E Commerce - Self Study Guide

SELF-STUDY GUIDE
Small Business Training for Entrepreneurs

Series
E-Commerce
Management
Copyright
All rights reserved world-wide under International and Pan-American copyright

agreements. No part of this document can be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording, or otherwise without the prior written permission of Velsoft Training
Materials, Inc.
Courseware Version: 3.0

TABLE OF CONTENTS
How to Use This Guide............................................................................................................1
Session One: Course Overview................................................................................................2
Session Two: Getting to Know E-Commerce.............................................................................7
What is E-Commerce?.............................................................................................................................7
The Six Models......................................................................................................................................10
The Language of E-Commerce..............................................................................................................12
Session Three: E-Commerce Building Blocks...........................................................................13
What’s Your Goal?................................................................................................................................13
The E-Commerce Business Plan............................................................................................................15
Making Connections.............................................................................................................................18
Session Four: Software Options and Solutions........................................................................20
Looking at the Options..........................................................................................................................20
Test Driving...........................................................................................................................................22
Session Five: Building Your Online Store.................................................................................23
Your Internet Address...........................................................................................................................23
Navigating Through Your Site...............................................................................................................30
Building Effective Product Pages..........................................................................................................33
Shopping Cart Features.........................................................................................................................38
Optimizing the Checkout Process.........................................................................................................40
Additional Site Elements.......................................................................................................................47
Pre-Assignment Review........................................................................................................................50
Session Six: The Finishing Touches........................................................................................51
Testing, Launching, and Updating.........................................................................................................51
Session Seven: Creating an Engaging User Experience............................................................55
Designing Engaging Web Content.........................................................................................................55
Building Relationships...........................................................................................................................58
Session Eight: Transaction Management................................................................................63
Session Nine: M-Commerce...................................................................................................66
Session Ten: E-Commerce Analytics.......................................................................................68
Key Metrics...........................................................................................................................................68
Tools to Track Data...............................................................................................................................71
Session Eleven: Supporting Your E-Commerce Business..........................................................75
Session Twelve: Marketing Your E-Commerce Business...........................................................77
Creating a Marketing Plan....................................................................................................................77
Essential E-Commerce Marketing Channels.........................................................................................81
Marketing with Social Media................................................................................................................83
Creating Promotions that Make You Money........................................................................................89
Session Thirteen: Security and Fraud Awareness....................................................................93
Protecting Your Customers and Your Business.....................................................................................93
Intellectual Property on the Internet....................................................................................................96
Session Fourteen: Rules and Regulations...............................................................................99
Trade Rules and Regulations.................................................................................................................99
Privacy Regulations.............................................................................................................................101
Making Connections...........................................................................................................................105
Recommended Reading List.................................................................................................106
Post-Course Assessment......................................................................................................107
Pre- and Post-Assessment Answer Keys................................................................................109
Personal Action Plan............................................................................................................110
E-Commerce Management 1
How to Use This Guide
This Self Study Guide is designed and laid out in a way that will guide student learning much in
the same way that an instructor would. This workbook is comprised of modules called Sessions.
Each Session focuses on a major concept in the course.
In each Session, we have included short-answer and (in some instances) multiple choice
questions which relate directly to the Session material. Throughout the guide, you can take the
opportunity to internalize what you have learned by completing the self-reflection exercises
entitled “Making Connections.”
 2005-2021, Velsoft Training Materials Inc.

Session One: Course Overview
Course Overview
As the global Internet population continues to grow, electronic commerce is growing as well. By
the end of 2015, e-commerce is expected to generate over $400 billion annually. This huge
market encompasses traditional e-commerce, as well as m-commerce (which is growing faster
than any other sector) and location-based e-commerce.
This program will teach entrepreneurs how to develop, market, and manage an e-commerce
business, giving them a crucial advantage in today’s competitive market.
Learning Objectives
After you complete this course, you will be able to:

o Describe what the terms e-commerce and m-commerce mean
o Develop an e-commerce business plan
o Evaluate e-commerce software options
o Build an online store with product pages, supporting features, a shopping cart, and
an effective checkout process
o Test, launch, and update your e-commerce site
o Design engaging, responsive web content
o Understand e-commerce payment options and choose appropriate options for your
site
o Use appropriate tools to track key e-commerce metrics
o Identify and optimize supporting e-commerce activities, such as customer service,
sales, and inventory management
o Create a marketing plan with all the essential elements
o Market your online store using social media and other appropriate channels
o Use discounts and promotions to market your e-commerce business
o Understand what security and privacy issues face e-commerce businesses and
handle customers’ information accordingly
o Protect your intellectual property
o Identify the rules and regulations that will govern your e-commerce businesses
Why did you take this course? Use this opportunity to consider your personal learning
objectives and reasons for taking this course.


Pre-Assignment
Activity
Before taking this course, think of a product that you would like to buy online. Then, follow the
typical steps that a consumer would follow:
o Find the product’s website and product page
o Add it to a shopping cart
o Complete the purchase using the site’s checkout process
o Receive confirmation e-mails
o Wait for the product to be delivered to you
Use the worksheet on the next page to write down the activities that you performed at each
stage of the process. Make notes about what worked well for you and what you didn’t like
about each activity. Feel free to add any additional stages that you completed in this process.

Worksheet
Stage Activities Worked Well/Liked Did Not Work

Well/Disliked
Finding the product
Adding to shopping
cart
Checking out
Confirming the
purchase
Receiving the
product

Pre-Course Assessment
1. What does the word “e-commerce” mean?

a. Using the Internet to conduct business
b. Buying a product with a credit card
c. Subscribing to an online newsletter
d. None of the above
2. When did businesses first appear on the Internet?

a. Early 1980’s
b. Late 1980’s
c. Mid-1990’s
d. Early 21st century
3. Why do customers buy products online?

a. Convenience
b. Better variety of products
c. Cheaper prices
d. Any of the above
4. True or False: New inventions, like smartwatches and Google Glass, will change e-
commerce.
5. True or False: E-commerce is guaranteed to make you rich.
6. Which of the following is an example of an e-commerce business?

a. Online travel booking service
b. Online bookstore
c. Digital movie streaming service
d. All of the above
7. Which term is used to describe the volume of visitors to a website?

a. Traffic
b. Stream
c. Bandwidth
d. Transfer

8. What online aspects does e-commerce encompass?

a. Buying products through a website
b. Buying products from mobile devices
c. Buying products through Facebook
d. All of the above
9. True or False: The term “entrepreneur” refers exclusively to someone who owns and
operates an e-commerce business.
10. True or False: The biggest percentage of e-commerce revenue is generated by

business-to-business transactions.

Session Two: Getting to Know E-Commerce
When online businesses first started appearing in the late 1990’s, many people predicted that it
was the end of all brick-and-mortar stores. While that prediction hasn’t come true, there is no
doubt that e-commerce is growing exponentially every year.
In this session, we’ll explore what the term “e-commerce” means and the evolutions that it has
gone through in the past several decades. We’ll also talk about the six major models of e-
commerce and define some terms that you’ll be using throughout the course.
What is E-Commerce?
What is E-Commerce?
E-commerce means using the Internet (including desktop, mobile, and social applications) to
conduct business. Some everyday examples of e-commerce that you might be familiar with
include:
o Booking a hotel room online
o Buying a digital movie and streaming it to your TV
o Ordering prescription medications online
o Purchasing a new computer from a major retailer’s website and having it delivered
to your door
o Paying a bill through online banking
What types of e-commerce have you participated in lately?
E-commerce offers consumers and businesses some unique features. To begin, it offers a far
greater reach than a traditional business would have. Instead of operating in a limited
marketplace, e-commerce businesses have access to a marketspace that has no geographical
limits and can theoretically overcome cultural and regional barriers. The Internet is a global
entity that 2.4 billion people currently have access to (according to Internet World Stats), and
that number is growing every day.
E-commerce also offers businesses an opportunity to deliver rich, interactive, personalized

information to extremely specific markets in ways that were previously not thought possible.
Businesses can see into consumers’ lives and homes, and conversely, consumers can see behind
the scenes of a business and its competitors.

A Brief History
Although it is hard to pin down the exact date that e-commerce was born (especially
considering electronic data exchange systems that grew in popularity in the 1980’s), it is
generally agreed that the first examples of what we know today as e-commerce began in 1995.
This was the year that advertisements first started to appear on the Internet, which was a new
phenomenon at that time. E-commerce was quite primitive, with businesses focused on simple
displays of their products. Features were limited due to narrow bandwidth that barely
supported images, let alone data-rich elements such as music and video.
In the early years of the 21st century (from 2000 to 2004), the dot-com bubble burst, sending
many e-commerce and technology companies into bankruptcy. Businesses became more
cautious about the Internet, meaning that most companies focused on using the Internet for
marketing and advertising. However, during this period high-speed Internet also became more
readily available and e-mail became more widely used. As new technologies developed, the
Internet grew, too, and businesses started re-evaluating e-commerce.
Subsequent years (from 2005-2010) brought devices like the iPhone and tablets to the market.
Social networks like Facebook and Twitter gathered users exponentially. The Internet expanded
beyond desktops and into the mobile world. Increasingly, businesses are moving to where
customers are: online. (Did you know that in the U.S., 89% of Internet users have shopped
online? This number varies around the world but is growing in all countries.)
There is no doubt that e-commerce is a growing industry. For example, although e-retail sales
generated $259 billion in revenue in the United States in 2013, it only accounts for 6% of the
$3.8 trillion generated by the U.S. retail industry. Businesses must stay on top of trends and
new developments and adjust their e-commerce strategy accordingly.
Why Do Customers Buy Online?
As business owners, it’s important to understand what our customers need and want. A
fundamental part of this is understanding why customers buy online.
Why do you buy online?
Here are the top answers to this crucial question, based upon a 2011 survey by eMarketer.
o Convenience (online stores are open 24 hours and it is easier to compare
information)

o Easier to compare prices

o Free shipping and/or cheaper sales tax
o No crowds
o Easier to find what they are looking for
o More variety in products

The Six Models
We can break down e-commerce into six major models.
As you go through the models below, consider examples that you have encountered.
Business to Business (B2B)
Businesses sell products or services directly to other businesses over the Internet. Acklands
Grainger (an industrial supply business) and Salesforce (a sales-focused software company) are
two examples of B2B e-commerce companies. B2B e-commerce transactions generated about
$4.7 trillion in the United States alone in 2013.
Note: We include business to government e-commerce (B2G) in this category.
Business to Consumer (B2C)
Businesses sell products or services to consumers over the Internet. Amazon is one of the
world’s biggest B2C e-commerce businesses. Other examples include:
o Dell
o Netflix
o Apple
o J.C. Penney
o Zazzle
B2C e-commerce is the second largest type; in 2013, it generated $419 billion in the United
States alone.

