Internet - showcases - B2C - Business to Customers. Internet - showcases - B2C - Business to Customers
Trade and technological processes are a set of trade (commercial) and technological processes, the purpose of which is to bring goods to consumers with the least labor and time costs.
The main models of organizing retail trade on the Internet, depending on the degree of automation of trade and technological processes, are: Internet showcase; vending machine and automatic store (or online trading system - TIS).
Internet showcase is a website on the Internet that contains information about the company and the goods sold. All the visitor can do is get information (more or less detailed and up-to-date) about goods and services.
The practical usefulness of such a showcase is quite obvious, the costs of its creation and administration can be quite low, but this is not yet a trade, but only a kind of advertising. This solution lacks integration with the business process of the trading company. To make a purchase, a potential buyer must first visit an online storefront, and later go through the usual buying cycle: a call or a visit to the company, payment, etc. This approach can be justified primarily for the sale of complex products, the study of which on the trading floor takes too much time.
Vending machine in addition to the functions that the online storefront performs, it can accept orders, and then transfer them to the manager online or in batch mode. Further processing of the order is carried out according to the usual scheme for the company. The fundamental difference from an online storefront is that purchase orders and invoices for payment for the ordered goods are issued without human intervention. Unlike an online storefront, a vending machine carries out real trading and, in terms of cost-to-results ratio, looks the most preferable for enterprises with a small flow of customers.
Automatic store is the most powerful, comprehensive and complex solution. It not only issues invoices, but also provides a means to track orders. In the case of using an online payment system, it accepts payments and generates orders for the delivery of goods to customers. Orders are processed automatically, goods are reserved in the warehouse, balances are adjusted, and other necessary operations are performed.
An automatic store is a full-fledged virtual trading service that performs operations to work with a customer through automatic program control. The functions performed include such as demonstration of goods, provision of comprehensive information, technical support for customers, preparation and processing of orders, issuance of invoices, transfer of money payments, selection of the optimal delivery method, etc. In this case, the presence of a person is also required, but here he performs only general control over the operation of the entire system.
The main condition for building a truly profitable TIS is the integration of trade accounting, warehouse, accounting systems within the company with online trading systems.
From the point of view of the buyer, the first model has a significant difference due to the fact that there is no possibility to place an order for goods directly on the site. The last two solutions look pretty much the same. This is due to the fact that the buyer is dealing with external design, and this is always an online catalog, a navigation system and an ordering system. Therefore, both of these options can be combined with the common name of an online store, which is automated system operating on the basis of e-commerce and implementing the service and commercial functions inherent in stores with traditional forms of service.
As soon as the buyer starts placing an order, he is convinced of the advantages of an online store compared to an online storefront. These advantages are manifested in the fact that the buyer can be offered a more flexible system of discounts, accept an order, issue an invoice immediately, taking into account the cost of delivery and insurance, etc. In addition, he will be able to see the real state of the warehouse and receive information about the progress of his order.
From the point of view of sellers, these three solutions differ quite significantly. An online storefront is inexpensive for trading companies, but:
- an online storefront allows you to organize only trade to order, it is almost impossible to establish trade from a real warehouse;
- the use of the showcase does not reduce the cost of staffing and operating costs for sellers;
- an online storefront is a very clumsy solution in terms of management and not flexible enough in terms of organizing marketing campaigns;
- the image of a company that has opened and maintains a simple online storefront is always worse than that of a company that has organized online commerce using a fully functional online store;
- the organization of retail Internet trade using a showcase turns out to be ineffective and even often unprofitable for a trading company.
An online store is much more profitable for a trading company (especially a medium-sized business) that wants to really manage the entire process of online trading and various marketing promotions, trade both to order and from a warehouse, reduce the number of sales managers, etc. To create an Internet A store will require more one-time costs compared to a storefront, but they will be much more efficient, since using online stores is significantly more cost-effective than using storefronts.
There are several options for creating an online store.
1. Renting a store in an electronic shopping mall. The cheapest and easiest option, since most of the technical issues are taken over by the owner of the mall.
Electronic trading row - it is essentially an electronic department store or an electronic supermarket, widely used in economically developed countries. They unite independent sellers on one trading platform using the Internet. Each seller registered in the electronic trading row places a catalog of his products in the system. Then all product offers are brought together in a single catalog of the shopping range.
There are several options for the participation of the seller in the electronic trading row:
- placement of its price list in the catalog of price lists of the shopping mall;
- placement of the page of a new online store in the system to which interested buyers are redirected;
- rental of a specific thematic section of the catalog.
- 2. Buying ready-made software online store. Depending on the functional features of the solutions, they are used for small and medium-sized projects. The main disadvantage is the limited possibilities for refinement in accordance with the requirements of a particular customer.
- 3. Order of development from a specialized company. One of the most commonly used options for large projects with non-standard requirements. Applying this option to create a regular store integrated with a common back office is not practical. In such cases, the developer is usually ordered to upgrade the finished solution.
- 4. Development of a solution on our own. The most complex and costly method. It is applied only if the company has all the necessary resources for developing software products (a staff of programmers, testers, patent law specialists, a strong service technical support etc.). The development of own solutions is often used by large companies or holdings, which include several online stores.
In order to open an online store, following the last three options, you can do one of two ways.
- 1. Installing the server in the local network of the enterprise. This option is the most expensive and difficult to implement. The following components are required for its implementation: server hardware; server software; high-speed communication channel; building a security system.
- 2. Placement of the store on the server of the Internet provider. The online store software is located on the provider's server (a separate server or server disk space is rented). This service is called hosting.
In this case:
- as a dedicated channel, the channel of the Internet provider will be used, which will provide faster access for customers to the online store;
- managers of a trading company can manage the store remotely from their office.
