ComputerHunter.org |
|
|
|||
|
 |
E-Commerce Is Back On The Fast Track
How much holiday shopping did you do on-line this year? If you are reading this, then chances are good that you made at least one purchase on-line. Over 54% of all Americans did it [1]. A much higher percentage (>80%) of Internet users did it. Not only did you do it, you liked it! Less than 7% of on-line shoppers reported a bad experience with 88% reporting they were satisfied or very satisfied [2]. It is clear that on-line shopping has come of age with such a high level of participation and satisfaction. It appears that past issues of trust, security, and bad ecommerce websites are replaced with good ecommerce sites, higher trust, better security, and just plain better execution and service by on-line retailers. Quick, easy, and convenient shopping overcomes the concerns people have had in the past. With a whopping 35% increase in on-line holiday sales this year, up to $18 billion [3], one analyst calls it "a fantastic season for on-line retailers." [4] This is the third straight season of record growth for on-line shopping. This year, 2004, is expected to follow the trend. US on-line sales are expected to grow from $55 billion in 2003 to $73 billion in 2004 [5]. In searching for some bad news, it was hard to find. The worst news was that 3.6% of on-line shoppers had a very bad experience where either the merchandise was not delivered on time or was delivered in poor condition. This is a small fraction even compared to traditional retail sales. Can the news and trends about ecommerce retailing really be that good? The answer seems to be a resounding YES! Some of the more popular on-line markets have double digit penetration now. That means some on-line retailers are reaping over 10% of total market share in their industries with a rising trend. In addition, more on-line retailers are showing profits. In 2002, about 50% of on-line retailers showed a profit from their on-line operations while 70% did in 2003 [5]. So, if you are one of those 70% of on-line retailers making profits in 2003, sit back, breathe a big sigh of relief, and relish the moment. There won't be much time to relax and enjoy your successes. New business is right around the corner. If you are a business and don't yet have an on-line sales presense, then it's never too early to get started. To get ready for the 2004 holiday season, it's best to start now. Create ecommerce plan ? 4/15/04
It can be done quicker than the schedule suggested above, but, to do it right requires thought, planning, and time. References: [1] Nashville Business Journal, 12/4/03 [2] ASD/AMD Marketwatch E-Newsletter, 12/24/03 [3] eSpending Report, Goldman Sachs, Harris Interactive, Nielsen/Netratings, 1/5/04 [4] Abha Bhagat, Nielsen/NetRating, COMPUTERWORLD, 1/6/04 [5] ASD/AMD MarketWatch E-Newsletter, 10/16/03 About The Author Craig Neidel has worked for NetSource Communications Inc. for 6 years and has experience in web development, e-commerce solutions and web marketing. NetSource Communications creates custom e-commerce solutions and web applications. http://www.ntsource.com.
