How e-commerce works


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10 Steps to E-Commerce Success

What makes one e-commerce web site a ragingall  your  adverts.
success, while another similar one barely
gets a visitor much less sells anything? AskUse  Sig  files  on  ALL  emails
any small business owner and you're likely to
get a range of answers from "Cool technology"Sign up affiliates and pay them a commission
to "A really sexy web site", and more likely
than not: "Being Number One on the Search
Engines".Important some of these things mayUse  a  Viral  Marketing  email  campaign
be, they're not actually the core elements
for success! And it's for this reason thatPublish email newsletters and information to
most people go wrong when they go online. Inbuild  an  email  list
fact, the main factors, or decisions, that
make a web site successful or not, take placeResearch your market carefully to find out
long before a line of code is written, or awhat methods people use to find and buy your
graphic designed or anyone puts finger toproduct/service and concentrate all your
keyboard to write any copy. We list below, inefforts  on  those  channels.
order of importance, the ten things you
should concentrate on if you want your7. Make Sure Your Web Site Copy is Clear and
e-commerce web site to be a rip-roaringPersuasive
success:1.  Do  Your  Research
Perhaps the most overlooked element of web
The first thing that you must remember (andsite development these days is copy - that
this is the bit that everyone seemed tois, the words been all those pretty pictures,
forget in Internet "Gold Rush" of 1999) isflash animations, and whizzy functions. A
that the same business principles apply togreat deal of web site copy on the internet
your internet business as any other. Youtoday is utter rubbish, and many online shops
must: a) Have a product/service with a solidfeature hardly any at all! You get a welcome
perceived need; b) you must be able to sellmessage, product titles, pictures, maybe a
it at a price that is profitable and providesfew specifications, and great big "Buy Now"
good value to the purchaser and; c) you mustbuttons. Once again, it seems that people
be able to reach a sufficient number ofjump onto the Internet bandwagon and forget
potential purchasers (and convince them tothat there's a real human being on the other
buy) to generate enough revenue to make yourside of the computer screen and he/she wants
business viable. And to find out that, youinformation and wants to be treated with some
need to research your market. Thoroughly.Therespect. Basic business rules still apply,
first and most obvious thing you need to findand with some modification, your approach to
out is the "need" factor. Note I saidyour web site should be similar in many
"perceived" need, perhaps better described asrespects to traditional mail order or direct
a "want". We buy lots of things we don'tdistance selling. And the golden rule of mail
need, because mainly we think we need them.order and direct selling? The more you tell,
So, will people benefit from your product orthe more you sell! Professional copywriters
service? Do you genuinely believe you canthroughout the marketing ages have known this
convince people they need it? To find thatall along. The theory has been tested to the
out, you have to ask them! But we're notends of the universe and the result is always
there yet: it's one thing having a productthe same. Long copy outsells short copy every
that people do actually need, but if theretime. But there are some rules and some
are already lots of people supplying it, thenadaptation of this basic fact when thinking
you might have a problem with part b. You areabout  the  web:General  rules:
only going to be able to sell your product
service at a profit AND and a price peopleYour copy should be clear and concise in its
think represents good value if 1) Not manyconstruction
other people provide it or 2) yours is better
(and/or cheaper - but for reasons explainedEvery sentence needs to be short and snappy,
later, this is not usually a good route towith  short  words
take). Again, you must do your research and
find out before you do anything else. AndWhere possible, one sentence per paragraph
finally, can you reach this market(if it's sales copy, editorial is different)
cost-efficiently and find enough people to
buy from you? This is the one great strengthUse  headlines, sub heads and bullet points
of the Internet and e-commerce: it's much
cheaper, it's faster and has a much widerEvery single statement should contain a
reach that any other communications channelfact, benefit or persuasive argument. Don't
so far invented! But it still costs time andwaste  a  word!