Consumer to Consumer (C2C)
Consumers sell directly to other consumers over the Internet. eBay and Etsy provide these
types of services, for example. C2C e-commerce is far smaller than B2B or B2C commerce, but
still generated over $90 billion globally in 2013.
Social E-Commerce
Consumers participate in e-commerce using social networks (by purchasing the product directly
from a social network or by using collaboration tools, for example). Although this type of e-
commerce is just starting to grow, it generated about $8 billion globally in 2013.
Mobile E-Commerce (M-Commerce)
Consumers use mobile devices (such as tablets and smartphones) to purchase products and
services. This type of e-commerce is the fastest growing, generating $20 billion in 2012 and
almost $40 billion in 2013.
Location-Based E-Commerce
Businesses offer consumers services targeted to their location. For example, Groupon offers
subscribers sales and coupons for local businesses. Location-based e-commerce generated
about $4.4 billion in 2013 in the United States.

The Language of E-Commerce
There are some additional terms related to e-commerce that you should be familiar with. Let’s
take a moment to review them now.
Bandwidth refers to the amount of data that can be transmitted via the Internet. For example,
your Internet provider might have a maximum download rate of 5 megabytes per second
(abbreviated as 5 mbps). Most modern Internet connections use broadband or wireless
technology which offer higher bandwidth than older dial-up connections.
Channels refer to how a business sells their product. This might be through door-to-door sales,
via e-commerce, from a bricks-and-mortar store, over the telephone, or just about any other
way that you can think of. Businesses that use several channels are called multi-channel
businesses.
E-business encompasses the broader range of processes and activities done by a company that
engage in e-commerce. For example, electronic inventory management, online payroll services,
and virtual time sheets would all be processes that support an e-business.
The Internet is a worldwide network of computers that transmit and exchange data. The World
Wide Web (or simply “web”) is a part of the Internet. Web 2.0 refers to the latest iteration of
the World Wide Web, where users can interact on a higher level using custom content and
online communities.
Pay-per-click (PPC) is a type of Internet advertising where the advertiser pays each time the
advertisement is clicked and the customer is sent to the advertiser’s website.
Search engine optimization (SEO) refers to the process of using keywords and other tools to
place your website as high as possible in the results pages of search engines.
Social network refers to any website or online service that allows users to communicate and
network with each other. Facebook, Twitter, and Pinterest are currently some of the top social
networks.
Are any other terms you should define before continuing with the course?

Session Three: E-Commerce Building Blocks
E-commerce businesses have many of the same requirements as a traditional business,

including a solid plan and resources to help you get things up and running.
In this session, we’ll take a closer look at the basic elements that you will need to build an e-
commerce business. Topics will include setting goals, creating a business plan, and choosing a
revenue model. We’ll also analyze some successful e-commerce businesses.
What’s Your Goal?
For an e-commerce business that is strictly online, your goal is to build relationships with
customers, attract visitors, turn them into customers, and make a profit. You can view these
goals as a cycle.
Traditional businesses that have both a physical and virtual presence typically have a slightly
different goal. These businesses need to integrate all their different channels so that users get
the same experience no matter where they shop from or how they interact with the brand.

So ask yourself: what’s your goal?

The E-Commerce Business Plan
The first step for your e-commerce business is to plan what your business will do and how it will
generate a profit. At the end of this process, you should be ready to put together a business
plan. Some people are intimidated by creating a business plan, but we firmly believe that all
businesses need one. Even if you are funding the business yourself, writing a business plan will
help clarify things and expose any issues that will need to be resolved before the business is
launched. A business plan is also a key element in obtaining funding should it be required.
Let’s look at the key elements of an e-commerce business plan.
Company Description
First, describe what the company is about and what its marketspace will look like. Will your
business be a giant business-to-consumer retailer like Amazon or provide a business-to-
business service? What is your goal for the company?
Revenue Model
E-commerce businesses can generate revenue in a number of different ways. The most
common ways include:
o Selling products or services directly to consumers or businesses (as Amazon does)
o Receiving payment from other companies for their advertisements on your site
(Google does this with their advertising services)
o Offering products or services via a paid subscription (like The New York Times)
o Receiving payment on a transactional basis in return for providing a service (such as
eBay)
o Affiliate marketing, where a business receives money for directing customers to
another business
Many businesses choose a combination of revenue models to maximize their profits.

Products and Services
Now, describe the products and/or services that your company will be providing. Include each
item’s features and benefits. Describe things in terms of what problem the product will solve
for the customer.
You should also consider the pricing strategy for each product and service as well. This may
change after you do your competitive analysis, but it will give you a framework to start from.
Online pricing strategies usually take one of the following forms:

o Completely free (for example, you might give away a report or sample to draw
customers in)
o “Freemium,” where part of the service is free but customers must pay for
additional features (for example, paying a subscription fee to remove ads from a
mobile app)
o Fixed fees for each product and service
o Selling different versions of a product at different price points to different markets
o Bundling products together to provide better value for the customer (for example,
buying a suite of software rather than just one program)
o Dynamic pricing through auctions, flash sales, and last-minute deals (like last-
minute vacation packages)
Competitive Analysis
The next step is to identify who your business’ competitors will be. Find out:
o What their products and services are
o How the products and services are marketed
o What price point the products and services are offered at
o What level of customization and personalization is offered
o The search engine keywords that they focus on
o Additional selling features (such as free shipping, gift wrapping, etc.)
o What types of relationships they build with customers
o What makes them unique in the marketplace
Now you can identify the competitive advantage that your products and services will have. To
do this, identify what problems the product will solve and why customers will choose your
company over a competitor.

Organizational Strategy
Many e-commerce businesses are individual, entrepreneurial ventures. However, it’s

worthwhile to consider how your business might grow and what resources you currently have
on hand. This is also where you can outline what tasks will need to be done to keep the
business running and where you will need support.
Marketing Strategy
Finally, consider how your business will be marketed. Online channels can include:
o Search engine optimization and advertising
o Social media (Facebook, Twitter, Pinterest, LinkedIn, YouTube, etc.)
o Blogging
o Newsletters
o Mobile apps
As well, consider traditional offline channels such as:

o Newspaper, television, and radio media
o Trade shows and conferences
o Mail-outs
o Business directories
o Word of mouth
You’ll need a comprehensive marketing plan before you launch your e-commerce business, but
this will give you a starting point.

Making Connections
Choose an e-commerce business from the list below.

o eBay (http://www.ebay.com/)
o Netflix (https://www.netflix.com)
o Newegg (http://www.newegg.com/)
o GoDaddy (http://www.godaddy.com)
o Amazon (http://www.amazon.com)
o Lug Life (http://www.luglife.com/)
o Zappos (http://www.zappos.com/)
o Quill (http://www.quill.com)
(Please note that Velsoft provides the sites listed above for reference purposes only and does
not endorse any of the listed sites. These links were accurate at the time of publication.)
Outline the following elements of the business plan for your chosen business:
Company description
Revenue model

Products and services
Competitive analysis
Marketing strategy

Session Four: Software Options and Solutions
Any e-commerce business requires a solid technological foundation in order to be successful.

While your particular setup will depend on the size and complexity of your business, there are
some key elements that you should be familiar with.
In this session, we’ll discuss content management systems, e-commerce server packages, and
web hosting services. We’ll also give you some time to test drive an online service of your
choice and set up a basic e-commerce site.
Looking at the Options
Software and Services Required for E-Commerce Businesses
An e-commerce business typically requires two types of software. The first element is a content
management system, which will host all the back-end features for your business (such as
inventory management and web page content). The second element is an e-commerce server
package, which will host all the customer-facing (front-end) features for your business, such as
online catalogs and credit card processing. These two systems may be separate software
packages that can be connected together, or they may be part of an integrated software suite.
You will also need a web host that will broadcast your site to the Internet. Most e-commerce
businesses choose a hosting company to do this for them. When evaluating hosting companies,
be sure to find out:
o How many pages are included with a site package
o What the site size limit is
o What the bandwidth is
o How many users are supported
o If there is a guaranteed uptime percentage
o What content management systems and e-commerce server packages they
support, or if certain features (such as shopping cart services) are built in
o What level of customization is supported (for example, can users make changes to
web pages or does the hosting company make all site changes)
o All fees and taxes
Be sure to test some sites that are currently hosted by the company that you are looking at to
evaluate their speed and functionality.

Options for Your Business
Let’s take a look at the most common options for e-commerce server software.
Out of the Box

Your first option is to choose an online service that provides all the tools you will need via an
online interface, as well as templates to get started. Shopify, Yahoo! Small Business, Volusion,
and Amazon all provide this type of service. This option is best if you have a small budget and a
simple business.
Specialized Software
There are also a number of more advanced software options that are highly customizable, such
as IBM WebSphere Commerce, Magelia WebStore, and NetSuite. This is the route chosen by
most start-up e-commerce businesses, as it maximizes customizability and features while
keeping costs low.
Custom Design
Another option is to have a technical design firm create a custom solution for your company,
built from the ground up. Although this option is quite expensive, it is often used by large
retailers who have specific needs and a large budget.
In-House Solution
The final option is to build a solution in-house from the ground up. This is ideal if your business
has the experience required, but it can be a time-consuming endeavor.

Test Driving
Set up and test an e-commerce site.
As of this writing, free trials were available from the following sites:
o Shopify.com (http://www.shopify.com/free-trial)
o Volusion (http://www.volusion.com/free-trial)
o Pinnacle Cart (https://www.pinnaclecart.com/trial/)
Please note that Velsoft provides the sites listed above for reference purposes only and does
not endorse any of the listed sites. These links were accurate at the time of publication.
Use the space below to record your observations about the e-commerce site you chose.