This is a cheaper option, since in this case specialized server equipment and a high-speed channel are not required, and the cost of maintaining the store is also reduced. However, the flexibility of customization, the functionality of the store, and the efficiency of order processing are reduced.
In the current state of online trading in Russia, the vending machine model looks the most attractive. This option, at a fairly modest cost, will allow you to assess the demand for the goods and services offered, start an advertising campaign and promote an online store. At the same time at in large numbers orders and developed infrastructure wins automatic store. An online storefront is a means of advertising, not a trade, and it is not advisable to consider it as a solution for an online store.
If a company manufactures or sells many types of goods on offline trading platforms, provides a range of services, and you want to demonstrate them to customers, indicating the exact characteristics, you want to tell what exactly you do, then this is for you. This will allow the client to view specific products or examples of services rendered and order their production.
If you sell goods online and specialize in this, if you want the client to be able to choose, order, pay for and receive goods by going to your site, then the online storefront will be an inflexible and even complicating sales tool. Since the site will not be adapted to the processing of applications and payment for orders. In this case, you need not just a catalog, but a full-fledged online store.
Online storefront or online store: what's the difference?
internet showcase | online store |
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An online showcase is designed to demonstrate and advertise a product or service and a brand as a whole. The user enters such a site in order to select a product from the entire range, view samples of work performed, find out factual information about it and order the selected product or a similar service. An Internet showcase is created as an informational business site similar in its characteristics to a corporate one. It represents the company's products, demonstrates a wide selection, but does not sell directly. | The online store is aimed mainly at the direct sale of goods. A visitor enters such a site with the intent to buy or order goods online. And the site has functionality purchase and sale (for example: online payment service using data entry credit card). The online store works as an independent full-fledged platform, with the help of which the visitor can choose, pay for and receive the delivered goods. It's not just a website, it's a business tool. An online store requires a secure connection to the server to transfer sensitive data. |
Developing an online storefront is also cheaper than building an online store due to the lack of functional elements to sell.
Creating an online storefront
Creating an online storefront seems to be easy - just create product cards or illustrations of completed work with a description. But in reality, when you have hundreds of product names and each needs to create a relevant explanation, set up search engine optimization, create a design for a multi-page site - such a task becomes difficult to do on your own.
Therefore, SEOSKY offers you a professional approach to creating and promoting an online storefront.
The creation of a site begins with the fact that you fill out a short questionnaire (brief) in which you describe the specifics of your business and how you imagine your site. Based on the brief, we set the goals and objectives of the project, generate ideas and options for the design and functionality of the future site.
![](https://i0.wp.com/seosky.su/wp-content/uploads/2017/07/internet-vitrina-2.jpg)
Stages of work of SEOSKY specialists:
- Creation of layout, design and functional modules.
- Development of the structure and prototypes of all pages of the site. The sorting of the catalog is approved, the grouping of goods in it, functions are added to third-party systems (for example, the ability to download goods from 1C, receive notifications by e-mail or orders for calls from the site).
- Getting your approval on the development plan and finalizing the elements in accordance with the wishes.
- Design rendering of all site elements and content creation in the form of texts, product cards and photos.
- Technical setup site. The more features and products in the online storefront, the longer the setup.
- Filling with goods and content, setting up indexing in search engines, site testing.
Internet showcase is ready! Now it remains to promote your site using SEO or contextual advertising.
Order an online storefront at SEOSKY
Order the creation of an online storefront from specialists in the development and promotion of sites of any complexity. SEOSKY has already created over 200 successful business websites. We offer our services at competitive prices.
The final cost of developing an online storefront will be influenced by such factors as the choice of CMS (content management system), the choice of hosting, the multilingual nature of the site, search filters, and others. At your request, we will also add any additional modules.
Discuss all the details of the order with our specialists.
Write to us and we will contact you!
Course work
in the discipline "Information technologies in marketing"
TOPIC "Organization of trading systems on the Internet"
Is done by a student
day department
Moscow 2008
Introduction. 3
1. Classification of trading systems 5
2. The specifics of the use of the Internet in the organization of commercial activities of trading companies 8
3. Electronic store as a way to organize a trading system on the Internet 12
4. The structure of the online store 14
5. Organization of an Internet store 17
Conclusion 19
References 21
Introduction.
Since the mid-1990s, with widespread global Internet networks A previously unknown form of commercial activity has exploded: e-commerce. This is a truly unique form of business vision. it makes it possible to make huge profits with virtually no start-up capital at the lowest cost: for example, online stores can trade without the cost of renting retail space, publishing printed catalogs and expensive retail equipment, advertising, with a minimum staff, while having a huge number of customers . All that may be needed for this is an easy-to-remember domain name, a well-designed and well-functioning website, several webmasters and couriers delivering goods to customers. An even more attractive field of activity in e-commerce is the creation of Internet portals - catalogs of links to useful Internet resources, search engines and electronic media, which are much cheaper than traditional ones (television, radio and press). At first glance, it seems that this is really a way to "make money out of thin air" with no barriers to entering the market. Initially, this was indeed the case, and in the wake of the spread of the Internet, the youngest billionaires among the richest people in the world, such as Jerry Yang and David Filo, who founded Yahoo in 1994, arose in 1994. Another unique business activity that emerged with the widespread adoption of personal computers is the sale of custom software. Its analogues can be called book publishing and trade in audio-video products, with the only difference that in our case, the part of the price that makes up the cost of making a copy can be tens, hundreds and thousands of times less than the part of the price that the buyer pays for acquiring a license for use of the information on it. For example, the cost of producing one CD is less than 20 cents, and the distribution of the Windows ME operating system costs more than $100. In fact, once a product has been manufactured, a company can sell it as many times as it likes to any number of customers, and then, after upgrading its product a little and changing the version number, sell it again to the same customers. Moreover, in this area, consumers are almost completely deprived of their rights: most software licenses stipulate hitherto unheard of conditions: the company disclaims liability for damage caused by its product and does not guarantee its consumer properties, saying that its software distributed "as is". It also prohibits its customers from disposing of the copies they have purchased at their own discretion: they cannot be transferred to another person, donated, sold, disassembled, modified or installed on more than one computer. If the same conditions existed in the book market, libraries would not exist, and the publisher could sue you for marginal notes.
