What Are The Factors To Be Considered Before Launching Into E-commerce?

Factors to Consider Before Launching into E-Commerce


Survey: 3 out of 4 small businesses do not yet have a Web site.
Small companies account for more than 50% of all retail sales in the U.S., but they generate only 9% of online retail sales.
By 2003, small companies will generate just 6% of online retail sales.

Developing a deep, lasting relationship with customers takes on even greater importance on the Web.
Creating a meaningful presence on the Web requires an ongoing investment of resources – time, money, energy, and talent.
Measuring the success of a Web-based sales effort is essential to remaining relevant to customers whose tastes, needs, and preferences constantly change.

Study: 75% of Web shoppers who fill their on-line shopping carts become frustrated and leave the site before checking out.
Reasons:
Site too slow
Site looks unprofessional
Site does not take credit cards
Checkout area too hard to find
No return policy posted

APPROACHES TO E COMMERCE:

Online shopping malls
Storefront building services
Internet service providers (ISPs)
Hiring professionals to design a custom site
Building a site in-house

Key advantage: Ability to customize a site, making it anything an entrepreneur wants.
Major disadvantage: Cost
A custom-designed site can cost between $10,000 and $30,000
A site with complete front-office and back-office integration can cost more than $500,000!

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