Session Five: Building Your Online Store
Think about the last time you purchased a product or service online. What made you choose
that particular site? How was your experience as you searched for the products you wanted,
added them to your shopping cart, and completed the order? Did anything prevent you from
completing the order as you had planned?
In this session, we’ll take an in-depth look at each step of building an online store. We’ll start
with the basics: your domain name, site structure, and top-level page. We’ll also talk about
navigation tools, product pages, shopping carts, and the checkout process, as well as useful
pages like an FAQ section and testimonials. As a capping exercise, you’ll review your pre-
assignment and create your own top 10 list as a take-away.
Your Internet Address
The setup of your e-commerce store will depend on your company and what products and/or
services you offer. However, there are some basic elements that all stores contain and that
should be optimized. First, let’s look at what customers will see first: your domain name and
your top-level page.
Domain Name
Your domain name will be your business’ Internet address, so make sure that it is easy to
remember and type. Consider using an alternative top-level domain like .biz or .info if the .com
version is taken. As of this writing, top-level domain names are becoming more diverse and
experts are predicting that they will take on more importance in the coming years.

Overall Site Organization
Typically, a website will have a three-tier setup that makes it easy to navigate through the site
and find information. Product pages are typically organized by category (and sometimes further
by sub-category), with an additional category for site information pages. Links to these
information pages are usually displayed in the footer of every site page for easy access.

Here is a sample site hierarchy for a site selling body care products.
Top-Level Page
The top-level page of your website is also known as the home page. This is the page that loads
when customers type in your Internet address or click its link from a search engine. It needs to
engage the reader within five to seven seconds, or they will probably go elsewhere to find what
they are looking for. Ensure that the design is clean and that it clearly states the business and
key product names. Use short, snappy sentences that tell the reader why they should stay and
how they can benefit from the products and services offered. Chunk information using headings
and blocks to help customers scan through the information. As well, offer the same navigation
structure (menus, search box, etc.) that users will see throughout the rest of the site.

Consider Amazon’s top-level page:
An easy-to-use directory is featured on the left, with a search box and quick links clearly visible
at the top. A sales pitch currently occupies the center of the page, which will be replaced with
recently viewed and related items once the user has searched for products. Finally, current
promotions are featured on the right-hand side.

Compare its clean design with this outdated website advertising a country show:
It’s missing all the key elements: a clean, inviting design; clear link structure; and instructions
for the reader. In fact, you have to scroll to the bottom of the page to find out how to navigate
the site. Finding out how to purchase tickets is almost impossible. There are also several
typographical and grammatical errors right on the front page.

Call To Action
Give your visitors a clear indication of what you want them to do right from the home page.
This is known as the call to action, or most-wanted response (MWR).
A call to action usually includes a phrase like:

o Click Here!
o Call Now!
o Buy Today!
o Special Limited-Time Offer!
o Get a Free Quote Now!
o See It In Action!
o Find Out More!
o Donate Today!
o Download Now!
Your call to action might be to have a customer:

o Buy a product
o Sign up for a newsletter
o Watch a video
o Click an advertisement that you get revenue for
Here are a few examples of websites with powerful call to action statements on their home
page.
Bob Bly

Corel
Constant Contact

Navigating Through Your Site
To ensure that customers can find what they are looking for, it’s important to offer several ways
to navigate. Use tools that customers are familiar with and place them in familiar locations.
Remember, if they can’t find what they are looking for on your site, they will go elsewhere. In
general, keep Ian Daniel’s three F’s in mind when designing your site: fast, functional, and
familiar.
Search Box
A permanent, easy to use, comprehensive search function that delivers relevant, accurate
results is essential. Websites usually locate the search box in a top corner of the page, so that it
is on the same place throughout the website.
We also recommend providing advanced search options (like sorting and filtering). Typically
these options are seen on the results page:

However, advanced options can also be offered as an add-on in the search box itself:
Menus and Categories
Menus organized by category are also an essential feature of navigation. In this example, a
breadcrumb link shows the user exactly what type of bag they are looking at (“The Borough”
collection of Women’s Handbags) and offers quick links at the top to completely change
categories.

Depending on your business, you may want to offer the option to drill into specific sub-
categories and sub-sub-categories right from the menu.
What experiences they you had with website search tools. Have you ever left a site and gone
elsewhere because you couldn’t find what you needed? What can you take away from this?

Building Effective Product Pages
Essential Page Elements
Each product should be displayed on its own page with the same layout. Here are some things
that you might want to include:
o Product name using optimized keywords for search engine indexing
o Product description in bullet points, focusing on what it offers the customer
o Good-quality image or video that includes alternative text (consider having zoom-in
functionality or links to larger images)
o List of available options, such as color or size
o Add to Cart/Add to Basket link with options to customize products in the order
(quantity, color, size, model, etc.)
o Related information, such as shipping or warranty details
o Customer reviews or third-party reviews and ratings
o Social media and sharing links
Make the information easy to navigate using headings, tabs, and menus. Provide as much
information on the page as you can without overwhelming the customer. One way to do this is
to link to more detailed information, like manufacturer’s specification pages or FAQ pages.

Sample Pages
Amazon.com
What do you like about this page? What don’t you like about this page?

Lug Life

Chevrolet

Apple

Shopping Cart Features
Once customers add a product to their shopping cart, they should see a new page or a pop-up
box confirming the addition. This page or window should also provide an opportunity to change
the product (quantity, color, size, etc.), a link to continue shopping (or a close button), and a
checkout link. You may also want to showcase related products or services (like guarantees and
free shipping).
Here is an example of a pop-up shopping cart from Wal-Mart.

Here is Apple’s shopping cart page.
As a final note, know what terminology your customers prefer. Some areas of the world use the
term “shopping cart” while others use “shopping basket.” Test different methods and see which
phrases get the best response.

Optimizing the Checkout Process
The Checkout Process
Once customers have finished shopping and click the “Check Out” button in the shopping cart,
the checkout process begins. It typically includes the following steps:
o Ask customer whether they want to log in or check out as a guest
o Confirm contents of shopping cart, including quantity, size, color, etc.
o Set options like gift wrapping and shipping speed
o Enter customer and shipping information
o Enter payment information
o Review order details
o Place order by clicking a button labeled “Place Order,” “Complete Checkout,” or
something similar
Unfortunately, about 80% of shopping cart orders never reach this stage. This is called shopping
cart abandonment. There can be many reasons for this, including:
o Using the shopping cart as a wishlist
o Saving items to compare prices and features to other websites
o Not confident in the site’s security
o Errors during the checkout process
o Checkout process is hard to complete or overly complicated
Not all of these factors are within your control, but it is important to optimize those that are.
Optimizing Your Checkout Process
Here are some tips for designing an easy-to-use checkout process.
Show customers what to do.

Guide customers through the checkout process using icons and links. Give them specific
instructions at each stage and make it easy to return to a previous stage.

Apple’s checkout, for example, uses numbers and positioning on the page to identify each stage
of the process. An Edit link allows customers to easily go back to any stage.

If errors occur, clearly show what is wrong and give customers a chance to fix it. Highlighting
errors in red, providing pop-up boxes, and shading required fields can help customers complete
the process.
Notice that this checkout process takes place on a single page, with different sections of the
page expanded and collapsed at the appropriate time. This makes it much easier for customers
to complete the checkout process, as well as view and edit their shopping cart if necessary.
Keep it simple.
Only gather the information that is absolutely necessary. (For example, do you really need to
gather the customer’s middle name?) Typically you will need to obtain:
o Customer’s first and last name
o E-mail address
o Daytime and evening telephone number
o Mailing address
o Billing address
o Payment information
Make sure you are gathering the right information. For example, we recently visited a Canadian
shopping site that required U.S. customers to enter their province as well as their state, and
would not allow the transaction to be completed unless both fields were filled in with a valid
abbreviation.
If possible, hide fields that are not required. For example, if you are not currently running any
promotions, hide that field. Otherwise, customers may leave your site to find a coupon code
and never come back.

Finally, consider whether validation tools like CAPTCHA are absolutely necessary. Many of these
methods can easily be broken, are not required for a small site, and simply frustrate customers.
CAPTCHA is an acronym for “Completely Automated Public Turing test to tell Computers and
Humans Apart.” It is designed to prevent bots from spamming websites and is frequently used
during account setup and financial transactions on the Internet. It asks a human to re-type an
obscured message like this to confirm that it is a human and not a computer:
Unfortunately, the messages can be quite hard to read and can be quite frustrating for human
users, particularly people with disabilities or the elderly. CAPTCHA can easily be broken by bots,
defeating its purpose. We recommend using alternative spam and bot blockers whenever
possible.
Offer account options.

Offer customers the option of creating an account or simply checking out with an e-mail
address as a guest. You can also disguise the account process by asking customers to create a
password that will be associated with their e-mail address so that they can manage their order.

Give customers as much information as possible.

Provide information through links and icons so that customers aren’t distracted during the
process, but also have access to information if they need it. On Apple’s checkout page, for
example, customers can hover over the question mark icons for additional information about
the related option.

The bottom of this particular checkout page provides a tabbed FAQ section that keeps
customers on the checkout page. There are additional, off-page links in each FAQ section for
more detailed information that open the target page in a new browser tab or window.
Order Confirmation Page
Once a customer successfully completes the checkout process, they will typically click a button
on the last page or step that says, “Place Order,” “Complete Checkout,” or something similar.
Make sure that the text of this button is very clear so that customers understand that they are
completing the transaction.

Once the order has been processed (meaning your server has received credit card information
and the order details), a confirmation page should be displayed that contains the following
information:
o “Thank you for purchasing” statement
o Order number
o Review of what the order contains and the price
o Estimated shipping dates and tracking information
o What the next steps are (e.g. if future e-mails will be sent when the order is
processed and/or shipped) and what customers should do if these steps are not
followed
o Links to important site pages (FAQ, customer service, etc.)
o Links to related products
o Link to feedback surveys
o Company information (logo, tagline, etc.)
o Contact information (e-mail addresses and telephone numbers) for customer
service, technical support, and any other relevant department(s)
This information should also automatically be sent as an e-mail to the customer immediately.
Know what is required in the areas that you operate. Many countries have rules detailing when
confirmation must be sent and when products must be shipped.

Additional Site Elements
Introduction
In addition to the pages that will sell products to your customers, there are several other types
of pages that you should include on your website. These pages should be easy to access, usually
through a footer area at the bottom of the website.
Here is an example from U.S. personal care company Bath and Body Works.
Contact Page
Always have a page with your company’s physical mailing address; relevant e-mail addresses
(such as generic addresses for customer support, account inquiries, and sales); telephone
numbers (including a toll-free line); and fax numbers. You should also have a contact form that
customers can fill out and submit right from the website.
Some sites also choose to have a live chat option so that customers can talk to a customer
service representative right from the website. If you choose this option, make sure to choose a
secure service and to have it monitored 24/7.

