DOING BUSINESS ONLINE

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OBJECTIVES
At the end of this talk the participants shall be
able to

• Understand and appreciate e-commerce as an
  effective business tool
• Identify potential use of e-commerce for business
  processes that will improve profitability
• Understand Process for online payment

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E-Commerce Definition

• Short for electronic commerce
• Buying and selling on the world wide web
• Whenever an exchange for money for products
  and/or services takes place online

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What Does this Mean To Businesses?

• Offers an expansion of current market by bringing
  new customers in both the consumer and business
  to business market segment
• Improves current customer service by providing
  customers with a new channel in obtaining your
  products

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Putting E to Work
Shoppers explore websites And enter keywords
into Search engines
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Shoppers inspects products Decides to make a
purchase Adds product to an electronic cart
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When done they click on view shopping cart then
clicks on purchase
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Credit Card Information
Verification
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Why Businesses Should Invest in E-commerce

• Information and communication technologies can
  improve the ways you produce, market, buy and
  sell your goods and services
• ICT can help level the competitive playing field
  between the developing and industrialized
  economies
• Electronic retail business and business to
  business is growing substantially and government
  are getting in on the act

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Make a Difference

• E is for efficiency the goal is to apply
  appropriate technology to drive costs down and
  become more efficient
• E-tools can sharpen SMEs competitive edge

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Moreover, It can generate..

• Leads
• Sales quotes
• Advertising Revenue
• Storefront
• Customer Traffic

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Introduction to the Ecommerce Act
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The E-Commerce Act Republic Act No. 8792
An act providing for the recognition and use of
electronic commercial and non-commercial
transactions and documents, penalties, unlawful
use Thereof and for another penalties
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The E-Commerce Act Declaration of Policy

• The State recognizes
• the vital role of information and communications
  technology in nation
• the need to create an information friendly
  environment that supports and ensures the
  availability, diversity, and affordability of ICT
  products and services
• the primary responsibility of the private sector
• the need to develop human resources for the
  information technology and a labor force skilled
  in the use of ICT

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The E-Commerce Act Salient Points

• It gives legal recognition of electronic data
  messages, electronic documents, and electronic
  signatures
• Allows the formation of contracts in electronic
  forms
• Makes banking transactions done through ATM
  switching networks absolute once consummated
• Parties are given the right to choose the type
  and level of security methods that suit their
  needs

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The E-Commerce Act Salient Points

• Provides the mandate for the electronic
  implementation of transport documents to
  facilitate carriage of goods
• Mandates the government to have the capability to
  do e-commerce within 2 years or before June 19,
  2002
• Mandates RPWeb to be implemented.
• Made cable, broadcast, and wireless physical
  infrastructure within the activity of
  telecommunications

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The E-Commerce Act Salient Points

• Empowers the Department of Trade and Industry to
  supervise the development of e-commerce in the
  country. It can also come up with policies and
  regulations, when needed, to facilitate the
  growth of e-commerce
• Provided guidelines as to when a service
  provider can be liable
• Authorities and parties with the legal right can
  gain access to electronic documents, data
  messages, and signatures, but for security, must
  not share or convey to any other individual

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The E-Commerce Act Salient Points

• Hacking or cracking is punishable by a fine from
  P100,000.00 to a maximum commensurating to the
  damage. With imprisonment from 6 months to 3
  years
• Piracy through the use of telecommunications
  networks that infringes intellectual property
  rights is punishable
• All existing laws such as the Consumer Act of the
  Philippines also applies to e-commerce
  transactions

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General Overview of The Elements of an Ecommerce
Site
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Website FAQs

• What is it all about
• Products and services offered
• Price of products or services
• Contact details
• Payment schemes
• Shipping process
• Policies on shipping and returns

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Elements of an E-Com Site

• The Logo and the Banner identifies your online
  store
• Navigation Menus way to organize information
  you want to present to customers and visitors
• Links

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Typical Contents

• About Us
• Contact Us
• Product Catalog
• Other Information
• Home
• Shopping Cart

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About Us

• Specific information about the company
• Inform customers that company is established and
  gives an idea on the business track record

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Contact Us

• Giving the customers information as to where to
  find and contact company
• Business address
• Email address
• Phone numbers

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Email Address Suggestions

• For general inquiries inquiries_at_mycompany.com
• Order related concerns order_at_mycompany.com
• After sales customerservice_at_mycompany.com
• Comments feedback_at_mycompany.com

