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e- commerce question?

Some firms have not been successful exploiting commercialized opportunities on the Web, while other firms have. Why have some firms been succesful exploiting the on-line environment, while others have not?

3 Answers

  • 1 decade ago
    Favorite Answer

    In many cases, an e-commerce company survives not only based on its product, but through a competent management team, post-sales services, well-organized business structure, network infrastructure and a secured, well-designed website. The factors can be divided between technical or organization aspects and direct service to the consumer.

    Sufficient work done in market research and analysis. Like traditional models, e-commerce implicates good business planning and the fundamental laws of supply and demand.

    A good management team armed with information technology strategy. A company's IT strategy can involve the business re-design process.

    Providing an easy and secured way for customers to effect transactions. Credit cards are the most popular means of sending payments on the internet, accounting for 90% of online purchases. In the past, card numbers were transferred securely between the customer and merchant through independent payment gateways. Such independent payment gateways are still used by most small and home businesses. Most merchants process credit card transactions on site through arrangements made with commercial banks or credit cards companies.

    Providing reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption, and firewalls can enhance this requirement.

    Providing a 360-degree view of the customer relationship, defined as ensuring that all employees, suppliers, and partners have a complete view, and the same view, of the customer. However, customers can react against a big brother experience.

    Constructing a commercially sound business model.

    Engineering an electronic value chain focused on a "limited" number of core competencies. Electronic stores have succeeded as either specialist or generalist in aim.

    Operating on or near the cutting edge of technology and staying there as technology changes.

    Setting up an organization of sufficient alertness and agility to respond quickly to any changes in the economic, social and physical environment.

    Providing an attractive website. The tasteful use of color, graphics, animation, photographs, fonts, and white-space percentage may aid success in this respect.

    Streamlining business processes, possibly through re-engineering and information technologies.

    Providing complete understanding of the products or services offered, which not only includes complete product information, but also sound advisers and selectors.

    Other standard necessities include honesty about its product and its availability, shipping reliably, and handling complaints promptly and effectively. A unique property of the Internet environment is that individual customers have access to far more information about the seller than they would find in a brick-and-mortar situation. (Of course, customers can, and occasionally do, research a brick-and-mortar store online before visiting it, so this distinction does not hold water in every case.)

    A successful e-commerce organization must also provide an enjoyable and rewarding experience to its customers. Many factors go into making this possible. Such factors include:

    Providing value to customers. Vendors can achieve this by offering a product or product-line that attracts potential customers at a competitive price, as in non-electronic commerce.

    Providing service and performance. Offering a responsive, user-friendly purchasing experience, just like a flesh-and-blood retailer, may go some way to achieving these goals.

    Providing an incentive for customers to buy and to return. Sales promotions to this end can involve coupons, special offers, and discounts. Cross-linked websites and advertising affiliate programs can also help.

    Providing personal attention. Personalized web sites, purchase suggestions, and personalized special offers may go some of the way to substituting for the face-to-face human interaction found at a traditional point of sale.

    Providing a sense of community. Chat rooms, discussion boards, soliciting customer input and loyalty programs (sometimes called affinity programs) can help in this respect.

    Owning the customer's total experience. E-tailers foster this by treating any contacts with a customer as part of a total experience, an experience that becomes synonymous with the brand.

    Letting customers help themselves. Provision of a self-serve site, easy to use without assistance, can help in this respect. This implies that all product information is available, cross-sell information, advise for product alternatives, and supplies & accessory selectors.

    Helping customers do their job of consuming. E-tailers and online shopping directories can provide such help through ample comparative information and good search facilities. Provision of component information and safety-and-health comments may assist e-tailers to define the customers' job.

    Notes:Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown dramatically since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

    A small percentage of electronic commerce is conducted entirely electronically for "virtual" items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is known as e-tail.

    E-commerce or electronic commerce is generally considered to be the sales aspect of e-business.

  • 6 years ago

    An E-commerce business is not only dependent on the products of the store. There are many other factors available that plays a very important role in success of e-commerce website like sells department, SEO, Social media promotion and the most important CRM.

  • Anonymous
    5 years ago

    i'm not quite sure, however i am in biz with an online publishing company that is doing exceedingly well. have you heard of Webuction? click on the products tab.

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