Top Banner
Table of Contents 1. Question A............................................2 Assuming the client wishes to expand the business and conjoin with other businesses of the same kind through a network of suppliers, how would you advise the client? Having said that, what recommendation can you give the client in terms of e-commerce application if orders come from customers that live outside of the region or state? 1.1 Introduction to E Commerce......................2 1.2 Components of an Internet Business..............3 1.3 Business Model..............................4 – 6 1.4 SWOT Analysis...............................7 – 8 1.5 Advantages and Disadvantages in Cupcake Business9 – 10 2. Question B ..........................................11 Apart from selling the client’s core product, discuss and explain how the client can provide added value to customers by taking advantage of e-commerce application. How can e-commerce application promote knowledge sharing between the client, its customers and suppliers? 2.1 Business to Business (B2B)................11 – 12 2.2 How to Benefit Business to Business (B2B)......12 2.3 Business to Consumer (B2C)....................13 2.4 How to Benefit Business to Consumer (B2C)......14 2.5 Earning Profits in Lesser Costs...........15 – 17 2.6 Development of E Commerce ................18 – 25 2.7 Value Added Service.......................26 – 33 1
49

E commerce sample

Feb 06, 2023

Download

Documents

Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: E commerce sample

Table of Contents

1. Question A............................................2

Assuming the client wishes to expand the business and conjoin with other businesses of the same kind through a network of suppliers, how would you advise the client? Having said that, what recommendation can you give the client in terms of e-commerce application if orders come from customers that live outside of the region or state?

1.1 Introduction to E Commerce......................2

1.2 Components of an Internet Business..............3

1.3 Business Model..............................4 – 6

1.4 SWOT Analysis...............................7 – 8

1.5 Advantages and Disadvantages in Cupcake Business9 – 10

2. Question B ..........................................11

Apart from selling the client’s core product, discuss and explain how the client can provide added value to customers by taking advantage of e-commerce application. How can e-commerce application promote knowledge sharing between the client, its customers and suppliers?

2.1 Business to Business (B2B)................11 – 12

2.2 How to Benefit Business to Business (B2B)......12

2.3 Business to Consumer (B2C)....................13

2.4 How to Benefit Business to Consumer (B2C)......14

2.5 Earning Profits in Lesser Costs...........15 – 17

2.6 Development of E Commerce ................18 – 25

2.7 Value Added Service.......................26 – 33

1

Page 2: E commerce sample

3. Conclusion...........................................34

4. Reference............................................35

5. Appendices......................................36 – 37

The End.................................................38

1. QUESTION A

Assuming the client wishes to expand the business and conjoinwith other businesses of the same kind through a network ofsuppliers, how would you advise the client? Having saidthat, what recommendation can you give the client interms of e-commerce application if orders come from customersthat live outside of the region or state?

1.1 Introduction to E-Commerce

So what does e-commerce mean anyway? E-commerce is the pre-eminent buzzword of the online business revolution. Itcaptures the excitement and focus of this fast emergingmarket. However, it is more than a slogan or glib party line.At its core, it embodies a concept for doing business online.

Electronic commerce is the paperless exchange of businessinformation using electronic data interchange (EDI), e-mail,electronic bulletin boards, fax transmissions, and electronicfunds transfer. It refers to Internet shopping, online stockand bond transactions, the downloading and selling of “softmerchandise” (software, documents, graphics, music, etc.), andbusiness-to-business transactions.

The concept of e-commerce is all about using the Internet todo business better and faster. It is about giving customerscontrolled access to the computer systems and letting peopleserve themselves. It is about committing a company to aserious online effort and integrating the website with theheart of the business. If you do that, you will see results!

2

Page 3: E commerce sample

It is a way for people to communicate with each other. It isalso a way for a consumer to communicate with a company’scomputer systems without human intervention. In fact, theInternet is a communication medium like the many others we usein business every day.

When you cannot meet face to face, you may use any of a numberof different means to communicate a telephone, a fax machine,Federal Express, the Postal Service, or maybe even a messengerservice. These are all ways to deliver or receive information,authorization, even shipments of goods and merchandise.

The Internet is a reasonable alternative to all of those meansof communication. Any place and any way that your businesscommunicates with its customers, you should think about howyou could have done it online. That is the power of e-commerce.

When it comes time to pay for merchandise, use a securedserver to pay by credit card, or even digital cash! Theopportunities and situations in which online business ispossible are limitless.

1.2 Components of an Internet Business

Every era of business yields new strategies and new ways ofdoing business. With the advent of radio and television camethe first mass-market advertising. Now, the Internet has soradically changed business that the rules for corporatestrategy that held for the last 50 years (since the dawn oftelevision) have begun to crumble.

There are some literal elements of commerce that are necessaryfor any transactions to take place, which are as true forregular bricks-and-mortar commerce as they are for e-commerce.First, whether you are doing business online or in the realworld, you have to have a product to sell or a service tooffer. Then, you must have a place from which to do business.In the traditional world of commerce this can be a physical

3

Page 4: E commerce sample

store or, in a more figurative sense, a catalog or phonenumber. In the world of e-commerce, the place from which youdo business is your Web site.

Adding a Web site is a means to enhance their business. ForInternet startups, the Web site is the only place that they dobusiness.

In both regular commerce and e-commerce, you need to find away to attract customers to your place of business. This isembodied by your marketing strategy, and everything fromadvertising to word of mouth fits into this category.

In order to do business, you also need a way to take ordersand process payment. In a retail store, there are no orders.Customers simply find the products they want, get in a line atthe register, and pay the cashier. In e-commerce, orders haveto be placed and items shipped. Orders are usually handledthrough interactive, online forms. Money is another issueeasily handled in traditional commerce.

Customers in a retail store pay by check, cash, or credit ordebit cards. Online customers cannot pay by cash or check,only through electronic means. In addition, there are issuesof security that surround online payment that do not come intoplay in the traditional bricks-and-mortar world. E-commercetransactions have to take place through secure electronicconnections and special merchant accounts for acceptingpayment.

