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E-COMMERCE: PURCHASING AND SELLING ONLINE

Small businesses that are considering purchasing or selling attracting and keeping online customers are also presented. such as e-marketplaces and online auctions.

What is E-Commerce?

or other businesses.

Business to Consumer (B2C)

Business to Business (B2B)

Why E-Commerce for Small Businesses?

e-marketplace site. continued on page 2...

WHAT"S INSIDE

What is E-Commerce? ........................1

Small Businesses?

.............................1 ..................3 ...4 ................8 ...................................9

Choosing an E-Commerce

.................10

Choosing E-Commerce Features

.....11 .....................12 ...............14 ...............15 .............15 .........15 ................................16 ..............................16 ............17 .....................17 ..................................18 2 ...continued from page 1 • an online e-commerce presence opens up more • eliminating distributors and retailers that add to the • local bricks and mortar store.

FAST FACTS ABOUT E-COMMERCE IN CANADA

• selling and purchasing online.

Sources:

http://www.canadabusiness.ca/eng

Statistics Canada. Survey of Electronic

Commerce and Technology (2007) and

http://www.villagegamer.net/2012/03/09/ 3 shoppers are purchasing online.

E-COMMERCE, TOP 10 TYPES OF PRODUCTS

ORDERED IN 2010

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Source: Statictics Canada

Planning for E-commerce

1. 2. 3. 4. 5.

6. an online store?

7.

Setting Goals and Objectives

Goal Setting ExamplesExamples of Objectives

Use Internet to expand business• new prospects.

Expand sales outside local area

• directories within 6 months.

Sell $xxxx per month to existing clients

Reduce direct marketing expenses from

• email campaigns.

Enhance customer service

4

Choosing a Web Developer vs.

Do-It-Yourself (DIY) Options

Canada Cart

www.canadacart.ca • customers and competitors? • on implementing. • choices and return policies. See

Creating a Dynamic Web Presence

Selling Online Using Your

Own Website - Setting Up

an Online Store

1. Shopping Cart

detail below.

1. Shopping Carts

The product catalogue shopping list 5 allow "cookies".

The checkout

2. Secure Server

card numbers. the merchant.

Protecting Transaction Information

Shopping carts do not deal with the entire

payment gateway

Cookies

Servers

Source: Expedite Media Group, Inc.

6 • https:// as

3. Payment Processing Options

What You Should Consider when Choosing

a Payment Option: • Fraud protection. -transaction can be placed on hold while the bank

A. Third Party Payment Processing

www.wikipedia.org www.canadaone.com www.ccnow.com www.beanstream.com www.internetsecure.com

How does this type of processing work?

7

B. Internet Merchant Account

How do You Obtain an Internet Merchant Account?

The bank will conduct a

credit risk assessment www.internetsecure.comwww.psigate.com www.about.com - Small

D. EBPP and On Demand Payment Gateways

• Consolidation service • Biller Direct • Direct Email Delivery enables small businesses to

E. RFID & NFC Mobile Commerce

8

Security and Privacy Issues

SULYDF\ULVNV

TIPS FOR MINIMIZING SECURITY AND PRIVACY RISKS ASSOCIATED WITH E-COMMERCE • patches as needed. • then be disabled. • and Thawte at or computer hackers. • www.truste.com 9

Options for Selling Products on

Your Website

• sell online.

OPTIONS FOR SELLING PRODUCTS ON YOUR WEBSITE

OPTION 1

Hosted Solution

with Bundled

E-Commerce PackageOPTION 2 E-Commerce Licensed Software/Application (Templates)OPTION 3 E-Commerce Open Source Software (Templates)OPTION 4 Customized E-Commerce Solution

• and management. • template solutions. • sales commission. design as compared to • and plans. in setting up and • the product? • e-commerce is a critical • the website. 10

Choosing an E-Commerce Solution for Your Website

CONSIDERATIONS FOR CHOOSING AN E-COMMERCE SOLUTION • the website and product catalogue? • international customers. • to integrate into the solution? 11

Choosing E-Commerce Features

to grow. when setting up an e-commerce website.

E-COMMERCE FEATURES AND SERVICES

Store Design.

Shopping Cart.

Product Catalogue.

the online catalogue is able to manage. Consider how product database.

Payment Processing Options

logistics operating process and can monitor the whole

Security Features

Product Promotion. Features can include discounts

Order Processing.

Website Analytics and Reporting Features.

Level of Support.

12

Top Five Tips for Minimizing

‘Shopping Cart Abandonment"

shopping cart abandonment " - a term used to describe customers who 1. 2.

