Assignment 1

Task 1

E-commerce Task 1 Notes

E-commerce

Ideas!

There are 5 main factors in E-commerce:

¨  Promotion of the products or services

¨  Getting paid

¨  Delivery

¨  Customer service

¨  Complying with the law

The principal place that a customer will encounter an E-commerce business will be the organisation’s web site. This has to cover those key factors.

Promotion

The site itself needs to be accessible – not only in terms of how easy it is to read or find one’s way around but also getting found in the first place! A key to this would be a web address that is easy to remember or type.

The products need to be seen so good quality images and descriptions are vital in most instances.

Prices have to be clearly stated (not just for legal reasons as above but because that’s what customers want to know!)

Processing e-commerce payments

The online shop needs to be able to process payments so people can actually buy from them online. If they buy a ready hosted package, payment processing will probably be included. If not, they’ll need to find a payment service provider (PSP).

These include services like PayPal, Actinic Payments and WorldPay. Google also have a service called GooglePay.

Delivery

You need details of how products will get to customers – there are many services that will take care of this or the company may wish to do the packing and postage themselves.

Customer Service

Who will deal with queries, complaints etc.? You’ll need a name and an address, ideally an e-mail address and on-line form that people can complete.

Legal matters

To comply with the general information requirements of the E-commerce Regulations 2002 they must give recipients of their online services:

• the business' name, geographic address and other contact details including their email address
• details of any publicly available register in which they are entered, together with the registration number or equivalent
• details of any professional body with which they are registered
• their VAT registration number

If the website refers to prices, these must be clear and indicate whether they include tax and delivery costs.

You must also ensure the website complies with the Companies Act 2006. All companies in the UK must clearly state the company registration number, place of registration, registered office address and, if the company is being wound up, that fact, on all of their websites. A common place to put this information is in the 'About us' or 'Legal info' page of the site - it does not have to appear on every page. This rule also applies to any electronic communications sent out by the company, such as emails.

There are more requirements but these are the essential ones to start with!

E-commerce and the law

Tips for complying with the E-commerce Regulations

To comply with the general information requirements of the E-commerce Regulations 2002 you must give recipients of your online services:

• your business' name, geographic address and other contact details including your email address
• details of any publicly available register in which you are entered, together with your registration number or equivalent
• the particulars of the supervisory body if the service is subject to an authorisation scheme
• details of any professional body with which you are registered
• your VAT registration number

If your website refers to prices, these must be clear and indicate whether they include tax and delivery costs.

You must also ensure your website complies with the Companies Act 2006. All companies in the UK must clearly state the company registration number, place of registration, registered office address and, if the company is being wound up, that fact, on all of their websites. A common place to put this information is in the 'About us' or 'Legal info' page of the site - it does not have to appear on every page. This rule also applies to any electronic communications sent out by your company, such as emails.

How to comply when contracting online

If your business forms contracts online you must provide your customers with information about:

• all technical steps required to conclude the contract, eg 'click this box'
• whether the concluded contract will be filed by you and whether it will be accessible
• the languages offered for the conclusion of the contract
• any relevant codes of conduct to which you subscribe, and information on how these can be consulted electronically

You must make sure that your website allows customers to go back and correct any mistakes made in their order before the order is placed.

Once a customer has placed an order electronically, you must acknowledge receipt without undue delay.

Notes about selling online

Setting up a web shop so your business can sell online can be straightforward. But is e-commerce right for your company?

Why sell online?

Even if you already have a company website, you could see lots of benefits from setting up an e-commerce website to sell online:

• Find new customers. If you don’t already have a website, building an e-commerce site makes it easier for customers to find you.
• Widen your reach. A web shop allows you to take orders from around the world, not just your local area.
• Boost profits. Your new customers should increase profits – especially as web shop overheads tend to be low.

However, building an e-commerce website isn’t without problems. Although you can take security precautions, there is a risk of fraud. You also need to establish how your online operation fits with other sales channels. For instance, do your online prices fit what you charge in store?

Remember to abide by regulations too, like distance selling and data protection rules.

Sell online

Setting up a web shop so your business can sell online can be straightforward. But is e-commerce right for your company?

Why sell online?

Even if you already have a company website, you could see lots of benefits from setting up an e-commerce website to sell online:

• Find new customers. If you don’t already have a website, building an e-commerce site makes it easier for customers to find you.
• Widen your reach. A web shop allows you to take orders from around the world, not just your local area.
• Boost profits. Your new customers should increase profits – especially as web shop overheads tend to be low.

However, building an e-commerce website isn’t without problems. Although you can take security precautions, there is a risk of fraud. You also need to establish how your online operation fits with other sales channels. For instance, do your online prices fit what you charge in store?

Remember to abide by regulations too, like distance selling and data protection rules.

