Starting an E-business

prudencecoatInternet and Web Development

Nov 18, 2013 (3 years and 9 months ago)

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Starting an E
-
business

Dr. John P. Abraham

Professor

UTPA

Pre
-
requisite


Finish studying how to start a business in
Texas.


Complete all necessary requirements to
start a business in texas.

Determine what model of
ecommerce


Most common is Business to consumer


If you are a manufacturer, business to
business is the way to go.


If you are a manufacturer, selling directly
to the customers might impede your
growth.


Selling directly to consumers


It appears starting a business with either
eBay or Amazon (or both) initially would
be easier.


Consumers are now used to going to one
or both of these websites for purchases.


You have a built in customer base.

Before launching your business


Get registered with a name


Network solutions, or another registrar


Try to get a .com. Hard to get. .co would be
your second choice.


Choose a name that is short and easy to
remember.

Agencies that controls


ICAAN (internet corporation for assigned
names and numbers) oversees the domain
registration.


W3C (weld wide web consortium) sets
standards for HTML and web


IETF (internet engineering task force) sets
standards for Internet architecture.

Get a broadband service


ISDN


integrated services digital network
128 Kbps


DSL digital subscriber line 144 Kbps to 8
Mbps. It is asynchronous.


T1


1.5 Mbps up and down


T2 is a combined foru t1 lines to give over
6Mbps


T3 is comnbination of 28 t1 lines


up to
44.736 Mbps

Build a website


Start with Static (passive) web presence


Just showing your presence


Advertise on the web to generate traffic. This is
what you gain from being on eBay or Amazon.


When advertising know how many people will be
exposed to your ad, and how long. Checkout
google, ebay, microsoft, aol, ask, etc. for
advertising


Register with search engines


Titles and metatags are important for each page.

Create a Web Service


Other web services can integrate with
yours.


Determine how to collect payments


Bank accounts


Wire transfer


Setup credit card services


Paypal


Google payment

Accounting


Integrated with online sales


Payroll


Automatic completion of reporting forms
(sales tax, w
-
2, 941s and so on)


Inventory control, ordering (PO), receiving,
RMAs


Must collect tax if sold in Texas.

Shipping


Determine how you want to ship


Trucking


UPS, FedEx, USPS


Create volume shipping rates


Web programming


Move up to interactive dynamic web pages


This is what we have been covering so far


AJAX, PHP, Ruby on Rails, ASP, etc.

Alliances


If you are a BtB, register with an alliance
such as the airline alliances, hospitality,
hotels, etc.


Become a business at social networks,
such as Facebook, Twitter, etc.


Other issues


Marketing Issues


E
-
Mail marketing


Cheap


Must know target (reach)


Use customer names where possible


Different languages (
www.logos.it

-

does
translations to 20 languages)


Consider outsourcing


Boldfish.com,
messagemedia.com, digitalimpact.com,
ilux.com, etc.

Marketing Issues (2)


Promotions


Netcentives.com


Frequent miles


Directcoupons.com, coolsavings.com, etc.


Advertising


TV, movies, newspapers, magazines


Online advertising


Linking your site, banner ads, search engine ads,
etc.

Marketing Issues (3)


Buying and selling ads on the web


Put your ad on other popular sites that sells
similar products


Sell banner ads on your site.


Cost is based on hits, pay
-
per
-
lead, pay
-
per
-
click, pay
-
per
-
lead,etc.


www.valueclick.com


Webcasts (Victoria Secret).

Public Relations


Chat sessions


Crisis management (within company)


Press releases
www.prweb.com


CRM customer relationship management


www.datadistilleries.com
, egain.com


Datamining


Record customers’ behavior

Online Monetary Transactions


Credit
-
card


Merchant account with a bank


www.cybercash.com

www.icat.com

will set up
accounts so that you can accept credit cards online.


COD


Debit Cards and debit
-
it.com (just give bank
account info).


Digital currencty


ecash.com


internetcash.com


Paypal.com


Smart cards

Monetary transactions (2)


Micropayments


save on credit card fees


Combining many small charges into one
charge, like a telephone bill.


Check free


Electronic Fund transfer (for large
amounts)


Bank credit line

Legal Issues


Privacy


a major concern in web practices.


Tracking devices


Cookies


advantages of cookies come at the
price of security.


Keystroke cops (employer/employee tension)


Defamation


Child pornography


Intellectual property


napster


Spam


Internet taxation

Advertising related


Traditional Advertising


Print, TV, Radio, Direct Mail, Yellow Pages


National Advertising


Dominated by large holding companies like
Omnicom or WPP


Local Advertising


Small businesses


Pricing vary based on quantity.

Online Advertising


Banner Ads


Some relevance to content viewed, may be
directed to locality.


Search Linked Ads


Related search terms


Context linked Ads


Related Content on the page


Up to Google, or Yahoo’s capability to
determine content

Advertising money (year 2006)


220 to 240 billion with 1
-
2% growth per
year


$17 billion spent for internet
advertisingwith rapid grown.


(Google’ revenue is ~7billion)

Search share

Google 46%

Yahoo 23%

MSN 11%

AOL 7%

Search Engine Marketing


Per click cost per keyword


Example laptop $2.00 per click


Bid on this, based on bid an ad may go
first place to second place, etc.


Bid is the determinant of ad position


Bidding on the word takes place
continuously

Auction for keyword


Internet user enters a search term


Gets a page with results


Also shows ads to the side


If a user click on ad


pay for click


Top ads are clicked most


Advertisers submit bids stating maximum pay for
click


Ad with highest bid is displayed on top


Advertisers can change their bid frequently

Generalized Second Price Auction
(GSP)


New mechanism used by search engines
to sell online advertising.


Advertiser submit bids stating their maximum
willingness to pay for a click for a key word.


If a user click an advertiser that is not on top,
the advertiser pays an amount equal to the
next highest bid (bid for advertiser i+1)


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