your business reach new markets and increase your sales and revenue gains. I!<br><br> you are interested in selling to other businesses, you can use the Internet to nd sales leads, announce calls !or tender, and to o!!er products !or sale (either through your own website or through an e-marketplace site). Searching !or products and services online can save you time and money by allowing you to nd the best prices without having to do all the legwork. You can use the Internet to nd new suppliers, post buying requests or search !or products and services.<br><br> The bene ts o! e!!ective B2B e-commerce include lower costs associated with selecting suppliers, establishing prices, ordering, and nalizing transactions. Online trading networks can also be used to support e! cient in!ormation exchange between buyers and sellers.<br><br> Small businesses that are considering purchasing or selling online will fnd this a use(ul resource (or help in identi(ying and selecting appropriate e-commerce options. Tips and strategies (or attracting and keeping online customers are also presented. While the booklet (ocuses on selling online via your own website, other options (or purchasing and selling online are highlighted such as e-marketplaces and online auctions.<br><br> Selling Online Using Your Own Website 3 Setting Up An Online Store The !irst section o! this booklet describes what is involved in selling online vis-à-vis your own website. In order to process an online sales transaction three things are needed: 2 Fast Facts About E-Commerce in Canada " Since 2000 the value of online sales has increased from $5.7 billion to $49.9 billion (2006) in Canada.<br><br> " The vast majority of online sales still occur between firms as part of business-to-business (B2B) sales, as opposed to sales !rom a !irm to an individual consumer. Sales !rom business to business amounted to $31.4 billion in 2006, which represented about 68% of total e-commerce by private firms. " Eight percent (8%) of Canadian businesses sell online but almost twice as many retail firms do so (2006).<br><br> " A 2004 survey shows that SMEs across all sectors and size categories reported a substantial increase in revenue as a consequence o! e-business adoption (e-business adoption includes internal operations, marketing online, and purchasing and selling online) with an average revenue gain of over 8%. " Over one half (57%) of Canadians use the Internet to window shop while 43% reported ordering personal goods or services online.<br><br> " Four sectors 3 manufacturing, transportation and warehousing, wholesale trade, and retail trade 3 lead the way in terms of value of online sales, accounting for nearly 61% of the private sector total (2006). " While retail e-commerce has grown since 2000, it still only represents about 1% of total sales (2006). " Manufacturing and wholesale sectors are more likely to engage in B2B sales (as compared to retail).<br><br> In 2006, 58% of manufacturing enterprises and 50% of wholesale enterprises used the Internet to buy goods or services, respectively, as compared to 46% for retailers. " The utilities sector has the highest value of online sales of any industrial sector (2006). " Security and privacy remain a key concern for selling and purchasing online.<br><br> Sources: Canadian E-Business Initiative. Net Impact Study Canada. Strategies "or Increasing SME Engagement in the e-Economy (September 2004).<br><br> Statistics Canada. Survey o" Electronic Commerce and Technology (2006). 1.<br><br> Shopping Cart 2. Secure Server 3. Payment Processing These three requirements are described in more detail below.<br><br> 1. Shopping Carts Shopping cart so!tware keeps track o! what the user selects to buy !rom the website be!ore proceeding to the ccheckout d.<br><br> An online shopping cart consists of three parts: " Product Catalogue " Shopping List " Checkout System The product catalogue is made up o! all the in!orma- tion needed to present any product to the customer and to complete a sales transaction online. In!ormation to be included in the product database generally includes the price, identi!ication number (SKU), image or other multi- media in!ormation, product options or choices.<br><br> A shopping list (i.e. list o! selected products) allows users to track the items they want to purchase.<br><br> A shop - ping cart image is generally used to show what items the shopper has selected !or purchase. In order !or the shop- ping cart to !unction properly the user 9s computer must be set to allow ccookies d. The checkout system allows customers to select prod- ucts by clicking an cadd items to cart d button and then enables them to pay !or these products.<br><br> 3 Shopping carts do not deal with the entire transaction. They pass in!ormation (i.e. what the user has ordered) to a payment gateway .<br><br> A payment gateway is a separate service 3 it links the shopping cart to the !inancial networks involved with the transaction. When you are choosing a shopping cart package, ensure that the payment gateway service is compatible. Check with the gateway service provider to see which shopping cart packages it supports.