BA 65 Hour 5 ~ Creating an Ecommerce Site

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Information about BA 65 Hour 5 ~ Creating an Ecommerce Site
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Published on November 23, 2009

Author: dpd

Source: slideshare.net

Creating an Ecommerce Site Planning and Managing Your Business Web Site BA 65

"A lot of advertisers lined up to throw money at this stuff because they were caught up in the hysteria about the Web. But now they want to know how you make money selling a $1.59 bottle of dish detergent on the World Wide Web.“ Karen Burka

"A lot of advertisers lined up to throw money at this stuff because they were caught up in the hysteria about the Web.

But now they want to know how you make money selling a $1.59 bottle of dish detergent on the World Wide Web.“

Karen Burka

Business Basics Proof of Concept - look before you leap Cost of online presence Is your business suited for online? Great Job @ 80% vs. Poor Job @ 100% Usability - work hard on this one Customer Service - anytime, anywhere Make your choices carefully and deliberately

Proof of Concept - look before you leap

Cost of online presence

Is your business suited for online?

Great Job @ 80% vs. Poor Job @ 100%

Usability - work hard on this one

Customer Service - anytime, anywhere

Make your choices carefully and deliberately

What is Ecommerce? “ Using the Internet to transact business with your customers” Web site must justify costs Monitor success from the start Competition may influence decisions Market share - you need it - study competitors

“ Using the Internet to transact business with your customers”

Web site must justify costs

Monitor success from the start

Competition may influence decisions

Market share - you need it - study competitors

Web Storefronts Ecommerce and Web storefront - obvious Not everything sells on the web Significant sales requires aggressive marketing Traditional and non-traditional 3 elements to storfront Catalog Order Payment

Ecommerce and Web storefront - obvious

Not everything sells on the web

Significant sales requires aggressive marketing

Traditional and non-traditional

3 elements to storfront

Catalog

Order

Payment

The Catalog Element Displays information about your product or services Build online catalog two ways: Individually designed Web pages - static pages Pages generated from database by Web Software

Displays information about your product or services

Build online catalog two ways:

Individually designed Web pages - static pages

Pages generated from database by Web Software

The Order Element Keeps track of your customers’ catalog selections Buy Now - straight to payment - one product Cardinal rule of ecommerce “ Always make it easy for your customers to BUY” Multiple purchase with shipping, taxes Bring on the Shopping Cart

Keeps track of your customers’ catalog selections

Buy Now - straight to payment - one product

Cardinal rule of ecommerce

“ Always make it easy for your customers to BUY”

Multiple purchase with shipping, taxes

Bring on the Shopping Cart

The Payment Element Lets your customers pay for their orders Low tech - phone call - not ideal Most people want to purchase on your site Third party payment processors - PayPal Low end, low cost option Basic HTML Could cost you in the long run - per transaction Web software - high end - payment gateway

Lets your customers pay for their orders

Low tech - phone call - not ideal

Most people want to purchase on your site

Third party payment processors - PayPal

Low end, low cost option

Basic HTML

Could cost you in the long run - per transaction

Web software - high end - payment gateway

Storefront Options Simplify matters Do you require a shopping cart? How much control do you need over the appearance of the storefront? Do you want to accept credit card payments over the internet?

Simplify matters

Do you require a shopping cart?

How much control do you need over the appearance of the storefront?

Do you want to accept credit card payments over the internet?

How Do You Decide? Are you in business to make a profit? Estimate the value of a Web storefront and budget accordingly - ROI If using a shopping cart - get experienced help Options, options, options

Are you in business to make a profit?

Estimate the value of a Web storefront and budget accordingly - ROI

If using a shopping cart - get experienced help

Options, options, options

The ASP Question Application Service Provider - access to specialized software that runs on the server Storefront services - “hosted” Login to service provider’s Web site - to edit Product Data stored in database on service provider’s network

Application Service Provider - access to specialized software that runs on the server

Storefront services - “hosted”

Login to service provider’s Web site - to edit

Product Data stored in database on service provider’s network

The ASP Question Host part or all Vendor maintains service - advantage You do not have 100% control - disadvantage With ASP the total cost of your storefront is lower