Google News - Top Stories
|
|
|
|
RELATED ARTICLES
5 Powerful Ways to Make Money Online with a Website There are many ways to make money online and the best way for you is to simply be creative with your skills, knowledge, and abilities. However, the following five options are powerful ways to make money online with a website and definite something you should consider. Shopping Carts For The Faint Of Heart The chief criteria for judging an ecommerce shopping cart are the number of credit card processors and shipping services it supports, and the number of people that support *it*. Coupons & Rebates Yes, it's true, coupons are not just for newspapers anymore. Not to be a downer, but I personally hate the things. I can't imagine ever voluntarily wasting a perfectly good Sunday morning, getting paper cuts from cutting out the darn things: but to each their own. My opinion aside, there is no question that coupons and rebates are an effective sales technique. Printable coupons can be added right onto your website and cash rebates can be offered on your products (EVERYONE loves getting cash back.) The process of putting the little guys on your site is very simple and will definitely help boost your sales. Dont Get Ripped Off Getting A Merchant Account Far too many people get ripped off when setting up a merchant account for their online business. The biggest reason is that they don't understand their options and are intimidated by the whole process. Now, armed with the proper knowledge, you don't need to become a victim of this process. Why Arent People Buying From Your Ecommerce Website? Your stock is tempting, your prices right - your ecommerce website is good to go, but somehow the customers just aren't buying. So where are you going wrong? Evaluating Vendors of Ecommerce Fulfillment Services Once your website has secured an order, you have to fulfill it. While the fulfillment of digital goods is usually handled online, the delivery of physical goods is handled in a "brick-and-mortar" world. How To Accept Credit Cards Online Anyone with an online business, whether for auctions, services, or virtually any type of product, has asked the same question at some time during their quest to create the ultimate online business - "How do I accept credit cards?" The Top 10 E-Commerce Ways to Follow up with Clients - Part 2 Did you know that 80% of all sales are made after the 5th contact? Products for a Successful Web Business There are F words in business. We have seen many small businesses on the internet flourish and fulfil their dream, but sadly we have seen some flounder and fail because they had the wrong product. Implications Of E-Commerce For Tax Legislation As e-commerce develops ambiguities in the current tax code in which it may be exposed. It would not be regarded as too early to take premature steps for undertaking such a review at a time when detailed international legislation are going on to promulgate acceptable standards laws for imposition taxation in this regard. The Central Board of Revenue should take active part in promulgation of conducting research on this subject in hand and should propose any changes to tax law in the light of what emerges in development in e-business. In the meantime, Central board of Revenue will do two things: Does Your Shopping Cart Have a Squeaky Wheel? Have you ever gone grocery shopping just before a holiday? The aisles are packed with people pushing carts, shelves need restocked, all the checkout lanes have long lines...not a fun experience. Why Suppliers Should Use B2B Exchanges Business to business e-commerce is on the rise! Worldwide B2B e-commerce revenues are estimated to reach around US$ 2 trillion in 2004. This is a significant leap from last year's US$ 1.4 trillion. However, according to a recent survey, although, more than 70% of companies have already used Internet as a purchasing channel, a mere ten percent of their overall spending is directed via the Internet! Contrary to popular believe, this means, B2B e-commerce has still large potential to grow. Two Pillars of a Successful Web Site For a web site to get close to fulfilling its potential, you need absolute clarity on two points. Are You Making These E-Commerce Excuses? (part 2) Last time, we started to take a look at the most common reasons why most people don't make progress on their e-commerce and Internet marketing goals. Today, we continue the discussion. [See part 1 of this article at http://www.ecommercediva.com/articles/excuses2.html] Paypal Primer To conduct business on the Internet, whether informal, one-time only transactions between two friends, or a full-fledged business selling products or services, payment arrangements have to be made. Before 1998, this often meant either checks sent through snail-mail, or very expensive, and often hard-to-obtain, merchant accounts for online credit card processing. In 1998, PayPal was introduced to fill the payment processing gap. Leading eCommerce Consultant Admits You Should Only Listen to One Real Expert! (And its not him!) Let me share with you a secret that most marketing experts and consultants don't want you to know? (many of them don't even understand this secret themselves.) Outsourcing Your Ecommerce Order Fulfillment When your eCommerce business grows to the point where you can no longer package and ship the orders yourself, it's time to begin outsourcing your order fulfillment. Although all order fulfillment centers offer the same basic services, their individual methods and costs will help you choose one over the other. When selecting an order fulfillment service, keep the following in mind: Electronic Commerce and WTO The Internet may not be useful for all businesses, nor do all have to develop an Internet information strategy. Some businesses are concerned with the start-up costs of connecting such as purchasing hardware and software, subscribing to an Internet connection or service provider, and training staff. Others are concerned with the necessary search and navigation skills one has to develop to be able to use it as a cost effective business tool. Some businesses are concerned that, as a result of technical congestion during certain times, the Internet will not effectively improve their ability to disseminate and retrieve information. Most businesses are concerned about Internet security relating to issues of unwanted intrusions into sensitive databases, electronic payments, contracting with authorized parties and protection from electronic viruses. 