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According to Internet World Stats, there are 1.24 billion Internet users in the world as at 30 September 2007, representing a penetration rate of 18.9% while usage growth from 2000 to 2007 was 244.7%. With the surge in the number of Internet users, more and more people are also getting acquainted with purchasing products and services online. E-commerce (online buying and selling) is growing so rapidly that it’s impossible to ignore. For businesses, having an online presence is no longer a luxury but a necessity. With e-commerce, businesses can boost their revenues tremendously, in addition to their brick and mortar set-ups. However, as the Internet industry grows, competition and new challenges inevitably present themselves. SME owners and managers have to acknowledge and hence, embrace its presence.
What is certain is that SMEs recognise the competitive benefits of deploying advanced technologies for business-to-business (B2B) or business-to-consumer (B2C) initiatives. Online transactions are poised to escalate from the following behaviour and trends.
- Transactions are conducted at the buyer’s own time.
- Multiple buyers can conduct transactions at any one time, across the globe.
- The ability to compare prices, products and services from various suppliers.
- Buyers can customise orders according to specific requirements.
- Buyers are able to make informed decisions, especially for high-involvement goods, without the pressure of purchasing when they walk into a physical store/office.
- Online traders have the ability to reach a wider range of customers in a cost-effective manner that leads to improved ROI.
- Enquiries may be translated into lead generation for companies and hence increase sales potential.
- Buyers are treated to various choices and innovative goods that may be often absent from a physical store/office. The Internet will spread these choices faster compared to the past.
- The increasing popularity of auction sites.
- E-commerce allows sellers to engage various loyalty programmes to existing customers that may promote return visits/purchases. Programmes and product offerings may be customised according to the customer’s spending behaviour.
- E-commerce brings healthy competition where sellers from developed and developing countries may gain access into global markets.
- Industries with online services such as banking, education, consulting, design and such, will change considerably.
ONLINE PRESENCE - WEBSITES
There are numerous advantages of having an Internet presence:
- It expands your market globally as well as locally
- It allows interactive customer relationship
- It instils confidence in your customers that they are dealing with a company that is on the cutting edge of information technology
- The ability to showcase one’s company online reduces the cost of printing, preparing and mailing sales literature
- It will remain on line for customers to view 24 hours a day, 7 days a week, 365 days a year
- The website will attract targeted buyers, i.e. customers who are already interested in the products and services, and are using the Internet to locate a merchant
- Establishing a website will give a company an advantage over competitors who do not have an Internet presence, and will allow better competition with those who do
- E-commerce provides increased speeds of communication, the delivery time is expedited and that makes the whole transaction from start to finish more efficient
- It gives business owners the ability to inform customers of any changes to marketing and promotional materials as often and as frequently
Before investing in a website/e-commerce project, there are several key considerations:
1. Define Objectives
The complexity of a website depends on what you want the website to achieve. You have to define the marketing objectives, communication objectives, type of target audience, preferred positioning, unique selling proposition, online services, types of functions, e-commerce capability, amongst others. As a precaution, you may wish to start with a basic website and add more online functions as your e-business picks up.
2. Quality of Website Content
Content is very important in attracting web visitors. Hence, the information must “speak” to your intended target audience in an effective way. The basic and more common contents in corporate websites are Company Background, Products & Services, Customer Support, PDF documents, Frequently Asked Questions (FAQs), Press Releases, E-newsletter Subscription, Sitemap, Feedback Form, Latest News, Events & Promotions.
Proper categorisation of content is crucial so that visitors are not lost in the website. Cross-selling of information in the form of small banners is also another factor that will keep the visitor within your web pages.
3. Attractive Website Design
Aesthetic appeal is of utmost importance. However, it is also imperative to incorporate a company’s corporate identity (logos, colour, font type) to reinforce branding. Navigation should also be user-friendly. Multimedia features are an icing on the cake and must be relevant to the target audience. To maximise a visitor’s web experience, a website must also have quick download.
4. Promoting Your Website
You need to make sure that your website does not drown in the already cluttered web space. Make sure to include your website’s URL in all A&P materials, business card, e-mail signatures, and letterhead.
You may also opt to have reciprocal links with other complementary sites such as your partners’ and suppliers’ sites. This will help increase traffic to your website. You may also submit your website to various search engines to ease a visitor’s search for your website.
5. Implement Backroom Processes
For e-commerce, you will require back-end staff to process orders, track payments, manage inventory, handle e-mail enquiries and complaints. A clear and concise backroom process will aid in smooth daily operations. The staff should also be aware of the latest Internet trends and services that may improve your operations. Positions in search-engines must also be monitored closely so that your investment is maximised. The content and design of the website have to be modified when the need arises.
6. Choosing a Technical Vendor
Choose your technical vendors carefully. Get your research done and gather a basic understanding of e-commerce capabilities and limitations so that you will be able to make an informed decision. Once you are clear on your e-commerce needs, talk to a couple on vendors. Shortlist a few and request for a proposal based on your requirements. You would also need to do your part in terms of providing as information from web strategy to content ideas.
7. Hosting and Domain Names
There are two ways to host your website – on your web server or use the services of a host. When selecting, the main factors are the link speed and capacity. Backup is also very important so that your website has minimal “downtime”. Web hosting is global not just confined to companies in your country. You may consider hosting a copy of your website in U.S.A, if your main customer base is there.
Domain name is an address that you can purchase through MYNIC Berhad. It administers the name space for the following domains – .com.my (for commercial organisations/activities), .net.my (for network-related organisations/activities), .org.my (for organisations/activities which do not qualify for other categories), .edu.my (for Malaysian educational organisations only), .gov.my (for Malaysian government organisations only), .mil.my (for Malaysian military organisations only) and .name.my (for Malaysian individual’s personal use only).
Domain names are may also feature your company’s name or combination of alphabets, if it is available. By creating your own domain name, you can move from one web host or ISP to another without losing your website address.
With the emergence of broadband and wireless communications, endless possibilities and marketing opportunities will demand for synchronisation to help SMIs forge forward in their businesses.
