Information Technology Reference
In-Depth Information
having a legal basis to do so, the states find it very difficult to collect sales taxes on Internet
purchases. Total e-commerce B2C sales were estimated to be about $136 billion in 2007
of $8 billion in lost state and local sales tax revenue.
M-COMMERCE
With all the constraints to e-commerce just covered, a company must develop an effective
Web site—one that is easy to use and accomplishes the goals of the company, yet is safe,
secure, and affordable to set up and maintain. The next sections examine several issues for a
successful e-commerce site.
Defining the Web Site Functions
When building a Web site, you should first decide which tasks the site must accomplish.
Most people agree that an effective Web site is one that creates an attractive presence and
that meets the needs of its visitors, including the following:
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Obtaining general information about the organization
•
Obtaining financial information for making an investment decision in the organization
•
Learning the organization's position on social issues
•
Learning about the products or services that the organization sells
•
Buying the products or services that the company offers
•
Checking the status of an order
•
Getting advice or help on effective use of the products
•
Registering a complaint about the organization's products
•
Registering a complaint concerning the organization's position on social issues
•
Providing a product testimonial or idea for a product improvement or new product
•
Obtaining information about warranties or service and repair policies for products
•
Obtaining contact information for a person or department in the organization
After a company determines which objectives its site should accomplish, it can proceed to
the details of actually developing a site.
As the number of e-commerce shoppers increases and they become more comfortable—
and more selective—making online purchases, you might need to redefine your site's basic
business model to capture new business opportunities. For example, consider the major travel
sites such as Expedia, Travelocity, CheapTickets, Orbitz, and Priceline. These sites used to
specialize in one area of travel—inexpensive airline tickets. Now they offer a full range of
travel products, including airline tickets, auto rentals, hotel rooms, tours, and last-minute
trip packages. Expedia provides in-depth hotel details to help comparison shoppers and even
offers 360-degree visual tours and expanded photo displays. It also entices flexible travelers
to search for rates, compare airfares, and configure hotel and air prices at the same time.
Expedia has developed numerous hotel partnerships to reduce costs and help secure great
values for consumers. Meanwhile, Orbitz has launched a special full-service program for
corporate business travelers.
Establishing a Web Site
Companies large and small can establish Web sites. Some companies elect to develop their
sites in house, but this requires learning the intricacies of HTML, Java, and Web design
software. Many firms, especially those with few or no experienced Web developers, have
decided that to outsource the building of their Web site and get the Web site up and running
is faster and cheaper than doing it themselves.
Web site hosting companies such as HostWay and BroadSpire make it possible to set up
a Web page and conduct e-commerce within a matter of days and with little up-front cost.
