Ecommerce Basics

Ecommerce Basics

Standard 2

Objective 1

Ecommerce

•Business conducted on the internet

4 Major Types of Ecommerce

•B2B – Business to Business

–Companies sell their online goods to other companieswithout being engaged in sales to consumers.

•B2C – Business to Consumer

–Companies sell their online goods to consumers who are theend users of their products or services. Usually, web shopshave an open access for any visitor.

•C2C – Consumer to Consumer

–Consumers sell their online goods to other consumers. Awell-known example is eBay.

•C2B – Consumer to Business

–Consumer posts a needed product or service and companiespost bids. Consumer then reviews bids and selects acompany.

http://ariztech.com/wp-content/uploads/2014/07/Untitled.jpg

Domain Name

•The easy to read name used to identify anIP address of a server that distinguishes itfrom other systems on the World WideWeb.

–Examples:

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 daymore are released.

Basic MeasurementTools

•Used by ecommerce sites to track andimprove website functionality

Bounce Rate

•The number of people who view one page,then leave a website without viewing any otherpages.

•“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 thenumber of visitors.

Example:

Sims 3wanted to getpeople toregister ontheir website.This was theoriginalwebsite.

They changethe website.Visitors to thewebsite whoregistered forgamesincreased128%(ConversationRate).

Adding theword FREEcan changeeverything!

Conversions

•Completing an action or actions that awebsite wants the user to take.

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

Example:

Call to action– Changingfrom “Store” to“Shop Now”increasedmonthlyrevenue by16%.

Conversion Funnel

•The track a consumer takes through anInternet advertising or search system,navigating an ecommerce website andfinally converting to a sale.

Example: Groupon advertises onother websites. A consumer sees adeal they like, goes to Groupon,registers, and buys the deal.Groupon now promotes to thatconsumer.

Cart AbandonmentRate

•The number of people who intended tobuy by clicking on the cart button dividedby the number of customers who actuallybuy.

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 allonlineshopping cartsare abandoned.This isapproximately$4 trillionworth ofmerchandiseabandoned.

Page Views

•The amount of views a website is getting.

–Example: If you click this link www.disney.comit will count as a page view. If you click it 20times, it will count as 20 page views.

Click Path

•The journey a user takes through a website.

Type inwww.disney.com

Go to Google. Typein Disney. Click onwww.disney.com

Companies track how visitors get to theirwebsite.

Unique Visitors

•The number of distinct visitors that visit awebsite for a particular period of time.

•Example: If you visit a link once today, you willbe counted as a unique visitor. If you comeback to that site 20 more times today, you arestill counted as one unique visitor. If you visitthat site from another computer or device (oranother browser) it will count as a new visitor.