<br><br> Payment gateways link transactions to an ID, so there is no need !or merchants to know their customers 9 credit card numbers. 2. Secure Server The secure server helps provide protection against the loss or modi cation o!<br><br> personal in!ormation. Secure Socket Layer (SSL) is the most commonly used tech - nology for secure online transactions. SSL encrypts (or codes) all data between the shop 9s server and the customer 9s computer.<br><br> This makes it very di! cult !or third parties to decode any in!ormation exchanged such as credit card numbers. The !ollowing diagram shows how a secure server can protect in!ormation passed between the consumer and the merchant. Servers .<br><br> Servers are the backbone o! the Internet 3 they are computers linked by com - munication lines which cserve up d in!ormation in the !orm o! text, graphics, and multimedia to online computers that request data.<br><br> Source: Expedite Media Group, Inc. I! you are planning on selling online you will need a Digital Certi(icate for SSL technology to work.<br><br> A Digital Certificate is an electronic ID that helps to show the credibility of a website. I! you want to buy online how do you know i!<br><br> a website has a secure server? Look for the following: 1. A URL address that begins with https:// as opposed to http:// 2.<br><br> A browser that notifies you that you are on a secure site. Many browsers use a symbol (e.g. lock icon) or a message Figure 1: Protecting Transaction Information Through a Secure Server Customer Browses store!ront and submits order Customer 9s Web Browser Customer 9s Web Browser Merchant Storefront Secure Web Server Order in!ormation is passed to secure web server Transaction authorized or denied Customer completes order with credit card in!o Merchant gathers daily transaction information !rom payment gateway website Merchant 9s Web Browser Payment Gateway Cookies are small pieces o!<br><br> so!tware that web- sites store on users 9 computers. They have a very wide variety o! uses, but an important one is to track how people arrive at the website and how they use the website.<br><br> I! your website uses 8cookies 9, you should explain to the website visitors how and why this in!ormation is used. 3.<br><br> Payment Processing Options There are three payment processing options: 4 A. Third Party Payment Processing Software. B.<br><br> Internet Merchant Account. C. Manual (Offline) Payment Processing.<br><br> A. Third Party Payment Processing These services o!!er an alternative to obtaining an Inter- net Merchant Account. The advantage of this alternative is that it is possible to start selling online more quickly and easily.<br><br> There are registration, transaction, and month- ly !ees attached. There may also be a longer holdback period be!ore the balance o! a sale is turned over to the merchant.<br><br> According to Wikipedia ( www.wikipedia.org), PayPal (www.paypal.com) is the most popular third-party online service provider. According to www.canadaone.com small businesses use third-party credit card processing com- panies such as PayPal (www.paypal.com ), CCNow, ( www.ccnow.com) PsiGate (www.Psigate.com), Beanstream (www.beanstream.com) and InternetSecure (www.internetsecure.com). Both PayPal and merchant accounts charge transaction !ees, including a percentage o!<br><br> the sale plus a !lat !ee per transaction. Charges based on the number of transactions may be appropriate for micro businesses or where the number o! transactions is limited.<br><br> How does this type o( processing work? The money !rom the transaction is deposited in a special account controlled by the service provider. To obtain your money, the merchant is usually required to initiate the trans!er.<br><br> I! there is a dispute over the transaction, the service provider may hold these !unds !or longer periods. Another way to sell online is through E-Marketplaces and Online Bidders Auctions Websites .<br><br> These are discussed later in this booklet under the heading 3 Other Options !or Purchasing and Selling Online. What You Should Consider when Choosing a Payment Option: o Costs associated with the payment option (consider transaction fees, setup fees, monthly fees). " Take the time to understand the features offered by each option and the pricing model.<br><br> " Also consider that there are different fees and features associated with merchant accounts. " Also consider chargeback fees. " Also consider the fees associated with fraudulent transactions.<br><br> o Privacy o! the transaction data. " If you are considering leasing software through a service provider, check the service provider 9s policy for disclosure and sharing o!<br><br> in!ormation. o Fraud protection. " Review fraud protection tools.<br><br> Merchant accounts typically have a number of customizable fraud filters that identi!y and track suspicious transactions. The transaction can be placed on hold while the bank noti!ies the business o! the suspicious activity.<br><br> o General credibility o! the service provider. " Internet merchant accounts have greater credibility.