Host part or all

Vendor maintains service - advantage

You do not have 100% control - disadvantage

With ASP the total cost of your storefront is lower

Shopping Cart Software More control over appearance than ASP You will need some professional help Buy license and avoid monthly fees (ASP) More complex - more expensive Two distinct elements: An Administration site - interface to manage A public site - the customer side Both share a database

More control over appearance than ASP

You will need some professional help

Buy license and avoid monthly fees (ASP)

More complex - more expensive

Two distinct elements:

An Administration site - interface to manage

A public site - the customer side

Both share a database

Shopping Cart Software Hunting for shopping cart Different prices, features, configurations Your shopping cart should support your Web site goals, Web site plan and storyboard Does your Host offer to install? Focus on both customer and admin sides Shopping cart should make your life easier!

Hunting for shopping cart

Different prices, features, configurations

Your shopping cart should support your Web site goals, Web site plan and storyboard

Does your Host offer to install?

Focus on both customer and admin sides

Shopping cart should make your life easier!

Shopping Cart Features Try before you buy - all carts are not the same Categories - Subcategories Product Listing and Detail Shipping Taxes Price Levels Coupons Product Options Payment Gateway Support Customization

Try before you buy - all carts are not the same

Categories - Subcategories

Product Listing and Detail

Shipping

Taxes

Price Levels

Coupons

Product Options

Payment Gateway Support

Customization

Understanding Online Payments Mind-boggling array of chopping carts Complexity is high - easily confused Most misunderstood element of ecommerce Pay for too much, too little, or wrong things Become knowledgeable - your work is not done with this class

Mind-boggling array of chopping carts

Complexity is high - easily confused

Most misunderstood element of ecommerce

Pay for too much, too little, or wrong things

Become knowledgeable - your work is not done with this class

Accepting Credit Cards Compare payment processing to traditional point-of-sale scenario to understand Goal - transfer money from customer credit card account to your merchant account Need to establish merchant account 1 st

Compare payment processing to traditional point-of-sale scenario to understand

Goal - transfer money from customer credit card account to your merchant account

Need to establish merchant account 1 st

What is a Merchant Account? A special account you set up with your bank for receiving credit card payments Where all payments are deposited May take a few weeks to setup - Internet Merchant services Two types of merchant accounts Card Present - point of sale card swipe Card Not Present - MOTO All Internet transactions are Card Not Present

A special account you set up with your bank for receiving credit card payments

Where all payments are deposited

May take a few weeks to setup - Internet Merchant services

Two types of merchant accounts

Card Present - point of sale card swipe

Card Not Present - MOTO

All Internet transactions are Card Not Present

Understanding How Credit Card Payments Work 3 steps: Authorization - verifies that the customer’s card is good for transaction Capture - collects the transactions you are ready to settle into batch Settlement - transfers the money from your customer’s credit card account to your merchant account Purchase - Authorization - Capture - Batch

3 steps:

Authorization - verifies that the customer’s card is good for transaction

Capture - collects the transactions you are ready to settle into batch

Settlement - transfers the money from your customer’s credit card account to your merchant account

Purchase - Authorization - Capture - Batch

Why the Payment Gateway is Important No face-to-face Payment Gateway - Internet payment processor VeriSign - Authorize.net Acquiring Financial Institution - arranged your merchant account - may be bank or other Economic sense - you may get discount Payment Gateway - connects Web site with merchant account’s banking network

No face-to-face

Payment Gateway - Internet payment processor

VeriSign - Authorize.net

Acquiring Financial Institution - arranged your merchant account - may be bank or other

Economic sense - you may get discount

Payment Gateway - connects Web site with merchant account’s banking network

How Internet Payment Works Getting paid - Authorization and Fulfillment Customer enters credit card information Shopping cart software process the order Payment gateway requests authorization from customer’s financial institution Merchant uses admin tools to capture payments Payment gateway settles capture payments

Getting paid - Authorization and Fulfillment

Customer enters credit card information

Shopping cart software process the order

Payment gateway requests authorization from customer’s financial institution

Merchant uses admin tools to capture payments

Payment gateway settles capture payments

How Internet Payment Works

Merchant Interface Capture, void, and refund charges Browser-based from payment gateway Login (daily) - review - process Settle payments, transfer funds from issuing financial institution (customer) to acquiring financial institution (your bank) Process refunds

Capture, void, and refund charges

Browser-based from payment gateway

Login (daily) - review - process

Settle payments, transfer funds from issuing financial institution (customer) to acquiring financial institution (your bank)

Process refunds

Potential Payment Trouble Spots Not to complicated is it? Easy process - logistics of implementing process that causes all the problems Forewarned is Forearmed

Not to complicated is it?