Frequently Asked Questions
Compile a list of frequently asked questions and your responses to them, such as return policies
and guarantees. Most sites have a list of questions at the top of the FAQ page that are linked to
the specific answer on the page.
Testimonials
Having a page with testimonials from real customers can boost customers’ trust and confidence
in you. This can be displayed as a single generic testimonials page, or as reviews on each
product page.
Privacy and Information Gathering Policies
Always have your information policies easily accessible to customers. (In many parts of the
world, this is required by law.) Tell customers what data you are gathering, how it will be used,

and if it will be shared. As well, if they provide an e-mail address, mailing address, or telephone
number to you, you cannot send them information unless they specifically request it.
(See Session Fourteen for more information on privacy and data gathering.)
Shipping Options
Some customers want to know what shipping options to various regions are available before
they start shopping. You may also want to include information on gift wrapping and gift
shipping.
Order Information
Provide links where previous customers (who may or may not have an account) can view and
manage previous orders. Keeping a secure database of past orders (so that customers can see
what they purchased from you previously) is also a good idea.
Member Information
If you have a loyalty program, provide a page that outlines its benefits as well as access to a
members-only area and a sign-up form.
Social Media Integration
Last but not least, give customers an easy way to visit your social media sites and to share your
site with their friends through their own social media accounts. Many e-commerce businesses
are starting to build social media into the checkout process, so that customers can tell their
friends about their purchases right from your site.
What other types of pages would you want to include in a permanent footer area?

Pre-Assignment Review
Consider the information in your Pre-Assignment. From this information and the information
presented in this course so far, draw up a list of your top 10 do’s and don’ts for online stores.

Session Six: The Finishing Touches
Your plan is in place, your website is built, and you feel like you’re ready to put your store
online and open its virtual doors to customers. But wait! Are you really ready?
In this session, we’ll talk about some ways to test your site before making it accessible to the
public. We’ll also talk about ways to ensure a successful launch as well as post-launch testing
procedures. To wrap up the session, we’ll ask you to usability test a real-life e-commerce site.
Testing, Launching, and Updating
Pre-Launch Testing
Usability Testing
Once you have your site set up, test it on a variety of platforms and devices. Send it to trusted
friends and mentors, too. Ask them questions like:
o How many clicks does it take you to find our page about…?
o How long did a particular page take to load for you?
o How effective is our search tool?
o How long did it take you to purchase a product, from finding it to checkout?
o Were you able to find support information?
o What parts of the website worked well?
o What parts of the website did not work well?
What other items would you add to this checklist?
As well, have someone who is a great speller and has a good eye for detail review your site for
spelling errors, design errors, broken links, etc.

Optimization Tools
You can also use automated tools to check the integrity of your website. This is particularly
effective for making sure that all pages are linked properly and that the structure of the site is
sound. Some commonly used tools include:
o Optimizers built into web design and e-commerce suites
o W3C Validator (http://validator.w3.org/)
o Google PageSpeed (https://developers.google.com/speed/pagespeed/)
Once you have implemented the feedback from all the various tests, it’s time to make the site
live.
Launching the Site
If possible, we recommend launching a test version of the site before the full release. If no one
has the site address, it should stay hidden from customers (since it usually takes several days
for search engines to index it). This will give you a chance to do some real-world testing and
make any final adjustments before the site is in the public eye.
As well, timing can be everything. Consider the best time of year as well as the best date and
time to launch your store. For example, if you’re selling university textbooks, launching your
site in the middle of the semester might not be the optimum time.
Post-Launch Testing
Monitor your site closely post-launch. Watch analytics (which we will discuss in Session Ten),
listen to what customers are saying, and adjust the site accordingly. Do not launch the site and
then get on a plane where you will be inaccessible for many hours. (It seems self-explanatory,
but we’ve seen it happen!)
Continue to test your site after it has launched. Links can get broken, pages can stop displaying
correctly, and new devices sometimes don’t work as we expect them to. Stay on top of possible
problems and fix issues before they become a major impediment to your success.
Split and Multivariate Testing
The best e-commerce businesses continually make adjustments to their site, test the results,
and make design changes based on the feedback received. Something as simple as the text on a
button or the placement of a link can have a huge impact on your conversion rate.
There are two main types of testing. The first is split testing, where you create two or three
versions of a page, send customers randomly to each page, and track the results (in terms of
clicks, length of time spent on page, etc.). The winning page then gets tested again with
different elements.

Although this type of testing is usually easy to set up and monitor, it can be time-consuming.
Multivariate testing can help automate the testing process and test multiple elements of the
same page at the same time. This is usually done through specialized software.

Making Connections
Review this list of usability test questions and add to it as appropriate:

o How many clicks does it take you to find our privacy information page?
o How long did the Contact Us page take to load for you?
o How effective is our search tool?
o How long did it take you to purchase a product/service, from finding it to checkout?
o Were you able to find support information?
o What parts of the website worked well?
o What parts of the website did not work well?
o Did you find any spelling or grammatical errors?
o Did you find any broken links?
Choose an e-commerce site and answer the usability questions. You do not have to complete
the checkout process but should go as far as you can without completing the transaction.
Here are some sites that you can use for the test:
o Acklands Grainger (https://www.acklandsgrainger.com)
o Kameleon Jewelry (https://kameleonjewelry.com/)
o Lush Cosmetics (https://www.lush.co.uk/)
o Tesco (http://www.tesco.com/)
o Think Geek (http://www.thinkgeek.com/)
o Travelocity (http://www.travelocity.com/)

Session Seven: Creating an Engaging User Experience
Milton Hershey, founder of the famous chocolate brand, once said, “Give them quality. That’s
the best kind of advertising.” Even though he lived before the Internet was invented, those
words still remain true.
In this session, we’ll talk about how quality content and responsive design can help you engage
users, drive traffic to your site, and ultimately build your business. We’ll also talk about how to
build relationships with your customers and leverage social selling.
Designing Engaging Web Content
When designing your e-commerce site, remember that your purpose is to help users achieve
their goal (purchase a product, read reviews, download a report, etc.) as quickly and efficiently
as possible. Let’s look at some ways that we can design content that keeps readers on the site
and engages them with the brand.
Design Do’s and Don’ts
When designing your website, focus on keeping it simple and easy to read. That means:
o Using grid-like layouts that focus the reader’s eye on what’s important
o Breaking up text into chunks that are easy to scan and help your visitors find what
they are looking for
o Using graphics, images, audio, video, and interactive widgets to appeal to different
types of visitors
o Using a minimum number of complementary colors that suit the brand and the
audience
o Using fonts that are easy to read
o Creating a consistent structure that includes menus, categories, and search boxes
o Making sure that pages load quickly
o Building in ways for visitors to interact with you and each other
Making Connections
Visit a few websites and consider what works and doesn’t work in terms of the design of each
site. Here are some examples that you can use.
o Gates N Fences (http://www.gatesnfences.com/)
o Mountain Dew (http://www.mountaindew.com/)
o Irish Wrecks (http://www.irishwrecksonline.net/)
o Tinke (http://www.zensorium.com/tinke/)
o Spokes Pedicabs (http://spokespedicabs.com/)


Site Design Elements That Work Design Elements That Don’t

Work

Use Dynamic Pages
Visitors and search engines love content that is new, fresh, and relevant. In addition to keeping
your site up-to-date with new articles, posts, and product features, you can use dynamic page
generation features in your website hosting suite to generate unique pages on the fly. Dynamic
pages can also be customized per user to reflect products that they have looked at before or
terms that they have searched for.

Leverage User-Generated Content
Another great way to engage users is to encourage them to create their own content. Some
ways to do this include:
o Contests for user submissions (for example, a recipe website might have a contest
for the best apple pie recipe)
o User forums
o Ability for users to leave comments on articles and posts, or to review products
o Guest bloggers
o Easy-to-use widgets that allow users to share your site on their social networks
What types of user-generated content does your favorite website use?
Use Responsive Web Design
Responsive web design attempts to automatically optimize sites for all platforms, adjusting the
resolution and display to create a better experience for the user based on o what type of device
they are using. It uses the following tools to achieve this:
o Flexible grid-based layouts
o Flexible images and media
o Media queries (allowing the page to use different cascading style sheet layouts
based on the device and browser that is being used)
Responsive web design is more technical, but it can give your e-commerce site wider
accessibility and visibility. It is also usually more aesthetically pleasing and creates better
engagement with visitors.

Building Relationships
E-commerce customers won’t be fooled, cajoled, or bullied into buying products. In order to be
successful, you need to build relationships with customers to bring them to your site and to
ensure that they will remember you when they are ready to buy.
To do this, you can use these strategies.
Building Credibility
The Internet is full of information, but it can be hard to know what’s valid and what’s not.
Develop credibility on your site by writing in-depth articles, citing your sources, and linking to
them. As well, share your expertise and credentials.
Be very careful when re-using content from other sites. Text, images, audio, and video
presented on the Internet are usually copyrighted. Always get reprint permission in writing and
cite the original source when re-posting content. Alternatively, share the relevant content right
from the author using social media.
Positive Emotional Drivers
Successful e-commerce copy gives visitors a positive feeling about using the brand. It may also
give a negative connotation about not using the brand.
Have you seen websites use phrases like this?

o Start feeling better today with our vitamin-rich meal replacement solution.
o Don’t be fooled by the other guys… get the real deal today.
o Make the smart choice!
o Help a child in need by donating today.
These are examples of emotional drivers that are designed to generate the most-wanted
response. (Remember, the most-wanted response, or call to action, is the website’s goal. They
might want visitors to donate to a charity, purchase a product, or download an e-book.)

Touchpoints
Give customers a way to make a human connection to the brand. One way to do this is to have
audio, photos, and videos of the business owner, employees, and customers throughout the e-
commerce site. They might be talking about how they use the product, behind-the-scenes
information about the company, or something relevant to the industry.
For example, Think Geek has a Customer Action Shots section where you can see pictures of
their products in use.
Social Selling
We tend to work with what works. We look at best sellers, best practices, and ideas that are
endorsed by other people because if it works for them, it just might work for us. To leverage
this online, e-commerce sites often show customers what their Facebook friends bought, or
offer opportunities for customers to share their purchases on their social networks.