money, and you have to be realistic, so you
need to research your market and work out ifSpend MOST of your time creating headlines,
you have the time and money to reach it.2.they are the single most important factor in
Work  on  your  Strategydirect mail sales success and the same goes
for  the  web.  Special  Web  Rules:
OK, so now you know, hopefully, that there
is a need for your product or service, thatBreak up copy that's more than about 500-700
not many people offer it at the price/profitwords  long  into  seperate  pages
value level that you can, and you know that
thousands of people who use the internet aAlways try to close the prospect at the end
lot and who you know from your research canof each page as well as having a "more" link
and do buy online, will want to buy it fromto  the  next  page
you. So now you work on your strategy. This
is key. You cannot simply say "Hey, we've gotTry to include a close or buy link above the
a great product and a big market, let's slap"waterline" (ie before they have to scroll to
up a web site and we'll get rich!" You needread  the  next  paragraph  or  sentence)
to sit down and carefully work on how you're
going to do all of this. You need to knowTry to inject as much "personality" into
what your goals are. If your goal is to "sellyour copy as possible. A web page can be a
lots" you'll sell nothing! I Guarantee it.particularly "cold" place - so add as much
You need to work out where your want to be inhuman warmth as possible. Remember, people
1, 3 and 5 years time at a minimum and thenbuy  from  people  they  like.
work back from there. If you start with that
and work back, then a lot of the pieces will8. Make Sure your Navigation is Easy, and
fall into place. Your strategy should applythat your Web Site Design and Backend
to all your business, and your web site orTechnology are all focused on a Great
Internet bits will only be a part of it (aCustomer  Experience
big part, perhaps...). For example, if you
have a product with a big ticket price, andOnly now should you be thinking about the
you only sell 5 a year, then you don't wantbuild of your web site and its technology.
to start planning in a shopping basket systemIt's at this point, you can finally consider
and credit card payments! Selling on thatyour web site's design and how it will look.
scale will need lots of relationship buildingRemember, web design (any design) is
and face-to-face interaction, so you need tosubjective. No matter how much time or money
work out how your Internet/e-commerceyou spend on it, or how proud you are of it,
strategy will enhance and benefit that. Aa certain proportion of your visitors will
good web site to that will impress people whostill think it's crap. But guess what? They
pay £50,000 for your product? A newsletterdon't care, and if you get everything right
system to help keep in touch during the longit has almost no bearing at all on sales. But
sales cycle? It's a completely differentthere are three important elements to web
approach to selling £20 watches....3.site design:1. Ease of navigation comes
Concentrate  on  Existing  CustomersFIRST. Make sure your fancy page design
doesn't confuse and frustrate your customers.
If your business is already up-and-runningKeep it simple. And bearing in mind that no
and you're simply adding an Internet presencematter how good the site looks, lots of
or improving on it, then your existingpeople will hate it, so make sure the design
customers should be treated like Gold. Theyis not overbearing. Make sure that, whether
can actually help you bring your businessyour customer likes your site or not , it's
online. Test the waters with them, ask themnot an issue!2. Get it done professionally.