Once payment is collected, delivery of the product must takeplace. Fulfillment in traditional stores is as easy as puttingthe item in a bag and handing it over to the customer.Fulfillment in the world of e-commerce is more difficult,requiring shipping, transportation similar to catalog, andmail order businesses.

For businesses that integrate e-commerce into their existingbusiness plan, fulfillment is as easy as hiring an extraemployee to ship online orders. In Internet startupbusinesses, fulfillment must often be outsourced to a facilitythat can handle order processing and shipping in a more timelyand professional manner.

4

Page 5: E commerce sample

1.3 Business Model

A successful business model effectively addresses eight key

elements:

1. Value Proposition

Typical e-commerce value propositions include personalization,customization, convenience, and reduction of product searchand price delivery costs. In the Web site, there will belisting of cup cakes flavours, feeling and varieties ideas ofdecoration believe. We also believe that you can offer a wideselection of different cup cakes as this will give customermore choices and not selected items only.

2. Revenue Model

Major e-commerce revenue models include:

a) Advertising Revenue Model – This is where the Web site willoffers its users content, services and/or product such asWattie’s cupcakes. This product will be visible tocustomer. We also can provide a forum or blog foradvertisements and receive fees from the advertiser.Yahoo for instance, derives a significant amount ofrevenue from search engine and other forms of onlineadvertising.

5

Page 6: E commerce sample

b) Subscription Revenue Model – A Web site where also offersWattie’s cupcakes a subscription fee for access to someof the offerings.

c) Transaction Fees Revenue Model – Other way round, Wattie willbe receiving a fee for enabling or executing atransaction. For example, eBay and Amazon provide anonline successful sales trend in selling the products.

d) Sales Model – In future, Wattie itself can own a company,which will, derives the revenue by selling products,information and services as well.

e) Affiliate Model – This is a way for Wattie to affiliate withother company and receive a referral fee of percentage ofthe revenue from any resulting sales.

3. Market Opportunity

The revenue potential within a company's intended marketspace. The marketing plan will stay active and social mediasuch as Face book, Twitter and Flickr to keep people aware. Itis the easiest way for reaching the clients.

Even though Wattie is operating without a storefront, shestill can manage and focus her energy on personal service. Shemust have a good conversation with them online in Face book orTwitter before they even call her. In future, we have targetedthat 93% of her business will come from social media leads andsurpassed her initial revenue target numbers by over 600 percent.

She should have a relationship with the clients where there isa possibility of them to invite her in their corporate events,

6

Page 7: E commerce sample

birthday parties, weddings, and girls ‘nights. Even thoughshe’s selling primarily online, still she need to market tolocal restaurants and also work with few other companies thatprovides offices and firms with vendor services.

4. Competitive Environment

The direct and indirect competitors doing business in the samemarket space. It includes how many there are and howprofitable they are. In current market trend study, they areonly few competitors in cupcake business, which goes online.Due to this, the competitors cannot compete with Wattie’scupcakes business.

For example:

a) The service will be just door to door delivery service

b) The quality of the product varies

c) Not much of offers and varieties of the cupcakes

d) Not reasonable pricing of the products

e) Time will consume (Period of holding and delivering time)

5. Competitive Advantage

The new move into the corporate market is mini customizedcupcakes which can be an advantage and huge success. Unlikethe majority of the products, these shall be delivered

7

Page 8: E commerce sample

regionally as they are ‘courier proof’. Wattie can introducethese new cupcakes, which can include an edible corporatelogo. It’s a fantastic tool for marketing as Wattie’s cupcakesis the last thing the client sees as the cake disappears intotheir mouths.

6. Market Strategy

The budget for marketing may be small but this approach worksperfectly. The product is made by skilled craftspeople so asteady flow of orders is ideal, with no big surges. Emailingthe promotions to the customers online will really suit ourbusiness model, and unless you get the advert just right.

In addition, all product packaging and delivery vans must beclearly branded with the Web site address. Use Flickr toupload all the photos and join groups on there. Also, write ablog on the Web site to keep people aware of what Wattie isdoing. Wattie can use cupcakes as a canvas to displayspecialty themes and custom design for people.

7. Organizational Development

Wattie’s big worries on hiring the team has gone very smoothlybecause she can develop the team among her friends which alsodoing the cupcakes business in smaller scales and at cheapercost. The issue that was bothering her was to keep up with thedemand but now she can breathe easily when she has overcomethis situation of forming the team in a small scale at homeitself.

8. Management Team

Working remotely means Wattie can live where she wants to andtake an active role in bringing up her young children, whileher co partners are looking the Web site, the delivery and thedemands. In addition, each month, Wattie will email the photosof the latest cupcakes designs, which has instantly uploaded

8

Page 9: E commerce sample

to the Web site – it is a great example of how the internetcan work especially when it comes to e-commerce.

Having customized, user-friendly screen to enter these offlinesales, which also links to the web order system, means ordermanagement and reporting are far more efficient. It is becauseof the back-office system that has more tailored to Wattie’sneeds as well as being integrated with future e-commercedevelopment. The order processing productivity can increase atleast 30% because of the upgrade.

1.4 SWOT ANALYSIS

1. STRENGTHS

a) Menu changes in weekly basis. Some cupcakes are availableevery day of the week, some only one day a week, andothers at completely random days of the week.

b) Different operating policies. It includes on working hours, daysof operation, delivery policies, price differences andunique menu items.

c) The product had to remain king. We had to design the site insuch a way that the cupcakes remained the heroes of theWeb site.

d) Growth was imminent. Whatever plan was implemented had to beflexible enough to accommodate rapid expansion through e-commerce in the next 12 months.

e) Importance of the consumers. We believe in treating theconsumers fairly and friendly.

f) Owners play a big part on the site. The site has become the homebase for the growing family of franchise owners,including store policy statements, art downloads, e-commerce, corporate communications and email.

g) Design. The site’s design had to live up to the highstandards of the product. Meticulously designed icons,typography and photography that made the product shine.

9

Page 10: E commerce sample

h) Brand Value. The brand value of the business, awareness andeasy availability has proved to be great strength for thecompany.

