Ebusinessinruralcomm

Electronic Retailing E-Business in Rural Communities

E-Business in Rural Communities

What is the Internet?– The Internet is the sum total of devices

interconnected using the Internet Protocol

We use the Internet with applications such as: • Usenet - A distributed discussion system (newsgroups)

• E-mail - Electronic communication, fast and broad• WWW - World Wide Web• FTP - Transfer files between computers

Source: Hofacker, 2001


What is the Internet?

– Aren’t they all the Web?• Technically, no. The Web represents that

portion of the Internet that is used through the use of hyperlinks. However, an effective Internet business strategy will use more than just the Web.



What is the Internet?

– What is E-Commerce?• The use of diverse applications of the Internet

such as Email, Usenet, Chat, FTP, World Wide Web, to conduct business operations.



How has it evolved?

The purpose of the Internet is to allow communication in the event of a catatrosphic

disaster.


How has it evolved?– 1969 first message sent over the net– 1976 Queen Elizabeth II sends an e-mail– 1984 domain name system introduced

– 1986 backbone speed is 56K– 1989 number of hosts exceeds 100,000– 1991 WWW developed– 1995 dial up service, $50 domain name– 1996 browser war– 1999 the WWW is DOT.COM– 2000 DOT.COMs are accountable


How has it evolved?

– How many are online?What do people do online?

Where is E-Commerce going?

Source: Nua Internet Surveys - www.nua.ie/surveys/how_many_online/index.html

http://www.nua.ie/surveys


1.17 billion by 2005


How has it evolved?

– How many are online? What do people do

online? Where is E-Commerce going?


Communication

Information

Education

Management

Entertainment

Purchasing

Sales


How has it evolved?

– How many are online?What do people do online?

Where is E-Commerce going?



• In 2000, the Internet economy generated $830 billion in revenue; created 3 million jobs

• Of the $830 billion, Internet commerce accounted for about $254 billion of the total and over 1 million of the 3 million jobs

Reference: University of Texas Center for Research in Electronic Commerce; "The Internet Economy Indicators" - January 2001; www.internetindicators.com

http://www.internetindicators.com/


PC industry - zero to $100 billion in ten years “the greatest legal accumulation of wealth in history”

Internet economy - zero to $800 billion in five years “new business model called Dynamic Trade is fundamentally altering the creation, delivery and pricing of products and services”

Reference: University of Texas Center for Research in Electronic Commerce; "The Internet Economy Indicators" - January 2001; www.internetindicators.com

http://www.internetindicators.com/


U.S. e-commerce retail sales ...

$26 billion in 2000

Approximately .8% of total retail sales

Reference: U.S. Department of Commerce; January 2001

http://www.census.gov/mrts/www/current.html


What people are buying on the Web . . .

• Airline tickets• Hotel reservations• Computer hardware• Apparel• Consumer electronics• Car rental• Health/Beauty• Books• Music• Computer software• Jewelry• Toys/Video games

• Food/Beverage• Office supplies• Flowers• Linens/Home decorations• Sporting goods• Videos• Appliances• Furniture• Tools/Hardware• Footwear• Small appliances

Reference: Forrester

http://www.forrester.com/


Reasons Why People Shop the Web . . .

• Easy to place an order - 83%• Large selection of products - 63%• Cheaper prices - 63%• Faster service and delivery - 52%• Detailed and clear product information - 40%• No sales pressure - 39%• Easy payment procedure - 36%

www.useit.com/alertbox/990207.html

http://www.useit.com/


Name recognition by consumers . . .

Amazon - 60% Priceline - 55% eBay - 46% E-Trade - 43%


Mega-selling Web sites . . .

Cisco Amazon QVC

http://www.cisco.com/

http://amazon.com/

http://www.qvc.com/


Examples of E-Businesses ...

www.jubilations.com

http://www.jubilations.com/

www.mscheesestraws.com

www.gumtreekitchens.com

www.pleasantgovesoaps.com

www.ameliaclark.com

www.bayviewfurniture.com

www.spahnhouse.com

www.mcdonaldfuneralhome.com

www.msgifts.com

www.plantationpecan.com

www.yalls.com

www.alaskawildberryproduct.com

www.vermontgarlic.com

Getting Started


Know why you are on the Web???Know why you are on the Web???

.com

Static

Interactive

Transactional

Integrated

Access

Advertising Marketing Information

No Capability

No company web site Can access other sites

Registration Forms E-mail

Online orders, payments Order tracking, queries Funds transfer

End-to-end Fulfillment Workflow

E-Commerce Roadmap

Legend - Functions at Level - Requirements to achieve next level

Internet access through ISP Email accounts

Web site Content development & updates

Web site connectivity to database application(s) and email accounts

Secure transaction processing Online payment authorization Authentication and validation

Seamless connectivity to back-end system(s)

Minimize/eliminate manual input on transactions.

B2B automated processes

Level 1

Level 2

Level 3

Level 4

Level 5

Adapted from:www.mepcenters.nist.gov/public/ecommerce-summit.nsf

While developing an E-Commerce presence, it is important to know where you are now as well as the appropriate destination for your business.


Sales Tool . . .

• e-commerce/e-tail• informational

• transactional


Who is going to design, build, and maintain the site???Who is going to design, build, and maintain the site???