Here is an example from Think Geek.
Personalization and Customization
Customize the user experience as much as possible. By tracking click history, analyzing
customer profiles, and using cookies, you can create a personal experience for every visitor to
your site.
Amazon does this extraordinarily well. To begin, they welcome visitors to their site by name.

They also offer recommendations on almost every page based on the visitor’s past browsing
history and what others have purchased.
Some sites go even further, allowing the user to change the font size, language, and/or color
scheme, and then saving those settings in a cookie or in the user’s account.
(Although browser tracking tools are commonly used in North America, they are not legal in all
areas of the world. See Session Fourteen for more information on privacy laws.)

Making Connections
Think of some sites that demonstrate engaging web content and a relationship-building
focus. List the specific engagement strategies that the site uses.
Here are some ideas:

o Doritos (http://www.doritos.com/)
o Weight Watchers (http://www.weightwatchers.com/)
o NatureScapes (http://www.naturescapes.net/)
o MailChimp (http://mailchimp.com/)
o TechCrunch (http://techcrunch.com/)
o Team Coco (http://teamcoco.com/)
(Please note that Velsoft provides the sites listed above for reference purposes only and does
not endorse any of the listed sites. These links were accurate at the time of publication.)

Session Eight: Transaction Management
Of course, your customers will need a way to pay you for the products that they order. How do
you usually pay for your online purchases?
In this session, we’ll cover the major ways to pay for products online: credit and debit cards,
online payment systems, mobile payment systems, digital cash, and cash/check on delivery.
We’ll also talk about the details of each method as well as where each type is most commonly
used.
Introduction
Obviously, an e-commerce site needs a way to process payment from its customers. The
methods that you choose will depend on where your business operates from, where your
customers live, and what type of business you’re operating. Let’s look at some of the most
popular options.
Credit and Debit Cards
What They Are

The most common option offered by e-commerce businesses is for users to directly enter their
credit or debit card information on the site to pay for a purchase. If you offer this option, be
familiar with fees charged as well as what security protocols are used and how data is stored.
Popular Credit Card Merchant Providers

Some providers of this service include:
o WorldPay
o SagePay
o Moneris
o Most major banks
Where They Are Used

Credit card payments are most frequently used in e-commerce transactions in:
o Latin and North America
o Western and Central Europe
o Australia
o South Korea
Debit card payments are most frequently used in e-commerce transactions in:
o France
o Russia
o India

Online Payment Systems
What They Are

These types of services act as an intermediary between consumers and businesses. Users
register their credit card or bank account with the service and then provide the service’s
information to a website when they want to purchase a product online. Some users prefer this
method since their sensitive information is only provided to one company rather than a number
of different sites. As well, online payment systems have the resources to build and maintain a
secure network and payment process. This can provide better security and peace of mind for
customers.
Popular Online Payment System Providers

Some examples of this service include:
o PayPal
o Bill Me Later
o Google Wallet
o Nochex
Where They Are Used

Online payment systems are most frequently used in e-commerce transactions in:
o North America
o Central Europe
o China
o Middle East
Mobile Payment Systems
What They Are

Mobile payment apps allow users to use their smartphone like a wallet, using an app or near-
field communication (NFC).
Popular Mobile Payment Systems

Currently, the most popular NFC payment system is Google Wallet. This service is also offered
by some major companies, like Starbucks.
Where They Are Used

Mobile payment systems are most frequently used in e-commerce transactions in:
o United Kingdom
o New Zealand
o Africa
o Japan
o Europe

Digital Cash
What It Is
This relatively new form of payment is referred to as decentralized currency, since it is not
controlled by a central bank or regulator. Although few online retailers currently accept digital
cash payments, it is becoming more popular.
Digital Cash Systems

There are two main types of digital cash as of this writing:
o Bitcoin
o Ukash
Where They Are Used

Digital cash is still emerging and does not yet represent a significant percentage of e-commerce
transactions.
Cash on Delivery or Check by Mail
What It Is
Some online businesses offer users the option to pay with a check via mail, or via cash when the
product is delivered. This option is commonly offered if a business allows customers to call or
fax in their orders. Some customers prefer this method over entering their credit card
information on the Internet.
Where They Are Used

Cash and check payments are commonly used in:
o Mexico
o Japan
o Russia
o China

Session Nine: M-Commerce
The term “m-commerce” refers to commercial transactions conducted using tablets or

smartphones. It is the fastest growing e-commerce sector, with a current growth rate of about
50% per year. Have you purchased products from your tablet or smartphone recently?
In this session, we’ll learn who the top m-commerce retailers are and what they are doing that
sets them apart from the competition. We’ll also look at trends in the mobile arena, particularly
at wearable devices like smartwatches. As you work through the material, consider how you
might be able to incorporate m-commerce into your e-commerce business.
The Growth of Mobile Commerce
Mobile devices such as tablets and smartphones are making the Internet more accessible than
ever, particularly in developing regions of the world. Internet World Stats estimates that there
were 6.8 billion mobile phone subscribers in 2013, representing about 96% of the world’s
population.
Commercial transactions conducted using tablets or smartphones are referred to as mobile

commerce, or m-commerce. According to eMarketer, in 2013 United States m-commerce
generated $39 billion, about 15% of all retail e-commerce (including travel). That number is
expected to grow to $109 billion (22% of the projected retail market) by 2017.
Top M-Commerce Retailers
According to Internet Retailer, the top 10 U.S. m-commerce retailers (including travel) in 2013
were:
1. Amazon ($4 billion in sales)
2. Apple ($1.17 billion in sales)
3. Marriot International
4. Orbitz
5. QVC
6. Wal-Mart
7. Hilton
8. Easy Jet
9. International Hotels
10. Expedia ($204 million in sales)

Strategies for Success
We can learn a lot from these top m-commerce players. The strategies they have used to be
successful include:
o Mobile search engine advertising
o Well-designed mobile apps
o Using responsive web design to make mobile sites user-friendly and easy to access
o Consistent branding and presence across all channels and platforms (since many
people use multiple devices at once)
o Focusing on the needs of customers and personalization
What Does the Future Hold?
In the coming years, mobile devices will become more wearable and personalized. As of this
writing, Google Glass is beginning to take hold. As well, a number of smartwatches are widely
available and more brands are joining the market every year. E-commerce businesses will need
to watch these trends and adjust their strategies in order to stay on top of m-commerce
growth.

Session Ten: E-Commerce Analytics
Successful e-commerce businesses track every aspect of their site, identify areas for
improvement, tweak the site’s features, and test again. As you launch your e-commerce site, it
can be helpful to have a data management plan in place and to know what tools you will use to
gather and track information.
In this session, we’ll discuss some key metrics that all e-commerce businesses should track,
including conversion rate, bounce rate, and shopping cart abandonment rate. We’ll also show
you some tools that you can use to track these metrics and evaluate trends.
Key Metrics
Introduction
The most successful e-commerce sites track every aspect of their site, analyze the data, and
make changes based on the results. Some major sites do this constantly, tweaking their website
on an hourly basis.
Here are some of the key metrics that all e-commerce businesses should track.
Overall Site Metrics
First, let’s look at some metrics that can be measured for the overall site and its individual
pages.
Visitors and Views

Track how many unique visitors you have per day, week, month, and year. As well, track what
percentage of visitors are new and what percentage are returning. (Ideally, you want a balance
of both. Lots of new visitors means that you are successfully driving traffic to your site. Lots of
returning visitors means that your content is successful in bringing people back to the site.)
You should also track the number of views and visitors per page so that you can see where
traffic is growing and declining. You may want to segment your visitor statistics further (where
possible) by demographics like age, gender, geographical location, etc.
Conversion Rate
This is the most important metric for an e-commerce business: what percentage of visitors to
your site actually buy a product? To obtain this number, divide the number of unique visitors by
the number of orders for a particular period.

For example, let’s say that 100 people visited a website and 10 people purchased a product
from it. That’s a conversion rate of 10%. (The average conversion rate for most e-commerce
sites is about 4%.)
Bounce Rate
This measures the number of people who visit one page on your site and then leave without
visiting any other pages. A high bounce rate indicates that visitors do not find your page
relevant or cannot find what they are looking for.
Duration/Stickiness
This metric measures how long visitors stay on each page and on the site as a whole. Typically,
the longer the user stays on the site, the more likely they are to complete a purchase.
Shopping Cart Metrics
It is also important to track various aspects of your shopping cart and checkout processes.
Continually optimizing the checkout experience should increase sales and improve your
conversion rate. Let’s look at the three most important items.
View-To-Cart Ratio
Track how many products are viewed and how many of those products are actually added to a
shopping cart. This is especially effective if you test different product pages and/or different
“Add to Cart” or “Add to Basket” buttons.
Checkout Conversion Rate/Abandonment Rate

How many visitors who start the checkout process actually complete it and place an order?
Conversely, how many visitors abandon their shopping cart before or during checkout? (As
discussed in Session Five, customers can abandon their shopping cart for any number of
reasons, many of which are not even related to your site. In some cases, the shopping cart
abandonment rate can be up to 80%.)
In addition to the overall checkout conversion rate, you should analyze each checkout step to
see where customers are dropping out. This will show you where you need to streamline and
optimize the process.
Average Order Size

Track how many items are in each order and what the overall value is. This can give you
valuable information for things like promotions and price changes.

Tracking Referrers and Keywords
Last but not least, pay close attention to where your visitors are coming from. What sites are
effectively driving traffic to you and which are not? This can help you assess how well various
campaigns are doing and where your time and money is best spent.
Consider if there are other metrics that should be added to this list.

Tools to Track Data
In general, there are four types of tools that you will use to track your website’s metrics and
analyze the data.
Web Hosting Data
All web hosting sites should be able to provide you with basic traffic information, such as
visitors and views, traffic sources, and trends. This is usually presented as a dashboard that you
can access online.
Here is a sample dashboard from Tableau.

E-Commerce Management Tools
As well, your e-commerce management software should have a built-in dashboard. It should
give you at-a-glance information about your products, orders, sales, and customers. It may also
provide tools for marketing campaigns and other supporting features for your e-commerce
business (such as inventory or staff management).
Here is a sample e-commerce dashboard from Volusion. We’re viewing the main dashboard,
but you can see other dashboard categories at the top.

