Data Protection and Transaction Security

Transaction security pertains to three important components and related issues, namely:

● Transaction Privacy, which means that transactions must be held private and intact, with

unauthorized users unable to understand the message content;

● Transaction Confidentiality, implying that traces of transactions must be dislodged from the

public network and that absolutely no intermediary is permitted to hold copies of the transaction

unless authorized to do so; and

● Transaction Integrity, which pertains to the importance of protecting transactions from

unlawful interference-i.e., transactions must be kept unaltered and unmodified.

In an open network like the Internet, it seems difficult to ensure these. There are, however,

technological solutions that seek to address these security concerns. These solutions usually

come in the form of authorization schemes, i.e., programs that make sure that only authorized

users can gain access to information resources such as user accounts, files, and databases.

Typical examples of authorization schemes are: password protection, encrypted smart cards,

biometrics (e.g., fingerprinting, iris-scanning), and firewalls. A firewall is a system of

cryptographic methods supported by perimeter guards to ensure the safe arrival and storage

of information and its protection from internal and external threats. The most common data and

transaction and data security scheme is encryption, which involves a set of secret codes that

defends sensitive information crossing over online public channels. It makes information

indecipherable except to those with a decryption/decoding key.

Strengthening Consumer Protection

Among the more common trust-related issues

that SMEs take note of in considering whether to engage in e-commerce are:

where and how payment takes place (whether real or virtual); when settlement

takes place (before, during or after the transaction); who settles; whether the transaction

is B2B or B2C; and whether settlement can be traced. Generally, however,

among e-commerce users in developing countries, including SMEs, there is very

low willingness to provide sensitive financial information over the Internet. On the

other hand, consumers have reservations about transacting with SMEs through the

Internet due to the lack of a clear policy on returns and use of data. To address this

concern, government can encourage companies/ SMEs to make their privacy policy

explicit in their Web sites.

Network Infrastructure and Localization of Content

A developed national information

infrastructure is a necessary, though not a sufficient, condition for e-commerce

uptake of SMEs. Without reliable and inexpensive telecommunications and

other information services, SMEs will not be able to go online. An important strategy

in this regard is the construction of “telecenters” or electronic community centers

that would serve as a community-shared access and connectivity platform especially

in the rural areas (e.g., an electronic agri-information center which provides market

information to farmers in rural areas). These telecenters can also be a venue for

capacity building, skills enhancement, training, communications and content development.

65 Government can also adopt agglomerative approaches to Internet use to

reduce costs (e.g., export aggregators, such as B2B or B2C portals/exchanges for

SMEs, which will facilitate trading with fellow SMEs and with other companies in the

international market).

E-Government

Government should be the lead-user of e-commerce if various business

and private-sector related activities are to be prompted to move online. In effect,

government becomes a positive influence. E-government can take the form of various

online transactions such as company registration, taxation, applications for a variety

of employee- and business-related requirements, and the like.

Awareness Campaign

Evidence suggests that SMEs have insufficient knowledge

of information technology and e-commerce. Many SMEs have identified their lack

of knowledge of technology as one of the main barriers to using e-commerce. Government

and private sector partnerships can engage in a campaign to disseminate information

to SMEs about e-commerce policies, best practices, success stories, and opportunities and obstacles relating to the use of ICTs and e-commerce. These awareness

campaigns could include free training courses and workshops on e-commerce,

security and privacy, awards programs, and information centers to assist SMEs.

Ultimately, this information campaign should come in the form of an overall e-commerce

development strategy for the economy, focusing on its various innovative applications

for SMEs.

E-SME Development

The market ultimately drives e-commerce development, but

it is the private sector that fuels it. Government can provide incentives to encourage

widespread e-commerce use by SMEs. An “e-SME development program” in

which various sectors can provide technical assistance to SMEs to promote ecommerce

uptake, can also be developed. Banks, financial lending and training

institutions, and corporations should be encouraged to develop “SME desks” that

will address the specific needs of SMEs. In particular, steps should be taken to:

● provide incentives to individuals to become entrepreneurs by lowering borrowing

rates;

● provide incentives to SMEs that intend to use e-commerce in their business

operations;

● broaden credit extension facilities to SMEs in order for them to use ICT and ecommerce;

and

● offer discounts on business solution software packages and software licenses.