In-house vs. Outsourcing


What do you need for an e-commerce site . . .

• Domain name• Web site/store• Web server/host• Site marketing


What’s in a name???

EVERYTHING!!!


www.yourname.com


www.register.com

www.networksolutions.com

Domain name registration services:





What do you need for an e-commerce site???

• Web store• Online product catalog• Shopping model/Ordering system• Merchant account/Payment processing• Customer communication system• Tracking system





Internet Service Provider

ISP


Outsourcing . . .

Know who you are hiring!


Web Hosting Services


Yahoo! Store–www.store.yahoo.com


What are the costs . . .

• Domain name•set-up fee•annual fee

• Web site•in-house•outsource

• Web server/host•set-up fee•monthly fee


What are the costs . . .

• Merchant account/processing•set-up fee•transaction fee•monthly/annual fee•percentage of sales

• Other•marketing fee


Service Brochure Site

Storefronts

Setup fee $25-50 $50-100

Web site design $200-1000 $1500-6500

Web site hosting & maintenance

$15-25/mo $100-500/mo

Secure server N/A $50/mo

Secure server certif. N/A $125

Domain name $3-4/mo $3-4/mo

Total setup cost $225-1050 $1675-6725

Total monthly fees $18-29 $153-5541


ISP SERVICE Cost1

Setup $50

Simultaneous Web access for up to 10 users $99/month

Domain registration $70

E-mail for up to 10 users Included

Web hosting, 30MB server space $50 start-up fee, $30/month

24/7 telephone support Included

Starter e-commerce storefront including credit card authorization

$50 start-up fee, $80/month

Miscellaneous charges (e.g., Web design consultancy fees)

$300 and up

First-year total $3028 and up

1 Based on the average cost of several national ISPs' services.





Advertising and Promoting Your Web Site

Build It And They Will Come???

What do E-Customers Want?


The key is consumer confidence . . .

• Fun and easy to navigate sites

• Pages that appear professional

• Clear and accurate product information and representation

• Real time answers through self help features, e-mail, and a toll-free telephone number



• Good prices and clear representation of all charges

• Payment options

• Secure transactions

• Easy to use return or exchange policy

• Quick processing time and delivery



• Shopper privacy

• Eliminate the unknowns

Technical and Design Considerations


Elements to consider . . .

• Bandwidth• Browser compatibility• Color palette• Continuity• Frames• Homepage


Elements to consider . . .

• User Interface• Screen compatibility• Readability• Text only default• Accessibility


Designing Web Usability The Practice of Simplicity

byJakob Nielsen

www.useit.com


The Bottom Line . . .

Getting customers to come to your site,

Getting customers to make a purchase once they get to your site, and

Getting customers to return to your site and purchase again, again, and again!

Will technology be the great equalizer or

will it deepen the digital divide?


For the society, the impact will be good or bad, depending mainlyon the question: Will to be 'online' be a privilege or a right? If onlya favored segment of the population gets a chance to enjoy theadvantages … the network may exaggerate the discontinuity in thespectrum of intellectual opportunity.

. . . . . Written in 1968 by Robert Taylor, director of the Defense Department agency that created original Internet.


Americans with more education are more likely to be connected.

Americans with more money are more likely to be connected.

Whites are more likely to be connected than Black non-Hispanics.

Urban Americans are more likely to be connected than rural Americans.

Connectivity . . .


E-commerce is the new business model.

Participation is largely dependent on access to

and adoption of IT.

Access to IT is influenced by education,

money, race, and residence.

The Issues . . .


Rural businesses need to position themselves

now for a IT driven future.

Businesses cannot afford to let barriers hold

them back.

Lack of unbiased educational information

and technical assistance.

The Challenges . . .


All people and all businesses must have the opportunity to be

connected to the Internet.

Businesses need access to educational and technical expertise.

States must educate, recruit and retain people with technical

expertise in the region.

State and local policymakers must take a comprehensive and

strategic look at e-commerce from an economic development perspective.

What is needed . . .


The Critical Role of Education . . .

Are colleges and universities in the South prepared to address e-commerce issues effectively?


Extension’s Outreach Role . . .

Is Extension in the South prepared to address e-commerce issues effectively?


Providing campus wide leadership in e-commerce MSU E-Commerce Research, Development, and Outreach Task Force

www.msu-ecommerce.orgGrant proposals

Providing e-commerce educational programs for small businesses Electronic Retailing: Selling on the Internet conference

www.ext.msstate.edu/registration/ecommerce.html E-Biz workshops Web site analysis

In Mississippi . . .


Providing e-commerce educational programs for small businesses E-Commerce seminars

County extension officesSBDC’sSpecial interest groups

ConsultationsElectronic publications

www.msucares.com/business_assistance/homebusiness/ecommerce.html

Providing in-service education for agents

Working on multi-state collaborations

In Mississippi . . .


“Unless efforts are undertaken to close the divide, the South will continue to lag behind, and perhaps fall even further behind the rest of the country.”

Beth Duncan, Ph.D. Small Business SpecialistMississippi State University Extension Service [email protected]

Electronic Retailing E-Business in Rural Communities

Ebusinessinruralcomm

Technology

internet economy

commerce educational

commerce issues

electronic

rural communities

texas center

consumer confidence

electronic