Note: If you’re using an online service, your web hosting and e-commerce data will probably be
accessible from a single, integrated dashboard.
Customer Relationship Management Systems
Depending on the size of your business, you may also be using a customer relationship
management (CRM) system. These systems combine data from a variety of sources (like the
customer’s online profile, in-store purchases, social media interactions, app downloads, etc.) to
build detailed profiles of each customer. This allows you to customize your website, user
experience, and marketing strategies to precisely target your ideal customer.
Third Party Tools
In addition to all of these systems, you may use third-party tools. For example, you may use
Google AdWords for search engine and keyword optimization, which drives traffic to your site.
There are also many online analytics sites that focus on particular social media networks, like
Twitter and Facebook, and services that provide analytics on every aspect of your site (like
Google Analytics and Woopra).
A Final Note
Data analysis can be expensive in terms of both time and money. We recommend that new e-
commerce business users start out with the tools provided by their web host and e-commerce
platform, as well as Google AdWords. Determine what metrics are most important for you to
track. Then, set up a system for tracking those numbers, analyzing them, and adjusting your site
as necessary. (You will need about 100 visitors per day for three to six months to have an
accurate sample.)
Once you have the basics in place, you can start to optimize your systems and perhaps add
other tools. Eventually, you may find that you need someone assigned to this task full or part
time.

Making Connections
Visit one of the demo e-commerce sites that participants set up in Session Four. Explore the
analysis tools that are available and look at the data that can be tracked with them. Consider
how these tools could be used on a day-to-day basis to manage and optimize an e-commerce
business.

Session Eleven: Supporting Your E-Commerce Business
There is a lot more to an e-commerce business than just setting up and running a website. Have
you considered what other processes you will need to put in place to take care of the day-to-
day, behind the scenes activities?
In this session, we’ll explore the four key supporting areas of an e-commerce business: product
management, sales and marketing, customer service, and post-fulfillment. Feel free to
customize the list of activities for each area to reflect what your business is all about.
Making Connections
There are many activities that take place behind the scenes of a business to ensure the success
of its day-to-day operations. Let’s look at the four key areas and some of the most common
activities that you will need to consider.
Product Management
o Source or create the product

o Design and implement pricing strategies in conjunction with the marketing team
o Manage stock and inventory levels (if you are selling a physical product)
o Maintain downloads area of website (if you are selling a virtual product)
o Manage and maintain inventory systems
o Ship products to customers
o Optimize delivery costs and systems
Sales and Marketing
o Design and implement pricing strategies in conjunction with the product

management team
o Implement the marketing plan (e.g. blog, newsletter, etc.)
o Manage social media pages
o Manage promotional offers
o Monitor and manage keywords and SEO data
o Analyze all marketing data and improve strategies based on the results
o Use split and multivariate testing to continually improve website
o Conduct sales activities in accordance with sales plan (if you need salespeople)

Customer Service
o Monitor e-mail, virtual chat, social media, and telephone channels

o Respond to customer inquiries as soon as possible
o Share feedback with other teams to improve customers’ experience
Post-Fulfillment
o Ensure that guarantees and return policies are clearly advertised on the website
o Ensure that relevant rules and regulations are followed
o Handle returns and refunds
o Work with other teams to reduce return rates
o Optimize return costs and processes

Session Twelve: Marketing Your E-Commerce Business
Gary Vaynerchuk once said, “Content is king, but marketing is queen, and runs the household.”
After all, if you have great content but no one can find you, your business will not be a success.
In this session, you will learn about the marketing cycle and the essential elements of a
marketing plan. We’ll also talk about different marketing channels that you can use (such as e-
mail and mobile marketing), with a focus on social media marketing. To wrap things up, we’ll
share some tips for creating promotions that will generate customer interest and income.
Creating a Marketing Plan
The Purpose of the Plan
So far, we’ve covered the ins and outs of planning, designing, and launching an e-commerce
site. Now, it’s time to consider how you will market your online business. Marketing processes
may vary in terminology or stages depending on the material you read, and they may include
more or fewer steps than this session will cover. What is common, however, is that marketing is
a cyclical process, and it uses very particular terms. We will also use those terms here so that
you can plan, speak to, and perform these functions within your business.
Your marketing plan may undergo many revisions until all stages work effectively. This
frustrates people who do not like working in a fluid state, or have trouble dealing with change.
As a result, you may need to seek help from marketing professionals who love their work and
have a strong track record.

Cycle Overview
Marketing uses the following steps:

Looking at the Steps
Let’s take a closer look at each of the steps in the marketing cycle.
Stage One: Consumer and Market Analysis

This stage involves the following elements:
o Considering who your customer is and what they need
o Grouping target customers into segments
o Outlining the buying process for your product or service
Stage Two: Analyzing the Competition and Yourself

In this stage, you will want to ask the following questions of your competition and yourself:
o What are your advantages?
o What are your core competencies (the things you do well)?
o What are your weaknesses?
o Where are your shortcomings?
o What can you do to capitalize on your strengths?
o What can you do to exploit the competition’s weaknesses and shortcomings?
A SWOT analysis can help you address each question in the list above. SWOT stands for
strengths, weaknesses, opportunities, and threats. It is a method of analyzing external factors
(opportunities and threats) and internal factors (strengths and weaknesses) in a methodical
way.
Once you have gathered this information, you can identify:

o How to position your services to play to your strengths
o Ways to lessen the impact of the competition
o What makes your services unique
o Key aspects of your brand
Stage Three: Analyzing Distribution Channels

Consider how you are going to get your product or service to your client. Will your product or
service be completely virtual or will you need warehouses and delivery services? Consider the
costs at each step of the delivery process, including bandwidth and hosting fees.
Stage Four: Creating a Marketing Plan

Your marketing research gets applied in a marketing plan based on the P’s of marketing:
product, price, place, promotion, and packaging. All of these P’s influence the sixth P: the
positioning of your product or service (how it compares to similar products from other
companies).

Stage Five: Implement the Plan

Now it’s time to test out your marketing plan. If possible, do a limited trial run before the full-
scale launch.
Stage Six: Evaluate, Review, and Revise

You may recall that earlier we said that marketing is a cyclical process. At any time in the cycle,
the marketer can be forced to return to an earlier stage to remedy some kind of problem. Even
if things appear to be going well, take the time to closely look at what you are doing and how
effective it is.

Essential E-Commerce Marketing Channels
There are four main channels that you may want to consider as part of your e-commerce
marketing strategy. Let’s look at the first three elements and how you can leverage each as a
marketing tool.
Web and Mobile
Your website will be your home base for your e-commerce business. We’ve already talked
about what you need to engage customers and keep them on your site: dynamic, engaging
content; an aesthetically pleasing design; and easy-to-use navigation tools. You also need to use
search engine optimization techniques to generate traffic and bring customers to your site.
Another element of your web presence is a blog related to your business. If well done, a blog
can contribute to search engine optimization, increase traffic to your site, and build visitor
engagement.
Your mobile presence is also part of this category. Consider:

o How will your website (including shopping cart and checkout features) work on
tablets and smartphones?
o Can you optimize your site so that it loads quickly on mobile connections?
o Will mobile apps provide convenient features for customers and increase your
market presence?
E-Mail
E-mail marketing is the second element of your e-commerce presence. This can include regular
newsletters, e-flyers, updates, and special deals or perks for members.
Most countries have very strict regulations about who you e-mail and what the e-mail contains.
For example, in most regions of the world, you must have customers’ permission (called opting
in) in order to e-mail them information and not have it considered spam. As well, many
countries have anti-spam legislation that requires you to give customers a clear way to
unsubscribe from your e-mails (called opting out) right in the message.

In addition to an “unsubscribe” link, it’s also wise to include a link to manage account settings,
as well as company and social media information. Here’s an example of a great e-mail footer
that covers all the bases.
Offline Media
Don’t forget about traditional marketing methods. Consider how trade shows; print, radio, and
television ads; and offline marketing campaigns can support your e-commerce marketing
strategy.

Marketing with Social Media
The Final Element
The final element of your e-commerce marketing strategy is your social media strategy. We
highly recommend that all e-commerce businesses join Facebook and Twitter, but in the end
you should choose the platforms that make sense for your business. It’s also important to have
a strategy about what kind of presence you’re going to build on each platform, and then
implement it, evaluate the data, review the results, and tweak your approach. Remember, your
primary goal on social media is to build relationships and engage customers.
With that being said, however, many social media sites include tools that you can use to share
deals with customers and give them another way to buy your product. Let’s look at a few
examples.

Facebook
For example, Facebook has a number of apps and services that you can use to create offers for
your customers. Here’s an example of a non e-commerce business (a restaurant) offering a
meal coupon.

There are also Facebook apps that will allow you to add a “Buy Now” link to a post.
This can also be achieved through built-in apps that keep the user on the Facebook website, like
this one from Groupon.

Twitter
While Twitter doesn’t yet offer direct e-commerce features, it is perfect for sharing coupons
and deals. For example, JetBlue has a special JetBlue Cheeps account that tweets deals on last-
minute flights.

Pinterest
Last but not least, as of this writing Pinterest is starting to add more e-commerce features using
rich product pins. Below, you can see a product that is on sale and in stock at Neiman Marcus
for $280. Links at the top of the pin allow users to visit the site and share this product, as well
as pin it for later use.

Making Connections
Think of some successful social media marketing campaigns you have seen recently. Try to list
at least six. Use the space below to record the list of successful social media marketing
campaigns. Which campaign do you think was the most effective?

Creating Promotions that Make You Money
Introduction
Just as with a traditional bricks-and-mortar store, offering customers a deal, coupon, or special
offer can increase your sales and boost traffic to your site. However, in order to see results from
this campaign, you must plan, implement, and evaluate it just as you would any other
marketing strategy. Let’s look at the steps involved in a successful offer campaign.
Step One: Set the goal.
What do you want to achieve with this campaign? Do you want to…
o Generate interest in a new product
o Increase traffic to your site by a certain percentage
o Reward loyal customers and increase your rate of returning visitors
o Increase sales for an existing product by a certain amount
Step Two: Determine the details.
Now, decide exactly what you are going to offer and how you are going to offer it. Here are
some ideas to get you started.
General Markdowns
Just as in regular stores, you can also put items on sale for a particular period of time. Clearly
advertise the percentage off and when the sale ends. Some websites use a counter to
communicate this:

Lead-In Product Offer

Another popular type of promotion is to offer customers a particular product at a discount or
for free when they purchase another product. Have you ever watched an infomercial that urges
you to order in the next 20 minutes to get an additional product ABSOLUTELY FREE?
Discount Codes
Discount codes are one of the most popular promotion types. As well, they are easy to set up
and manage. You might offer all customers a limited-time code to give them free shipping, a
post-purchase discount code for a percentage off the customer’s next order, or a physical
coupon mailed with the product that gives customers a special perk on their next purchase.
Discount codes can be set up through your e-commerce suite, or you can use a third-party
service.
Bundling
You can also bundle products together and offer them at a discount. Be sure to consider the
total cost to you and the total revenue so that you are still making money off of the bundle.