2. WEAKNESSES

a) Operating without a storefront. Wattie’s weakness is beingoperating the business without a store or a café conceptin the neighborhood.

b) Delivery range. The delivery ranges of the cupcakes arelimited. They only were delivering within the range of100 kilometers to 120 kilometers.

3. OPPORTUNITIES

a) Growth. Business of cupcakes has room for growth in marketspace nowadays.

b) Making real life connections in person at networking events.Connecting with social influencers on Twitter in thetarget markets (the only real social networking platformwe’ve used in which we’re able to interact with people wehaven’t met yet.)

c) Demand. The increasing demand for cupcakes among theyoung people, wedding couples, family gatherings,birthday parties, special occasion, sports leagues andlocal activities is an opportunity for the business.

10

Page 11: E commerce sample

d) More Choices. People like eating outside more these days.The expanding demand of such foods and more varieties andflavors is an opportunity for the company.

4. THREATS

a) A declining economy. Economy does sometimes play a major rolein affecting the country. It involves on sugar and flour price when it increase in the market space. This will effect slightly on cost of the production of the cupcakesand hence on increasing the selling price of the products. The economic recession has affected the sales of the business badly. People in the current economic situation do not have much spending power.

b) Various competitors. A lot of competitor nowadays competes inthe market level to introduce and sell the product at anycost.

c) Fast Food Outlets. Due to increasing number of food outlets and restaurants, the customers can shift to other high quality affordable products from other sources or business such as KFC, McD, Burger King, Ayamas and othersas well.

1.5 ADVANTAGES AND DISADVANTAGES

1. ADVANTAGES

11

Page 12: E commerce sample

Like any business, there are major advantages and disadvantages.

The top five advantages to starting a cake business from home

are as follows:

a) You can run this business from home and do not require separate quarters to do so. If you feel in the future youneed more space for your growing venture, then by all means upgrade!

b) A cupcake business is fun! Most people need cupcakes for special days or events so what better way to make someonesmile and earn a little extra income while you are at it

c) Your cupcake business will allow flexibility in your schedule. You can decide when and how many orders to take. You do not have to ask for vacation days off and you can spend time with your kids or family anytime you like.

d) Low startup costs! Since you do not have to rent some space, then rent can be taken off from the budget list. In addition, cake supplies are relatively cheap and definitely easy to come by. Moreover, as your business grows, so can your supplies and equipment.

e) High mark-up for cupcakes. Since cupcakes are easy to make, you can price them according to what you feel they are worth. Your prices do not have to be set in stone! Some are worth more than others are but either way; you are going to make a nice profit!

12

Page 13: E commerce sample

2. DISADVANTAGES

This is not to deter you but to make you aware of some of the things you need to keep in mind before starting a cupcake business from home.

On the other hand, you are going to have some disadvantages and they may vary from person to person but they are as follows:

a) You might have to sacrifice time from other activities toget the job done. You will find that certain orders have to be completed at certain times. Time management will beyour greatest ally!

b) Most events have been scheduled for weekends when people are off work. Therefore, you will need to be sure that you have this time available to deliver cakes or be available for pick-ups.

c) Depending on the size of your kitchen, you may need extrastorage space for your supplies. This may require purchasing an extra cabinet or rearranging your kitchen.

d) You may have to budget for classes or courses if you needa little extra help learning the ropes in the beginning.

e) Lastly, as with any business from home, there may be zoning requirements that you have to look into.

You will find that a cupcake business, just like any other business is full of advantages and disadvantages.

13

Page 14: E commerce sample

Cupcake businesses are fun and fulfilling but it is up to you to decide if it is the right avenue to take. However, if you do decide to take that leap then remember to enjoy and have fun!

2. QUESTION B

Apart from selling the client’s core product, discuss and explain how the client can provide added value to customers by taking advantage of e-commerce application. How can e-commerce application promote knowledge sharing between the client, its customers and suppliers?

2.1 Business-to-Business (B2B)

Business-to-Business (B2B) electronic commerce is now universally recognized as the e-commerce segment with the largest potential. The growth of the Internet and commercial web-based applications is offering ever-increasing operationalcost savings to large enterprises, extending trading communities and lowering the financial barriers to ecommerce participation.

14

Page 15: E commerce sample

When you are thinking of creative ways to enhance yourbusiness relationships, treat clients to our gourmet cupcakes.Keep front and center with custom gourmet cupcakes that willbe a hit with your clients and their staff.

Our services include:

a) Customization

b) Logos

c) Pictures

d) Personalization with writing

e) Themes to fit client interests or hobbies

f) Flavors (minimum quantities may apply)

g) Pre-packaging of orders for pick up

h) Delivery to your clients (fee based)

i) Invoicing for corporate accounts or credit card on file

j) Email or phone orders (ecommerce site pending)

We provide:

a) Short lead times for orders

b) Assistance with marketing efforts

c) Professional baking staff

d) Large production capacity

e) No minimums required other than flavor customization

15

Page 16: E commerce sample

f) Priority attention for business clients

2.2 HOW TO BENEFIT BUSINESS TO BUSINESS (B2B)

a) Save time and money by increasing the cupcakes businesssupply chain efficiency and reducing the costs.

b) Increase the customer retention rates by servicing andanticipating their needs and expectations in the B2Barena.

c) Gain competitive advantage through an understanding ofthe massive cost reductions associated with B2Btechnologies.

d) To plan more successful B2B e-commerce strategies withunderstanding of the latest B2B trends and technologies.

e) Increase the supply chain efficiency by maintainingsuccessful supplier relationships and modernizing thebusiness processes.

f) Affiliate suppliers.

g) Franchising among the friends and develop a healthyenvironment.

h) Purchasing the core products in bulk system and at thesame time ensure not to store raw products excessively.

i) All deals are closed with signing up agreements with allthe suppliers, small business associates such asretailers, transportation agency, Courier Service andfriends as well.

16

Page 17: E commerce sample

2.3 BUSINESS TO CONSUMER (B2C)

While the term e-commerce refers to all online transactions,B2C stands for "business-to-consumer" and applies to anybusiness or organization that sells its products or servicesto consumers over the Internet for own use.