Moreover, big businesses and corporations should be encouraged to transfer technology

to SMEs by offering them free training in ICT and e-commerce.

2. Quality and speed of distribution logistics (i.e., roads and bridges)

Roads and bridges, especially in developing countries, still form part of the e-commerce

infrastructure. Very few goods are delivered over the information infrastructure

or the Internet (the exceptions are music and software). Most of the goods

purchased over the Internet are still delivered the conventional way (i.e., physical

delivery). Hence, poor roads and bridges, inefficient transport systems, coupled

with the high cost of international parcel services and bureaucratic customs clearance

processes, are major obstacles in the uptake of e-commerce in developing

countries. Government should therefore create a policy environment that will:

● encourage investments in the national physical and transport infrastructure; and

● provide for electronic customs clearance processing to streamline the bureaucracy

and allow for more transparent, predictable and efficient customs operations.

Both of these will contribute to the reduction of distribution and logistics costs.

How can government intervene in the promotion and development of e-commerce

among SMEs?

The following are the more relevant areas for government intervention with respect

to SME uptake of e-commerce:

1. Telecoms pricing and performance

One of the aims of telecommunications policy and legislation should be to ensure

that the public has access to basic telecommunications services at a reasonable

cost. The goal should ultimately be universal access or widespread access to

reliable information and communication services at a reasonable cost and its availability

at a reasonable distance.

To enhance the quality of telecommunications services, policies should encourage:

● open access, which refers to the absence of non-competitive practices by

network providers;

● open architecture, which pertains to the design of a system that facilitates

interconnection among different systems and services currently and as they

develop over time; and

● flexible access, which pertains to interconnected and interoperable networks

of telecommunications, broadcasting, and electronic publishing, where the format

will be digital and the bandwidth will be adjusted according to the demands

of the user and the character of communications

Are existing legal systems sufficient to protect those engaged in e-commerce?

Unfortunately, the existing legal systems in most developing countries are not sufficient
to protect those engaged in e-commerce. For instance, with respect to contracts, existing
laws were conceived at a time when the word “writing,” “document” and “signature”
referred to things in paper form. On the other hand, in today’s electronic business
transactions paper is not used for record-keeping or entering into contracts.
Another important and common legal issue faced by many developing countries is
uncertainty regarding whether the courts will accept electronic contracts or documents
and/or electronic signatures as evidence. One view is that the issue of admissibility
of electronically generated evidence will not be resolved unless a law
specifically referring to it is passed. This gap in existing legal systems has caused
the emergence of at least two divergent views: one bordering on the conservative
interpretation of the word “document” as to exclude non-paper-based ones; and
the other involving a liberal construction, which allows electronic counterparts of
documents.
In the ASEAN region, only three countries-Singapore (Singapore Electronic Transactions
Act), Malaysia (Cyberlaws), and the Philippines (Philippine E-commerce
Act)-have a legal framework for e-commerce. These frameworks provide for the
legal recognition of electronic documents and signatures and penalize common
crimes and offenses committed in cyberspace.

How can government use e-commerce?

Government can use e-commerce in the following ways:
● E-procurement. Government agencies should be able to trade electronically
with all suppliers using open standards-through ‘agency enablement’ programs,
‘supplier enablement’ programs, and e-procurement information systems.
● Customs clearance. With the computerization of customs processes and operations
(i.e., electronic submission, processing and electronic payment; and
automated systems for data entry to integrate customs tables, codes and preassessment),
one can expect more predictable and more precise information
on clearing time and delivery shipments, and increased legitimate revenues.
● Tax administration. This includes a system for electronic processing and transmission
of tax return information, online issuances of tax clearances, permits,
and licenses, and an electronic process registration of businesses and new
taxpayers, among others.
More often than not, the e-commerce initiatives of government are a barometer
indicating whether or not the infrastructure supports e-commerce use by private
firms. This means that if government is unable to engage in e-procurement, secure
records online, or have customs fees remitted electronically, then the private
sector will also have difficulties in e-commerce uptake. Virtually, the benefits
from e-commerce accrue to the government, as the experiences of some
countries reflect

What is a favorable policy environment for e-commerce?