<br><br> B. Internet Merchant Accounts An Internet Merchant Account is an account issued by a Knancial institution that enables a business to accept credit card payments online. Businesses must obtain a separate Internet Merchant Account for each type of credit card they wish to accept (e.g.<br><br> VISA, Mastercard, American Express). How do You Obtain an Internet Merchant Account? You will need to open a business account with a bank.<br><br> The bank will conduct a credit risk assessment . You may want to consider preparing a business plan in advance. You may also be required to submit a large security deposit.<br><br> With this type of account, the process of transferring money to the right account is automatic and occurs quickly. There are some companies that are authorized by the banks to issue merchant identi cations. InternetSecure (www.internetsecure.com) and PsiGate (www.psigate.com ) are two examples of Canadian merchant account providers that are authorized by the Canadian banks to issue Internet merchant identiKcations, and process sales !or merchants with their own Internet merchant identi cations (as cited in www.about.com - Small Business In!ormation).<br><br> C. Manual Credit Card Processing You can set up an e-commerce website where users can order online, but you process credit cards manually rather than rely on online payment processing options. With this option, credit card information can be obtained through a secure server and the transaction can be processed manually.<br><br> This option is !easible when you have a limited number o! online orders. Security and Privacy Issues It is important to be aware o!<br><br> security and privacy issues associated with e-commerce. Some common security threats include !raudulent use o! credit cards, computer viruses, spam (unsolicited e-mail messages), and the!t o!<br><br> computers or in!ormation. Phishing is another type o! security threat that involves an e-mail message that looks like it comes !rom an o! cial source but links in the message go to a !ake website where you may disclose personal information.<br><br> Common threats to privacy include theft of personal information, and inadequate protection o! private in!ormation. The !ollowing are tips !or minimizing security and privacy risks.<br><br> 5 Merchant account fee structures include one- time !ees, monthly !ees and transaction !ees. The merchant account provider should clearly outline the fee structure. Review any additional !ees care!ully and make sure you include all set up !ees when doing comparison shopping.<br><br> Tips (or minimizing security and privacy risks associated with e-commerce Review the security features/services offered by your web hosting service, Internet Service Provider, web design and so!tware company. Pay attention to security alerts and install security patches as needed. Regularly update software and scan for spyware and viruses.<br><br> Regularly backup systems and information. Design of an e-commerce website should minimize security threats. For example, once the consumer presses the cbuy d button the cback d button should then be disabled.<br><br> cont 9d 6 Tips (or minimizing security and privacy risks associated with e-commerce Obtain a digital certi cate !or your website. The digital certi cate shows that any personal data submit- ted to your site will be encrypted (coded). Two o!<br><br> the largest certi cate authorities on the Internet are: Verisign at http://www.verisign.com and Thawte at http://thawte.com (source: www.canadabusiness.ca). Avoid storing customer credit card information in your systems. If you are storing customer information make sure it is secure !rom access by employees or computer hackers.<br><br> Develop a privacy policy. The policy should outline how in!ormation will be collected and used, and the security procedures that will be used to protect in!ormation !rom being lost, stolen or tampered with. You may want to post this policy on your website.<br><br> You may also want to apply !or a privacy seal. The pri- vacy seal icon is displayed on the website and can increase consumer conKdence. According to www.entrepreneur.com , two leading privacy seal programs are TRUSTe and BBBOnline.<br><br> Ensure you have SSL technology that encrypts all conKdential information during transmission and authorization o! transactions. Ensure you have appropriate security features for storing information.<br><br> For example a PCI (peripheral component interconnect: hardware) card is often added for protection. Another approach is SET (Secure Electronic Transaction) that has been developed by Visa and MasterCard. With this approach, sensitive information is not seen by the business and is not stored on the company 9s website.<br><br> Firewalls should be used to protect the network and computers !rom viruses and computer hackers. You should also restrict access to in!ormation, particularly sensitive in!ormation to authorized employees. Review other fraud prevention tools and assess if they are right for you.