Easy process - logistics of implementing process that causes all the problems

Forewarned is Forearmed

Potential Trouble Spot #1 Your Customer and Your Shopping Cart Don’t Get Along Which credit cards do you accept? Communication problem not technology Visa, MasterCard - for sure American Express, Discover - maybe Shopping cart designed for optimum usability

Your Customer and Your

Shopping Cart Don’t Get Along

Which credit cards do you accept?

Communication problem not technology

Visa, MasterCard - for sure

American Express, Discover - maybe

Shopping cart designed for optimum usability

Potential Trouble Spot #2 Your Shopping Cart Software Won’t Work With Your Payment Gateway Not all shopping carts support all gateways VeriSign vs. Authorize.net Each payment gateway has its own rules for how transactions must be formatted

Your Shopping Cart Software Won’t Work With Your Payment Gateway

Not all shopping carts support all gateways

VeriSign vs. Authorize.net

Each payment gateway has its own rules for how transactions must be formatted

Potential Trouble Spot #3 Your Merchant Account Doesn’t Accept Online Payments Must be able to accept Internet payments Internet transactions considered more risky than tradition point-of-sale transactions Financial institutions use different fee schedules to accommodate the risk

Your Merchant Account Doesn’t Accept Online Payments

Must be able to accept Internet payments

Internet transactions considered more risky than tradition point-of-sale transactions

Financial institutions use different fee schedules to accommodate the risk

Potential Trouble Spot #4 Your Payment Gateway Won’t Work With Your Merchant Account Question: Will my payment gateway communicate with my financial institutional banking network? Ask before your purchase - move forward

Your Payment Gateway Won’t Work With Your Merchant Account

Question: Will my payment gateway communicate with my financial institutional banking network?

Ask before your purchase - move forward

Small Budget Payment Alternatives Setup charges and monthly fees with merchant account may be too steep Cheapest method? - don’t do transactions over the net - phone, store, mail Manual labor has it’s cost! Internet shoppers participate in “Web Culture” Solutions exist to suit your needs

Setup charges and monthly fees with merchant account may be too steep

Cheapest method? - don’t do transactions over the net - phone, store, mail

Manual labor has it’s cost!

Internet shoppers participate in “Web Culture”

Solutions exist to suit your needs

The PayPal Alternative PayPal is the third most popular third-party Internet payment processor (no setup fees, monthly charges) eBay liked it so much they bought it!

PayPal is the third most popular third-party Internet payment processor (no setup fees, monthly charges)

eBay liked it so much they bought it!

The PayPal Alternative How it works: PayPal establishes account for you Customer get directed to PayPal with special code Customer pays - PayPal deducts service charge and deposits the payment into your PayPal account Your request payment from PayPal - check, deposit

How it works:

PayPal establishes account for you

Customer get directed to PayPal with special code

Customer pays - PayPal deducts service charge and deposits the payment into your PayPal account

Your request payment from PayPal - check, deposit

PayPal IPN IPN - Instant Payment Notification Used for delivering electronic payload (eBooks, files, etc) Secure way to guarantee that customers paid for your product before they received access to a download Shopping cart will need to support IPN Use of gateway page to deliver product

IPN - Instant Payment Notification

Used for delivering electronic payload (eBooks, files, etc)

Secure way to guarantee that customers paid for your product before they received access to a download

Shopping cart will need to support IPN

Use of gateway page to deliver product

Payment Security “ Internet is a global network of computers with a large community of hackers” Hackers have all the latest toys and tools Don’t use email to send critical passwords or any other confidential information Online protection for yourself, and your customers, is as important as offline security

“ Internet is a global network of computers with a large community of hackers”

Hackers have all the latest toys and tools

Don’t use email to send critical passwords or any other confidential information

Online protection for yourself, and your customers, is as important as offline security

