E-Commerce 4 Dummies

Technology Infrastructure

Models in Transistion

Strategy Issues

Web Presence

Usability

Connecting with Customers

Marketing on the Web

Web Marketing Strategies

Customer Relaionship Management

Brands

Search Engines and Domain Names

As a business owner, the most useful way to think about e-commerce is to consider how it can generate revenue. A revenue model can help you decide what the best avenue is for you. In addition to the revenue models listed below, there are also the digital content, and advertising-subscription mixed revenue models.

In traditional commerce, companies would put out a catalog for customers, so they could peruse at their leisure and have items shipped to them. The Web catalog revenue model works much in the same way. This model is successful with many different types of merchandise, such as computers, electronics, books, music, videos, clothing, luxury goods, flowers and gifts, and gerneral discounters. The customer logs in, finds the item they want, and buy it- all online.

The advertising-supported revenue model is used by a site that is supported by attracting advertisers for revenue. These sites depend on attracting and keeping users on their site to generate more money. One problem with this model is that it is difficult to determine how to charge for ad space. Some charge on a per-click basis, while others charge by the number of visitors to the site. It is very importan, when using this model, to maintain a site's stickiness; keeping the site interesting to hold the user's attention. Demographics play a huge part in this model.

The fee-for-transaction revenue model is used for businesses that operate on a per-transaction basis. These services include travel agencies, automobile sales, stockbrockers, insurance brokers, event tickets, real estate and mortgage brokers, online banking, and digital music. Similar to this model, the fee-for-service offers a service for an extended amount of time for a fee. Some businesses that use this type of model are online gaming, concerts, films, and professional services.

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As companies begin and continue to do business on the Web, sometimes they realize that the strategy they chose in the beginning doesn't suit their needs any longer. This is when a transition may occur. Sometimes it may be converting from a subscription to an advertising model. Other times a firm using the advertising model alone may decide to incorporate subscritions as well. Any combination of these models may or may not work for your business. It is up to you and your team to decide what works best for you. You may have to adjust several times.

Often companies worry that their Websites will take away from the sales at their existing sales outles. This type of channel conflict is called cannibalization. In these instances, it is important to give your physical stores a little extra compensation, so as not to upset your employees. When all workd together, it is called channel cooperation. Another worry of e-commerce is the crossover to mobile commerce. Very few companies have, as yet, been succesful in generating any significant revenue from sales on mobile phones, and PDA's. I, personally, think this is changing with the innovation of smart phones. People are spending money on things they never would have before. Companies are beginning to develop applications for everything. AS the popularity of these increase, the ability to make money will increase also.

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A presence is the equivalent of a public image. The Web presence of any site, especially a new one, can be critical to the success of your e-business. It is important to first identify your objectives. These include:

Attracting visitors to your site

Make site interesting and "sticky" to keep visitor's attention

Convince users to follow links

Create an impression that coincides with image

Build trust

Reinforce positive images that visitor's may have already

Encourage return visits

The Web presence for a non-profit organization and one that is profit driven are quite different. Determining what the goal of your business is and incorporating those goals into your Website can be vital to your firm's success on the Web.

A huge way to build a consumer base on the Internet is to increase your site's usability. One of the key items in making your Web-site user-friendly is to maintain a high level of communication. Offer ways to communicate, whether it be a form, e-mail or telephone and respond to that communication in a timely manner. The goal is to create a loyalty and trust from your customers so that they not only continue to visit your site, but tell others about it as well.

A great way to achieve this customer loyalty is to understand what motivates your visitors. Here are a few things to consider:

Learning about the products and services the company offers

Buying services or products

Getting information about a warranty or service options

General information about the company

Obtaining financial information to make a good investment choice

Identify the leaders of the company

contact information for an employee or department

Meeting all of these goals is a challenge. It is a must to implement as many ideas for customer usability as possible to ensure a successful Web site. The site must also be easy to navigate, fast to load, and appealing visually to the user. Using these guidelines can help make a visitor's experience effecient, effective and memorable, which should be your goal.

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As we have mentioned, trust is one of the biggest factors involved when creating a business on the Web. One of the key ways to accomplish this is by building trust. The typical approaches to identifying and reaching customers have been mass media and personal contact. With personal contact, an employee physically goes out, finds, and attracts potential customers. With mass media, a firm attempts to gain customers by placing appealing ads in the proper places. Using the Internet is a bit trickier. It is not a mass medium, even though many people use it. There are so many sites out there, you have to make yours stand out of the crowd. It is vital to maintain a relationship with your customers, no matter which avenue youchoose, but take note that a Web relationship can be cost effective and possibly reach more people, if done effectively.