what they think at each stage, build theGood, professional design inspires confidence
system around them and their needs and you'llin your customers, and on the web that's a
end up with a template that will help youprecious commodity. They may not always like
expand online in the sure knowledge that itit, but they'll appreciate that it's been
will attract and help keep new customers.done professionally, and that therefore
And, of course, if you do it right, you caninfers that your are a professional
start making extra money online right away,company.3. Make sure that the site is clean
without a single new customer, by using yourand uncluttered, and avoid too many flashy
web presence to save money and improveanimations, whizzy bits, and Flash downloads
relationships with your existing customers sothat will slow your site down and annoy your
they buy more from you.4. Make Service acustomers, no matter how "cool" you think
Prioritythey are. And whatever you do avoid "front
Door", "click here to enter our site"
While the Internet can help you cut costsintro-type pages AT ALL COSTS! Especially
and make your business run more slickly,Flash ones. They are utterly pointless and
you've got to remember that it can also bedelay your customer from getting to what
very impersonal. One of the most valuablethey're after, which is information about
things I've ever learnt is that people buyyour company/products/services.And finally,
from people they like. And they don't like tothe technology - especially the "Shopping
be let down. The media is littered withcart". So long as it works properly, doesn't
stories of people who managed to click andmix up customers' baskets, can cope with
pay for something online only to wait weeksdemand, and deliver orders reliably, then
for it never to turn up. Emails don't getyour choice of "cart" technology will have no
replied to, phones don't get answered (if thebearing whatsoever on sales success. Other
web site even publishes the number!), andthan that, your technology and the complexity
they get constantly fobbed off. Yet theof your system will be dictated by what it is
Internet is an ideal tool for deliveringyou actually need to achieve. We've mentioned
better customer communication! But manynewsletters, CRM, customer support & service
businesses use a flash web site to hideand so on - all your technology choices MUST
behind... That's another quirk of thebe made to make these things easy for you to
Internet - it's possible to gain customersmanage and to enhance them. And most of all,
more quickly than traditional methods, butyour technology must ALWAYS be geared towards
you can lose them like lightening if youa great customer experience.9. Get Pricing in
provide a poor service. News travels fast onPerspective and Think about your Market
the internet - even faster if it's badPositioning  and  your  Value  Proposition
news...5. Work out your Communication and and
Customer Relationship Management (CRM)There's one final myth about the internet
policies  and  procedures(and business in general) that I'd like to
explode and it's this: People buy on price.
As I mentioned before, the Internet providesThe myth that you must be cheap, even
excellent tools and opportunities to buildcheapest, on the internet has grown
relationships with customers and clients. Byexponentially, especially with the advent of
this stage of your planning, you're chompingshopping price comparison engines. Combine
at the bit to "get something up and startthis with the widely held (and largely
selling" but winning a customer is a bit likecorrect) belief that using the Internet to
wooing a woman (please forgive the sexistsell reduces cost, most people think that
nature of this analogy!). You don't run up toprice is the only issue, and that you must be
a woman you like a scream in her face "I wantcheaper than everyone else to succeed.
to have babies with you, NOW!" So why doNothing could be further from the truth!A
people do this online? You need to build intobuying decision is a bit like an iceberg, of
your plan ways and means of starting andwhich the price element is the highly visible
growing relationships with your customers andtip. The bulk of the decision reasoning takes
clients. You need work out ways of opening aplace hidden away from view, and many in
dialogue, finding out about them, and helpingbusiness ignore it at their peril. When a
them find out about you. Did you know thatcustomer says to you that you're too
research shows that people generally visit aexpensive, they are not actually saying that
web site seven times before they feelyour price is too high. What they're really
confortable enough to buy anything? So whatsaying is that they are not convinced that
are you going to do that makes your web sitethe benefit your are offering exceeds the
interesting enough for people to visit seveninvestment they have to make. They don't like
times just to look at it? And when they do,your Value Proposition. The problem is
what then? Is it like a one night stand? Orusually that you haven't convinced them
do you send them emails asking if they areenough about the benefits, not that you're
happy with the product/service? Can you sendcharging too much. On the internet, this
them a regular newsletter that they findbrings us back, actually, to point/step seven
interesting? And do you have a system inwhere I explained the massive importance of
place to manage all of this - for example,your sales copy. If your web site is simply a