When most people think of B2C e-commerce, they think ofAmazon.com, the online bookseller that launched its site in1995 and quickly took on the nation's major retailers.However, in addition to online retailers, B2C has grown toinclude services such as online banking, travel services,online auctions, health information and real estate sites.

1. What is the difference between B2C and B2B e-commerce?

For one thing, the customers are different — B2B (business-to-business) customers are other companies while B2C customersare individuals.

Overall, B2B transactions are more complex and have highersecurity needs. Beyond that, there are two big distinctions:

a) Negotiation

Selling to another business involves haggling over prices,delivery and product specifications.

Not so with most consumer sales. That makes it easier forretailers to put a catalog online, and it's why the first B2Bapplications were for buying finished goods or commoditiesthat are simple to describe and price.

b) Integration

Retailers don't have to integrate with their customers'systems.

17

Page 18: E commerce sample

Companies selling to other businesses, however, need to makesure they can communicate without human intervention.

2.4 HOW TO BENEFIT BUSINESS TO CONSUMER (B2C)

a) Focus on personalization: A wide array of promotion is available to help e-commerce sites create unique boutiques that target specific customers. For example, American Airlines has personalized its Web site so that business fliers view it as a business airline and leisuretravelers see it as a vacation site. Amazon, which built its own personalization and customer relationship management (CRM) systems, is well known for its ability to recognize customers' individual preferences.

b) Create an easy-to-use customer service application. Providing just an e-mail address can be frustrating to customers with questions. Live chat or, at the very least, a phone number will help.

c) Focus on making the site easy to use.

d) Will be entitled with discount voucher whenever there is purchase made in bulk.

e) On special occasion, there will be special request on custom made cupcakes directly from the relatives, neighbors, walk in orders and last minute orders.

18

Page 19: E commerce sample

f) Deliver free samples to several local schools, businessesand restaurants. Use your imagination; the possibilities are endless for cupcake customers.

g) Don't forget bridal shops. They may recommend your cupcakes to brides for the wedding or rehearsal dinner. Make sure you also deliver contact information and price lists. Be friendly and dressed in business attire.

h) For the web-savvy we provide best practices in search engine optimization and social media marketing while alsoproviding step-by-step instructions guide you every step of the way. Cupcake businesses are using the web and social media to reach vast audiences and grow their market share.

i) Link Exchange

When determining just where YOUR site should rank in thesearch results, Google relies HEAVILY on how many linksyou have coming to your site. When you purchase the bookor eBook, we will provide links from our Web site andFacebook page to yours, helping your site get higher inthe search engines than your local competition.

2.5 EARNING PROFITS IN LESSER COSTS

In business, there are two primary ways to pursue profit. One is by pulling in more money; the other is by putting out less money. Sometimes you cannot cut an expense item, but you can often get more from it and thus increase your profits. For this

19

Page 20: E commerce sample

reason, you should always use percentages when analyzing expenses rather than actual dollar amounts. For example, if you increase sales and keep the dollar amount of an expense the same, you have decreased that expense as a percentage of sales. When you decrease your cost percentage, you increase your percentage of profit. On the other hand, if your sales volume remains the same, you can increase the percentage of profit byreducing the specific item of expense. Your goal, of course, is to do both -- to decrease specific expenses and increase their productive worth at the same time.Beyond the break-even point, every dollar of sales should earnyou an equivalent profit percentage.Remember, once sales pass the break-even point, the fixed expenses percentage goes down as sales volume goes up. Also, the operating profit percentage increases at the same rate as the percentage rate for fixed expenses decreases (provided of course, those variable expenses are kept in line).

The following are five ways to cut your expenses and thus

increase your profits.

1. PAY MORE ATTENTION

Rod Jorgensen, Director of Counseling at the Small Business Development Center, quotes the old adage, "If you watch the pennies, the dollars take care of themselves." Seldom is that more true than in cutting expenses. He recommends that Profit and Loss statements are checked often, starting with the large expense items first, and then working down. As you move down the list, look at line items like dues and publications, office expenses, supplies, fuel, and entertainment. "You tend not to spend a lot of time on these," he says, "because they are small dollar amounts," but these are the categories where you can nickel and dime

20

Page 21: E commerce sample

yourself into profit, by taking into account their cumulative effects.If you can shave RM300 a year off each category, you are looking at a substantial savings. While you don’t want to spend so much time on the smaller categories that you suffer from the law of diminishing returns, you should at least periodically scan the items; to be sure that habit or oversight is not costing you money.

2. COMPARE COSTS

"We’re all creatures of habit," says Jorgensen, "we say ‘this is how I did it last year, this is how I’ll do it this year.’"This is especially true for busy business people. However, it is this kind of thinking that can keep us paying more than we should. Don’t wait until a crisis to start trimming the fat from your budget. One of the big dollar items for a business is insurance. Periodically, if not every year, you should shop your insurance around to different agencies and compare quotes. A small percentage in savings here can lead to big dollars added to the bottom line. Vendors may offer competitive prices as well. Everyone wants your business; find out how much they are willing to offer youin savings. Everything from leasing computer equipment, phone service, vehicle leasing, office supplies, equipment repair contracts, and office space can potentially save you money. Every few years, send your needs out for quotes and compare. Make sure you are getting a fair rate. If customer service has been tremendous, you probably won’t want to change for a small savings. But if you find savings could be significant, you may want to reevaluate your current vendor.

21

Page 22: E commerce sample

Along those same lines, check what you are paying in credit interest rates and merchant fees. Jorgensen says business owners tend to become comfortable with whomever they are usingto process merchant transactions. But a tenth to half a percent of merchant fee savings can havea tremendous impact on your profitability.Advertising is another potential habitual loser when it comes to expenses. Using the same method of advertising all the time(be it the same radio station or same newspaper ad), assuming nothing in your business or clientele has changed can be dangerous to the bottom line. Advertising expenses as well as patterns should be evaluated yearly or semiannually, according to Jorgensen.Compare agencies for pricing, but also reassess your customer and client base as well. The profile of your customer can change without you even noticing, and if it does, you need to be ready with a different line of attack for your advertising and public relations.

