice in Vietnam. Dr. Cooper has lived in Thailand,
mass-market demographic available. Usually they areBelgium, Germany and still travels extensively.Doctor
college-educated or being college educated, making aMike Cooper writes research papers for and Many of
high salary or soon to make a high salary. It is nohis papers are ecommerce related.