E-Commerce Trade without Borders

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E-CommerceTrade without Borders

• Chapter 5
• Instructor Shan A. Garib, Winter 2013

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e_Commerce

• Overview
• Can reach distant markets more rapidly and cost
  effectively and conduct business without having
  to travel
• Helps smaller companies and enables them to
  compete against larger, multinational companies
• This chapter describes how a company can
  establish an ecommerce operation to sell to
  target market

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e_Commerce

• What is e-Commerce?
• buying and selling of goods/services on the
  internet or buy electronic means eg catalogues
  provided on CD-ROM
• Various types of e-commerce operations
• Virtual storefronts on websites ie. E-tailing
• Website displays products
• Can be stand-alone or with brick and mortar
• Electronic Data Exchange
• Comp to comp exchange of info between companies
  or trading partners
• No need for human interaction
• Eliminates paperwork
• Improves business relationship between suppliers
  and buyers, improve productivity

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e_Commerce

• What is e-Commerce?
• They can use emailing for marketing
• Cost-effective method of communicating with
  customers to advertise
• Use mass emails and responses can be monitored
• Can develop relationships or start one
• Set-up online auctions
• Adds gaming element to buying process
• Involves minimal investment for company
• They can set up Electronic Funds Transfer opps
• Electronic processing of financial transactions
• Speeds up receipt of PMTs
• Enables overseas customers to pay using credit
• enables fund transfers and pay employees

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Especially for smaller companies
• Access to potential customers and partners
  globally
• Track customer preferences and purchasing actions
• Increased productivity
• Cheaper costs in establishing international
  trading relationships
• Targeted advertising and marketing online
• Improved ability to serve overseas customers
• Improved relationships with business partners
• Reduced transaction costs

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Product Suitability
• Best products are digital music, films, photos,
  financial and stock trading transactions and
  software
• Worst products tend to be ones that need
  selection based on taste, smell, texture or feel
• Usually offered with additional benefits like
  cheap shipping
• Customer Acceptance Issues
• Concerns about security and ID teft
• CC info companies should use Secure Socket Layer
  (SSL) encryption 128bit is best

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Concerns about security and ID teft
• Use an alternative PMT method eg PayPal, Bill Me
  Later, Google Checkout
• Access Problems
• Different areas/countries have different rates
  of internet use
• Lack of Social Interaction
• Customers enjoy social interactions
• On-line is impersonal

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Lack of Instant Gratification
• Driving force behind sales
• Ppl make purchase decisions to boost their moods
• Customers have to wait for weeks on delivery
• Shipping News
• Customers have to pay duties and taxes making
  purchases less attractive
• Legal Issues
• Legal liability and jurisdiction in disputes
• Who sues whom? In what country?
• Cant prove an established contact with market

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Tax Issues
• Companies should consult a lawyer about
  regulations
• Governments lose out on tax revenues unless
  required to add a tax
• Security Issues
• Including
• Denial of Service attacks stop access to
  everyone
• Unauthorized access to sensitive info hackers
  can get IP
• Malicious alterations to websites hackers may
  alter website content to negatively impact
  reputation
• Theft of customer information CC info stolen
• Damage to computer networks virus and worms
  affect company functions

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Security Issues
• Financial loss can result from attacks
• Reputation can be lost and then market share
• Companies can use passwords, firewalls, virus
  software
• Attack consequences
• Deletion of company data, or inability to access
  data
• Recording of keystrokes
• Hijacking of computer system
• Forwarding viruses

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Computer and Website Maintenance Issues
• Make sure staff is technical competent
• Time consuming and expensive
• Setting Up an E-Commerce Website
• Choosing a domain name
• Unique website address
• Two components
• Top-level domain denominator at end of address
  eg .com
• Second-level domain part of website name that
  before top-level domain eg google.com

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Setting Up an E-Commerce Website
• Choosing a domain name
• Check to see if name is taken eg Universal Whois
  Search Engine or www.uwhois.com
• Check trade mark in region www.trademark.com
• Must register an available domain name
• Registrars are companies accredited by the
  Internet Corporation for Assigned Names and
  Numbers (ICANN)
• Get as host to store and maintain website files
• Organizing hosting
• Benefits to having a company host your website

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Setting Up an E-Commerce Website
• Organizing hosting
• Benefits to having a company host your website
• Companies will get enhanced security
• Hosting companies have backup generators
• Download speeds are faster
• Designing the Site
• clear content, simple
• Purchasing shopping cart software
• Enable companies to take orders
• eg GoECart.com

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Setting Up an E-Commerce Website
• Setting up a Merchant Account with a Bank
• Used for customers to purchase online with CC
• Setting up a PMT gateway account
• After merchant account
• Verifies the CC info eg. Verisign.com
• PAYPAL A Cheaper Option
• Anyone with an email can send and get money using
  a CC

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Organizing an E-Tailing Website

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e_Commerce

• Advantages and disadvantages of E-Commerce?
• Many issues to consider
• Organizing an E-Tailing Website

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e_Commerce

• Advertising and Marketing
• Most inexpensive form of marketing for a website
  is to obtain a high ranking on a search engines
• Customers select first link
• How to boost website ranking
• Create interesting and descriptive page titles
• Write a description and keyword meta tag
• Make sure key words appear in the first paragraph
  of website
• Use keywords in hyperlinks
• Develop several pages that focus on different key
  words
• Submit the home page address to regional search
  engines
• Submit the website to directories to increase
  link ranking
• Find a popular website and place a reciprocal
  linking