Among the public policy issues in electronic commerce that governments should
take heed of are:
● “bridging the digital divide” or promoting access to inexpensive and easy access
to information networks;
● legal recognition of e-commerce transactions;
● consumer protection from fraud;
● protection of consumers’ right to privacy;
● legal protection against cracking (or unauthorized access to computer systems);
and
● protection of intellectual property.
Measures to address these issues must be included in any country’s policy and legal
framework for e-commerce. It is important that government adopt policies, laws and
incentives that focus on promoting trust and confidence among e-commerce participants
and developing a national framework that is compatible with international norms
on e-commerce (covering for instance, contract enforcement, consumer protection,
liability assignment, privacy protection, intellectual property rights, cross-border trade,
and improvement of delivery infrastructure, among other

What is the role of government in the development of e-commerce in developing countries?

While it is generally agreed that the private sector should take the lead role in the
development and use of e-commerce, the government plays an instrumental role
in encouraging e-commerce growth through concrete practicable measures such
as:
1. Creating a favorable policy environment for e-commerce; and
2. Becoming a leading-edge user of e-commerce and its applications in its operations,
and a provider to citizens of e-government services, to encourage its
mass use.

The Case of the Grameen Village Phone Network

The Grameen Village Phone Network is a classic example of women’s empowerment in
Bangladesh. Operators of the village phones are all poor women (who have been selected
for their clean and strong credit record). These village phones are regularly visited by
members of male-dominated villages. Notably, the women entrepreneurs (village operators)
enjoy wider discretion in expending their profits from their phone services than with their
household income.

The Case of the Guyanan Weavers’ Cooperative

The Guyanan Weavers’ Cooperative is an organization founded by 300 women from the
Wapishana and Macushi tribes in Guyana, northern South America. The cooperative
revived the ancient art of hammock weaving using 19th century accounts and illustrations
of the hammocks made by European travelers and the cultivation of cotton on small family
plots and hand-weaving. The organization then hired someone to create a Web site,
which was instrumental in bringing their wares online. Not long after, in the mid-1990s, the
group of weavers (the Rupununi Weavers Society) was able to sell hammocks to Queen
Elizabeth, Prince Philip, the Smithsonian Institute, and the British Museum. Since 1998, they
have sold about 20 hammocks through the Internet at $1,000 per piece. This case also
shows that SMEs have great potential to compete in markets for high-end, bespoke
products despite the low sales volume

E-commerce at Work in the Service Sector

Offshore data processing centers, which provide data transcription and “back office”
functions to service enterprises such as insurance companies, airlines, credit card companies
and banks, among others, are prevalent in developing countries and even in lowwage
developed countries. In fact, customer support call centers of dot-coms and other
ICT/e-commerce companies are considered one of the fastest growing components of
offshore services in these countries.
India and the Philippines pride themselves in being the major locations of offshore data entry
and computer programming in Asia, with India having established a sophisticated software
development capability with highly skilled personnel to support it.

How is e-commerce useful to developing country entrepreneurs?

There are at least five ways by which the Internet and e-commerce are useful for
developing country entrepreneurs:
1. It facilitates the access of artisans and SMEs to world markets.
2. It facilitates the promotion and development of tourism of developing countries
in a global scale.
3. It facilitates the marketing of agricultural and tropical products in the global market.

4. It provides avenues for firms in poorer countries to enter into B2B and B2G supply
chains.
5. It assists service-providing enterprises in developing countries by allowing them to
operate more efficiently and directly provide specific services to customers globally.

Developing country SMEs in the services sector have expanded their market with
the increased ability to transact directly with overseas or international customers
and to advertise their services. This is especially true for small operators of tourismrelated
services. Tourism boards lend assistance in compiling lists of service providers
by category in their Web sites.
In addition, for SMEs in developing countries the Internet is a quick, easy, reliable
and inexpensive means for acquiring online technical support and software tools and
applications, lodging technical inquiries, requesting repairs, and ordering replacement
parts or new tooling.
The Internet is also instrumental in enabling SMEs in developing countries to join
discussion groups with their peers across the globe who are engaged in the same
business, and thereby share information, experiences and even solutions to specific
technical problems. This is valuable especially to entrepreneurs who are geographically
isolated from peers in the same business

Empowering the Agricultural Sector through B2C E-Commerce

The International Federation for Alternative Trade (IFAT) is a collective effort to empower the
agricultural sector of developing countries. It is composed of 100 organizations (including 70
organizations in developing countries) in 42 countries. Members of the organization collectively
market about $200-400 million annually in handicrafts and agricultural products from
lower income countries. In addition, IFAT provides assistance to developing country producers
in terms of logistical support, quality control, packing and export.

