Internet - The World Wide Web
New Rules of E-Commerce

New Rules of E-Commerce

Since there is no “store” in the e-commerce process shipping arrangements must be made for accepting returns and handling warranty service. Often the company that has taken over fulfillment for an Internet business will also handle returns.

Finally, customer service and support is a necessary part of doing business, both in the real world and online. Customer service in the bricks-and-mortar world often takes place in person or over the phone, whereas online customer service must be handled through more indirect means via e-mail or other online means.

E-commerce has changed a lot of the ways that companies do business. But the e-commerce revolution has also made new rules necessary. This is not surprising. As with all new eras, advances in technology have forced businesses to evolve, creating new ways of doing business and new rules for conducting business.

E-Commerce Rule #1: Empowerment
The first new rule is that the customer should be in charge of his experience, which is just a re-emphasis of the most tried-and-true business strategy throughout history: The customer is always right. But there is a very useful twist to this old axiom. Self-service by your customers will help your business by reducing your cost of operations. When you let customers serve themselves from your Web site, you do not need to employ as many sales and customer service representatives. Better yet, your sales and service representatives can focus on the more important aspects of their work.

The side benefit is that your customers will feel more in control of their relationship with your company. Customers will value the opportunity to help themselves. Customers will feel like they are in better control of their experience with you, and they feel grateful to you for giving them this power.

E-Commerce Rule #2: Personalization
Information and personalization are the key empowering attributes of a marketing business strategy on the Internet. The more customer intelligence you can build into your Web site, the better you’ll be able to personalize it for specific customers.

Personalization on the Web is achieved in one of two ways: either placing a cookie in the user’s cookie file or requiring them to log in to your Web site every time they visit.

Cookies That Are not Fattening!
A cookie is a piece of information sent by a Web server (the Web site) to a Web browser (the customer) that the Web browser is expected to save and send back to the Web server whenever the browser goes back to that site. Cookies can contain any information you choose to include, such as login information, user preferences, items of interest, and other tidbits that help customize the user’s experience on a Web site.

There are countless advantages to personalizing a Web site. Besides the good feeling it gives your customers, customers can tailor your information to meet their needs. They can see prior orders without having to go through a lengthy process. They can check on the latest prices for items they’ve placed on their shopping list. Personalization helps induce customers to return to your site because it provides the specific information they need with greater speed and ease.

The concept of personalization is at the core of many financial services Web sites. For instance, when you store a personal investment portfolio with a brokerage site on the Web, that information is directly linked to your account. Your portfolio information is saved in a database, and when you return to the Web site and login with a username and password the information is automatically retrieved.

E-Commerce Rule #3: Directness
Dell Computers is one of the most successful online businesses in the world. Their success is embodied in their motto: “Be Direct.”

Being direct means getting from point A to point B without taking any detours or stopping for any road blocks. Being direct online means connecting your customers to the information and tools that they need most, by passing or eliminating superfluous questions and extraneous hurdles. The goal is to get your customer to the decision to buy as quickly and efficiently as possible.

E-Commerce Rule #4: Speed
If time is the enemy of opportunity, then speed is the partner of success! People use the Internet for many different reasons, but the reason most often cited by consumers is “saving time.” Telephone companies knew the importance of “saving time” for the consumer. The Yellow Pages directories were marketed as timesaving devices. Remember—“Let Your Fingers Do the Walking.”

Well, the Web is marketed as a way for consumers to save time by not only finding places to shop, but actually doing the shopping right on their computer once they get there.

The rule of speed for online business impacts many areas, including:

Clear and logical Web site design so consumers can find what they want quickly and easily

Small file sizes for photos and graphics so Web pages download faster

Powerful hardware and high speed reliable Internet connections for your Web server

* Source - Everything Online Business Book
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