<br><br> For example, Address VeriKcation Service (AVS) compares the information in the customers 9 addresses with records stored by card-issuing banks. Major credit card companies also have veriKcation systems. Three-digit codes printed on the back of major credit cards can help you assess if customers have legitimate cards.<br><br> Always verify customer addresses. Be suspicious o! large orders or requests !or multiple copies o!<br><br> the same product, especially i! the customer asks !or rush delivery. I!<br><br> you are selling valuable products that are easily resold consider whether you need advanced !raud pro- tection services provided through gateway providers (e.g. !raud lters to screen !or suspicious activity). Options For Selling Products on Your Website I!<br><br> you are thinking o! selling online on your own website consider the !ollowing: " The type and number of products you want to sell online. " Whether selling online will make up a signiKcant portion of your sales.<br><br> " Customer needs and preferences. The !ollowing diagram shows the !our main options you have with respect to selling your products and services on your website. 7 Choosing An E-Commerce Solution For Your Website The !ollowing table highlights key considerations when choosing an e-commerce solution.<br><br> Considerations (or Choosing An E-Commerce Solution How many products do you want to sell? Does the solution have su! cient capacity to handle your products? Does the solution provide room !or growth (i.e.<br><br> growth in number o! products, sales)? Do you already have a website that you are satis ed with?<br><br> I! so, you may want to consider so!tware/ applications that are compatible with your present hosting environment. You can also check to see what your present host offers in terms of e-commerce packages.<br><br> Make sure that the software package you choose is compatible with your present hosting environment. Figure 2: Options for Selling Products on Your Website Option 1 Hosted Solution with Bundled E-Commerce Package Option 2 E-Commerce Licensed Software/ Application (Templates) Considerations (or Choosing Hosted Solution Considerations (or Choosing Licensed So(tware Option 3 E-Commerce Open Source Software (Templates) Option 4 Customized E-Commerce Solution Considerations (or Choosing Open Source So(tware Considerations (or Customized Solution Service provider takes care of installation and management. Can provide you with a professional looking storefront at a relatively low cost.<br><br> Typically offer a wide range of features and different types of plans to meet your needs. Involves monthly fees and/or sales commission. Freely available software.<br><br> Most expensive option. Read the fine print for other costs (additional features, upgrades may have associated costs). Most appropriate when e-business is a critical part of your business.<br><br> Can offer custom-built or template solutions. Identify what services and features you need (hosted solutions offer a wide range of packages and features). Can choose from a wide range of features and plans.<br><br> High control over the website. Less flexibility in store layout and design as compared to customized solution. Likely to be professional fees associated with setting up and modifying to suit your needs.<br><br> How mature is the product? Ensure compatibility with hosting environment and other software. Ensure compatibility with hosting environment and other software.<br><br> Your business 9s level of technical expertise. Will you require professional assistance in setting up and managing the software? cont 9d Considerations (or Choosing An E-Commerce Solution Is the solution compatible with other applications?<br><br> (e.g. payment processing options, payment gateway, orders, inventory, accounting, shipping). I!<br><br> choosing a template option, are there a su! cient variety o! templates and designs to choose !rom? Can you easily import/export (i.e.<br><br> transfer) data? If you have an existing product catalogue will it be easy to integrate into the new so!tware? I!<br><br> you change hosts can you export your data without having to manually re-enter all your in!ormation? How easy will it be !or you to update and change the website and product catalogue? Have you looked at various so!tware products?<br><br> You can browse e-commerce websites to assess products and features. Service providers usually provide a trial period to test the software. Consider the look of the online store, how easy is it to nd products, and how easy is it to make a purchase.<br><br> Do you need an automated sales tax and shipping cost calculation !eature (depends on the extent o! your e-business and your customer base)? You may need a solution that allows you to outline detailed shipping costs, particularly i!<br><br> you have international customers. Does the solution support a su! cient range o! payment options?<br><br> Are tracking tools such as Google Analytics easy to integrate into the solution? What level of technical support do you need? What level of technical support is being provided?