3. REDUCE WASTE

There are a hundred ways to reduce waste in any given business. From recycling to extended use to quality training to understanding production needs, every business can reduce waste. The question again comes back to the law of diminishing returns. While reducing waste can save a lot of money, it can also cost if too much time is spent.

4. FIND AND KEEP QUALITY EMPLOYEES

Employee turnover and poor training can strangle the bottom line of any company. This might begin with more attention to screening job applicants, making sure that the people you hireare qualified, well-suited to their positions and fit in with the staff you already have. It is also important to maintain open lines of communicationswith employees, look for ways to make people feel they are

22

Page 23: E commerce sample

part of your company’s team, and review your benefits package periodically to make sure it is competitive.When you think of training, you may just think of that initialpush to get an employee up to speed in your workplace. But training employees to do more or to multitask, can also increase profit by decreasing costs. If you train a salesclerk to make multiple sales at higher unit prices, you increase productivity without adding dollars to payroll expense. If four sales clerks can be trained to sell the amount previously sold by seven, the payroll can be cut by three salaries.

5. PLAN FOR INCOME TAXES

Taxes may come but once a year, but you can plan all year long. Every dollar saved in costs is added right to the bottomline. Learn to maximize your profits by vigorously reviewing business products, processes, and materials for opportunities to lower costs. A key to the effectiveness of your cost-cutting action is the worth of the various expenditures. As long as you know the worth of your expenditures, you can profit by making small improvements in expenses. Keep an open eye and an open mind. It is better to do a spot analysis once a month than to wait several months and then do a detailed study. Take action as soon as possible, and remember you can refine your cost-cutting plans as you go.

23

Page 24: E commerce sample

2.6 DEVELOPMENT OF E COMMERCE WE BASED APPLICATION

Appendix 1: Web Layout Design of Gigi’s Cupcakes

1. WOW FACTOR

a) Big cupcake image randomly changes every time customerrevisits the site, and the scrolling cupcake gallery hasrollover effects that make an immediate and lastingimpact.The design statement goes to the next on thesite’s interior pages. The deliciously elegant cupcakeimages in the header randomly change with every page loadand link directly to their respective.

24

Page 25: E commerce sample

Appendix 2: Web Layout Design of Gigi’s Cupcakes (Inner)

b) There is a lot to discover at the new site, but the "wow factor" certainly hits you at the home page.

c) The big cupcake image randomly changes every time a customer revisits the site, and the scrolling cupcake gallery has rollover effects that make an immediate and lasting impact.

d) The design statement goes to the next level on the site'sinterior pages. The deliciously elegant cupcake images inthe header randomly change with every page load and link directly to their respective "Hero page" (like the one here, which features the cupcake Gigi appropriately namedChocolate Malt).

25

Page 26: E commerce sample

2. ICONS IN THE WEBSITE

a) Home

b) Gift Shop Header

c) Contact

d) Gigi’s Story

e) Meet our Cupcakes Subheading

f) Place your Cupcake Order

g) Main Contents

h) Courses – Left Navigation

i) Home

j) Meet our Cupcakes (Gallery)

k) Place your Order

l) Today’s Menu

m) Privacy

n) Terms of Use

o) Owner’s Login

p) FAQ

26

Foote

Page 27: E commerce sample

3. TECHNOLOGY FEATURES

The site used many of the unique features of our content management system, including:

a) Photo galleries

b) Mass Email marketing

c) Coupon codes

d) Authorize.net credit card processing

e) Blog

f) Flash

g) Site Membership

h) Forms

i) Email list signup

j) Invisible pages

k) Search engine optimization

l) Password protected pages

m) Daily menu display

n) Random image loads without the use of Flash 27

Page 28: E commerce sample

4. HOW TO ORDER CUPCAKES

To place an order for cupcakes please email your requirementsto [email protected]  and we will email you back witha link to pay online.

This is via PayPal secure payments system, but if you don’thave a PayPal account just click the option to pay with acredit or debit card.

To order cupcakes for delivery by courier, pleasesee our cupcakes by courier page for the available selectionof cakes. For collection orders, you can choose any of ourcupcake designs from the main gallery. We need at least 3working days for mail orders, and longer for bespoke cakes andcustom designs. Please email us to check availability.

28

Page 29: E commerce sample

Appendix 3: The Secure Order Form

Terms of sale:

a) Your purchase will appear on your bank statement under the name "CLKBANKCOM".

b) Click Bank will, at its discretion, allow for the return or replacement of any defective product within 60 days from the date of purchase.

c) The geographic location of your computer has been determined and recorded. All attempts at fraud will be prosecuted.

d) Information submitted in conjunction with this order is handled within the constraints of our privacy policy.

e) Your name and email address may be provided to the original vendor of this product upon completion of this purchase.

f) The Click Bank Marketplace is not a chartered bank or trust company, or depository institution.

5. DELIVERY INFO

Our couriers love cupcakes too and we deliver anywhere in state. Choose from the cupcakes below. Delivery is by Next Daycourier so your cupcakes will be as fresh as possible. Cupcakedelivery days run from Tuesday to Friday inclusive. 

29

Page 30: E commerce sample

Cupcakes are safely packed into compartmentalized bakery boxesand dispatched to a location of your choice.

We were always nervous waving our cupcakes off to some far away land, like southern region such as Kuala Lumpur and Selangor, so we use packaging to ensure your cupcakes won’t besquished or turned on their heads.

6. ORDER RULES

We do not pluck our oldest cupcakes off the shelves and send them out to you like some companies; we bake and decorate fresh to order.

Therefore, we cannot make singles of cupcakes; the minimum order of a single flavor is half a dozen.

We usually need at least 3 days notice for all mail orders butto check availability or to place an order, send an email to [email protected]  stating what you would like, when you would like it and also providing full delivery name, address, phone number and if you’d like gift wrapping with a message. You will then be emailed an invoice to pay securely online with either a PayPal account or any debit or credit card.

7. DISCLAIMER

The content of the pages of this Web site is for your general information and use only. It is subject to change without notice.

Your use of any information or materials on this Web site is entirely at your own risk, for which we shall not be liable.