All this became possible with the widespread use of computers among organizations and individuals due to the reduction in their cost and the creation of a “friendly interface”.
1. Classification of trading systems
Electronic Commerce is any form of business process in which the interaction between entities takes place electronically (using Internet technologies).
Electronic commerce systems (e-commerce, e-commerce) are network information technology applications whose tasks include supporting business processes and offering goods and services. The birth of e-commerce dates back to 1993, when the massive use of the Internet and the World Wide Web began as a result of a significant reduction in cost and an increase in the performance of hardware and software. The emerging global information structure has become the basis for the development of e-commerce systems.
The biggest strategic opportunity in e-commerce is sales. By establishing strong electronic relationships with the customer, the manufacturer can accurately focus on the customer's current activities and their intermediate and long-term strategic plans. E-commerce sales solutions that help a manufacturer control customer relationships must take into account the specific needs of the manufacturing industry.
An e-business application for manufacturing companies will provide support for sales, customer service, and marketing professionals who need to quickly install, maintain, and complex pricing, discounts, and other types of consumer and product benefits. Such an application can be deployed to both internal and external staff, and can be provided to consumers via the Internet.
The use of the Internet provides firms with a radical change in the process of selling a product and the function of intermediaries, and thereby reducing the cost of business transactions in the exchange of goods and services. The cost of a transaction includes the costs of finding the product, planning the supply chain, negotiating and defending the terms of the deal, closing the deal, and enforcing the contract or resolving disputes.
Although e-commerce systems are still in their infancy, they promise to significantly change the structure and way of trading in the future. To compete successfully in an information-rich infrastructure characterized by low transaction processing costs, enterprises will have to invent new business models with different approaches to scalability, differentiation, and brand support.
To build an E-commerce system, a logical system of production and commercial relations is very important, when companies build a business in a healthy and "transparent" economy, striving for profit and stability. And this "transparent", offline business naturally becomes the basis for online business. In Russia, industrial and commercial relations are quite often built "illogically" for various reasons. Therefore, often the introduction of information systems (and then e-commerce systems) in domestic companies often goes "with difficulty". Business processes need to be redesigned to fit seamlessly into e-commerce. Information technologies and the Internet, in this case, are a powerful stimulus for restructuring. one
The most common types of trade organization using the Internet are B2B and B2C systems:
business-to-business(, business-to-business), business-to-business sales. B2B e-commerce has become a popular investment area on the Internet. E-commerce, which has become widespread on the web, is mainly trade of the “company-to-consumer” type (B2C, Business-to-Consumer). Yahoo, Amazon and eBay have succeeded in this direction. Meanwhile, the B2B market opens up much more opportunities. The Internet is already having a significant impact on global business. B2B companies such as Ariba, VerticalNet and Chemdex have already made big profits.
Reducing transaction costs is the main goal of B2B. For different industries, this is 10-20% savings. B2B creates a digital agent between market participants, which is a level of optimization of specific business processes. The task of this virtual agent is to save money, primarily on such processes as searching for a buyer or supplier, synchronizing the work of the customer and supplier, making transactions and other points necessary for the successful operation of the operational (non-production) side of the business. The resource itself exists at the expense of the commission from the transaction.
The Internet offers opportunities to eliminate transaction inefficiencies for business supplies and services, to improve seller-buyer communications, and to provide new types of services. By building networks of suppliers and business customers, usually within a specific industry, a B2B company can become a commercial field of enormous proportions. The essence of the situation is that B2B commerce is extremely massive, and the Internet is bringing monumental changes to the modern business process. The potential opportunities are enormous, but so far there are only a few investment opportunities.
The competition between B2B systems is just unfolding, and the trends that will determine the development of related online resources are already visible. The key point in the development of the resource is the creation of a critical mass of buyers and sellers when reaching the level of a digital agent. This means that a platform or information system must have a certain number of participants already at the time of launch, otherwise serious investments may simply be wrong.
A rather important point is the possibility of creating a ready-made solution or a product sold on the market based on the service. This is precisely the success of Ariba, CommerceOne, Scient, which combine the construction of business systems with the sale of ready-made solutions. Interactive trading platforms, which can be called B2B solutions, have existed in the IT industry for a long time. The very first computer trading platform on the Russian Internet can be called Price.ru. It was the first project to speed up and facilitate the sale process for companies and was done by "geeks for the sake of geezers". However, by this time, interactive non-computer trading platforms in the face of exchanges already existed. Between the exchanges and Price.ru from the very beginning there was a cardinal difference in approaches to conveying information to the user. The exchanges set the task of ensuring maximum efficiency of business processes using the most appropriate tools for this (large computers, remote terminals, PCs, local networks, X.25, the Internet). IT projects from the very beginning were limited by the condition of promotion through the Internet.
