COURSE TITLE: E COMMERCE

PAPER CODE: CIT 4203

LECTURER:
TOPIC: Web Based Tools for E-commerce

Objectives:
 Introduction
 Types of E commerce software
 E-commerce platforms
i) SaaS
ii) PaaS
iii) On-Premise Platform
 Importance of Ecommerce software in businesses
 Key features of E-commerce software
 Conclusion

Introduction to E-commerce Software

E-commerce software refers to the various applications and platforms that facilitate online
buying and selling of goods and services. These software solutions play a crucial role in
managing various aspects of an e-commerce business, including inventory management,
payment processing, customer relationship management (CRM), and marketing.

They make it easy to sell products online from your website. Learn more about e-commerce
software and how it works in this guide.

Software for e-commerce comes in different formats, each of which fits your needs and budget.
The size of your business tends to dictate the type of e-commerce website software you choose,
although this isn't an absolute.

You can use Software-as-a-Service, Platform-as-a-Service for your e-commerce, or you can use
an on-premise platform that lets you control the software and server that's used to deliver your
e-commerce website.
The cost of e-commerce software depends on the type of e-commerce business you're running,
the software you choose, how much bandwidth your site consumes, and the functionality of the
software.

The more features you need means you can expect to pay more for software for e-commerce,
but you can spend as little or as much as makes sense for your operation.

Types of E-commerce Software:

1. E-commerce Platforms:

 E-commerce platforms are comprehensive software solutions that enable

businesses to create and manage their online stores. Examples include Shopify,
WooCommerce, Magento, and BigCommerce.

 These platforms provide features such as product catalog management, order

processing, payment integration, and customizable website templates.

 They often offer additional services like hosting, domain registration, and
marketing tools.

2. Shopping Cart Software:

 Shopping cart software allows customers to select and purchase products from
an online store.

 It manages the shopping process by storing selected items, calculating totals,

applying discounts, and facilitating secure checkout.

 Popular shopping cart solutions include Shopify's built-in cart, WooCommerce's

cart plugin for WordPress, and Magento's shopping cart module.

3. Payment Gateways:

 Payment gateways are essential for processing online payments securely.

 They facilitate transactions by encrypting sensitive information and transmitting

it between the customer, the merchant, and the financial institution.

 Common payment gateways include PayPal, Stripe, Square, and Authorize.Net.

4. Inventory Management Software:

 Inventory management software helps businesses track and manage their stock
levels across multiple sales channels.

 It enables real-time monitoring of inventory, automatic restocking, and

synchronization with sales platforms.

 Examples include TradeGecko, Zoho Inventory, and QuickBooks Commerce.

5. Customer Relationship Management (CRM) Software:

  CRM software is used to manage interactions with customers throughout the
sales cycle.

 It stores customer information, tracks communication history, and helps

businesses analyze customer data to improve engagement and retention.

 Popular CRM solutions include Salesforce, HubSpot, and Zoho CRM.

6. Marketing Automation Software:

 Marketing automation software streamlines and automates marketing tasks such

as email campaigns, social media posting, and customer segmentation.

 It helps businesses nurture leads, drive conversions, and measure campaign

performance.

 Examples include Mailchimp, Klaviyo, and Marketo.

7. Analytics and Reporting Software:

 Analytics and reporting tools provide insights into e-commerce performance

metrics such as sales, website traffic, conversion rates, and customer behavior.

 They help businesses make data-driven decisions to optimize marketing

strategies, improve user experience, and increase profitability.

 Google Analytics, Adobe Analytics, and Shopify Analytics are commonly used
analytics platforms in e-commerce.

What are the different types of e-commerce software?

Software for e-commerce is available in three different types. Each type meets different
operational needs and helps you automate sales. All of them enable you to learn how to build
an e-commerce website, make landing pages, list your items for sale, and process payments as
purchases are made.
Software-as-a-Service (SaaS) aaS, or Software as a Service, is a software delivery model in which
applications are hosted by a third-party provider and made available to customers over the
internet. Instead of purchasing and installing software on individual computers or servers,
users access the software via a web browser or API, typically on a subscription basis.

Here are some key characteristics of SaaS:

1. Accessibility: SaaS applications are accessed over the internet, allowing users to access
them from any device with an internet connection. This accessibility promotes flexibility
and remote work.

2. Subscription Model: SaaS providers typically offer subscription-based pricing models,

where customers pay a recurring fee (monthly or annually) for access to the software.
This subscription model often includes updates, maintenance, and support services.

3. Scalability: SaaS solutions are scalable, allowing businesses to easily adjust their usage
or subscription tier as their needs change. This scalability makes SaaS particularly
attractive to startups and small businesses that may experience rapid growth.

4. Automatic Updates: SaaS providers handle software updates and maintenance,

ensuring that customers always have access to the latest features and security patches
without the need for manual intervention.

