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Planning for e-commerce

Created by Business Link on 01 June 2006 14:06 © Crown copyright 2005

Introduction

E-commerce plays an increasingly imp role in the way in which products and services are purchased. The business relationships supported be-commerce can be split into two main
categories:

  • open relationships, often referred to as "business-to-consumer", where there is no formal relationship between you and your trading partners, as with the conventional customer-supplier relationship.

  • closed relationships, often referred to as "business-to-business", where your business is part of a common trading group with agreed commercial and often technical trading rules.

Identifying e-commerce opportunities

There are a wide range of existing e-commerce models and new opportunities are constantly evolving. By understanding the more common models, you will be in a better position to identify possible opportunities within your own business.

Making an e-commerce site easy to use

The ease with which a customer is able to use an e-commerce site is an important part of its success. It's also an important part of your online brand image.

There are three elements of the shopping process that influence how easy and enjoyable the customer finds it to shop on an e-commerce site - the shop front, shopping cart and payment software.

Shop front

The shop front is the interface presented to the customer. This often incorporates an online catalogue that enables them to browse for products and identify those they wish to purchase. The intention of the shop front is to make sales, and in order to do this it should have certain attributes. Customers should be able to find the product quickly. An eight-second guideline is frequently cited, whereby if they are unable to find the product within that time, they are likely to go to an alternative site. It should process the order speedily and, if necessary, send details for it be packed and shipped. There should be a summary of the order generated, together with a printable receipt and a mechanism to send a confirmation email to the customer. The design of the shop front should make shopping intuitive, with the customer knowing at all times what stage of the buying process they are at.

Shopping cart

This is the software that facilitates easy selection and payment for products purchased by a customer from an e-commerce website. Once the goods have been selected, the customer should find the checkout clearly signposted, so that they can proceed to pay for the goods.

Payment software

Most customers will wish to pay for their purchases with credit or debit cards. There are three options for accepting such payments - you can:

  • open a merchant account

  • use a payment processing company

  • set up an online shop within a virtual shopping mall

You can find this guide on http://www.businesslink.gov.uk by navigating to:
Home > IT & e-commerce > E-commerce > Planning for e-commerce

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