Electronic commerce is a framework in which two or more persons conduct business transactions using internet-enabled devices such as computers, cellphones, or tablets. It is sometimes referred to as online selling or marketing. It also elaborates on a commercial or corporate transaction that includes the sharing of financial information via the internet (Huang et al. 248). The e-commerce is better than the traditional model in that there is an exchange of goods and services with limited barriers. This paper will describe how an e-commerce model will be used to sell smartphones and laptops in the capital city of a developing country which boasts an enormous potential for online retailing.
Unique Features of E-Commerce
The business model embraced in this context is business to customer model (B2C). B2C model will capture the following eight elements of a business model (Huang et al. 248). First, value proposition: the company’s website will always list all available models of mobile phones and laptops together with their unique features. After the customers have chosen their preferred product, they just make a call, inform on their location the store attendant who reaches them with the selected product and the client pays after delivery. Secondly, the revenue model: the firm will generate profits by selling the products directly to the clients. The products are bought from the manufacturers at wholesale prices and the online company will sell them at retail price and earn a profit. Thirdly, the market opportunity: the company will be based in the capital city of a developing country whose population has begun to embrace mobile and internet technology. Fourthly, competitive environment: according to research, it is only a few smaller start-up firms which have entered the market and hence they are not very competitive. Fifth, competitive advantage: the company will buy the smartphones and laptops direct from the manufacturer at wholesale prices. Thus, it will have a competitive advantage by selling at lower prices than the competitors. Sixth, the market entry strategy: the firm will start marketing to the young population especially college students who are heavy consumers of laptops and smartphones. This generation is curious and quickly embrace technology. Seventh, organizational development: the management will involve the website maintenance expert, the coordinator of sales, the heads of finance, and the marketing and research head. Finally, the management team: this will involve a group of dedicated founders. It is essential for the founders to initially work as managers to build reliable systems before the firm picks up.
Importance of the Unique Features of E-Commerce
The novel elements of e-commerce are essential in promoting a start-up business, looking forth to transact and retail online in the following ways. First, service delivery is best. This is because the company is able to carry out business 24 hours every day (Huang et al. 249). Secondly, the firm will be able to eliminate intermediaries efficiently. It is possible to do away with intermediaries who might purchase the products and sell them at exorbitant prices to prospective customers. Thus, after doing away with them, it is possible to attract more customers at lower costs hence able to attract more clients. Thirdly, it is just quick to adjust price tags (Huang et al. 250). Running e-commerce is efficient in that it is possible to change prices especially when the cost of production has gone down and the company wants to make more sales. Thus evolving prices will be just by a click of a button. Fourthly, e-commerce portrays a professional image to customers. This is possible in that a website gives a firm a level playing ground with others because it fosters a firm’s reputation. Lastly, e-commerce broadens a company’s reach (Huang et al. 250).
Objectives Achievable Through the Website
The website will assist in achieving the following goals:
a. Marketing: through the website, the company will be able to engage customers, give directions, and direct traffic to the firm’s site.
b. Sales: the primary activities of the site are to support and validate sales team interactions with customers.
c. Customer support: through the site, the company will increase customer experiences through better services delivery.
d. Operations: through the site, it will be easier to organize tasks
e. Information technology: through the website, it will be possible for the firm to interact with systems like performance scalability, security, etc.
Basic Site Map
Source: https://dcrazed.com/wp-content/uploads/2014/11/Venedor.jpg
Eight Most Essential Factors in Successful E-Commerce Design
The most critical factors in designing a successful e-commerce website include the following (Lee et al. 330):
Functionality: this entails the ability of a site to work and offer the invaluable information the clients are searching. It should open fast and at a simple click; the customer should get direction to all the information he/she is looking for.
Information: it talks about whether the customers get the exact information they are looking for. For instance, it should be checked if a customer can get access to all types of smartphones sold, their exact features, and their prices. Besides, the sites must offer information on delivery details and payment method.
