Most Popular Search:

thumpinsplishInternet and Web Development

Nov 18, 2013 (3 years and 8 months ago)

62 views

ORF 401
-

Electronic Commerce


Spring 2004

Most Popular Search:


Usher


30,000,000 Searches/Month


CDs, Books,

Concert Tickets,

More…


1/1000 of these

users =

30,000.


ORF 401
-

Electronic Commerce


Spring 2004

Low Maintenance

Ecommerce


Synergizing technology with marketing to
reduce workload and increase sales.


Low maintenance: Technology: CGI Script,
XML, RSS. Marketing: SEO, Syndicated
Newsletter.


Provide a service: Make search easier,
make finding products and discounts easier.


“A business that makes nothing but money is a poor business.”

-
Henry Ford


ORF 401
-

Electronic Commerce


Spring 2004

Definitions


Affiliate Program


Mutually beneficial relationship
between a website and a company. We use
Amazon.com


Creatives


Promotional tools used to market
affiliate programs. These include banner ads, and
coupon codes.


Search Engine Optimization


making content
highly relevant for both search engines and
searches. Goal: gain top position for specific
“keywords.”


Link and Code Driven Coupons: Offers specialty
discounts by using a link or a code. Generally not
organized online or by Amazon.com.


ORF 401
-

Electronic Commerce


Spring 2004

E
-
commerce



Then & Now


THEN: March 10, 2000


The dot
-
com
bubble burst


862 dot
-
com companies fail in the following
month


368 e
-
commerce websites (43%) fail


NOW: Online sales for 2003 were $12.2
billion, up 42% from the previous year



71% of e
-
commerce sites were profitable in
2003

ORF 401
-

Electronic Commerce


Spring 2004

Amazon’s Market


One of the few companies to survive
dot
-
com bubble burst


Amazon.com’s President Jeffrey
Bezos states: “The customer
experience we create is by far the
most important driver of our business.”

ORF 401
-

Electronic Commerce


Spring 2004

Amazon’s Market cont…

Growth in Net Sales (in thousands)


Year Ended
North America
International
Total
2003
$3,258,413
$2,005,286
$5,263,699
2002
$2,761,457
$1,171,479
$3,932,936
2001
$2,460,336
$662,097
$3,122,433
2000
$2,380,908
$381,075
$2,761,983
1999
$1,472,096
$167,743
$1,639,839
1998
$588,013
$21,806
$609,819
ORF 401
-

Electronic Commerce


Spring 2004

Amazon’s Market cont…

Percentage of N.A. vs Int. Sales
0%
20%
40%
60%
80%
100%
2003
2002
2001
2000
1999
1998
Year Ended
Percentage
North America
International
ORF 401
-

Electronic Commerce


Spring 2004

Amazon’s Market cont…

Total Net Sales per Year
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
2003
2002
2001
2000
1999
1998
Year Ended
Net Sales
(in thousands)
North America
International
ORF 401
-

Electronic Commerce


Spring 2004

Discount Coupon Market


“In 2001, marketers distributed 333 billion coupons
and by redeeming them consumers saved over $3
billion.”




-

Assoc. of Coupon Professionals


Burst! Media conducted a “study of nearly 8,000
web users [and] found that about one
-
in
-
five
(19.0%) respondents have redeemed an Internet
coupon.”

ORF 401
-

Electronic Commerce


Spring 2004

Discount Coupon Market
cont…

ORF 401
-

Electronic Commerce


Spring 2004

Prospective Financials:
Sales

Expected
Expected
Expected
Yearly
Year
Ave. Purchase
Commission
Comm. per Day
Commission
1
$30
$2.25
$337.50
$123,187.50
2
$30
$2.25
$585.00
$213,525.00
Expected
Expected #
Expected
Expected #
Year
Commission Rate
Click-Throughs
% Purchase
Purchases
1
7.50%
15000
1
150
2
7.50%
20000
1.3
260
ORF 401
-

Electronic Commerce


Spring 2004

Prospective Financials:
Cost of Sales

Domain Name &
Hosting Fees


$52.00 per year

Marketing

$0.00

Factory

$0.00

Equipment

$0.00

Maintenance

$0.00

Total Yearly Cost

$52.00

ORF 401
-

Electronic Commerce


Spring 2004

Prospective Financials:
Balance Sheet

Dec. 31,2004
Dec. 31,2005
Balance Sheet Items
Year 1
Year 2
Current Assets
Cash
$1,000
$1,000
Accounts Receivable
$30,797
$53,381
Total Current Assets
$31,797
$54,381
Noncurrent Assets
Property, Plant, and Equip (net)
$0
$0
Total Noncurrent Assets
$0
$0
Total Assets
$31,797
$54,381
Current Liabilities
Accounts Payable
$52
$52
Total Current Liabilities
$52
$52
Noncurrent Liabilities
Long term Debt
$0
$0
Total Noncurrent Liabilites
$0
$0
Total Liabilities
$52
$52
Shareholder's Equity
Common Stock
$0
$0
Retained Earnings
$31,745
$54,329
Total Shareholder's Equity
$31,745
$54,329
Total Liabilities and S.E.
$31,797
$54,381
ORF 401
-