Here’s a great example of this type of promotion from a skin care company.
Social Promotions
Finally, you can also leverage social media to encourage your customers to share your product
with their friends and followers. You might offer customers five dollars off for every friend that
they refer, or give them a coupon that they can share with others. Be sure to track each coupon
so that you can analyze the results in detail.
Step Three: Set Up the Promotion.
Now it’s time to set up the promotion and analysis tools. For most campaigns, this will mean
modifying your site to reflect the new deals (which you should easily be able to do with most e-
commerce management suites). If your e-commerce suite does not offer the ability to set up
and manage discount codes or promotions, there are third-party websites that can do this for
you.

When advertising the promotion, be very clear about the fine print and what customers need to
do to receive the deal. As well, clearly state when the promotion begins and ends, and (if
applicable) when coupons and codes expire.
Step Four: Launch.
It’s time to put your promotion in action. Make sure that it launches and finishes as advertised.
As well, make sure that everyone in the company is aware of the promotion and its fine print.
Check and double-check your website and social media pages to make sure that everything is
correct and consistent.
Step Five: Evaluate and Analyze.
Once the promotion has finished running, remove it from your website and all social media
pages. If appropriate, you may want to thank customers who participated. Then, review the
data as well as customer feedback (and feedback from employees, if applicable). Determine
what worked well and what you would do differently the next time. As well, evaluate the lasting
impact on your business. For example, perhaps you now have 5% more visitors to your website
on a daily basis, or obtained 100 more Facebook likes.

Session Thirteen: Security and Fraud Awareness
Major security breaches like Heartbleed, Stuxnet, and the Red Button attack have highlighted
how vulnerable information systems and the data contained within them can be. As a business
owner, you have a responsibility to protect your data and the information that your customers
share with you.
In this session, we’ll discuss your responsibilities to customers and how you can keep them safe
while they are using your site. We’ll also talk about credit card security and intellectual
property rights. Please be aware that the information provided in this session is intended as a
guideline to general rules and regulations; specific laws may vary by region.
Protecting Your Customers and Your Business
Your Responsibilities to Your Customers
As a business owner, you have a responsibility to your customers to protect their information
and to ensure their safety when using your e-commerce services (whether it is through your
site, a partner’s site, or your mobile app). This includes:
o Protecting their personal and financial information
o Ensuring that your site and its contents are free of malware, spyware, and viruses
o Certifying that the information that customers are seeing is indeed from your
business
o Ensuring that the information processed by your e-commerce services is only
accessible to the appropriate parties
o Being transparent about your data collection and privacy policies
In order to fulfill these responsibilities, you need to know:

o How data is transmitted, stored, and protected in all systems that your business
uses
o What security services are in place throughout your site and the processes that it
uses
o What legal regulations and codes of practice govern your industry and your
jurisdiction
Building Trust with Customers
Customers will not purchase from a site that they feel is not secure. You can reassure them by
using Secure Sockets Layer (SSL) protocols in all areas where customers enter personal or
financial information. This is indicated by the prefix “https.” Most browsers also display a

padlock icon when a secure site is being viewed. It is also helpful to include clickable logos that
tell the customer what services are being used to protect their data.

Here is an e-commerce website that includes all of these features.
What security features do you look for when purchasing a product?
Your Responsibilities to Your Business

You also have a responsibility to protect your business’ information. When using hosted
services, be clear about who has access to your data. Ensure that secure passwords and
individual accounts are used so that you can easily see who made what changes. Safeguard
your account information just as you would banking information.
To protect yourself against fraud, you should also implement verification systems to ensure
that billing information is valid. There are two basic automated verification techniques that are
used by most service providers.
o The first system is address verification. This ensures that the billing address entered
in the order is the same as the address on file with the company that owns the
credit card used.
o The second system asks the customer to enter a card verification code (usually
located on the back of the credit card). This confirms that the customer actually has
the card in hand and is not entering it off of a bill that they found in the trash, for
example.
Additional services provided by particular credit card brands (like 3D Secure, Verified by Visa,
and MasterCard SecureCode) can offer an extra level of comfort for both you and your
customers. However, it does add an extra step for customers and extra costs for you. Consider
the value offered by the service versus the value of your product.
If you are a small company, another easy way to protect yourself from fraudulent orders is to
call the customer in question to confirm suspicious orders. If the phone number is invalid, send
an e-mail requesting up-to-date information. If you cannot confirm order details, you are within
your rights to cancel the order. Be sure to inform the customer and offer options for re-placing
the order in case you have made a mistake.

Intellectual Property on the Internet
About Intellectual Property
Although intellectual property rules vary around the world, in general the person who creates
content owns it. That means if you create the website “www.acmewidgets.com,” other users
cannot copy the site’s design or content. However, managing and controlling digital information
is extremely difficult.
Copyrights, Patents, and Trademarks
One way to protect your digital work is to register it with the appropriate regulatory group in
your area. There are typically three types of protection that you can apply. The rules for each
type vary by jurisdiction but usually follow these definitions.
o A copyright gives a person the exclusive right to use their own creative work, and to
grant that right to others. For example, digital books are protected by copyright.
o A trademark is a word, symbol, or design that is associated with and assigned to a
particular company or brand. For example, you may establish your business name
as a trademark.
o A patent gives a person exclusive rights over an invention or product.
Fair Use Considerations
In general, you must obtain permission from the owner to use copyrighted or trademarked
content. (For example, toy companies often obtain a license to create products from particular
television shows or movies.) This means, for example, that you cannot use a company’s
trademarks or logo in a testimonial without their written permission. It also means that you
cannot re-post content (such as videos or blog posts) on your site from other sites unless you
get the author’s permission.
With that being said, most jurisdictions have considerations built in for fair use. If, for example,
a blog post includes a quote from a different article (with attribution and a link), that would not
be considered copyright violation. The following principles are typically included in fair use
clauses:
o Whether the copyrighted material was used for profit or for educational purposes
o The nature of the copyrighted material (blog article, poem, etc.)
o The amount of work used
o Whether the reproduction would have a detrimental market effect
o Context of the re-use and media used

Resources
For additional information, here are some intellectual property resources around the world.
This is not intended to be an exhaustive list, but rather a guide to help you find the most
relevant resources in the areas that you operate.
Area Organization Website
Global World Intellectual Property http://www.wipo.int/

Organization
Africa African Intellectual Property http://www.oapi.int/

Organization
Australia IP Australia http://www.ipaustralia.gov.au/
Canada Canadian Intellectual Property http://www.cipo.ic.gc.ca/

Office
China National Copyright Administration http://www.ncac.gov.cn/

of the People’s Republic of China
Europe European Patent Office http://www.epo.org
France National Institute of Industrial http://www.inpi.fr/

Property
Germany German Patent and Trade Mark http://www.dpma.de/

Office
India Office of the Controller General of http://www.ipindia.nic.in/

Patents, Designs, and Trade Marks
Ireland Irish Patents Office http://www.patentsoffice.ie/
Mexico National Copyrights Institute http://www.indautor.gob.mx/
New Zealand Intellectual Property Office http://www.iponz.govt.nz/
Russian Federation Federal Service for Intellectual http://www.rupto.ru/

Property (Rospatent)
South Africa Companies and Intellectual http://www.cipc.co.za/

Property Commission

Area Organization Website
United Arab Emirates Copyright Department, Ministry of http://www.economy.ae/

Economy
United Kingdom Intellectual Property Office http://www.ipo.gov.uk/
United States United States Patent and http://www.uspto.gov

Trademark Office
Intellectual property can be a sticky situation no matter where you work and live. If you have
specific questions or find yourself in a dispute, it is best to consult a lawyer with experience in
that area. Please note that Velsoft provides the sites listed above for reference purposes only
and does not endorse any of the listed sites. These links were accurate at the time of
publication.

Session Fourteen: Rules and Regulations
Many areas that your e-commerce business touches upon (including user privacy,
transportation of goods, sales taxes, and data tracking) are regulated by various agencies
around the globe. Do you know what the rules are?
In this session, we will introduce you to some of the major areas that are usually regulated by
each jurisdiction. We strongly encourage you to seek expert advice about the rules in your area
and how they will impact your business.
Trade Rules and Regulations
Just as copyright and financial regulations vary around the world, so do shipping and customs
regulations. Be very clear about the regulations and what your responsibilities are. Here is a
brief list of items to consider.
Contraband and Restricted Goods
Be aware of what goods can and cannot be shipped, particularly if your products are crossing
territorial or national borders. Products may be legal in one jurisdiction and illegal in another. In
addition, shipping a product outside of its native country may invalidate warranties and
guarantees.
Labeling Requirements
Requirements for product labeling can also vary from one jurisdiction to another, particularly if
it is a regulated or specialty product (such as organic produce or vegan cosmetics). Various
languages may be required on the label. Terminology may be strictly controlled, too.
Transportation Restrictions
Transportation regulations may apply if you are delivering goods, such as the number of hours
that a driver can work per day or travel per week. As well, the transportation of hazardous
materials is often restricted to particular carriers using particular shipping methods, and
sometimes specific shipping routes.
Duty and Taxes
If your products are crossing territorial or national borders, you may need to pay customs fees,
duty, and/or taxes (such as luxury item surcharges). Conversely, some countries have free-trade

agreements which allow goods to move freely. You may also be required to charge sales tax
depending on where you operate from and where your customers live.
Inspection Protocols
Products that are crossing borders (particularly perishable goods) may require inspection and
certification before they are allowed through the border crossing.
What other trade-related rules and regulations have you encountered? A simple example
might be purchases made while on vacation in a different country.