Web shop components

To create a successful e-commerce website, you need to take care of these key areas:

• Your product catalogue, so you can display what you sell to customers.
• Payment processing, to accept payments online, usually by credit card.
• A way to handle enquiries, so you can deal with questions.
• Stock control. You might want to display stock levels online.
• Fulfilment and returns. Shipping items out can take a lot of effort.

Not all these functions can be performed by an e-commerce system. For instance, you need to ensure you have adequate staff and procedures in place to handle enquiries, shipping and returns.

There are three main ways to actually build your e-commerce website:

• Use a marketplace. Sites like eBay and Amazon offer marketplaces where you can sell online. Because the marketplace takes care of all the important functions, it’s easy to set up a shop. You may also benefit from being visible on a popular marketplace site. However, marketplaces lack flexibility and can be expensive, because they usually take a cut of every sale.

• Use an e-commerce service. Usually offered by web hosting companies, these packages include everything you need to start selling online. Think of them as a web shop in a box. You just pick a template for your website and add information about your products. They cost from £10-£50 a month and are a good way to get started if you don’t already have a website.

• Use shopping cart system. Most shopping cart systems are designed to add functions to an existing website. They offer lots of flexibility and allow you to build an entirely customised web shop. However, they take longer to set up and are typically more expensive. You might pay £200 for a package from an industry-leading company.

When evaluating these options, consider how well suited they are to the type and volume of products you sell. In particular, some marketplaces and e-commerce services restrict the number of items you can offer for sale.

Your existing website will also be a key factor. If you have a website already and want to add an online shop to it, a shopping cart system is the best way to do this. If you opt for a marketplace or e-commerce service, you’ll have to set up a separate online shop and direct customers there.

To create a successful e-commerce website, you need to take care of these key areas:

• Your product catalogue, so you can display what you sell to customers.
• Payment processing, to accept payments online, usually by credit card.
• A way to handle enquiries, so you can deal with questions.
• Stock control. You might want to display stock levels online.
• Fulfilment and returns. Shipping items out can take a lot of effort.

Not all these functions can be performed by an e-commerce system. For instance, you need to ensure you have adequate staff and procedures in place to handle enquiries, shipping and returns.

There are three main ways to actually build your e-commerce website:

• Use a marketplace. Sites like eBay and Amazon offer marketplaces where you can sell online. Because the marketplace takes care of all the important functions, it’s easy to set up a shop. You may also benefit from being visible on a popular marketplace site. However, marketplaces lack flexibility and can be expensive, because they usually take a cut of every sale.

• Use an e-commerce service. Usually offered by web hosting companies, these packages include everything you need to start selling online. Think of them as a web shop in a box. You just pick a template for your website and add information about your products. They cost from £10-£50 a month and are a good way to get started if you don’t already have a website.

• Use shopping cart system. Most shopping cart systems are designed to add functions to an existing website. They offer lots of flexibility and allow you to build an entirely customised web shop. However, they take longer to set up and are typically more expensive. You might pay £200 for a package from an industry-leading company.

When evaluating these options, consider how well suited they are to the type and volume of products you sell. In particular, some marketplaces and e-commerce services restrict the number of items you can offer for sale.

Your existing website will also be a key factor. If you have a website already and want to add an online shop to it, a shopping cart system is the best way to do this. If you opt for a marketplace or e-commerce service, you’ll have to set up a separate online shop and direct customers there.

Business Link advice

E-commerce

Planning for e-commerce

What to consider when setting up e-commerce systems in your business

Create an online shop

The key issues to consider when creating an online shop

Search engine optimisation

Learn how to use search engine optimisation to improve your website's ranking on search engine results pages

Pay per click advertising

How to use pay per click so that users will click through to your website when they seek your products online

Accepting online payments

How online payments work and how to set up a payment facility

Fulfilling online orders

The main issues to consider when delivering products to online customers once a purchase has been made

E-commerce and the law

Regulations you need to comply with when undertaking e-commerce and e-marketing activities

Develop an e-marketing plan

What are the key components of an e-marketing plan and what benefits can such a plan deliver to your business

Generate business from your e-marketing plan

Develop your e-marketing plan to improve existing customer relationships, attract new customers and boost sales

Web 2.0: a guide for business

How you can make the most of the changing internet to benefit your business

Get the right social media for your business

This interactive tool can help you decide which options are best for your business and how you should use them to talk to your customers

Online business networking and social networking

How to use online business networking and social media to develop your business

Securing your e-commerce systems

What the security threats to your IT systems might be and advice on how to tackle them

Benefits of intranets and extranets

What benefits can intranets and extranets deliver to your business

E-marketplaces, online auctions and exchanges

Understand what e-marketplaces are and decide if they are appropriate for your business

Common e-commerce pitfalls

Common factors that result in e-commerce systems not achieving their full potential or failing completely

Managing risk in e-commerce

Understand what risk management is and why it is important in an e-commerce environment

Measuring your online marketing

How to accurately measure your online marketing activity and maximise its effectiveness