E-COMMERCE IN DEVELOPING COUNTRIES

How important is e-commerce to SMEs in developing countries? How big is
the SME e-business market?
For SMEs in developing countries e-commerce poses the advantages of reduced
information search costs and transactions costs (i.e., improving efficiency of operations-
reducing time for payment, credit processing, and the like). Surveys show
that information on the following is most valuable to SMEs: customers and markets,
product design, process technology, and financing source and terms. The
Internet and other ICTs facilitate access to this information.43 In addition, the Internet
allows automatic packaging and distribution of information (including customized
information) to specific target groups.
However, there is doubt regarding whether there is enough information on the Web
that is relevant and valuable for the average SME in a developing country that
would make investment in Internet access feasible. Underlying this is the fact that
most SMEs in developing countries cater to local markets and therefore rely heavily
on local content and information. For this reason, there is a need to substantially
increase the amount and quality of local content (including local language content)
on the Internet to make it useful especially to low-income entrepreneurs.

eMarketer estimates that SME e-business revenues will increase: from $6.53 billion
to $28.53 billion in Eastern Europe, Africa and the Middle East combined; $127.25
billion in 2003 to $502.69 billion by 2005 in the Asia-Pacific region; $23.51 billion in
2003 to $89.81 billion by 2005 in Latin America; from $340.41 billion in 2003 to
$971.47 billion by 2005 in Western Europe; and from $384.36 billion in 2003 to
$1.18 trillion by 2005 in Northern America.

A Case of Creative Positioning of an E-Business Strategy

Dawson’s Antiques is a 23-year-old small antique business. With the emergence of online
auction sites, the owner, Linda Dawson, foresaw the need not only to accommodate the
Internet in their business strategy but also to take advantage of it in order to survive as a
business. This came with the recognition that many of her clients were exposed to a wide
range of antiques from competitors at online auction sites at prices lower than she was
charging.
Meanwhile, Sotheby’s, then a growing online auction site (and now one of the largest online
auction sites), realized the merit of increasing its auction inventory to attract a bigger
audience on the Internet. It revised its Internet strategy by opening its Web site, sothebys.com,
to smaller dealers and auction sites instead of competing directly with its competitors in the
online auction business. With this approach, Sotheby experienced an exponential growth in
its inventory, which attracted a bigger market.
Dawson’s enlistment in Sotheby’s was instrumental in expanding its client base. To make
things easier, Sotheby’s not only provided the Web site for its members (Dawson’s included)

How are business relationships transformed through e-commerce?

E-commerce transforms old economy relationships (vertical/linear relationships) to
new economy relationships characterized by end-to-end relationship management
solutions (integrated or extended relationships).

How is e-commerce helpful to the consumer?

In C2B transactions, customers/consumers are given more influence over what and
how products are made and how services are delivered, thereby broadening consumer
choices. E-commerce allows for a faster and more open process, with customers
having greater control.

E-commerce makes information on products and the market as a whole readily available
and accessible, and increases price transparency, which enable customers to
make more appropriate purchasing decisions.

Dot Com Frenzy

According to Webmergers.com statistics, about 862 dot-com companies have failed
since the height of the dot-com bust in January 2000. Majority of these were ecommerce
and content companies. The shutdown of these companies was followed
by the folding up of Internet-content providers, infrastructure companies, Internet
service providers, and other providers of dial-up and broadband Internet-access
services.
From the perspective of the investment banks, the dot-com frenzy can be likened to a
gamble where the big money players were the venture capitalists and those laying their
bets on the table were the small investors. The bust was primarily caused by the players’
unfamiliarity with the sector, coupled with failure to cope with the speed of the Internet
revolution and the amount of capital in circulation.
Internet entrepreneurs set the prices of their goods and services at very low levels to gain
market share and attract venture capitalists to infuse funding. The crash began when
investors started demanding hard earnings for sky-high valuations. The Internet companies
also spent too much on overhead before even gaining a market share

Aside from reducing the cost of doing business, what are the advantages of e-commerce for businesses?