Electronic Commerce


Spring 2004

Prospective Financials:
Income Statement

Dec. 31,2004
Dec. 31,2005
Income Statement Items
Year 1
Year 2
Revenues:
Sales Revenue
$123,188
$213,525
Total Revenues
$123,188
$213,525
Expenses:
Domain & Hosting Expense
$52
$52
Income Tax Expense
$0
$0
Other Operating Expenses
$0
$0
Salaries and Benefits Expenses
$0
$0
Total Expenses
$52
$52
Net Income
$123,136
$213,473
ORF 401
-

Electronic Commerce


Spring 2004

Prospective Financials:
Cash Flow Statement

Dec. 31,2004
Dec. 31,2005
Cash Flows
Year 1
Year 2
Net Income
$123,136
$213,473
Change Other Current Assets
and Liabilities
($30,745)
($53,329)
Cash Distributed
($91,391)
($159,144)
Cash
$1,000
$1,000
ORF 401
-

Electronic Commerce


Spring 2004

SEO


Google


Google’s goal to create a perfect
search engine.


Not merely text analysis but HTML
analysis.


How HTML analysis relates to
PageRank™.

ORF 401
-

Electronic Commerce


Spring 2004

Google


PageRank™


Why PageRank™ is important to our site.


Gliding scale PageRank™ 1


10.


How to improve PageRank™


Do not use Spam techniques.


Do not use framed sites.


Do not "capture" outgoing links within a frame of your own site.


Do not link to other sites using a Java Script code.


The site should have its own domain name.




The site should not be hosted on a free server.


The site should have a professional, quality image.


Keep your site clean, neat and organized.


The site should not have excessive pop
-
ups.


The site should contain GOOD information and / or products.

ORF 401
-

Electronic Commerce


Spring 2004

SEO


Google

Award Strategy


How We Will Increase PageRank™


Clutter Free Content


Meta Tags


Linking to other pages


Award Link Strategy


Usher, top listed sites.


E
-
mail sites saying they have an award. We create
graphic, they display on their site with a link to an
awards page and links to our products.

ORF 401
-

Electronic Commerce


Spring 2004

SEO
-

Google


Concluding Remarks:


How Search Engine Optimization and
Understanding Google can help our
business not merely survive but thrive.


Low maintenance, & low cost.


Effective

ORF 401
-

Electronic Commerce


Spring 2004

Amazon.com XML FEED


Amazon Provides an XML Feed to
affiliates.


Product information, shopping cart
script, product reviews, product
information, price and sales rank.


We can use these free of charge.

ORF 401
-

Electronic Commerce


Spring 2004

Amazon.com XML Feed

The PROBLEM


Our Goal is to utilize Search Engine
Marketing.


But, the scripts used to parse XML
leave an ‘unfriendly URL.’


http://www.website.com/?prod=12


Dynamic content cannot be crawled by
Google.

ORF 401
-

Electronic Commerce


Spring 2004

Amazon.com XML Feed

Our Solution


Mod Rewrite


Rewrites the CGI output in an HTML
format.


Search Engines don’t know it is a
dynamically created page.


We get crawled, all 500,000 pages.


With a lot of pages indexed, we will get
traffic galore.

ORF 401
-

Electronic Commerce


Spring 2004

Amazon.com XML FEED

LIVE DEMO


http://www.goalsearch.com


Amazon Daily Deals



Select any product.


It is indexed on our site.


‘Search.’ for the product



Regular links, browse directory. The directly links
to roughly 500,000 products.

ORF 401
-

Electronic Commerce


Spring 2004

Interface


When users search, they will most
likely find an internal page, not our
front page.


We have ten seconds to impress our
user and convince them to stay for
their first visit, and come back for
more.

ORF 401
-

Electronic Commerce


Spring 2004

Interface


Two main issues:


Credibility, Ease of Navigation


Credibility


Prominent display of Amazon.com logo


Professionally made graphics


Up to date coupons and newsletter


Users know the site is constantly monitored


Ease of Navigation


Each page must be accessed by at least two
clicks.


Map, Link to Home Page, Simple Interface

ORF 401
-

Electronic Commerce


Spring 2004

Interface

Attracting Repeat Visitors


Contextual Analysis


Script that searches for keywords


Consults a database


Displays a ‘guess’ of relevant coupons


Also general coupons (e.g. free shipping
on orders over $25, or $5 discount on
mothers day).

ORF 401
-

Electronic Commerce


Spring 2004

Interface


Attracting Repeat Visitors


Newsletter, constant reminder of deals
and where to go.


Syndicated Content


Online Shopping Tips


Bookmark link script on each page


ORF 401
-

Electronic Commerce


Spring 2004

Conclusion


Bargain shopper market is ripe and
ready for harvest.


Low
-
maintenance and low cost: SEO,
Syndicated Content.


Effective: Provide a service. Help
users find bargains.


Untapped niche for service, ripe
market, and a unique idea = success!