<br><br> Is the hosting company or e-business provider behind the e-commerce package reputable? How long have they been in business? What work have they done in the past?<br><br> Have you checked their work and re!erences? Is the technical support provided directly by the company or do they outsource? I!<br><br> you are thinking o! an open source solution - Is it compatible with your hosting environment and other software? Is the product well established?<br><br> Can an e-business provider easily modify it to meet your needs? Choosing E-Commerce Features So!tware packages or e-commerce plans include a broad range o! e-commerce !eatures to choose !rom.<br><br> Prices can range !rom a !ew hundred dollars (e.g. basic template so!tware) to several thousand dollars and more (e.g. customized solutions).<br><br> Make sure you have a clear understanding of your business needs. Check other e-commerce websites to build your understanding o! what you like and do not like.<br><br> The !ollowing table summarizes many o! the basic and advanced !eatures and services you should consider when setting up an e-commerce website. 8 You may not need all the bells and whistles included in some o!<br><br> the more deluxe e-commerce packages. Your e-commerce solution should !it with your current needs, but there should also be room !or your online business to grow. E-Commerce Features and Services Store Design .<br><br> Consider whether you are ready to design your own store (using a template) or whether you will need professional assistance to design the store. Many of the design templates are relatively easy to use, but may not be a good option for you if your time is limited. Licensed software packages may include online technical support and step-by-step guidance to help you with design.<br><br> cont 9d 9 E-Commerce Features and Services Shopping Cart . Shopping carts vary considerably. Features may include progress indicators to help customers understand where they are in the transaction process, automatic calculation o!<br><br> tax and shipping, customizable design and layout. Product Catalogue . Check to see how many products the online catalogue is able to manage.<br><br> Consider how easy it is to add products, and to upload an existing product database. Payment processing options (e.g. third party payment processing, merchant account, cheques, money orders).<br><br> Security Features (e.g. Secure Socket Layer (SSL), password protection, access privileges for site administration, data centre security, risk tools that can help fag !raudulent orders, etc.) Product Promotion . Features can include discounts or coupons, gift certificates, discount pricing, volume pricing, autoresponders (automatically sends out o!!ers by e-mail).<br><br> Some packages o!!er cross-selling !unctions (e.g. similar or complementary products are recommended when the user selects a product). A((iliate Marketing Module .<br><br> A low cost way to advertise is through an affiliate program. Affiliates advertise your store on their website and they earn a commission on each sale they generate. All traffic, sales and earnings are tracked by the system.<br><br> Order Processing . The service provider or so!tware package may provide a number o! ordering !eatures such as viewing new orders by email, online, or !ax, automatic noti!ication to customers alerting them to any changes in the status o!<br><br> orders, etc. Integration with Back-O((ice Business Processes . I!<br><br> e-business is a critical part o! your business you may want more advanced integration !eatures that link your e-business to your regular business operations (inventory, ordering, shipping, accounting). Website analytics and reporting (eatures .<br><br> Can help you keep track of your sales, pages viewed by customers, re!erring sites and keywords customers use to !ind your product. Level o( Support . Consider what level of support you will require.<br><br> Will you need support 24-7? Top Five Tips (or Minimizing 8Shopping Cart Abandonment 9 Make purchasing as easy and stress-free as possible for the customer 3 this will help avoid c shopping cart abandonment d 3 a term used to describe customers who select items to buy, but then decide not to purchase. 1.<br><br> Show your customers that you are a reputable business. Consider using third-party endorsements. Clearly show how you will protect the customer 9s personal information.<br><br> Let them know about transaction security !eatures and services used by your e-commerce website. 2. Make sure visitors know where they are in the checkout process.<br><br> Progress indicators on screen let visitors know where they are in the checkout process. 3. Keep the checkout process streamlined.<br><br> If the checkout process is too long and there are too many steps you will lose customers. 4. Provide clear instructions for how to proceed through the product selection and checkout process.<br><br> Make sure the shopping cart buttons clearly indicate the next steps (e.g. Continue with Checkout, Finalize Purchase, etc.). Make sure that an cadd to cart d button is clearly visible on the product page.