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The Catalog

• Contains all the products that the company is
  selling online
• More than one option to go directly to the chosen
  product
• Images pictures must speak clearly
• Price drops and discounts
• Shipping Procedures

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E-Marketing
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E-Marketing Definition

• A type of e-commerce that can be defined as
  achieving marketing objectives through the use of
  electronic communication technology such as
  internet, email, e-book, and mobile phone
• - Wikipedia
  Encyclopedia

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E-Marketing Purpose

• Identifying the internet be used for marketing
  research to find out customer needs and wants
• Anticipating internet provides additional
  channel by which customers can access information
  and make purchases
• Satisfying a key success factor in e-marketing
  is achieving customer satisfaction though the
  electronic channel

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E-Marketing Tools

•        
• Pay per click or PPC
• Search Engine Submission and Optimization
• Web banners or banner ad
• Web advertising
• Email
• Blogs
• Virtual fairs
•        
•        

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E-Marketing ToolPay Per Click (PPC)

• Allows you to choose keywords you would like your
  site to appear when a search is performed
• You decide how much you are willing to pay per
  click, the higher the amount the higher your site
  will appear in the results

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PPC Advantages

• Require no changes to a current sites content or
  look to obtain top position
• Relatively quick
• PPC campaign is relatively easy and does not
  necessarily require any specialized knowledge

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E-Marketing ToolSearch Engine Submission and
Optimization (SEO)

• Submission- enrolling in search engines
• Optimization - Process of analyzing your site and
  modifying it to enable search engines to read it,
  understanding it and index it correctly

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E-Marketing ToolWeb Banners

• Embedding an advertisement into a web page
• Intended to attract traffic to a website by
  linking them to the web site of the advertiser

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Web Banners Tips

• Nothing beats a good-eye catching punch line
• Good copy
• Relevant contents
• Include logo and website URL in banners
• Presence of click here
• Keep banner file size to a minimum
• Must display all its contents in 10 seconds

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Reasons for Online Advertising

• Quickest and most cost effective way to pick up
  where other advertising leaves off
• Taking advantage the power of the internet
• It shows customers that you take your business
  seriously and carry a reputation
• Cost effective
• Versatile and interactive

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Reasons for Online Advertising

• Expandable
• Accessibility
• Offers competitive marketing
• Targeted Marketing
• Competitive Marketing

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E-Marketing ToolE-mails

• Greet or thank you
• 1-2 sentences only in the main message
• State what you expect from the other party at the
  end
• Place your name and complete contact info
• Subject should remain unaltered
• Separate emails for separate subjects
• Check spelling

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E-Marketing ToolBlogs

• Blogs are personal diaries published in the web
• Update of contents is easier
• Allow personal connection with the clients

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E-Marketing ToolVirtual Fairs

• Equivalent of physical trade fairs
• Booth is accessible 24/7/365

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Online Payment Methods

• For B2C
• Credit cards
• Payment on Delivery
• For B2B
• Advance Payment
• Letters of Credit
• Invoice Payments

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Online Payment Mode B2B

• Advance Payment ideal for sellers, payment is
  paid before goods are delivered
• Letters of Credit guaranteed by the bank of a
  foreign buyer. Exporters are protected against
  default
• Invoice Payment issue invoices that are
  identical to the invoices used in non-electronic
  commerce

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Online Payment Mode B2C

• Credit Cards has the advantage of being simple
  and fast. Enables the seller to confirm payment
• Payment on Delivery allows shipping as soon as
  order is confirmed, but more difficult to ensure
  if customer is real

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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
M3
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
M3
54
How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
M3
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
M3
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
M3
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How E-Ordering/Payment Works
Order shipped to customer
Customer goes online Places an order
Transaction financial statement requested. Funds
transferred
Credit card and shipping Information is stored
Email is sent to store and customer
Response returned to store front By secure
payment gateway
Customer gets summary of Items, price and billing
information
Credit card bank or issuing financial institution
approves or rejects
Payment information forwarded To secure gateway
Payment info passes to Transaction
processing Clear house
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Key Factors

• Comfortable and clearly arrange product selection
  using a shopping cart system
• Connect internal product and pricing databases to
  the web
• Reply promptly to customer emails
• Immediately confirm orders
• Total price with shipping must be viewable online
  before purchase
• Fast shipping
• Secured payment

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• Stephanie Rosalind P. Caragos
• President CEO Syntactics, Inc.
• ceo_at_syntacticsinc.com
• www.syntacticsinc.com