can you track how many times a customer hascatalogue of products and prices and a
been contacted, by what method, and what wasshopping cart, what else has any site visitor
said? You can and should build up a valuableto go on when making a judgment other than
database of detailed customer information,price? So you've cornered yourself
their buying habits, what they like/don'timmediately. You have no option other than to
like and a system for contacting them on ago cheaper than your competition to make the
regular basis.6. Offline/ Online Marketing,sale. If, however, you make a big deal in
Search  Engines  &  Pay  Per  Clickyour web copy about the benefits of buying
from you (like prompt delivery, great
Ah, search engines. The magic bullet ofservice, reliability, money-back guarantee,
marketing... or so the Search Enginefree insurance or whatever you can think of)
promotions "experts" would have you think.then suddenly, price is not an issue. People
The holy grail for many is "being number onewill pay your higher price for peace-of-mind,
on the search engines", and great though thatgreat service and extra benefits than taking
is, your success or failure actually hangs ona risk with the cheap, nasty web site that
what happens when all that traffic gets tomight let them down. And when you feel under
your web site - it's got nothing at all to dopressure to drop your price, say for a
with being No1. In fact you can actuallyspecial offer, why not try adding a free
bankrupt your business by being No1. A suddenextra benefit instead? It's much more
flood of traffic can burst your bandwidtheffective and more profitable! Instead of
budget, have you running to Dell or HP orknocking 10% off, offer 10% more!Another
whoever for more servers, bring your web siteissue that you need to look carefully at,
to it's knees, and, if all those visitorsespecially on the Internet where credibility
turn up and don't find what they're lookingis hard to achieve, is your Market
for, you make virtual enemies of thousands -Positioning. Your prices say a lot more about
even millions - of potential customers. Onceyour company than you think. Although people
again, before you even think about Searchlike to say they love a bargain, every single
Engines, you must go back to your researchone will make the assumption that cheap =
and your strategy and start again from there.nasty. If your prices are too low, people
Ask yourself: What is my ideal customer? Whatwill assume there's a catch or you're cutting
search engines do they use? What key words docorners. If you want to position your
they use to find services/products like mine?business as the best in its class, then
What's my USP? What magazines do they read?people will only feel good about you if your
Are there cheaper/better ways of reachingprices are at the top end of the range. Too
them than via search engines? There are, oflow, and suddenly they lose faith in you
course, certain low-cost/no-cost golden rulesbecause "something doesn't ring true". If
that everyone should follow. Your web addressyour prices are "unbelievable!", then so are
and email address should be printed on allyou!10  Tackle  Fraud  &  Security
your stationery. If you send out catalogues,
promote your web site in it. Add aInternet fraud is a big, big issue and you
promotional message (including a link to yourcan't ignore it. Most online customer will
web site) at the bottom of all your emailsadmit to being extremely wary of handing out
(this is sometimes called a signature file orcredit card details online, especially to new
sig file). The key is to think about yourweb sites that they have never come across
promotion from your customer's perspective.before. So, you need to have security and
If you do that, then, at least as far asfraud policies in place and (here we go again
Search Engines are concerned, you can focusabout copy!) make sure you tell your
on relevance. Make sure that people who findcustomers that you have these and you will
your site via search engines are actuallytake great care of their personal
looking for what you have to offer and areinformation.At  the  very  minimum  you need:
ready to buy. You are relevant to them and
they are relevant to you. If my sales targetA secure server and SSL certificate for your
in my strategy is to sell 100 units a week,order  pages
then all I really need is 100 buying
customers from Search Engines. If I use allA privacy policy that clearly informs your
the tricks in the book and haul a millioncustomers that you pass their details onto
visitors in who aren't even vaguelynobody  and  that  you  keep  them  safe.
interested in my widgets, I'm wasting their
time  and  my  money.  To sum up, you should:
Aim for a number one Search Engine listingOne of the best solutions is to use a
ONLY for well-researched, highly targeted keyPayment Service Provider (PSP) to process
words  and  phrasesyour credit cards for you. The better known
and respected ones such as WorldPay are best,
Use Pay Per Click facilities such asbecause the general public are aware of them
Overture to get quick results and controland know that they have strong security
your  budgetsmeasures in place. And from your own
perspective, you gain some protection against
Make sure you don't waste offlinelaw suits and some relief from the risk and
opportunities. Publish your web address/emailresponsibility of looking after customers'
on all company literature and include it invaluable credit card information.



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