<br><br> 5. Provide warranties or guaranties for your product. Make sure warranties or guaranties are clearly visible, particularly during the last steps o!<br><br> the checkout process. Resource List o( E-Commerce Products Note that these examples are only a few of the many licensed and open source software e-commerce products available on the Internet. You should investigate whether these products are suitable !or your needs.<br><br> There are general directories that re!erence e-commerce products such as www.wikipedia.com , www.opensourcecms.com (open source products), and www.cmsmatrix.org. You may also want to look at various blogs and !orums !or product comparisons and reviews. 10 Examples o( E-Commerce So(tware Products Licensed E-Commerce Solutions Fortune 3: http://www.fortune3.com/ Can choose a number of features 3 shopping cart software, program to design e-commerce websites.<br><br> 30 day free trial. Will also provide hosting services. Source: http://www.biz"ive.com/articles/web-design/choosing-e-commerce-solutions/ ProStore: http://www.prostores.com/ (!ormerly Kurant StoreSense) Hosted application or you can do it yourself.<br><br> A more complete e-commerce package. Allows setting up for online stores as well as subscription sites. Source: http://www.biz"ive.com/articles/web-design/choosing-e-commerce-solutions/ Volusion: https://www.volusion.com/ A more complete e-commerce package.<br><br> Allows setting up of a whole e-commerce website. Source: http://www.biz"ive.com/articles/web-design/choosing-e-commerce-solutions/ Shopi!y www.shopi!y.com Shopi!y is a hosted application that allows you to set up an online store to sell your goods. It lets you organize your products, customize your store!ront, accept credit card payments, track and respond to orders.<br><br> Shopi!y.com lets sellers choose !rom the !ree design options, the one they like the most !or their shop or they are allowed to build their own shop with the style they want. Source: http://www.killerstartups.com/Web-App-Tools/shopi"y--A-Business-For-Li"e/ ClicShop: www.clicshop.com Products and services to help you build your online catalogue and shopping cart solutions. All packages include e-commerce hosting services.<br><br> Source: Search using key words 3 Canada Shopping Cart Canada Post Sell Online: www.canadapost.ca/cpo/mc/business/ solutions/sellonline.jsf Solutions !or building online stores, adding shopping carts to online stores, and adding shipping to online store. Source: Search using key words 3 Canada Shopping Cart Open Source E-Commerce Solutions osCommerce Online Merchant www.oscommerce.com osCommerce Online Merchant is an Open Source online shop e-commerce solution that is available for free under the GNU General Public License. It features a set of off the shelf online shopping cart !unctionality so that storeowners can setup, run, and maintain online stores.<br><br> Sources: www.ecommerce-guide.com and www.biz"ive.com Zen Cart www.zen-cart.com Free shopping cart software with a variety of features. Source: www.ecommerce-guide.com cont 9d 11 Examples o( E-Commerce So(tware Products AgoraCart www.agoracart.com Free shopping cart software with a variety of features. Source: www.ecommerce-guide.com NOP shopping Cart www.nopdesign.com/!reecart/ Free shopping cart software.<br><br> Source: www.ecommerce-guide.com Processing Payments Examples PayPal www.paypal.com The most popular third party payment processor. Source: www.wikipedia.com BeanStream www.beanstream.com One of Canada 9s leading providers of authentication and electronic payment processing solutions, including merchant account services, credit card processing and Interac Online. Source: www.canadaone.com InternetSecure www.internetsecure.com Provides payment processing solutions with respect to merchant accounts, credit card processing, payment gateways, and security !eatures.<br><br> Source: www.canadaone.com Psigate www.psigate.com Provides payment processing solutions with respect to merchant Accounts, payment gateway, and fraud protection. Source: www.canadaone.com Level Ten: http://www.leveltendesign .com/services/ecommerce-websites Level Ten is a processing payments option through credit cards. Allows for real time transactions.<br><br> It is based on OsCommerce (open source shopping cart so!tware). Source: http://www.biz"ive.com/articles/web-design/choosing-e-commerce-solutions/ Considerations (or Setting-Up and Maintaining Your E-Commerce Website I! you are thinking o!<br><br> adding an electronic store!ront you will need to care!ully consider a number o! issues such as resources, security and privacy, shipping, tax and customs, payment settlement, maintenance, marketing and more. Considerations (or Setting-Up and Maintaining Your E-Commerce Website Privacy and Security Issues Do you have a secure server and SSL (Secure Socket Layer)?<br><br> Does your website have a !ull description o! your company? (e.g.<br><br> the amount o! time you have been in business, address, phone numbers, email, etc.). It is advisable to provide a brie!