The end users of the exchanges were considered to be people for whom IT was just one of the tools that simplify the process of making a profit. The end users of IT projects were IT specialists, for whom the computer was the main workplace and the main source of income. Thus, from the very beginning, there were cardinal differences in the approach to conveying information: in the first case, the system interfaces were adjusted to the user, in the second, users themselves adjusted to the interfaces (also because for many of them the initial types of information display were familiar). As a result, in the case of stock exchanges, the professional market acts as a customer for IT and dictates its own approaches to the required structure, while the IT market is its own customer, its own performer, and is content with its own approaches. While electronic exchanges operate in a mode close to informational, buyers and sellers simply get to know each other on the Internet, but do not go through all the stages of concluding a transaction online. Offline signing is still necessary.
Business-to-Consumer (B2C)- business client, i.e. sale of goods and services to individuals.
Advantages of Internet retail trade: time saving (order is made without leaving home); availability at any time of the day; a wide range of goods (there is another store “one click away”); information service (availability of reference information about goods, the ability to compare goods and prices); personalized service (a store management system can "remember" thousands of users and their preferences). 2
2. The specifics of using the Internet in the organization of commercial activities of trading companies
So, we can distinguish four levels of relationships between participants in the trading process. They serve as the basis for creating an E-Commerce system:
1. Manufacturer - distributor
2. Distributor - dealer
3. Distributor - seller
4. Buyer
Any of these levels can be partially or completely transferred to the E-Commerce system. Let's look at some of the nuances of e-commerce at each of these levels.
Production company
For a manufacturing company, the best "start" option is to implement the Internet Trading System (TIS) and E-Commerce methods in the work of the company's sales departments.
For maximum economic effect from the introduction of the E-Commerce system, the marketing information system must be "docked" with the production planning system and the supply chain system. In this way, many cost items can be minimized - TIS allows you to eliminate the cost of offline stocks of finished products, components, etc.
Electronic support of sales and supply channels is usually carried out in different ways. In order to "link" them, it is necessary to have an enterprise information system (ERP-system or corporate information system).
When developing an Internet Trading System (TIS), its interfaces and content, developers should proceed from the principle that any Internet resource should be targeted at a specific group. If, for example, a manufacturer focuses on working with a distribution-dealer network, then its TIS should primarily attract distributors-dealers. It would be a mistake to use the Internet as a place to "storage" information on the principle of "come in, whoever you want, take what you need." The Internet system should be as convenient and simple as possible for a specific consumer to enter it from the outside - a distributor, in this case.
The process of creating an Internet system is different from building a traditional information system. The Web interface and Web technologies will provide tremendous opportunities, but one of the features is that they require a team of developers, which is commonly called " content". The work of this team is closest to editorial work - it is work with information (texts, data, graphics), systematization, editing and presentation of this information on the screen. TIS is part of the company's image, and often - its face. An important role is played by the possibility of personalizing the information that the user sees. It is these factors that create a convenient, understandable and attractive environment for the consumer on the computer screen. 3
Does the manufacturer need to organize direct sales using E-Commerce? If a manufacturing company wants to actively engage with the Internet, then it must also have channels for direct sales. However, not every manufacturer can afford direct sales. There are at least two problems in this area.
First: when switching to direct sales, it will be necessary to solve the issues of interaction with traditional, distributor-dealer sales channels. The larger the manufacturer, the easier it is for him to solve this issue. But small manufacturing companies need to think very carefully about the new relationship with traditional distribution channels.
The second problem with organizing direct sales is that it is difficult for small manufacturing companies to build relationships with courier services. The services of large courier systems (eg UPS, DHL, TNT) will cost a lot, but they guarantee a high level of service around the world. In small courier companies, services are cheaper, but at the same time, the level of guarantees for the delivery of goods and coverage of regions is reduced. This means that in the first case, the goods of a small manufacturing enterprise may turn out to be non-competitive in terms of the delivery price (since the delivery volumes are small), and in the second case, the company will have to negotiate with several courier services, which will also affect the final price of the goods.
The manufacturer can limit the area of its direct sales to the "local level" (for example, the Moscow region and 2-3 districts around the Moscow region) and conclude an agreement with one or two courier services - this is a possible option for organizing direct sales. At the same time, the manufacturer enters a new business for itself - interaction with courier delivery systems (because before it worked only with large distributors). This new business may turn out to be unprofitable for him due to the fact that everything is "local" - volumes are small, prices are high.
These questions are not simple, and only large companies decide to carry out direct sales using Internet technologies. They usually turn to the services of consulting companies that analyze the situation and help make the right decision.
Distributor
The initiative to create an Internet Trading System at the "manufacturer-distributor" level can also come from the distributor. In this case, it will be the Distributor's Internet supply chain. Many stages in building such a supply chain for the distributor are the same as for the manufacturer's distribution system. It is also important for a distribution company to create an Internet Trading System (TIS) to support sales.
When creating an E-Commerce system, the management of a distribution company faces the same question as the manufacturer: is it worth selling the product through a direct sales scheme to the end customer and “bypassing” retailers or continue to work through dealers? The decision on this issue is taken by the company itself. This requires monitoring of the existing dealer network in order to identify the weakest areas. If there are such "failures", then the company will be able to switch to direct deliveries in these regions.
The dealer part of the distributor's trading system must be flexible - it is important for the distributor to support not only large dealers, but also beginners. For them, the transition to an electronic-commercial relationship system may be the most attractive and will provide an opportunity to reach a new level of business.
An e-commerce system that supports a dealer network opens up new opportunities for the distributor, for example, "bypassing" intermediate links on the way to selling the goods to the final buyer.
Organization of electronic-commercial interaction between regionally distributed distributors is possible. In this case, the following functions are assigned to the E-Commerce system:
transfer of regionally distributed orders to each other;
transfer of information about the state of warehouses located in different places;
presentation of information about the operation of the system to end customers.