SSL and Digital Certificate Secured Sockets Layer (SSL) - exists to take normal online forms and make them secure To apply SSL to Web site you must acquire a digital certificate authority Unique key that your Web host installs on server

Secured Sockets Layer (SSL) - exists to take normal online forms and make them secure

To apply SSL to Web site you must acquire a digital certificate authority

Unique key that your Web host installs on server

SSL and Digital Certificate Encryption of data - hard to crack 40-bit - Shopping sites use (most browsers support 128-bit- Banks may use - (older browsers my not support Your shopping cart host may provide a common checkout facility for all vendors $50 - $350 a year (multiple-year/renewal discount

Encryption of data - hard to crack

40-bit - Shopping sites use (most browsers support

128-bit- Banks may use - (older browsers my not support

Your shopping cart host may provide a common checkout facility for all vendors

$50 - $350 a year (multiple-year/renewal discount

Understand Customer Concerns Hackers Spam Upfront about security and privacy with customers Allow your customers to feel comfortable as quickly and easily as possible by addressing issues

Hackers

Spam

Upfront about security and privacy with customers

Allow your customers to feel comfortable as quickly and easily as possible by addressing issues

How Secure is my credit card information? Provide easily accessible security link that explains your why your site is secure Explain the techniques you use such as SSL Display logo of authority digital certificate Make sure site switches to secure mode before information is sent Liability - don’t store credit card numbers - customers will reenter - and feel safe

Provide easily accessible security link that explains your why your site is secure

Explain the techniques you use such as SSL

Display logo of authority digital certificate

Make sure site switches to secure mode before information is sent

Liability - don’t store credit card numbers - customers will reenter - and feel safe

What do you do with my personal information? Write and provide your privacy policy Don’s share customer information with others Don’t use email address for others to see Opt-in approach to electronic communications Opt-out approach - customer must do something Most customers see something they didn’t ask for as junk

Write and provide your privacy policy

Don’s share customer information with others

Don’t use email address for others to see

Opt-in approach to electronic communications

Opt-out approach - customer must do something

Most customers see something they didn’t ask for as junk

How long will it take for my order to arrive? Customers expect quick order fulfillment Tell your customers upfront how long it will take to process and ship the order Ideally you should ship in 24 hours Rapid delivery choice Charging credit card

Customers expect quick order fulfillment

Tell your customers upfront how long it will take to process and ship the order

Ideally you should ship in 24 hours

Rapid delivery choice

Charging credit card

What is happening with my order? Let customers know you have received order Let customers know you have shipped order Email will work for this If you offer custom merchandise maybe you should allow customers to check on order through your Web site

Let customers know you have received order

Let customers know you have shipped order

Email will work for this

If you offer custom merchandise maybe you should allow customers to check on order through your Web site

Am I really getting a good deal here? Price is not only concern to customers Give your customers information that explains why buying from you is better than buying from your competition “ I offer only the highest quality merchandise!” Remind customers of excellent return policy, free shipping, or whatever else makes your product or service superior - be creative!

Price is not only concern to customers

Give your customers information that explains why buying from you is better than buying from your competition

“ I offer only the highest quality merchandise!”

Remind customers of excellent return policy, free shipping, or whatever else makes your product or service superior - be creative!

What if there is something wrong with my order? Online purchasing doesn’t allow for your customer to touch, feel, and see your product before they purchase Make your return policy very clear - and be generous - You want customers to purchase again Comfortable customers comeback for more First impressions work on the Internet

Online purchasing doesn’t allow for your customer to touch, feel, and see your product before they purchase

Make your return policy very clear - and be generous - You want customers to purchase again

Comfortable customers comeback for more

First impressions work on the Internet

"If anything, e-commerce will cause mom-and-pop-like businesses to proliferate. E-commerce redefines the neighborhood, the community, and the customer relationship. Instead of creating limits, it creates access to opportunities." "Mark," Decatur, Illinois, Fast Company, September 1999

"If anything, e-commerce will cause mom-and-pop-like businesses to proliferate. E-commerce redefines the neighborhood, the community, and the customer relationship. Instead of creating limits, it creates access to opportunities."

"Mark," Decatur, Illinois, Fast Company, September 1999

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