<br><br> description on your home- page. You can provide a more detailed description in the cabout us d or ccompany in!o d web pages. Have you clearly explained your policies and procedures with respect to security and privacy?<br><br> Have you included a description o! your policies on returns and shipping? cont 9d 12 Considerations (or Setting-Up and Maintaining Your E-Commerce Website E-Commerce Website Design Is your e-commerce website easy to navigate?<br><br> Is it easy to nd in!ormation on your website? Is it easy !or customers to purchase online? Product / Service Catalogue Is the catalogue easy to use?<br><br> Are the choices easy to identify? Is it easy !or buyers to add or remove selected items prior to purchase? Will you need the catalogue to expand, as your business needs change?<br><br> Will you need to include Lexible pricing options? (e.g. discounts, customized price lists) Do you want to be able to cross-sell?<br><br> (i.e. suggest other related products depending on the buyer 9s choices) Payment Options Have you set up a payment option (i! you will be accepting online payments)?<br><br> Payment options include either setting up a merchant account or going with a third party payment option such as PayPal. Transactions Has a system !or capturing orders and validating payments been established? Have you determined how the order will be !ul lled?<br><br> Have you determined how receipts will be issued? Shipping Have you set up procedures for shipping? Will you be offering shipping?<br><br> Will local pickup be required? Inventory Management Systems Have you considered automating your Inventory Management System to help minimize human error and to provide up-to-date stock availability to your website customers. You can try existing so!tware packages or have so!tware packages custom tailored to your business and integrated into your website by a pro!essional.<br><br> Taxes Have you considered what taxes apply, particularly if you are shipping to other jurisdictions? Maintenance o( E-Commerce Website Have you determined how your website will be maintained and updated? A webmaster can help you maintain and update your website.<br><br> cont 9d Tips (or Attracting and Keeping Online Customers E!!ective marketing techniques and good customer service will help you attract and retain online customers. 13 Tips (or Attracting and Keeping Online Customers " Offer in-store returns. " Offer special incentives and discounts to online customers.<br><br> " Utilize both on and ofLine marketing strategies to boost your online sales. " Ensure orders are accurate. " Ensure timely shipping of products.<br><br> " Respond to customer queries in a timely manner. " Make purchasing as easy and stress-free as possible for the customer. " If possible, use the same merchant name on the website and transaction receipts.<br><br> cIf not possible, inform customers how the payment will be recorded on their credit card accounts d. " Provide online receipts for all transactions. " Clearly display total costs including shipping costs.<br><br> " Show stock availability and estimated delivery times. " Disclose country of business operations, transaction currency, and any export conditions on your website. " Inform the customers of all the steps your business has taken to ensure the security and privacy of their in!ormation.<br><br> " If possible, provide customers with alternate methods of purchasing products online. " Remind users of the products they have ordered when they are checking out. " Make sure that your website is professional and that product information is easy to Knd.<br><br> " Practice good customer service. Customer relationship management software can offer regular customers extra support and service. It can also assist rst time buyers in making a purchase and help in!requent buyers become regular customers.<br><br> Considerations (or Setting-Up and Maintaining Your E-Commerce Website Marketing your E-Commerce Website Have you identi ed the online and o!fine marketing strategies you will use to bring people to your website? Tracking your Progress Have you identi ed what in!ormation you will collect to track your progress (e.g. number o!<br><br> sales, what products sell the most? The number o! abandoned carts?).<br><br> Ensuring Timely Shipping 3 Is Drop Shipping a Solution For You? One solution !or addressing shipping delays (short o! stocking the entire inventory o!<br><br> your online store) is to have your supplier ship the online products for you. When a sale is made, both you and the supplier are notiKed, the supplier ships the product and bills you !or the wholesale costs. This solution requires you to nd a credible supplier that o!!ers drop shipping.<br><br> Other B2B and B2C Options (or Purchasing and Selling Online Purchasing and selling online can take place through the Internet through individual business websites (as already mentioned), through other websites o!!ering store!ront services, through business portals, or through auction websites. E-Marketplaces E-marketplaces (websites that link buyers and sellers to exchange in!ormation, products, services and payments) are an important way to conduct B2B as well as B2C transactions . They can be !ocused on particular prod- ucts, services or industries.