These functions are mandatory for every system. Any distributor, first of all, needs to understand what his "distribution area" is. Whether it is located in one region or in several, can it organize normal logistics for one or all regions, etc. When monitoring is carried out, (independently, or with the help of consultants), then the creation of a correct Internet trading system will become possible. The dealer in the distributor-dealer chain can be a regional buyer, a small wholesaler, or maybe a retail store. All this needs to be clearly defined before an E-Commerce system can be built.
Retail
The organization of an electronic-commercial system "for" retail sale has its own characteristics. "Retail" already has a price for the goods, close to the limit amounts. It is difficult for a retailer to start doing direct deliveries to other regions. The greater the distance, the less promising it is to engage in global direct deliveries. The only exception is commercial network. For example, "The Seventh Continent" or "Kopeyka" - a system of discount stores.
If an already existing retail chain is considering the creation of several discount stores, it definitely needs to use Internet trading, which perfectly solves this issue. Online stores are exactly discount stores. In the "discounter" prices are lower than in a regular store, but most importantly, in such a store everything is conveniently "packed", packaged in certain weight categories, there is a whole range of relatively cheap goods. And this technology is very convenient for an online store, so online stores must be built as "discounters", i.e. with low prices, normalized packages.
Buyer (consumer)
If the consumer is a large organization, then with the help of E-Commerce technologies, it, first of all, can solve the issues of streamlining relationships between partners, contractors, as well as intra-corporate communications. Many holdings work among themselves according to the scheme of mutual obligations. This is where E-Commerce can help a lot. Despite the fact that the connections are built, E-Commerce solutions will save operating costs for maintaining the functioning of the holding in a convenient and fast mode.
The number one task is to streamline relations between the subjects of the company - sales, delivery services, logistics systems, etc. The electronic-commercial base will allow solving this difficult task in the most fast way. To begin with, large corporations can be offered to determine the relationship between the subjects of the structure and answer the question: “who supplies what, to whom, when”. Then it will become clear which departments need to switch to e-commerce in the first place, for whom it is most necessary. Practice shows that you first need to prescribe and define the functions of each subject separately, and only then work to combine them into a single system built on the basis of E-Commerce.
Adequacy of the company to its plans in the field of e-commerce
The question of "where to start" is also about being "adequate" to your offline functions in the online field. New distribution channels need to fit in with the existing business, they cannot start from scratch. Even if an online store is created, but it does not correspond to an offline business, it will not be successful 4 .
And this is precisely the reason why experts usually recommend building an Internet business by moving from "offline" to "online", and not by organizing absolutely everything from scratch. Examples of skyrocketing companies that have emerged as "pure" E-commerce companies need to be treated with some caution. Recently, there have been predictions that many of these companies will have difficulties in developing, as companies that traditionally had a strong position in the offline trading business enter the Internet market today.
3. Electronic store - as a way to organize a trading system on the Internet
An online store or Web showcase is a form of working on the Internet, a form of effective presentation of your business on the Internet. An online store can be with a manufacturer, a distributor, or a Retailer. On the Web-showcase, almost any goods can be presented, distributed both by assortment and by region.
The form of how the buyer will choose a product, region, delivery method, payment method - this is the Web-showcase, Internet store.
A business that is brought online is a reflection of an offline business. Thus, in the process of creating an online store, a company will have to solve not only the tasks of simply transferring a price list, warehouse, order system to the Web form, but also to provide effective communication virtual world with the real, with the inner life of the company. That is why experts prefer to call it an Internet Trading System, and not just a store.
If a company is going to seriously integrate an offline business into an online business, one must be prepared for the fact that the requirements for its authority in business will increase. Information about a particular company on the Internet is clearly recorded and accumulated. Therefore, there should be no misses. The system will work effectively and make a profit only if it is worked out to the smallest detail by the system of orders, purchases and supplies, which, by definition, must be very clear. The Internet exposes these shortcomings like a litmus test. Therefore, the requirements of the adequacy of the company to its Internet aspirations, thus, come to the fore.
Another, no less important aspect of working on the Internet is the importance of market share (marketshare) that is significantly greater than in ordinary business. There is only one Russian Internet, and if a company has a share in this market, then we should talk about the country as a whole, and not about any particular region. Therefore, the importance of reaching a certain level of marketshare for an Internet company is significantly higher than for offline companies.
An online retail store consists of many parts - technological, service and marketing. The cost of the technological part, design development and programming is approximately from 1.5 thousand to 10 thousand dollars. The method of payment is very important in Internet retail trade: cash on delivery, prepayment to the account, payment by cards and electronic cash (electronic banking systems built using smart cards, or virtual payment systems specially designed for online settlements). In many ways, payment options are determined by the method of delivery.
Convenience, cost and timeliness of delivery is a very important thing for an online store. There are only two delivery methods: by mail or by courier. Delivery by courier service is much more convenient, especially since within large cities its cost is low (for example, in Moscow, the cost of delivery is approximately $ 1-2), but there are regions where mail is the only option for receiving goods.
Marketing is the most important element in the life of an online store. Half of the turnover of online stores is generated by repeat customers. Accordingly, most sellers focus not on attracting new users, but on working with regular customers in order to encourage them to make more purchases. In Russia, the development of Internet commerce is limited to a relatively small number of users, about 2 million.
4. The structure of the online store
We have already mentioned the existence of different classes of e-commerce. Consider the principles of organizing some of them:
1) Business-to-Business class systems (Business-to-Business - B2B.
2) Business-to-Customer class systems (Business-to-Customer - B2C.
Moreover, one of the subclasses of Business-Consumer systems is actually trading systems, designed for organizing Internet commerce and implementing Seller-Buyer relationships.
