eCommerce and other strange animals
By Michael Bloch
eCommerce, Ecommerce, e-commerce; however you spell it, the term is now firmly lodged in our language. So just what is it?
At it's most simplistic level; eCommerce is simply the buying and selling of goods, services or information via the World Wide Web, email or other pathways on the Internet. It is here to stay and will play a bigger role in our lives over the years ahead. Ecommerce and Ebusiness are interchangeable terms. eCommerce can be broken down into the following sections:
- eTailing. These are mainly "virtual" storefronts which act as a catalogue of products of merchants and usually include a "shopping cart" system to enable consumers to purchase online with the use of credit cards. Today's Internet climate dictates that if you can't buy what you see online while you are online; you will probably lose the sale. The great advantage of etailing is international coverage at minimum cost and the ability to trade 24 hours a day with minimum staffing levels. The benefits to consumers are shopping from home and a wide range of choice. This range of choice can sometimes be a downfall as it confuses some consumers who in frustration may give up on buying the product at all!
- EDI (Electronic Data exchange). This is the business to business (b2b) flow of information between companies or within a company itself. The 90's saw the concept information equalling power. Whatever creates power also generates money and therefore creates new enterprises to supply this information. EDI is being replaced with XML. He with the most relevant data on his hard drive wins!
- Email and faxing. Direct marketing through email. Unfortunately, it also creates the equivalent of what we find in our physical mailboxes every day; junk mail - electronic junk mail is known as spam. Terrabytes of spam is circulating around the Internet at any given time, which slows down our global network. While this is one of the negative aspects of eCommerce, direct marketing ploys, if carried out properly are a very successful and acceptable way of generating income for a business
- Security services. The broad exposure of (and sometimes hyped) dangers of credit card and direct debit transactions via the Internet has rocketed the growth of many companies who provide security services to protect consumer & business transactions. This can include authorisation/encryption technologies and creating secure areas on web sites. This will be a growth area for as long as eCommerce is with us because you can guarantee that as soon as a new "unhackable" technology is introduced - someone has hacked it. Some hackers view themselves as rebels, antiestablishment and "socialists"; but in reality they actually fuel the security services market and provide huge dividends for shareholders in successful security services firms. Good one guys... you won't change the world for the better by sniffing around bank accounts!
- Statistics. Demographics and survey results regarding Internet habits is a huge industry. Web planners rely on information from these sources in planning web sites and justifying marketing and promotional expenediture.
- B2B (Business to Business). When I began in Computer Hardware sales some years ago, I spent a great deal of time and money on national and international phone calls to locate components. In 2001, if contacting a supplier meant having to pick up a telephone; I wouldn't bother doing business with them. The B2B world of today means that wholesalers and retailers have a means of fast and efficient communications and transactions; the Internet.
Bill Gates is reported to have said something along the lines of: "In a few years, there will only be 2 types of businesses, those that are online and those that are out of business." You may not buy anything online yourself, but I'll guarantee that most of the companies that supply you with goods and services do - knowingly or not we all have our role in this brave new world......
Michael Bloch
michael@tamingthebeast.net
http://www.tamingthebeast.net
Tutorials, web content and tools, software and community.
Web Marketing, eCommerce & Development solutions.
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About the Author
Michael is an Australian Information Technologies trainer and web developer. Many other free web design, ecommerce development and Internet articles, tutorials, tools and resources are available from his award winning site; Taming the Beast.net (http://www.tamingthebeast.net)
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What Everyone Should Know About How To Buy Wholesale
By: Melanie Burns
Finding a supplier for the product you want to sell, at a price that you can profit from, can be a big task. The best suppliers for your online sales or auctions do not advertise their services and often cannot be found online.
Those that you can find online tend to be middle-men. It is often difficult to get a good enough price to make any real profit online.
Let me tell you about my simple 2 step system to find an untapped source for wholesale suppliers. This is so simple that it's often overlooked as a source for product. This system involves thinking outside the box and not letting policy stop you. (continued below)
The First Step to find a supplier is to find someone that already sells or has access to what you want to sell. This could be a website, an eBay seller, a manufacturer, a wholesale outlet, or a regular store in your city. This is the easy step. You know what you are looking for and you can search on the internet, not for a wholesale source, but for anyone already selling what you want to sell.
Another valuable source for a local supplier is your local phone book. The yellow pages are the best way to find local sources. This should be the first place you look. Doing business locally with someone that you can meet face to face is a big plus for your business.
Another potential source for your product is to find a distributor who would be willing to private label a product for you. You could get a very high quality product for a much lower price than if it had the name brand label.
The Second and Key Step is to convince the source you found to become your supplier.
Manufacturers and wholesale sources often have minimum orders that might be beyond your reach if you are just starting out. Online retailers, eBay merchants, and retail stores may be your best bet. Try to find a small store who is looking to expand.
But remember, you are dealing with a human being and they can be convinced to do business with you. Just be sure to sweeten the deal for them. One way is to offer the person you are dealing with at your new found source, a percentage of your profits from the products he supplies you.
Be sure to project it out for him. If he can see the benefit of working with you even though it causes extra work for him, you can be successful in making a deal.
You could offer him 20% of the profit from sales of his products. For example you could show him that you project to make at least $100 profit from each product, and you expect to sell 40 of them per month. The $4000 a month means an extra $800 per month in his pocket. You still make a nice $3200 profit for the month in this example.
On top of that, he will be ordering more products from his supplier and may be eligible for a higher price break from them. This way, his reward for the effort to work with you, is making money on both sides.
There are many benefits you can offer your potential supplier, but no matter how you look at it, the main thing it comes down to is MONEY. What's in it for your potential supplier to do business with you? If can you show him that, you have a better chance of making a deal with him and starting your online sales.
NOTE: When looking for suppliers around your city, don't go trying to impress the big stores with your $800 or even $3,000 extra income per month proposal. Try going to the little stores that are looking to expand their business, they are the ones that are usually more open to new opportunities.
The big stores are making hundreds of thousands of dollars per month in profits, so an extra couple of thousand would probably not impress them the least bit.
So now you see that by thinking outside the box, you open the door to many possibilities and increase your ability to make money online with your products.
About the Author:
Copyright © Melanie Burns
This article is free for reproduction but must be reproducted in its entirety including live links and this copyright statement. Subscribe to the iBusiness How2 Newsletter to receive hot tips, how to's, internet business tools, and relevant product reviews by sending an email to: newsletter@internet-business-how-to.com
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