Privacy Regulations
Data Collection Points
Many websites routinely collect a massive amount of data from customers. Sometimes
customers voluntarily provide this data (such as giving your e-mail address when signing up for
an account). Other times, this information (such as browsing history) is provided without the
user’s explicit consent and tracked through cookies and beacons. Some companies even go as
far to catalog publicly available data about their customers, such as search engine results and
social network pages.
Here is a list of the data points that e-commerce businesses usually gather about each
customer.
o First, middle, and last name
o Age
o Gender
o Mailing address (current and past)
o Telephone number
o Workplace and job title
o Social identification number (such as Social Security Number or Social Insurance
Number)
o Credit card details
o Physical profile (e.g. height and weight or photographs)
o Online browsing profile (including devices, platforms, and browsers used)
Global Differences
Privacy expectations and regulations vary widely around the world. In Europe, for example, an
e-commerce business can only gather information and use it for the transaction currently at
hand (unless the customer consents otherwise). In North America, data is widely tracked and
shared.
However, customers everywhere are starting to pay more attention to privacy policies and their
options when it comes to the collection of data. Advocacy groups are pushing regulators and
businesses to be more transparent about what data is collected, how data is stored, who it is
shared with, and what purposes it will be used for.
Know what the regulations and expectations are in the regions that your business targets. Being
ahead of the pack (for example, by promising not to track customers’ web browsing behavior in
an area where this is currently legal) and being transparent about your data collection and
privacy policies may give you an advantage over your competitors.

Consider the rules and regulations that govern your particular jurisdiction, particularly if
there are any special rules or exceptions.

Case Study
StackExchange is a question and answer site that focuses on high-level subject matter, such as
advanced mathematics, programming, and project management. Here is a snapshot of their
privacy page.

The key features on this page include:

o Easy to remember URL (http://stackexchange.com/legal/privacy-policy)
o Commitment to protect personal information
o Summary on the left-hand side with detailed information organized by category on
the right-hand side
o A bit of humor, making the page easier to read
o Definitions of key terms (for example, differentiating personal information from
sensitive information)
o Regulations that the site follows
o What data is collected and how it is used
o What choices users have in various situations (for example, when creating a profile
versus when applying for a job)
o How users can access and modify their data
o What the policy does and does not apply to
o Who to contact with questions (including a specific contact person, e-mail address,
and mailing address)
Have you ever read the complete privacy policy of a website?

Making Connections
Research the following areas of legislation for your geographical region and make notes in
the space provided. If there is no legislation currently in place, you should list items that
could pertain to that area. (You may want to use legislation in other areas of the world as a
guideline.)
Financial Security
User Privacy
Spam
General Cybersecurity

Recommended Reading List
If you are looking for further information on this topic, we have included a recommended
reading list below.
Daniel, Ian. E-Commerce Get It Right! NeuroDigital, 2011.

Godin, Seth. All Marketers Tell Stories. Portfolio Hardcover, 2009.
Halligan, Brian, David Meerman Scott, and Dharmesh Shah. Inbound Marketing: Get Found
Using Google, Social Media, and Blogs. Wiley, 2009.
Holden, Greg. Starting an Online Business for Dummies (7th Edition). For Dummies, 2013.
Laudon, Ken, and Carol Traver. E-Commerce 2014 (10th Edition). Prentice Hall, 2014.
Marshall, Perry, and Bryan Todd. Ultimate Guide to Google AdWords (3rd Edition). McGraw-Hill,
2012.
Moore, Alannah. Create Your Own Online Store in a Weekend. Princeton Architectural Press,
2014.
Sahlin, Doug, and Jan Zimmerman. Social Media Marketing All-in-One For Dummies (2nd
Edition). For Dummies, 2012.
Vaynerchuk, Gary. Crush It! Why Now Is The Time To Cash In On Your Passion. Harper Business,
2013.

Post-Course Assessment
1. Which of the following information should be included on a product page?

a. Product name
b. Good-quality image or video
c. “Add to Cart” link
d. All of the above
2. What does the acronym “C2C” mean when referring to e-commerce?

a. Commercial e-commerce services
b. Cell phone related commerce
c. Consumer-to-consumer e-commerce
d. None of the above
3. What does the “m” in “m-commerce” stand for?

a. Manufacturers
b. Mobile
c. Marketing
d. Monitored
4. True or False: Credit cards are the universally preferred method for paying for online
products or services.
5. True or False: The term “conversion rate” measures what percentage of website
visitors actually buy a product.
6. True or False: Percent-off coupons should not be used in e-commerce businesses.
7. True or False: E-commerce is exempt from all sales taxes.
8. Which of the following statements describes the affiliate marketing revenue model?
a. Selling products or services directly to consumers
b. Receiving money for directing customers to another business
c. Offering products or services via a paid subscription
d. Receiving payment on a transactional basis in return for providing a service

9. What can cause customers to abandon their shopping cart?

a. Site doesn’t appear secure
b. Checkout options are overwhelming
c. Error messages don’t make sense or are confusing
d. Any of the above
10. What type of payment service allows users to register their financial information with
a company and then provide that service’s information when they want to purchase a
product online?
a. Check on demand
b. Digital cash
c. Online payment systems
d. Cash on delivery

Pre- and Post-Assessment Answer Keys
Pre-Course Assessment
1. A: E-commerce means using the Internet (including desktop, mobile, and social
applications) to conduct business.
2. C: It is generally agreed that the first examples of what we know today as e-commerce
began in 1995.
3. D: These are just a few reasons that customers buy products online.
4. True: E-commerce is constantly evolving as new technology and trends emerge.
5. False: Like any other business, e-commerce ventures have potential risks and rewards.
6. D: These are just a few examples of e-commerce businesses.
7. A: We use the word “traffic” to refer to the number of visitors to a website.
8. D: E-commerce encompasses desktop, mobile, and social applications.
9. False: The term “entrepreneur” refers to anyone who owns and operates their own
business, regardless of whether it is online or offline.
10. True: In 2013, it generated $419 billion in the United States alone.
Post-Course Assessment
1. D: Provide as much information on each product page as you can without overwhelming
the customer. One way to do this is to organize the information using tabs or menus.
2. C: In C2C e-commerce, consumers sell directly to other consumers over the Internet.
eBay and Etsy are two common marketplaces that provide these services.
3. B: The “m” in “m-commerce” stands for mobile.
4. False: The preferred method of payment varies widely around the world. Although
credit card payment is preferred in Central Europe, for example, the United Kingdom
uses mobile payments much more heavily.
5. True: The average conversion rate for most e-commerce sites is about 4%, meaning four
out of 100 visitors will complete a purchase.
6. False: Just as with a traditional bricks-and-mortar store, offering customers a deal,
coupon, or special offer can increase sales and boost traffic to an e-commerce site.
7. False: The taxes that e-commerce businesses pay are determined by a variety of factors,
including where the home base of the business is and where its customers live.
8. B: Affiliates receive money for directing customers to a particular business.
9. D: Customers may abandon their shopping cart for any of these reasons. They may also
have never intended to purchase and have simply used the cart as a wishlist.
10. C: This statement describes online payment systems like PayPal or Nochex.

Personal Action Plan
Now that you have completed this course on E-Commerce Management, how will you use the
things you have learned? Creating a personal action plan can help you to stay on track and on
target. When you take responsibility for yourself and your results, you get things done!
In this session, you will be asked questions to help you plan your short-term and long-term
goals. This final exercise is a way for you to synthesize the learning that you have done and to
put it into practice.
I am already doing these things well:
I want to improve these areas:
I have these resources to help me:
As a result of what I have My target date is… I will know I have I will follow up
learned in this workshop, I succeeded when… with myself on…
am going to…


E Commerce - Self Study Guide

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

E Commerce - Self Study Guide

Uploaded by

Copyright:

Available Formats

SELF-STUDY GUIDE

Small Business Training for Entrepreneurs

All rights reserved world-wide under International and Pan-American copyright

Courseware Version: 3.0

How to Use This Guide

 2005-2021, Velsoft Training Materials Inc.

Session One: Course Overview

After you complete this course, you will be able to:

 2005-2021, Velsoft Training Materials Inc.

 2005-2021, Velsoft Training Materials Inc.

 2005-2021, Velsoft Training Materials Inc.

Stage Activities Worked Well/Liked Did Not Work

Finding the product

 2005-2021, Velsoft Training Materials Inc.

1. What does the word “e-commerce” mean?

2. When did businesses first appear on the Internet?

3. Why do customers buy products online?

5. True or False: E-commerce is guaranteed to make you rich.

6. Which of the following is an example of an e-commerce business?

7. Which term is used to describe the volume of visitors to a website?

 2005-2021, Velsoft Training Materials Inc.

8. What online aspects does e-commerce encompass?

10. True or False: The biggest percentage of e-commerce revenue is generated by

 2005-2021, Velsoft Training Materials Inc.

Session Two: Getting to Know E-Commerce

What types of e-commerce have you participated in lately?

E-commerce also offers businesses an opportunity to deliver rich, interactive, personalized

 2005-2021, Velsoft Training Materials Inc.

Why Do Customers Buy Online?

Why do you buy online?

 2005-2021, Velsoft Training Materials Inc.

o Easier to compare prices

 2005-2021, Velsoft Training Materials Inc.

The Six Models

We can break down e-commerce into six major models.

Business to Business (B2B)

Note: We include business to government e-commerce (B2G) in this category.

Business to Consumer (B2C)

 2005-2021, Velsoft Training Materials Inc.

Consumer to Consumer (C2C)

Mobile E-Commerce (M-Commerce)

 2005-2021, Velsoft Training Materials Inc.

The Language of E-Commerce

 2005-2021, Velsoft Training Materials Inc.

Session Three: E-Commerce Building Blocks

E-commerce businesses have many of the same requirements as a traditional business,

What’s Your Goal?

 2005-2021, Velsoft Training Materials Inc.

So ask yourself: what’s your goal?

 2005-2021, Velsoft Training Materials Inc.

The E-Commerce Business Plan

Let’s look at the key elements of an e-commerce business plan.

Many businesses choose a combination of revenue models to maximize their profits.

 2005-2021, Velsoft Training Materials Inc.

Products and Services

Online pricing strategies usually take one of the following forms:

 2005-2021, Velsoft Training Materials Inc.

Many e-commerce businesses are individual, entrepreneurial ventures. However, it’s

As well, consider traditional offline channels such as:

 2005-2021, Velsoft Training Materials Inc.

Choose an e-commerce business from the list below.

 2005-2021, Velsoft Training Materials Inc.

Products and services