E-commerce serves as an “equalizer”. It enables start-up and small- and medium-
sized enterprises to reach the global market.

However, this does not discount the point that without a good e-business strategy, ecommerce
may in some cases discriminate against SMEs because it reveals proprietary pricing information. A sound e-business plan does not totally disregard old
economy values. The dot-com bust is proof of this.

E-commerce makes “mass customization” possible. E-commerce applications
in this area include easy-to-use ordering systems that allow customers to choose
and order products according to their personal and unique specifications. For instance,
a car manufacturing company with an e-commerce strategy allowing for
online orders can have new cars built within a few days (instead of the several weeks
it currently takes to build a new vehicle) based on customer’s specifications. This
can work more effectively if a company’s manufacturing process is advanced and
integrated into the ordering system.

E-commerce allows “network production.” This refers to the parceling out of the
production process to contractors who are geographically dispersed but who are
connected to each other via computer networks. The benefits of network production
include: reduction in costs, more strategic target marketing, and the facilitation of
selling add-on products, services, and new systems when they are needed. With
network production, a company can assign tasks within its non-core competencies
to factories all over the world that specialize in such tasks (e.g., the assembly of
specific components).

The Case of Amazon.com

Amazon.com is a virtual bookstore. It does not have a single square foot of bricks and mortar
retail floor space. Nonetheless, Amazon.com is posting an annual sales rate of approximately
$1.2 billion, equal to about 235 Barnes & Noble (B&N) superstores. Due to the
efficiencies of selling over the Web, Amazon has spent only $56 million on fixed assets,
while B&N has spent about $118 million for 235 superstores. (To be fair, Amazon has yet to
turn a profit, but this does not obviate the point that in many industries doing business
through e-commerce is cheaper than conducting business in a traditional brick-and-mortar
company.)

How important is an intranet for a business engaging in e-commerce?

An intranet aids in the management of internal corporate information that may be
interconnected with a company’s e-commerce transactions (or transactions conducted
outside the intranet). Inasmuch as the intranet allows for the instantaneous
flow of internal information, vital information is simultaneously processed and
matched with data flowing from external e-commerce transactions, allowing for the
efficient and effective integration of the corporation’s organizational processes. In
this context, corporate functions, decisions and processes involving e-commerce
activities are more coherent and organized.
The proliferation of intranets has caused a shift from a hierarchical command-andcontrol
organization to an information-based organization. This shift has implications
for managerial responsibilities, communication and information flows, and
workgroup structures.

How is the Internet relevant to e-commerce?

The Internet allows people from all over the world to get connected inexpensively and
reliably. As a technical infrastructure, it is a global collection of networks, connected
to share information using a common set of protocols Also, as a vast network of
people and information, the Internet is an enabler for e-commerce as it allows businesses
to showcase and sell their products and services online and gives potential

customers, prospects, and business partners access to information about these
businesses and their products and services that would lead to purchase.
Before the Internet was utilized for commercial purposes, companies used private
networks-such as the EDI or Electronic Data Interchange-to transact business with
each other. That was the early form of e-commerce. However, installing and maintaining
private networks was very expensive. With the Internet, e-commerce spread
rapidly because of the lower costs involved and because the Internet is based on
open standards

What are the components of a typical successful e-commerce transaction loop?

E-commerce does not refer merely to a firm putting up a Web site for the purpose of
selling goods to buyers over the Internet. For e-commerce to be a competitive alternative
to traditional commercial transactions and for a firm to maximize the benefits
of e-commerce, a number of technical as well as enabling issues have to be considered.
A typical e-commerce transaction loop involves the following major players and
corresponding requisites:
The Seller should have the following components:
● A corporate Web site with e-commerce capabilities (e.g., a secure transaction
server);
● A corporate intranet so that orders are processed in an efficient manner; and
● IT-literate employees to manage the information flows and maintain the e-commerce
system.