7 Key Steps To Reduce Refunds and Chargebacks One sure-fire way to loosing out big time on your business profits is from incidences of excessive refunds and chargeback requests. If the number is high in any period you could risk loosing your third party merchant account altogether. So what do you do when there are some who will request a refund within 15 minutes of purchasing your product? Or even more pettier are those who will wait until the last possible moment to request a refund. Well not all is lost because merchant account providers are very well informed as to the credit card numbers of persistent refund and chargeback claimants. Just like their list of fraudulent credit card users, stolen credit cards etc they have a database of what I call "Refund Junkies". There appears to be no end to the unethical tactics some people will use to get your product for free.Use the following tips to further safeguard against refunds and expensive chargeback costs. The good news is that refunds are easy to process and do not carry any additional fees. However as a merchant you want to ensure that refunds are kept to a minimum.1. Clearly State the Billing NameFirst and foremost state the name of your third party credit card processor on your sales pages and include them in your terms and follow up email receipts so that customers are fully aware of what company name will appear on their billing statements. This will reduce the number of customers who do not recognize the billing name on their statements from contacting their credit card issuers for a chargeback. This one factor can lead to an unprecedented number of chargebacks claims.2. Provide Your Customer Support DetailsProvide your email address so that customers can contact you regarding any queries about their order. Make sure that you answer them in a timely manner to avoid unnecessary delays. If a customer is not responded to promptly they are very likely to make a refund request.3. Offer Lifetime UpdatesOffering your customers lifetime updates to your product and services to add value and will encourage them to remain customers in the knowledge that they will always receive your most current edition of your goods.4. Reward Loyal Customers With Exclusive PrivilegesOffer your customers a product that can be used freely as long as they are fully paid members, as part of a membership site. Or use a tool which is only available to customers and cannot be accessed after a refund request is made. As long as your offer is valuable to your customers and members you are will substantially reduce the number of refund requests.5. Provide The Best GuaranteeYour guarantee could become a thorn in your side if you have a very short time span before customers can test out and use your product. But studies show that the longer the guarantee period the less refund requests are made because customers are more comfortable with their rights to cancel if the product or service does not meet their needs.This is at your discretion as a merchant so testing is important to work out what is best for you. Remember to take into account that some third party processors have a limit on the maximum refund time their merchants can issue to customers.6. Accurate Product DescriptionsAvoid making bold claims that are "too good to be true" if you cannot deliver the results. You could be setting yourself up for a big fall and your customers will request refunds if your product description does not fulfill their needs. You could also be breaking the law and be liable to charges if a law suit is brought against your company. Make sure your sale letter accurately reflects your goods for sale and highlight the TRUE benefits of owning the goods.7. Surprise BonusesIt is a great surprise when you buy something and receive additional unadvertised bonuses. This can warm your customers to your company and can only please them. It also demonstrates that you do not need to publicize your bonuses because you believe in your product so much that it will sell on its own merit.Dispelling MythsAll too often I have read articles and statements claiming that with third party merchant accounts there are no chargeback fees and that you never have your company name display on customer statements. These claims are inaccurate. The facts are that some do not have chargeback fees. I have personally researched 90+ third party processing companies and have contacted them to verify certain key points in their terms of contract and fee schedule. There are some third party processors that do not issue chargeback fees or refunds, such as can be found with some digital gold currencies. In this case the merchant must initiate a refund directly to the customer.There are some third party processors who do not levy chargeback fees but you will find that these are very few in number and they will typically have a higher processing fee to cover their costs. Don't be mistaken in thinking that third party processors do not pass on chargeback fees to their merchants. You only have to read their terms in full to find out exactly what you can expect to be charged for per chargeback incident. I highlight these important facts in my book The A-Z of No Merchant Accounts for your convenience. Shop: Is Shopping Online Secure? Is shopping online becoming popular and safe enough for you and I to do the vast majority of our shopping on the Internet?
|
|
|
|
|