It shall be your own responsibility to ensure that any products, services or information available through this Web site meet your specific requirements.

30

Page 31: E commerce sample

This website contains material, which is owned by or licensed to us. This material includes, but is not limited to, the design, layout, look, appearance and graphics.

Reproduction is prohibited other than in accordance with the copyright notice, which forms part of these terms and conditions.

8. LIMITATION OF LIABILITY

Under no circumstances shall Gigiscupcakes.com be liable for any direct, indirect, incidental, consequential, punitive or special damages.

Whatsoever (including, without limitation, those resulting from lost profits, lost data or business interruption) arisingout of the use, inability to use of, or errors or omissions inthe contents or functions of this site, even if Gigiscupcakes.com or an authorized representative thereof has been advised of the possibility of such damages.

If your use of the materials, information or services from this site results in the need for servicing, repair or correction of equipment or data, you assume all costs thereof.

9. PRIVACY POLICY

We will not sell, disseminate, disclose, trade, transmit, transfer, share, lease or rent any personally identifiable information to any third party not specifically authorized by you to receive your information except as we have disclosed toyou in this Privacy Policy or as otherwise identified on this website.

a) Information Collection

At any time, if you wish to no longer receive email communication from Gigiscupcakes.com, please contact we via the address listed on our site under the "Contact" link.

31

Page 32: E commerce sample

b) Cookies

A cookie is a piece of data that is stored on a visitor's harddrive while they are visiting this website. We may utilize a short-lived form of cookie when you visit this site. Gigiscupcakes.com only uses a cookie to identify one unique visitor from another visitor during a particular session.

A session is the period of time a unique visitor is linked to our server. We may use cookie technology during a session as atool to carry forward your input information during the enrollment process. This enables the visitor to input their information once and have the information appear later during the enrollment process. No personally identifiable informationis stored on the cookie. The cookie expires and is deleted from the visitor's computer as soon as they close their browser.

c) Third Party Links

This Web site may contain links to third party Websites that are not controlled by Gigiscupcakes.com. These third party links are made available to you as a convenience and you agreeto use these links at your own risk. Please be aware that Gigiscupcakes.com is not responsible for the content of third party Web sites.

d) Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy without providing you with advance notice of our intent to make the changes.

10. CUPCAKE FLAVOURS

32

Page 33: E commerce sample

There are choices of flavors for the cupcakes:

1. Vanilla

2. Lemon

3. Orange

4. Rose

5. Chocolate

6. Coffee

7. Almond

8. Coconut

11. GIFT WRAPPING

If your cupcakes are a present for somebody, we also offer a gift-wrapping and message service.

This includes ribbon and a card with your own personalized message. Gift-wrapping is available for RM8.50 per box; just let us know at the time of ordering.

33

Page 34: E commerce sample

2.7 VALUE ADDED SERVICE

Our wedding cupcakes are available in an array of flavours with exquisite wedding designs – custom made, just for you.

Our colour matching service means your cakes will be perfectlyco-ordinated with your bridesmaids, flowers or theme. It is like Dulux, only tastier! Heck out our Gallery   for a few design examples to get you started.

Stack your cupcakes high on towering tiers or box individuallyfor your guests to take away a sweet moment of wedding bliss in all it is decorative glory. Long gone are the days when your guests is been sent away with a boring bit of cake in a napkin! Our customers speak so highly of our cakes we are sureyou will feel the same way.

Simple cupcakes start from just RM1.00 each for example with swirl frosting and glitter or sprinkles. Decorations custom made to fit your colour scheme start from RM2.50 each. Handmade roses are RM3.00 each.

Please Contact Us for an exact quote or to arrange a design consultation.

a) Top Cakes

Even with your super original cupcake wedding, we still appreciate the importance of tradition and are happy to supplyindividual standard cutting cakes for the top tier of the stand. These traditional wedding cakes are available in vanilla or chocolate sponge and are iced in smooth fondant, which can be decorated in keeping with the design and theme ofyour cupcakes.

Simple cutting cakes with ribbon start at RM60.00, with additional decorations from RM68.00.

34

Page 35: E commerce sample

There a few reasons to go the gourmet way for your wedding…

i. We NEVER make cupcakes sooner than the day before your wedding to ensure maximum freshness.

ii. Ingredients matter. We use the best, which makes our cupcakes the best too.

iii. We believe in our cupcakes and therefore offer a free sample service when you place your order withus.

iv. We take the stress away from you and liaise with your venue directly to arrange delivery and set up.

v. We are total, utter perfectionists. In addition, your cupcakes will be just that.

vi. Stands & Deliveryplease see our Stands page for more details on hiring. We also offer a personal set up and delivery service within 120 kilometers. Please supply us with your venue postcode when enquiring for an exact delivery cost.

b) Buy Cupcake Kits

If you fancy baking your own cupcakes, our Cupcake Kits contain everything you need to get started with the tastiest hobby around! Get professional materials and all those tricky to find items all wrapped up in one pretty package. You will also receive an instruction leaflet with tips and tricks on how to use all the items in your kit.

Each Cupcake Kit comes packaged in its own gift bag making it a perfect present too.

35

Page 36: E commerce sample

Cupcake Kits contains the following items:

i. 50 of our high-quality coloured cupcake cases –

that do not go see through when you bake!

ii. “Perfect Swirls” Piping Nozzle

iii. 6 Icing piping bags

iv. 25g Pot of pink paste colouring

v. 25g pot of blue paste colouring

vi. 25g pot of yellow paste colouring

vii. 2g pot of lustre dust

viii. Pot of Edible Glue

ix. 200g pack of white sugar florist paste for making

decorations

The kits cost RM80.00 plus RM12.00 postage. Contact us now to order your very own cupcake kit!

c) The *Original* Cupcake Course

The *Original* Chelmsford Cupcake Course.

a) Come and learn from a professional baker with vast

experience

b) Small classes of 4 people so you get the very best

attention

c) Gigi Cupcake taste sampling session!

d) 10% discount off our future courses to *Original*

Cupcake Course attendees

36

Page 37: E commerce sample

d) Course Information

Classes are a daylong intensive course starting at 10:15am andwrapping up by around 3:30pm. Classes are hold in the house itself. Lunch is been provided with refreshments throughout the day.

e) Prices

Courses are RM600.00 for weekdays and RM800.00 for weekends. This includes all sugar craft materials, recipe sheets, your free cupcake started kit, all baking ingredients, and lunch/refreshments and of course, your dozen beautifully bakedand decorated cupcakes to take home.