Transaction partners include:
● Banking institutions that offer transaction clearing services (e.g., processing credit
card payments and electronic fund transfers);
● National and international freight companies to enable the movement of physical
goods within, around and out of the country. For business-to-consumer
transactions, the system must offer a means for cost-efficient transport of small
packages (such that purchasing books over the Internet, for example, is not
prohibitively more expensive than buying from a local store); and
● Authentication authority that serves as a trusted third party to ensure the integrity
and security of transactions.

Consumers (in a business-to-consumer transaction) who:
● Form a critical mass of the population with access to the Internet and disposable
income enabling widespread use of credit cards; and
● Possess a mindset for purchasing goods over the Internet rather than by physically
inspecting items.

Firms/Businesses (in a business-to-business transaction) that together form a
critical mass of companies (especially within supply chains) with Internet access
and the capability to place and take orders over the Internet.

Government, to establish:
● A legal framework governing e-commerce transactions (including electronic documents,
signatures, and the like); and
● Legal institutions that would enforce the legal framework (i.e., laws and regulations)
and protect consumers and businesses from fraud, among others.
And finally, the Internet, the successful use of which depends on the following:
● A robust and reliable Internet infrastructure; and
● A pricing structure that doesn’t penalize consumers for spending time on and
buying goods over the Internet (e.g., a flat monthly charge for both ISP access
and local phone calls).

For e-commerce to grow, the above requisites and factors have to be in place. The
least developed factor is an impediment to the increased uptake of e-commerce as
a whole. For instance, a country with an excellent Internet infrastructure will not
have high e-commerce figures if banks do not offer support and fulfillment services
to e-commerce transactions. In countries that have significant e-commerce figures,
a positive feedback loop reinforces each of these factors

What forces are fueling e-commerce?

There are at least three major forces fuelling e-commerce: economic forces, marketing
and customer interaction forces, and technology, particularly multimedia convergence

Economic forces. One of the most evident benefits of e-commerce is economic
efficiency resulting from the reduction in communications costs, low-cost technological
infrastructure, speedier and more economic electronic transactions with suppliers,
lower global information sharing and advertising costs, and cheaper customer
service alternatives.
Economic integration is either external or internal. External integration refers to the
electronic networking of corporations, suppliers, customers/clients, and independent
contractors into one community communicating in a virtual environment (with
the Internet as medium). Internal integration, on the other hand, is the networking
of the various departments within a corporation, and of business operations and
processes. This allows critical business information to be stored in a digital form
that can be retrieved instantly and transmitted electronically. Internal integration is
best exemplified by corporate intranets. Among the companies with efficient corporate
intranets are Procter and Gamble, IBM, Nestle and Intel.

Market forces.
Corporations are encouraged to use e-commerce in marketing and
promotion to capture international markets, both big and small. The Internet is likewise
used as a medium for enhanced customer service and support. It is a lot
easier for companies to provide their target consumers with more detailed product
and service information using the Internet.


Technology forces. The development of ICT is a key factor in the growth of ecommerce.
For instance, technological advances in digitizing content, compression
and the promotion of open systems technology have paved the way for the convergence
of communication services into one single platform. This in turn has made
communication more efficient, faster, easier, and more economical as the need to
set up separate networks for telephone services, television broadcast, cable television,
and Internet access is eliminated. From the standpoint of firms/businesses
and consumers, having only one information provider means lower communications
costs. 20
Moreover, the principle of universal access can be made more achievable with
convergence. At present the high costs of installing landlines in sparsely populated
rural areas is a disincentive to telecommunications companies to install
telephones in these areas. Installing landlines in rural areas can become more
attractive to the private sector if revenues from these landlines are not limited to
local and long distance telephone charges, but also include cable TV and Internet
charges. This development will ensure affordable access to information even by
those in rural areas and will spare the government the trouble and cost of installing
expensive landlines.

What is m-commerce?