<br><br> E-marketplaces may be oper- ated by a third party (e.g. distributor) or by a business or a network o! companies.<br><br> There is a trend towards private e-marketplaces where one organization links to its business partners (re!erred to as 8one to many 9) to improve business processes. There are also e-market- places !or speci c industries and regions. Examples o!<br><br> e-marketplace websites include: " www.ontario-directory.com " www.covisint.com " www.!reemarkets.com " www.etsy.com - A popular e-marketplace to buy and sell craft items (source: www.asking!ortrouble.com). " www.rfpsource.ca/E/index.cfm? RFPSource.ca - A free e-marketplace that matches Canadian products and services with thousands o!<br><br> business opportunities posted by domestic and !oreign corporations and governments (Source: www.exportsource.ca). Finding E-Marketplaces (or Specifc Industries You can !ind an e-marketplace !or a speci!ic industry by using a search engine (e.g. Google or Yahoo!) and search- ing for a specific industry.<br><br> For example, if you enter the terms steel industry product directory (or e-marketplace), you should !ind steel speci!ic e-marketplaces. 14 Setting Up Online Store(ronts on Other Websites An easy, low cost option for selling online involves setting up an online store!ront on other websites. For example, Yahoo!<br><br> (http://shopping. yahoo.com/stores/sd.html), Ebay (www.ebay. com), and Amazon (www.amazon.com) all offer this service.<br><br> Auction Websites Most auction sites act as hosts or intermediaries for other businesses or individuals. Auction websites are a way of conducting both B2B and B2C e-commerce. Generally the host o!<br><br> the website organizes the site, provides product in!ormation, and displays the product and processes payments online. A fee is charged to list the product or service. Buying and selling processes vary across auction sites; so make sure you !amiliarize yoursel!<br><br> with these techniques by visiting these websites. I! you are a buyer, some auction sites have a !eedback system allowing buyers to rate products or services.<br><br> Keep in mind that there may be limited opportunities to return goods or obtain re!unds. I! you are a supplier, select an auction site that has a track record !or obtaining high prices and !or attracting potential customers.<br><br> Examples o! auction websites are: " www.uBid.com (general auction site) " www.eBay.com (general auction site) " www.dovebid.com (global provider o! capital asset auction, valuation, redeployment, and management services) Source: Index o!<br><br> the web.com www.indexoftheweb.com/Shopping/Auctions.htm and Emarket Services www.emarketservices.com Reverse Auctions A reverse auction is a type of auction in which the role o! the buyer and seller is reversed (i.e. the buyer elicits offers from the seller), with the primary objective to drive purchase prices downward.<br><br> The product or ser- vice required is clearly speci ed to enable a selection o! a bidder (usually based on the lowest price). Prices in a reverse auction decrease as potential suppliers underbid each other.<br><br> While reverse auctions have a number of challenges (e.g. the buyer can dominate the process), there are a number o! bene ts.<br><br> These include: reduced nego- tiation time, short procurement cycle and increased transparency o! competing bids. Examples o!<br><br> reverse auction websites include: " www.priceline.com " www.oltiby.com Source: http://en.wikipedia.org/wiki/Reverse_auction . Auction Website Tutorials Many of the auction websites, such as www.ebay.com have tutorials to help you learn how to use the website to buy or sell. Listing Fees E-marketplaces and online auctions may have listing !ees.<br><br> This involves a payment to list an item regardless o! whether it sells. Participating in a Reverse Auction as a Supplier I!<br><br> you are participating in a reverse auction as a supplier, make sure you ensure you understand the !ollowing: " How the auction works and the potential pitfalls. " The terms and conditions of the auction to see i! they are acceptable or not.<br><br> The terms and conditions should clearly de!ine, among other things, the winning bid, and whether the buyer can split the contract or is obligated to award the whole contract to the winner. " Your bidding strategy. " The costs of the product or service (to avoid losing money).<br><br> " www.alibaba.com (general auction site) " www.liquidation.com 15 MINISTRY OF ECONOMIC DEVELOPMENT AND TRADE Telephone: (416) 314-2526 Facsimile: (416) 325-6538 E-mail: E-Business@ontario.ca Website: www.ontario.ca/economy This booklet is part o! a series on advanced e-business topics which supplements an introductory handbook How You Can Proft "rom E-Business . For more information on those publications, visit the Ministry website at www.ontario.ca/ebusiness.<br><br> © Queen 9s Printer for Ontario, 2010

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