| Technical and organizational aspects | | | | |
| | | | 12. Providing complete understanding of the |
| In many cases, an e-commerce company will | | | | products or services offered, which not only |
| survive not only based on its product, but by | | | | includes complete product information, but |
| having a competent management team, good | | | | also sound advisors and selectors. |
| post-sales services, well-organized business | | | | |
| structure, network infrastructure and a | | | | Naturally, the e-commerce vendor must also |
| secured, well-designed website. A company | | | | perform such mundane tasks as being truthful |
| that want to succeed have to perform 2 | | | | about its product and its availability, |
| things: Technical and organizational aspects | | | | shipping reliably, and handling complaints |
| and customer-orientedFollowing factors will | | | | promptly and effectively. A unique property |
| make business of companies succeed in | | | | of the Internet environment is that |
| e-commerce: | | | | individual customers have access to far more |
| | | | information about the seller than they would |
| 1. Sufficient work done in market research | | | | find in a brick-and-mortar situation. (Of |
| and analysis. E-commerce is not exempt from | | | | course, customers can, and occasionally do, |
| good business planning and the fundamental | | | | research a brick-and-mortar store online |
| laws of supply and demand. Business failure | | | | before visiting it, so this distinction does |
| is as much a reality in e-commerce as in any | | | | not hold water in every case.) |
| other form of business. | | | | |
| | | | Customer-Oriented |
| 2. A good management team armed with | | | | |
| information technology strategy. A company's | | | | A successful e-commerce organization must |
| IT strategy should be a part of the business | | | | also provide an enjoyable and rewarding |
| re-design process. | | | | experience to its customers. Many factors go |
| | | | into making this possible. Such factors |
| 3. Providing an easy and secured way for | | | | include: |
| customers to effect transactions. Credit | | | | |
| cards are the most popular means of sending | | | | 1. Providing value to customers. Vendors can |
| payments on the internet, accounting for 90% | | | | achieve this by offering a product or |
| of online purchases. In the past, card | | | | product-line that attracts potential |
| numbers were transferred securely between the | | | | customers at a competitive price, as in |
| customer and merchant through independent | | | | non-electronic commerce. |
| payment gateways. Such independent payment | | | | |
| gateways are still used by most small and | | | | 2. Providing service and performance. |
| home businesses. Most merchants today process | | | | Offering a responsive, user-friendly |
| credit card transactions on site through | | | | purchasing experience, just like a |
| arrangements made with commercial banks or | | | | flesh-and-blood retailer, may go some way to |
| credit cards companies. | | | | achieving these goals. |
| | | | |
| 4. Providing reliability and security. | | | | 3. Providing an incentive for customers to |
| Parallel servers, hardware redundancy, | | | | buy and to return. Sales promotions to this |
| fail-safe technology, information encryption, | | | | end can involve coupons, special offers, and |
| and firewalls can enhance this requirement. | | | | discounts. Cross-linked websites and |
| | | | advertising affiliate programs can also help. |
| 5. Providing a 360-degree view of the | | | | |
| customer relationship, defined as ensuring | | | | 4. Providing personal attention. Personalized |
| that all employees, suppliers, and partners | | | | web sites, purchase suggestions, and |
| have a complete view, and the same view, of | | | | personalized special offers may go some of |
| the customer. However, customers may not | | | | the way to substituting for the face-to-face |
| appreciate the big brother experience. | | | | human interaction found at a traditional |
| | | | point of sale. |
| 6. Constructing a commercially sound business | | | | |
| model. | | | | 5. Providing a sense of community. Chat |
| | | | rooms, discussion boards, soliciting customer |
| 7. Engineering an electronic value chain in | | | | input and loyalty programs (sometimes called |
| which one focuses on a "limited" number of | | | | affinity programs) can help in this respect. |
| core competencies -- the opposite of a | | | | |
| one-stop shop. (Electronic stores can appear | | | | 6. Owning the customer's total experience. |
| either specialist or generalist if properly | | | | E-tailers foster this by treating any |
| programmed.) | | | | contacts with a customer as part of a total |
| | | | experience, an experience that becomes |
| 8. Operating on or near the cutting edge of | | | | synonymous with the brand. |
| technology and staying there as technology | | | | |
| changes (but remembering that the | | | | 7. Letting customers help themselves. |
| fundamentals of commerce remain indifferent | | | | Provision of a self-serve site, easy to use |
| to technology). | | | | without assistance, can help in this respect. |
| | | | This implies that all product information is |
| 9. Setting up an organization of sufficient | | | | available, cross-sell information, advise for |
| alertness and agility to respond quickly to | | | | product alternatives, and supplies & |
| any changes in the economic, social and | | | | accessory selectors. |
| physical environment. | | | | |
| | | | 8. Helping customers do their job of |
| 10. Providing an attractive website. The | | | | consuming. E-tailers and online shopping |
| tasteful use of colour, graphics, animation, | | | | directories can provide such help through |
| photographs, fonts, and white-space | | | | ample comparative information and good search |
| percentage may aid success in this respect. | | | | facilities. Provision of component |
| | | | information and safety-and-health comments |
| 11. Streamlining business processes, possibly | | | | may assist e-tailers to define the customers' |
| through re-engineering and information | | | | job. |
| technologies. | | | | |