It should be specially noted that an e-commerce system is a Business-to-Business class system not because two organizations interact (organizations can also interact in Business-Consumer schemes), but because they interact.
Abroad, B2B class systems appeared about 30 years ago and have become quite widespread. Solutions built on the basis of EDI standards were (and still are) very expensive, only large corporations could afford to use them. In Russia, there are currently no ready-made business-to-business solutions, but there are separate options for connecting departments (for example, the State Customs Committee) to external EDI networks.
An important feature of the developed system is that Internet commerce is managed from the ERP system (albeit through 2 gateways and an online store). The online store is one of the remote outlets in this scheme, which, although it is configured by the managers of the online store, actually the entire flow of trade and financial transactions goes through gateways, i.e. from the external (in relation to the online store) environment.
According to this scheme, a wide variety of Internet trading options can be organized. For example, Hewlett Packard organized the sale of cheap computers that were previously in use and upgraded.
For the Business-Consumer scheme, the picture is somewhat different. In the first organization, the docking of the gateway with the control system is preserved, but in the second organization, the internal control system is not connected in any way with external systems (with the Internet), and, therefore, there is no automatic data exchange with the first organization. However, the second organization can interact with the first, what is called "manually" - through their Managers.
These Managers may well communicate with the first organization through some interface - be it a browser or a thin / thick client (for example, a Java applet). Managers receive (for example, e-mail) or they themselves take (for example, through a browser) information from the first, parent organization, and then they can enter some data into their management system, carry out their business process. Managers of the second organization in this scheme act as Consumers of the parent, first organization. As a result, the connections characteristic of the B2C class are realized. Managers receive information not only about goods. It can be informational, production, marketing materials. But, of course, the bulk of the exchange of information between the first business organization, and through the managers of the second consumer organization, concerns trade matters, that is, organization 1 acts as a Seller, and organization 2 as a Buyer.
It is clear that if this Manager is a private person, then this will be the case of ordinary retail.
Three interesting features of the considered B2C scheme should be noted.
1) The first feature is that often the Seller himself (organization 1) does not trade using an automatic trading system integrated with the Internet interface, but "manually", through his own Managers. Almost all 100% of online stores in Russia are built exactly according to this scheme.
2) The second feature. The fact that on the right is either a private person or a legal entity is absolutely all the same for this scheme, it is much more important that on the left there is no real, complete integration between the business process of the trade organization and the external interface of the online store.
3) The third feature is related to the business process. The fact is that far from always (especially in Russia) a business process is automated with the help of some kind of management system, very often this concept (business process) is a kind of "amorphous" mass of actions of individual managers of an organization. One manager acts according to one scheme, the other - according to another, as a result, it is very difficult to automate all this. Note that an automatic gateway can only be made to an automatic system, and not to an "amorphous" one, so that the task of integrating a business process with an Internet interface becomes more and more uncertain.
In all B2C class systems, an online store can be considered as a trading part of the business process of the parent organization, which is the Supplier (in the particular case, the Seller) of goods and services for the Consumer (Buyer).
So, an online store is a must:
1) First, the system of conducting trading operations, integrated with the business process in the organization;
2) Secondly, an Internet showcase, which is an automatic gateway to the Internet and integrated with the trading system.
Unfortunately, this integration (between the online storefront and the trading business process) is most often absent, and instead all trading is done manually, i.e. between the trading system and the Internet showcase, the figure of the Manager appears again. In this case, only a small part of the entire "economy" is most often called an online store - what in a real online store is just an Internet showcase.
Such an Internet showcase is located anywhere on the Web, a web catalog with a price list is put on it. In the vast majority of cases, especially in Russia, this web showcase:
Allows you to place orders and send them by e-mail to the Manager of the trading company.
Sometimes an automatic billing is performed.
The main feature of the whole scheme of working with such a web-showcase is that all actions related to docking with the internal business process are carried out manually by the Manager.
A web-showcase is, of course, not an Internet store, it is a kind of tool for an Internet Sales Manager. That is, it is a kind of interface for interacting with the buyer. Same interface as phone, fax, letter. This is some additional, flexible and very beautiful tool in the hands of the Sales Manager. But this is not an online store. Just like the Sales Managers themselves are only a part of the store staff, but far from the entire store, and their activities are only a part of the business process of a trading company.
5. Organization of an online store
There are several possibilities for creating an online store:
1. Install a web server in the local network of the enterprise. This option is the most expensive and difficult to implement. The following components are required for its implementation:
server equipment
web-server and internet-shop software (trading system)
high-speed communication channel
service staff
development of design and content of the store (showcase)
The advantages of this option are optimization for the business processes of a particular enterprise, greater flexibility and customization.
2. Place the store on the Internet provider's server. The web-server and online-shop software is located on the provider's server (a separate server or server disk space is rented). This is a less expensive option, since it does not require specialized server hardware and a high-speed channel, and also reduces store maintenance costs.
3. Rent a store in the electronic shopping mall. The cheapest and easiest option, because. most of the technical issues are taken over by the owner of the mall. The seller is usually required to provide a catalog of goods in the required form, indicate how payment and delivery will be made, design the store's website according to the landlord's template (usually this service is offered for an additional fee), clarify the mutual obligations of the parties and conclude an agreement . The disadvantages include the incompleteness of the received market information, the availability of data on the commercial activities of the store for a third-party organization, the risks of the company that owns the mall. 5
The functionality of an online store can be considered from two positions: from the side of the buyer who entered the store, and from the side of the seller (ie from a technical point of view).
According to the degree of automation of the trading process, the methods of organizing an online store are divided into:
Web showcases - a combination of a catalog, navigation and ordering systems with subsequent transfer to a manager for further processing;
Actually online stores - a trading system is connected to the web-showcase and a full trading cycle is carried out;
Online trading systems - online stores are integrated into the internal document management system.