There are also available to purchase after the class are our high quality coloured cupcake cases.

Alternatively, why not invest in one of our fantastic Ultimate   Cupcake Kits  and start baking again as soonas you get home?

f) How to Book

We do not take bookings over the telephone so please email   us  to request a course booking form. There are details of how to pay in the course booking form.

Please email if you require dates further into the future. Note places on the courses are not held until actual payment is received. 

The Web site is updated regularly but it is advisable to emailand check your chosen date is still available before sending payment.

g) Course Content

37

Page 38: E commerce sample

i. Baking a dozen of your own cupcakes – The Basics

ii. Cupcake Recipes & interesting recipe variations

iii. Perfect cupcakes EVERY time – Tips & Tricks

iv. Icing Techniques including colouring and flavouring

v. How to make Buttercream Icing

vi. Piping perfect buttercream swirls

vii. How to ice cupcakes with Fondant Icing

viii. Introduction to sugarcraft – how to work with

special sugarcraft products

ix. Sugarcraft tools and techniques

x. How to embellish cupcake decorations

xi. Edible painting

xii. Making sugar decorations

xiii. Flower modeling

xiv. How to make beautiful handmade roses

xv. Troubleshoot your cupcake problems with an

experienced baker plus handy hints along the way….

h) Next Courses Dates

New dates are added frequently so do check back from time to time…

i. Monday 13th December – *Christmas Cupcakes* – FULL

ii. Thursday 16th December – 1 space left!

iii. Friday 17th December – 3 spaces left

iv. Monday 10th January – Spaces

v. Thursday 13th January – Spaces

vi. Saturday 15th January – 2 spaces left

38

Page 39: E commerce sample

vii. Wednesday 19th January – 2 spaces left

viii. Thursday 27th January – Spaces

ix. Tuesday 1st March – Spaces

i) **NEW** Cupcake Course Gift Vouchers

The cupcake course gift vouchers make a unique and thoughtful gift that is guaranteed to please! Gift vouchers can be purchased by emailing to [email protected].

Vouchers are valid for 6 months and can be used by the recipient to book a date that is suitable for them. (Vouchers are RM60.00 for weekdays, if the recipient would like to attend on a weekend a RM15 supplement will be charged either to you in advance or to them on booking.) In the event of cancellations and no shows no refunds will be given.

Cancellations requiring rescheduled days may be possible via another cancellation, but only at a days notice if a place on a course is free the following day. This cannot be guaranteed however as courses usually fill up in advance.

j) Buy Cupcake Cases

Cupcake cases are available to purchase by course attendees atthe end of the day or customers purchasing a cupcake kit (the kit includes 50 cases of your choice already.)

Our muffin sized Swedish greaseproof cases are made from very high quality paper that does not fade, go greasy or see-through after baking thus retaining all their vibrancy of colour as you see them here.

There is top quality of cases with range of RM10.00 for 50.

39

Page 40: E commerce sample

k) Contact

We love a good old chin wag, especially if it’s about cake.

To place an order for cupcakes, book a place on a course, or to order cupcake vouchers, give us a call on +6012 4528398 (from 9am to 6pm only please) or email details of your order to [email protected].

If you have a question, have you checked our FAQ first to see if your question is answered there already?

Feel free to drop us a line if you are not sure what you want,or if you already have an idea that you need bringing to [email protected]  H/P : +6012 452 8398OFF: +605 265 2919

l) Frequently Asked Questions (FAQ)

i. How do I place an order?Just send us an email to [email protected] stating what you would like, quantity, and when and where they are to be delivered. Alternatively you can give us a call on 05265 2919.

ii. What payment methods do you accept?We send invoices via Paypal online. If you don’t have a paypal account you can still pay the invoice using any credit or debit card. You can also pay by regular bank

40

Page 41: E commerce sample

transfer if you prefer, or by sending a cheque if there is enough time.

iii. How far in advance do I need to order?For regular orders we like to have at least 3 working days’ notice. For larger orders and weddings it is advisable to book in advance as once the day is gone it’sgone! For wedding orders we take a RM150.00 deposit to secure the day for you with the balance being paid a month before the big day.

iv. Where do you deliver?Anywhere in Perak, southern that is Kuala Lumpur and Selangor, and up to northern of Penang and Kedah by overnight courier. Please see our delivery page for prices in the website.

v. When do you send your cupcakes out?We dispatch cupcakes Monday to Thursday. Your cupcakes will always be baked fresh to order.

vi. What days do you deliver?On Tuesdays, Wednesdays, Thursdays and Fridays. To ensuremaximum freshness of the cakes we don’t tend to do courier deliveries on a Monday as this would mean the cupcakes were sent out on the previous Friday. All orderswill need to be signed for.

vii. Can you deliver at weekends?Yes, if you are having a large event such as a wedding and using our personal set up and delivery service.

viii. How are they packaged?Cupcakes are sent in sturdy bakery boxes, with compartmentalized holders for each one to ensure they don’t slide around.

