ecommerce basics standard 2 objective 1. ecommerce business conducted on the internet

Ecommerce Basics

Standard 2Objective 1

Ecommerce• Business conducted on the internet

4 Major Types of Ecommerce• B2B – Business to Business

– Companies sell their online goods to other companies without being engaged in sales to consumers.

• B2C – Business to Consumer– Companies sell their online goods to consumers who are the

end users of their products or services. Usually, web shops have an open access for any visitor.

• C2C – Consumer to Consumer– Consumers sell their online goods to other consumers. A well-

known example is eBay.• C2B – Consumer to Business

– Consumer posts a needed product or service and companies post bids. Consumer then reviews bids and selects a company.

Domain Name• The easy to read name used to

identify an IP address of a server that distinguishes it from other systems on the World Wide Web.– Examples:

• www.google.com• www.weber.edu• www.whitehouse.gov• www.dsdmail.net

Top Level Domain• .com – commercial use• .org – non profit organization• .gov – governmental use• .net – commercials use• .edu – educational institution*There are literally hundreds more.

Each day more are released.

Basic Measurement Tools

• Used by ecommerce sites to track and improve website functionality

Bounce Rate• The number of people who view one

page, then leave a website without viewing any other pages.

• “Is the right audience coming to your website?”

• Common actions– Clicks the back button (most common)– Closes the browser (window/tab)– Types a new URL– Does nothing (session times out after 30min)

Conversion Rate• The number of conversions divided

by the number of visitors.

Example: Sims 3

wanted to get people to register

on their website.

This was the original website.

They change the

website. Visitors to

the website who

registered for games increased

128% (Conversatio

n Rate).Adding the word FREE

can change

everything!

Conversions• Completing an action or actions that

a website wants the user to take.

https://s3.amazonaws.com/optimizely-marketing/customer-stories/lifeproof-casestudy.pdf

Example:Call to

action – Changing

from “Store” to “Shop

Now” increased monthly

revenue by 16%.

Conversion Funnel• The track a consumer takes through

an Internet advertising or search system, navigating an ecommerce website and finally converting to a sale.

Example: Groupon advertises on other websites. A consumer sees a deal they like, goes to Groupon, registers, and buys the deal. Groupon now promotes to that consumer.

Cart Abandonment Rate

• The number of people who intended to buy by clicking on the cart button divided by the number of customers who actually buy.

http://www.businessinsider.com/heres-how-retailers-can-reduce-shopping-cart-abandonment-and-recoup-billions-of-dollars-in-lost-sales-2014-4

Example: 74% of all

online shopping carts are

abandoned. This is

approximately $4 trillion

worth of merchandise abandoned.

Page Views• The amount of views a website is

getting.– Example: If you click this link

www.disney.com it will count as a page view. If you click it 20 times, it will count as 20 page views.

Click Path• The journey a user takes through a

website.Type in

www.disney.com

Go to Google. Type in Disney.

Click on www.disney.com

Companies track how visitors get to their website.

Unique Visitors• The number of distinct visitors that visit

a website for a particular period of time.• Example: If you visit a link once today,

you will be counted as a unique visitor. If you come back to that site 20 more times today, you are still counted as one unique visitor. If you visit that site from another computer or device (or another browser) it will count as a new visitor.

Repeat Visits• The number of visitors who return to

a website.

Examples:Personalize

Greetings. Have interactions. Give

away freebies. Feature

customers on the website.

Exit Pages• The pages on a website that drive

customers away.

Example:

Pop-ups drive

people away.

Importance of Ecommerce on a Business

• More customers can be reached• Can reach customers faster• Small business can compete with

large businesses• Creates another form of contact with

customers and potential customers

Importance of Ecommerce on a Business (continued)

• Can potentially be a more cost effective way to reach customers

• Help create and maintain brand image

• Provide better customer support• Customers can purchase product

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