These methods allow you to implement different levels of customer service and require different amounts of investment. Web marts can handle checkout and sometimes billing. At this stage, work with the order passes to the sales manager. Storefronts are not a means of actually reducing the level of transaction costs and the profitability of a web storefront differs little from the profitability of conventional trading methods. The cost of software for an online store is at least an order of magnitude higher, but the achievable profitability also differs from the capabilities of a web-showcase. Online store systems perform most of the tasks that cannot be solved within the framework of a web showcase. Including, thanks to dynamic information processing and working with databases, the online store has the ability to work individually with each registered customer.
In general, the minimum components necessary for the functioning of an online store include:
Web server - distributes incoming requests, performs access control;
Application server - manages the operation of the entire system, in particular the business logic of the online store;
DBMS - stores and processes data about goods, customers, accounts, etc.
Payment systems and logistics systems are connected to this complex. For full integration with the company's business processes, a gateway can be organized for electronic data transfer between the online store and the internal workflow automation system.
The web server provides an interface to the database of goods for sale (in the form of a catalog, price list), works with a virtual shopping cart, places orders and registers the buyer, provides online assistance to the buyer, transfers information to the trading system and ensures the security of the buyer's personal information . Further, the trading system performs automatic processing of incoming orders. The order processing process begins with checking the availability of goods and reserving them in stock. In the absence of part of the order, the system informs the buyer about a possible delay. Then, when paying online, a request is initiated to the selected payment system and upon confirmation of payment for the order, the order for the delivery of the goods is processed. The TS controls the payment and delivery of the goods.
Conclusion
Business uses the Internet as a new additional medium for profit. That is, the company, using traditional ways of doing business, supplements their opportunities with virtual ones, without completely abandoning them. This may be the search for new customers, and new opportunities for interaction with them (familiarization with the goods, issuing invoices, etc.). Thus, "business on the Internet" for the company means the transfer of part of the business activity to the network, using it as an additional medium.
What we call "electronic commerce" today is nothing more than "business on the Internet". What is "business on the Internet" in our terms? If you look at this process from the outside, it may seem like wandering around a dark room: getting there, a person wanders and tries to grab something. Not very many lucky people manage to do this. But those who find their niche - successfully work in it.
In Russia, there are difficulties with the profitability of an online store. The reason is the absence at that time of a critical mass with which to work.
The main functions of the online store are information service for the buyer, order processing, making payments and providing information about the progress of the order and delivery of goods.
Through the Internet, the buyer using a browser accesses the web server of the online store, which contains an electronic storefront.
The basis of the showcase of an electronic store is a catalog of goods with prices, which can be structured in various ways (by categories of goods, by manufacturers), contain complete information about the characteristics of each product, its image. Buyers of online stores are interested in the same things that they can get in regular stores. Many people visit e-shops to get information about a product in order to purchase it offline. A detailed description and the presence of large-format photographs of goods increases the possibility of buying. Customers of online stores are also interested in information about the availability of goods in the warehouse, comparative reviews of goods, sometimes the presence of support from the store plays an important role (various forms of expert support, especially if high-tech goods are sold, when the buyer cannot choose the goods himself and needs consultations, additional useful information). The catalog contains all the information about the product available to a potential client, which should fully compensate for the lack of samples and a sales assistant. An important requirement for the store is the speed and efficiency of information search processes (either guided by the catalog structure or using the search system), selection and ordering of goods, and an intuitive interface. The correct step would be to post sections with the rules for buying in the store and help. The customer should be able to get answers to questions related to the purchase at any time. These are the conditions of after-sales service, consultations on the features of payment schemes, etc.
In the general case, the technical side of any Internet store can be considered as a combination of an electronic storefront and a trading system. However, often the electronic storefront is actually an Internet store, and the second important part, the electronic trading system, is simply missing. All customer requests are not sent to an automated order processing system, but to sales managers. Further, the business processes of the electronic store completely repeat the business processes of the retail enterprise. Thus, an Internet showcase is a tool for attracting a buyer, an interface for interacting with him and conducting marketing activities. The issues of transferring the business processes of the store to the sphere of e-commerce (the use of trading and payment systems, logistics issues) will be considered separately in the B2C section.
Particular attention should be paid to the promotion of either the Internet store as a whole or a specific product. Depending on the offered assortment and features of the goods, a different promotion strategy is applied. When selling a fairly unique product and a small assortment, the product is advertised or branded, because in this case, store branding may not be profitable. With a wide assortment, it is necessary to carry out not only advertising of goods sold through the store, but also to promote the brand of the store itself (promotion of the store brand is easier and cheaper than branding a large number of products separately). Store brand promotion has another positive aspect. Customer confidence plays a critical role in the success of a store. The buyer must not only quickly and conveniently find the product he needs, but also be sure of its quality and that this product will be delivered to him. At the same time, the frequency of repeat visits and purchases in the store depends on such parameters as the breadth of the assortment, a friendly navigation system, a transparent payment system, and prompt delivery. Repeat purchases are one of the most important aspects of a store's operation, because the profit a company makes from a single purchase rarely covers the marketing costs of acquiring a customer. It is necessary to interest the buyer so that he wants to come to the store again and start making a profit.
List of used literature
Arunyants G.G. Information Systems in business management technology. (A course of lectures for students of economic specialties of universities). Vladikavkaz-2005.
Goat. Electronic commerce. Strategic technologies. M. 2002.
Rovdo A.A. Guide to modern computer communications and the Internet. 2002.
Yakubaitis E.A. Information systems and networks. M. 2005.
