Infoallglobe.com writers forum, published on 28/04/00

Business on the net .. a critical overview

.. Atanu Roy

World Word Web is the platform in the Internet where commerce takes place. It has been in existence only since 1993, and to-day billion dollars of trade are done through it. In 1999, consumers spent about $24 billion online, while the total for B2B e-commerce was about $145 billion. Before the Web, the internet did not have graphics, animation, sound , it allowed only character based communication and a was favourite place for researchers and technical wizards.

If you are an entrepreneur or planning to be one, there is a good chance that you are going to examine the possibility of doing business on the Internet [the buzzword is e-commerce]. Since the development of the World Wide Web, commercial enterprises have been coming onto the Net in hundreds every day, so why not you? The purpose of this article is to give you an critical overview of Internet commerce so you can decide if it is time to consider putting your company on the Net.

 In the few years it has been in existence, the Web has become a force to reckon with in the business community. The largest growing commercial segment is small to medium-sized companies. At the present time, one in four Websites are retailers, and that proportion is rising. Lately, many new sites are being created by manufacturers, wholesalers and distributors. For the past two years, 30% of the commercial sites have indicated that they are already "profitable", and another one in four anticipate profitability in the next year. Net commerce is having a big impact on the nature of some businesses. For example, 30% of all book sales now take place online. The real estate and travel industries have gone through dramatic changes as more and more customers do their shopping and buying online.

The following business activities may be partially or completely integrated  in the net:

Build an Image
Many companies and professional practitioners find that having a Website helps establish their image. For a relatively low investment [say US $400], you can make your product or service known to vast numbers of people. Even if you only have a local business or clientele, your image can be enhanced by a Web presence.

Sell Products and Services
The recent technical and software innovations have contributed to the graphical nature of the Internet and makes it a natural platform for displaying products and descriptions of services in a dynamic, interactive format. Full-color brochures can be created and displayed without the high cost of printing. Every minute, additions and changes can be made to a Website to take care of the changes in product lines without having to reproduce printed materials.

Interactive forms can be displayed with which customers can place orders directly online. Security issues have been addressed and buyers can be assured that their credit card information is safe. For those who are still conservative, simple alternatives can be implemented that make ordering easy and convenient.

The Auction Sites has become a buzzword now, where hundreds of buyers and sellers can register their requirements and deliverables with a minimum price and time mark.  In a simple search click they are in business.

Service auction sites like smarterwork.com is a boon to consultants and professionals where you can bid on global assignments and earn dollars by working from your cozy home office at thousand miles distance from your client.

Find Suppliers
The vast resources of the Internet make it possible for you to find vendors and service personnel to fill your business needs. For example, the Thomas Register, which lists thousands of manufacturers all over the country is searchable by product and location. You no longer have to go to the library to use this valuable resource.

Along with individual sites, many industries are now creating Web locations where you can search a database of vendors in a particular field. In one location, you can easily evaluate a great deal of information without having to make endless phone calls.

Save Money and Time
Many businesses go online because of the great savings made possible by communicating with customers and prospects via e-mail. If you send faxes or mail documents on a regular basis, you can realize considerable savings by using e-mail instead. When you connect to the Internet through an Internet Service Provider (ISP), you can use the Internet for hundreds of hours and send all the e-mail you want without extra cost to you.

If you have ever paid for a bulk mailing, you will appreciate the fact that you can send out tens of thousands of pieces of e-mail without printing costs and without paying for postage. Although unsolicited e-mail [spam] is frowned upon, it is not unusual for businesses to quickly build lists of e-mail addresses of users who can be turned into paying customers.

Businesses that have to send documents like Product Brochures / price lists can avoid the mails by attaching computer files to e-mail. The documents are sent almost instantaneously and can be printed out at the recipient's convenience.

Give Effective Customer Service
Customers and clients will be at comfort  to know that they can reach you and have their questions answered and complaints handled without having to spend valuable time on the phone. Anyone who has had to deal with complicated voice-mail systems will appreciate the immediacy of using online forms and e-mail.

You can also avoid lengthy customer service calls by answering frequently asked questions online. Any information that you need to get to your customers can easily be displayed at a Website.

Offer Value Added Services
Through the Net, businesses can provide extended customer service and value-added benefits to current and potential customers. For example, financial institutions provide up-to-the-minute interest rates or databases that allow site visitors to calculate loan or mortgage payments. Professionals such as CAs, CPAs, lawyers and medical practitioners offer helpful information and advice. Many businesses provide ways for customers to ask questions or give feedback twenty-four hours a day. Via a friendly Website, companies can "touch" people and appear to be available. Businesses that provide services such as these are realizing added sales via the Net.

Newsletters that are sent via e-mail and/or published on the Net are a popular method of provided value added service to clients and customers. Interesting articles as well as sales and company information can be included in newsletters.

By creating innovative links to other information sources on the Net, your customers will maintain a relationship with you as they keep coming back to your site.

Network
Never before have people all over the world been able to connect so easily to each other in order to share information, ideas and support. Through newsgroups, mailing lists and by sending e-mail to people who run sites that interest you, you can quickly and easily build up a network of contacts. Time and distance no longer have to keep you from interacting with people anywhere on the planet.

The Net is a growing interactive community filled with business people who are anxious to increase their sphere of influence. Because of this they are ready to reach out and connect to other business people like you.

Stay Informed
There is a mind-boggling amount of information available on the Internet. You can use it for up-to-the-minute news, government regulations, legal questions, sales and marketing ideas and much more. There are thousands of electronic magazines, on a variety of subjects that are available along with daily newspapers from around the world.

Once you familiarize yourself with the resources that interest you, it is simple to set up a series of "bookmarks" which allow you to quickly return to sites that you visit often.

Expand Your Horizons
The Internet is a giant network that functions beyond borders or politics. It is not unusual, in the course of a day, to communicate with people from many different countries.

Once you are using the Net, your thinking will become more global. No matter what field you are in, you are no longer limited to potential customers in your local area. This means it is possible to develop unique products, such as books, tapes etc. that can be sold to a worldwide audience.

Impediments to  net business

"What do you think are the barriers that will hinder the successful use of e-commerce? Some examples would be the public's perception of the security, privacy, companies' unwillingness to allot funds, "dinosaurism" (people not willing to come into the new century), standards issues, etc."

I think the biggest problem for netrepreneurs is their lack of business and money skills. It's the same online and off. Businesses often fail because business owners don't know what they are doing. Ventures are started with inadequate research, planning and funding -- and good old nuts and bolts business skills. Also, expectations are often unrealistic (as a result of inadequate research, etc.).

Entrepreneurs also often lack selling and marketing skills. E-Commerce is all about selling. It requires writing skills for both e-mail and creating direct response presentations. Knowing how to make a sales presentation and close a sale are essential skills.

Right now, the craze is affiliate programs. The pitch is that you'll make tons of money the easy way. It just ain't so. So the barrier here is gullibility.

Even larger companies can suffer from lack of knowledge. They hire Web developers who may not have good direct marketing skills, then wonder why a project doesn't work. Doing the necessary homework and not rushing into a project is of key importance.

Aside from the netrepreneurs lack of skill, the biggest barrier for unknown businesses is establishing the customers trust. Everyone knows about Amazon.com and more and more people are willing to give the credit card numbers online or to a toll-free number. But for a company such as Jane's Jewelry or Ed's Car Parts, the strength of the sales presentation will affect the trust levels established in the customer's mind.  With the new developments like cryptography, Secured Server layer, electronic payments will be fully secured in the near future. Government should also frame appropriate cyber laws to protect the net traders and for fast redresses of grievances.

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