How Easy it is to Use the Website: the design of the website must be easy to use even by information technology novices. Besides, this will encourage visitors to try and find more information.
Redundant Navigation: the website must offer several alternatives of getting into a particular product. This can be possible by creating multiple links which direct the customer every time they are looking for a product.
The Simplicity of Purchase: ease of purchase means a customer makes one or two clinks to complete a purchase. For instance, after clicking on laptop button, the customer needs to access all features of the laptop, the price, warranty, mode of payment, and delivery period. All steps must be clear and written in the most straightforward language to understand.
The Site Must be Accessible from Several Browsers: this is important in that the site does not limit access by people who use some browsers which are not very popular. The point is accessibility from as many browsers as possible.
Must Contain Some Simple Graphics: all products must be presented with clear graphics like; the background needs to have excellent lighting to make it attractive for customers to stay a little while and check for more details.
Easy to Read Texts: for instance, if the background is white, the written words should be black and vice versa. The use of contrast makes it easy for customers to read and develop the interest of finding out more of what the firm is offering.
Strategies to Ensure Website Optimization
The site should offer quick delivery options: this is important when customers are sure that the products will be delivered quickly. It makes them come back because it shows reliability.
The company should offer more than what customers expect: this is paramount as customers are never frustrated. It is about providing more than what one promises. Like if the online retailer promises to deliver within two days, the delivery should happen within 12 hours, thus beating the expectation of the client.
The customer's calls need a quick response: Most online shoppers lament that their services providers never pick their calls promptly thus compelling them to make a second or a third call. This is frustration and wastage of a customer’s precious time.
Writing follow-up emails: it works primarily for first-time customers. Writing to appreciate and welcome back email is one way of showing gratitude for giving a company business. The customers feel valued and may come back next time.
Offering services through social media: it is one of the best ways of communicating with customers especially if it keeps them away from the agony of call center queues. Social media offers customised service delivery especially if they can make orders without making a call.
Website Mock-Up
Source: https://dcrazed.com/wp-content/uploads/2014/11/Venedor.jpg
Payment Methods
Several factors determine the payment methods which a firm must consider. Besides, the plan selected should be favourite among established and potential customers. Payment processing options include internet trade/merchant account (use of credit cards like visas, American Express, MasterCard, etc.), third-party payment method (use of online accounts like PayPal, Payoneer, etc.), offline payment, etc. (Lee et al. 352).
When selecting a payment method, the following factors matter a lot: first, the costs connected with each payment method. For instance, monthly charges, transaction fees, account maintenance deductions, etc.; secondly, does the software used guarantee privacy of the customer information (Weisberg et al. 84). Thirdly, fraud protection: the payment used must at least ensure that fraud detection is quick and easy to make a follow-up. Lastly, the general acceptability of the money transfer service providers (Weisberg et al. 84).
Website Development and Maintenance Budget
Item
Average cost per year
1
Domain name registration
$35
2
Website hosting
$50
3
Website development
$2500
4
Website maintenance
$1000
Total
$3585
Conclusion
The features of e-commerce make it the best method of meeting people's needs, especially in the 21st century when people are very busy and time is a limited commodity. When a site for e-commerce is well developed, the firm will experience good returns because of easiness of completing transactions. Besides, the simplicity in use is one of the primary features e-commerce firms must consider.
Works Cited
Huang, Zhao, and Morad Benyoucef. "From e-commerce to social commerce: A close look at design features." Electronic Commerce Research and Applications 12.4 (2013): 246-259.
Lee, Sangwon, and Richard J. Koubek. "The effects of usability and web design attributes on user preference for e-commerce web sites." Computers in Industry 61.4 (2010): 329-341.
Weisberg, Jacob, Dov Te'eni, and Limor Arman. "Past purchase and intention to purchase in e-commerce: The mediation of social presence and trust." Internet research 21.1 (2011): 82-96.