41

Page 42: E commerce sample

ix. What size are your cupcakes?Standard cupcakes are quite a bit bigger than your old school ‘fairy’ cakes, measuring around 7cm across and about 7cm high when decorated. Mini cupcakes measure around 4cm across and 4cm high when decorated.

x. How long do cupcakes keep?In the rare occurrence that Gigi’s cupcakes are not gobbled up right away, you can keep them in their box andthey’ll be good for at least a couple of days. Transfer them to an airtight container and you’ll get a day or twomore. We don’t use preservatives that would exist in shopbought cupcakes so basically you can expect them to last as long as any home baked cake. Be sure not to put fondant iced cupcakes or cupcakes with fondant decorations in the fridge as this will melt them!

xi. What is the minimum order?The minimum order is 6 cupcakes, also known as a half a dozen! Minimum order for mini cupcakes is 36. Minimum order for weddings is 100 cupcakes.

xii. Can I order an odd number of cupcakes?All orders being sent by courier must be in multiples of 6 or 12. However, for large orders and events over 60 cupcakes where you are using our personal delivery and set up service, orders can be any number and need not be an exact multiple of 12.

xiii. Do you hire out cupcake stands?Yes, we have a silver wire cupcake stand that holds 23 cupcakes and for weddings and large events larger tasteful tiered clear acrylic cupcake stands holding up to 100 cupcakes. We also have retro styled black or whitemid-sized stands ideal for any occasion. Please see our Gallery   page for more details.

xiv. I like a particular cake, but I want a different decoration, can I change it?

42

Page 43: E commerce sample

Of course! Feel free to mix and match our decorations. Wecan also change the colours for you too. Just ask us to give you a quote for any bespoke requirements.

xv. Can I have a different coloured cake case?Absolutely you can. Just let us know when you order if you would like to change the colour of your cake cases. You can see our massive range of cases here. We can also coordinate the decorations for you too.

xvi. I want to order a large number of cupcakes for my wedding, can I try before I buy?Or course; just tell us what you’re thinking. See our Samples   page for more details.

xvii. Do your cakes contain nuts?Whilst our menu cupcakes do not contain actual nuts, there may be nuts in our kitchens from time to time so cannot guarantee totally nut free for those with a very sensitive allergy.

xviii. I want to make cupcakes like yours! How do I do that?Our courses will show you everything you need to know to create wonderful quirky cupcakes of your own. See our courses page for more details. Courses are RM600 per day (RM850 at weekends).

Terms & Conditions: 

1. In the event of cancellations and no shows no refunds will be given. Cancellations requiring rescheduled days may be possible via another cancellation, but only at a days’ notice if a place on a course is free the followingday. This cannot be guaranteed however as courses usuallyfill up in advance. 

2. If for unforeseeable reasons we have to postpone or cancel a course, you will be offered the choice of a fullrefund or to book one of the other dates available. 

43

Page 44: E commerce sample

3. Attendees wishing to amend the date of their course must do so with at least one months’ notice before their original course date, and will incur and admin fee of RM50 per person. 

4. All content on Gigi Cupcake’s website is the intellectualproperty of the Gigi Cupcake. By attending a course with The Gigi Cupcake, you agree not to copy or imitate this content for your own commercial purposes following the course. This includes The Gigi Cupcake cake designs and courses

All said and done, I think that e commerce is a great way to start businesses.

Moreover, it is a great addition to any business-marketing plan. It does not have to be a major investment, and for the right personality, it can be a lot of fun. Just be real and transparent.

3. CONCLUSION

Starting a business is not an easy task BUT applying e-commerce in the business will lead to a successful business.

There are a lot of things to consider that are interrelated with each other and so each must be given the right attention for the business to succeed. This same principle remains true to starting a cupcake business through e-commerce.

Cakes is seemed to be like a staple food in almost every special occasion. For many years, it has been a symbol for celebration and happy events. One of the breeds of the traditional cakes that have been in the market since then is the cupcakes.

In starting a cupcake business, the first thing you need to besure of is the recipe. The recipe should be competitive enoughthat even without aesthetics will guarantee sales for you. It is better to try different recipes until you come up with the

44

Page 45: E commerce sample

taste that passed your criteria or best cater the taste concept you would want to deliver.

Next is to incorporate uniqueness to your cupcakes. Think of something that will make your products stand out in the competition. What will define or make your cupcakes distinct in the market that will make the customers prefer your cupcakes to the other?

It will be helpful to select a distinct target market. Like making your cupcakes sugar-free, for example, to make it more appealing to health conscious customers. This is a way of creating first impression or on how you would want to be popular or known of. However, later in your operation, you maygradually offer more varieties of cupcakes to get the other market segments.

Marketing is a very important aspect in starting the cupcake business. To initialize letting your prospective customers aware of your product, make sample cupcakes and start distributing it. Start with local businesses such as bakeries in the community. They might get interested on making you one of their suppliers for cupcakes. Attending trade fairs may also increase the popularity of your product.

Before distributing samples of your cupcakes, make the costingby listing the amount you have spent on the ingredients and how much you have paid for the labor. Add a reasonable mark upfor it and that will be the price of your cupcakes.

It is also equally important to study the demand for cupcakes.Forecasting demand will help you on determining where your product will most likely to be in demand.

Putting up a business is not an easy task. But with the determination, the skills, and the right attitude towards business, you can be certain of success.

Summary: With the continuous reinvention and integration of usage, cupcakes are getting in demand replacing and or complimenting the traditional cake in many occasions such as weddings and birthdays.

4. REFERENCE

45

Page 46: E commerce sample

1. Hello cupcake: Irresistibly Playful Creations Anyone Can Make by Alan Richardson and Karen Tack.Pub. Date: April 2008

2. Cupcakes: Luscious bakeshop favorites from your home kitchen by Shelly Kaldunski. Pub. Date: September 2010

3. Betty Crocker Just Cupcakes: 100 Recipes for the Way You Really Cook (Betty Crocker Books). Pub. Date: August 2010

4. Cupcake Magic: Little Cakes with Attitude by Kate Shirazi. Pub. Date: May 2009

5. Little Cakes from the Whimsical Bakehouse: Cupcakes, Small Cakes, Muffins, and Other Mini Treats by Kaye Hansen and Liv Hansen. Pub. Date: June 2008

46

Page 47: E commerce sample

5. APPENDICES

Appendix 4: Varieties of Cupcakes on Display

Appendix 5: More Varieties of Cupcakes on Display

47

Page 48: E commerce sample

Appendix 6: Cupcakes for Delivery

Appendix 7: Cupcakes for Wedding Delivery

Appendix 8: Cupcakes Delivery for Small Occasion or BirthdayParties

48

Page 49: E commerce sample

Appendix 9: Cupcakes Delivery for Special Occasion

49