3. checkout process is too long and there are too

4.

5. checkout process.

Resource List of

E-Commerce Products

such as www.wikipedia.com www.opensourcecms.com

Examples of E-Commerce Software Products

LICENSED E-COMMERCE SOLUTIONS

Fortune 3

Source: www.bizfive.com/articles/web-design/choosing-e-commerce-solutions/

ProStore

online stores as well as subscription sites. Source: www.bizfive.com/articles/web-design/choosing-e-commerce-solutions/

Volusion

Source: www.bizfive.com/articles/web-design/choosing-e-commerce-solutions/

Shopify

Source: www.killerstartups.com/Web-App-Tools/shopify

ClicShop

www.clicshop.com Source: Search using key words - Canada Shopping Cart 13

Canada Post Sell Online

online store. Source: Search using key words - Canada Shopping Cart

OPEN SOURCE E-COMMERCE SOLUTIONS

osCommerce Online Merchant www.oscommerce.com maintain online stores. Sources: www.ecommerce-guide.com and www.bizfive.com

Zen Cart

Source: www.ecommerce-guide.com

AgoraCart

www.agoracart.com

Source: www.ecommerce-guide.com

NOP shopping Cart

Source: www.ecommerce-guide.com

PROCESSING PAYMENTS EXAMPLES

PayPal

Source: www.wikipedia.com

BeanStream

www.beanstream.com

Source: www.canadaone.com

InternetSecure

www.internetsecure.com

Source: www.canadaone.com

Psigate

www.psigate.com

Source: www.canadaone.com

Level Ten

ecommerce-websites Source: www.bizfive.com/articles/web-design/choosing-e-commerce-solutions 14

Considerations for

Setting-Up and Maintaining

Your E-Commerce Website

PRIVACY AND SECURITY ISSUES

• web pages. • on returns and shipping?

E-COMMERCE WEBSITE DESIGN

PRODUCT/SERVICE CATALOGUE

• prior to purchase? • business needs change?

PAYMENT OPTIONS

• either setting up a merchant account or going with a

TRANSACTIONS

SHIPPING

INVENTORY MANAGEMENT SYSTEMS

TAXES

MAINTENANCE OF E-COMMERCE WEBSITE

15

MARKETING YOUR E-COMMERCE WEBSITE

TRACKING YOUR PROGRESS

Tips for Attracting and Keeping

Online Customers

• online customers. • Ensure orders are accurate. • on their credit card accounts.

Ensuring Timely Shipping -

Is Drop Shipping a Solution

for You?

Other B2B and B2C Options for

Purchasing and Selling Online

through auction websites.

SETTING UP ONLINE STOREFRONTS ON

OTHER WEBSITES

16

E-Marketplaces

B2B as well as B2C

transactions private e-marketplaces

Finding E-Marketplaces for

Auction Websites

• www.uBid.com • www.alibaba.com

Source: Index of the web.com

and Emarket Services www.emarketservices.com

AUCTION WEBSITE TUTORIALS

LISTING FEES

Reverse Auctions

potential suppliers underbid each other. 17 • www.priceline.com

Source:

Participating in a Reverse Auction as a Supplier

• are acceptable or not. The terms and conditions should to award the whole contract to the winner.

E-Commerce Best Practices

Engagement

Future of E-Commerce

according to Forbes.com.

1. In-store pick up.

2. Mobile apps.

18 considered to be dominant in the mobile marketplace

This trend will continue to grow with businesses

3. Video.clips to model new clothes or use a new purchase.

4. Social networking.

5. www.ruelala.com www.onekingslane.com are growing at a rapid pace.

6. Deal aggregators.

7. Seamless experience.

8. Online Debit Cards.

Further Considerations

• Mobile service offerings.

See Integrating

Mobile with Your Marketing booklet

• Social.See Social Media for Small Businesses booklet • Cloud.See Cloud Computing booklet

Related Topics Covered in

Other Booklets

• Creating a Dynamic Web Presence • The Legal and Privacy Issues of Doing E-Business • Internet Auctions and Virtual Malls 19

Glossary of Terms

Authentication:

and password.

Authorization:

beginning with authentication to ensure the user

Auto responder:

B2B:

Business to business - Transactions that occur

B2C:

Encryption:

Merchant account:

NFC (Near Field Communication):

See RFID in Glossary

Open Source:

Payment gateway:

Phishing:

to be an established legitimate enterprise in an attempt to

Set-up fees:

Shopping cart:

store or e-commerce hosting package.

Shopping cart abandonment:

SSL (Secure Locket Layer):

Storefront:

E-Business@ontario.ca

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