Karminsky A.M., Nesterov P.V. Business informatization. M. 2004.
Esther Dyson. Life in the age of the Internet. 2002.
Semenov M.I. and other Automated information technologies in the economy. M. 2003.
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1 Yakubaitis E.A. Information systems and networks.
2 Goat. Electronic commerce. Strategic technologies.
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AT modern world, in the information age, when technological progress is becoming increasingly important for society, no area of society can do without digital technologies. Trade was no exception, in particular Internet showcase.
Everything today more businessmen, manufacturers and sellers of various goods pay considerable attention to the promotion and advertising of their products and services through global network Internet. The positive experience of creating their own electronic representations of a huge number of companies testifies to the obvious benefits of the work of various commercial structures on the Internet.
Most companies that are successful and make huge profits outside the network seek to expand their sphere of influence and also attract the attention of a huge audience of Internet users to their product or service. Usually, special corporate websites are created for these purposes - representative offices of companies in the network, as well as online stores and online showcases.
Corporate websites are designed to tell potential clients and investors of the company as much information as possible about it: by whom and when the company was founded, what it does, what certificates it has, with whom it works, what services it offers and on the basis of what documents it concludes a cooperation agreement.
Online stores are used for retail (rarely wholesale) sale of various goods and contain pages with color photographs, descriptions for each product, special option"basket" - for buying goods and placing an order, plus a form feedback- to clarify the points of work with the site that are incomprehensible to the buyer, questions about goods, terms of sale and delivery.
Internet storefronts in general, they are similar in their functions to online stores and corporate sites representing companies on the Internet, but they do not contain online sales functions.
Online storefronts have two functions at once: firstly, they serve to advertise goods and services, i.e. they perform a commercial function, and secondly, they work as a mini-representation of the company on the Internet, the purpose of which is to provide customers with information about the company and its activities, that is, they perform an image function.
The performance of these functions determines the special structure of building the Internet storefront site. The site of such an electronic storefront provides such sections as: “about the company”, “news”, “forum”, “gallery”, “reviews”, “contacts” - these are the sections that are usually present on most corporate sites, but at the same time the Internet showcase also has sections specific to a store, for example: “products”, “catalog”, “place an order”, “basket”, etc.
The presence of certain sections on each specific site of the Internet showcase depends on the wishes of the customer for whom such a site is being produced, as well as on the characteristics of his company, promoted products, preferred methods of advertising and implementation, etc.
An online storefront can have any design, depending on the wishes of its owners. The main thing that should certainly be present is a well-designed, convenient for long-term viewing (decorated in colors that are pleasant and not tiring for the eyes) product catalog and an attractive appearance of all product cards.
A prerequisite for development Internet showcases- this is a mandatory design of the site in the general corporate style of each specific company for which such a site is being created. Failure to comply with this requirement adversely affects the implementation of the image function of the online storefront.
What is an online showcase? updated: December 3, 2018 by: All for IP
Spectra of application of web showcases
A web storefront is an inexpensive form of retail organization. It allows you to ensure the process of interaction with the consumer, receiving and processing applications. The implementation of the further delivery of goods is carried out in traditional ways.
Forms of retail organization based on the use of the Internet can be varied. The most effective are, of course, online stores, but, in some cases, it is advisable to use web storefronts.
Many enterprises that are engaged in the production and sale of original products cannot standardize their products and services. For example, these can be works of art, original items for interior decoration, designs that require compliance with individual sizes and shapes, products self made and others. In this case, they can create online storefronts that help inform consumers about the company's capabilities. In addition, web showcases can be used by companies with a very large and constantly changing product range that can only be presented by target groups. Or, such a showcase can perform a representative function, reflecting the main activities of the company.
In general, web showcases can also be used by enterprises that do not have sufficient capital to organize a full-fledged online store, or other types of electronic systems that ensure the sale of products in automatic mode.
On the pages of a web showcase, you can place information about the company's activities, its advantages and features, a product catalog and a price list for it, they can also be filled with useful tips, articles that allow consumers to more fully perceive the purpose of the goods. In addition, they can contain analytical reviews, opinions of experts and specialists, pages of reviews and suggestions, and other useful aspects. A prerequisite for working with web storefronts is the availability of a special application form, by filling out which the consumer can express his desire to purchase goods or services.
Of course, an online storefront does not allow for a full sales cycle, and cannot provide interactive procedures such as invoicing, order tracking, payment acceptance and other processes. However, the web showcase allows you to collect applications and subsequently fulfill them. The organization of this form of trade is incomparably cheaper than other types. However, consumers may be somewhat distrustful of the possibility of high-quality and timely execution of the order, so the seller must think over and provide guarantees.
This form of business model involves the execution of an order in several stages. First, the application is analyzed, then coordination with suppliers is made, then the conditions are agreed with the buyer, and only after that the order is executed.
Compared to an online store, a web storefront has a number of disadvantages. It does not provide an opportunity to automate the processes of trading from a warehouse, does not allow to reduce staff and reduce operating costs, does not have flexibility in management, and does not contribute to the organization and conduct of effective marketing campaigns and other promotional activities. All requests from consumers go to the company's managers, and not to the automatic order processing system.
In fact, a web showcase is a common tool that allows you to attract customers, and it is also a convenient interface for interacting with them. In general, the processes differ little from traditional retail methods. However, the web showcase provides main goal– the global presence of the seller in the market, thanks to the Internet.
This method of organizing trade can also be used by individual entrepreneurs who do not have sufficient capital to fill the warehouse with goods. They can act as intermediaries between buyers and suppliers with whom partnerships have been concluded. They can take, process orders, provide consumers with extended information about the quality and benefits of the product, and take on the function of coordinating the supply.