5. Multi-tenancy: SaaS applications are typically multi-tenant, meaning that a single

instance of the software serves multiple customers. This architecture allows providers to
efficiently manage resources and deliver cost-effective solutions to customers.

6. Integration: SaaS applications often offer APIs and integrations with other software
systems, allowing businesses to connect their SaaS applications with existing tools and
workflows.
 7. Pay-as-you-go: Some SaaS providers offer pay-as-you-go pricing models, where
customers only pay for the resources or features they use. This flexibility allows
businesses to manage costs more effectively and align expenses with usage.

Examples of SaaS applications include customer relationship management (CRM) systems like
Salesforce, productivity suites like Google Workspace (formerly G Suite), project management
tools like Asana, and e-commerce platforms like Shopify.

Platform-as-a-Service (PaaS)

"Platform as a Service" (PaaS) refers to cloud computing services that provide a platform
allowing customers to develop, run, and manage applications without dealing with the
infrastructure typically associated with developing and launching an application. PaaS provides
a framework that allows developers to build upon and customize without having to worry
about managing the underlying hardware, operating systems, storage, or network
infrastructure. Popular PaaS providers include Google App Engine, Microsoft Azure App
Service, and Heroku.

On-premise platforms

An on-premise platform consists of the hardware and software hosted entirely on-site. The
business has one or more servers in its physical location, hosts the software on the server, and
uses an internet connection to connect the website to the world at large. This gives the business
complete and total control over the operation of the website, but it does have to manage the
hardware and internet connection to make sure that the website is always online and accessible
to users.

Why is e-commerce software important for your business?

E-commerce software is important for the business because it helps expand sales beyond brick-
and-mortar.

E-commerce service also helps you gain access to selling and marketing tools that help raise
awareness of your business.

 Easily create an online business: It doesn't take a lot of time and effort to start a business
online when using e-commerce software. The software has templates that help you with
the layout and insertion of images and information.

 Improve efficiency: You can track everything, including inventory, sales, process credit
cards, and shipping through e-commerce software through simple data entry methods.

 Boost revenue: An e-commerce website makes it easier for customers to find your
business and buy from you. That means a wider customer base than you would
otherwise have if you limited yourself to in-person sales.

 Increase customer satisfaction: Customers enjoy the ability to make a purchase and track
its shipping progress from your location to theirs. E-commerce software enables you to
 complete the purchase, make a shipping label, and supply it to the customer for their
convenience.

 Reacher broader audiences: You can reach more potential customers that are
peripherally interested in what you sell. They can look around your e-commerce website
and discover that you have goods that relate to their interests or needs. You can also
use marketing CRM software with your e-commerce platform to learn more about your
potential customer.

 Save money and resources: E-commerce software has a host of features to help you
manage your inventory, sales, and shipping. E-commerce time savers mean you spend
less time tracking down your products, processing sales, and shipping out a sale.

 Accept more payment options: Online stores are sometimes limited to accepting a
couple of payments, and adding more can be difficult. Using e-commerce website
software gives you access to more payment processing options with competitive
processing fees to give customers more payment options, which can help drive sales.

 Access to marketing tools: Marketing tools are built into the e-commerce website
software and enable you to create email blasts to let people know about the latest news
or sales. They also help you with SEO marketing to get your website to rank higher on
search engines.

What are the key features of e-commerce software?

E-commerce software is designed to cover your needs to operate a successful business online.
You get marketing tools and information at-a-glance and can download files for offline use,
track your inventory, process payments, and provide up-to-date shipping information to the
customer.

Marketing Tools
Marketing tools are designed to help you reach more customers as well as improve the
customer experience. Basic marketing tools include the website builder, forms, landing pages,
and a virtual assistant that provides suggestions. Other marketing tools you can employ
through e-commerce website software include A/B testing, custom templates, dynamic content,
and more.

Central database

The central database delivers all of your website data in an easy-to-read format. You can click
through the selections to find out how many visitors have been on the site, what they're looking
at, and which of your products are selling the strongest.

Website builder

The website builder gives you the tools you need to build a finished website that reflects you
and what your business sells. You choose a design template that is in line with your products or
offerings, then edit the layout and language until it looks the way you imagined it to be.

Automated checkout process

The automated checkout process means your customers can put their selection into a cart, select
a shipping option, and make a payment with no effort on your end. All you have to do is make
sure that the business information, shipping options, and accepted forms of payment are on the
form. After the customer makes the purchase, you get the sales order alert on the backend for
fulfillment.

Data analytics

With e-commerce software, you can easily analyze data and KPIs to see what your customers
are doing when they're shopping on your website prior to buying. You get to see how the
website is being used, what's looked at most frequently, products that sell well and when, and
more. This information helps you tailor your offerings to increase sales.

Conclusion:

E-commerce software plays a crucial role in the success of online businesses by providing the
necessary tools to manage various aspects of e-commerce operations effectively. Understanding
the different types of e-commerce software and their functionalities is essential for businesses to
choose the right solutions that meet their specific needs and objectives.