M-commerce (mobile commerce) is the buying and selling of goods and services
through wireless technology-i.e., handheld devices such as cellular telephones and
personal digital assistants (PDAs). Japan is seen as a global leader in m-commerce.
As content delivery over wireless devices becomes faster, more secure, and scalable,
some believe that m-commerce will surpass wireline e-commerce as the
method of choice for digital commerce transactions. This may well be true for the
Asia-Pacific where there are more mobile phone users than there are Internet users.
Industries affected by m-commerce include:
● Financial services, including mobile banking (when customers use their
handheld devices to access their accounts and pay their bills), as well as brokerage
services (in which stock quotes can be displayed and trading conducted
from the same handheld device);
● Telecommunications, in which service changes, bill payment and account
reviews can all be conducted from the same handheld device;
● Service/retail, as consumers are given the ability to place and pay for orders
on-the-fly; and
● Information services, which include the delivery of entertainment, financial
news, sports figures and traffic updates to a single mobile device.17
Forrester Research predicts US$3.4 billion sales closed using PDA and cell phones
by 2005

What is C2C e-commerce?

What is C2C e-commerce?
Consumer-to-consumer e-commerce or C2C is simply commerce between private
individuals or consumers.
This type of e-commerce is characterized by the growth of electronic marketplaces
and online auctions, particularly in vertical industries where firms/businesses can
bid for what they want from among multiple suppliers.16 It perhaps has the greatest
potential for developing new markets.
This type of e-commerce comes in at least three forms:
● auctions facilitated at a portal, such as eBay, which allows online real-time bidding
on items being sold in the Web;
● peer-to-peer systems, such as the Napster model (a protocol for sharing files
between users used by chat forums similar to IRC) and other file exchange and
later money exchange models; and

● classified ads at portal sites such as Excite Classifieds and eWanted (an interactive,
online marketplace where buyers and sellers can negotiate and which
features “Buyer Leads & Want Ads”).
Consumer-to-business (C2B) transactions involve reverse auctions, which empower
the consumer to drive transactions. A concrete example of this when competing
airlines gives a traveler best travel and ticket offers in response to the traveler’s
post that she wants to fly from New York to San Francisco.
There is little information on the relative size of global C2C e-commerce. However,
C2C figures of popular C2C sites such as eBay and Napster indicate that this market
is quite large. These sites produce millions of dollars in sales every day.

What is B2G e-commerce?

Business-to-government e-commerce or B2G is generally defined as commerce between
companies and the public sector. It refers to the use of the Internet for public
procurement, licensing procedures, and other government-related operations. This kind
of e-commerce has two features: first, the public sector assumes a pilot/leading role in
establishing e-commerce; and second, it is assumed that the public sector has the
greatest need for making its procurement system more effective.15
Web-based purchasing policies increase the transparency of the procurement process
(and reduces the risk of irregularities). To date, however, the size of the B2G ecommerce
market as a component of total e-commerce is insignificant, as government
e-procurement systems remain undeveloped.

What is B2C e-commerce?

Business-to-consumer e-commerce, or commerce between companies and consumers,
involves customers gathering information; purchasing physical goods (i.e., tangibles
such as books or consumer products) or information goods (or goods of electronic
material or digitized content, such as software, or e-books); and, for information
goods, receiving products over an electronic network.12
It is the second largest and the earliest form of e-commerce. Its origins can be
traced to online retailing (or e-tailing).13 Thus, the more common B2C business
models are the online retailing companies such as Amazon.com, Drugstore.com,
Beyond.com, Barnes and Noble and ToysRus. Other B2C examples involving information
goods are E-Trade and Travelocity.
The more common applications of this type of e-commerce are in the areas of
purchasing products and information, and personal finance management, which
pertains to the management of personal investments and finances with the use of
online banking tools (e.g., Quicken).

eMarketer estimates that worldwide B2C e-commerce revenues will increase from
US$59.7 billion in 2000 to US$428.1 billion by 2004. Online retailing transactions
make up a significant share of this market. eMarketer also estimates that in the Asia-
Pacific region, B2C revenues, while registering a modest figure compared to B2B,
nonetheless went up to $8.2 billion by the end of 2001, with that figure doubling at the
end of 2002-at total worldwide B2C sales below 10%.
B2C e-commerce reduces transactions costs (particularly search costs) by increasing
consumer access to information and allowing consumers to find the most competitive
price for a product or service. B2C e-commerce also reduces market entry barriers since
the cost of putting up and maintaining a Web site is much cheaper than installing a
“brick-and-mortar” structure for a firm. In the case of information goods, B2C e-commerce
is even more attractive because it saves firms from factoring in the additional cost
of a physical distribution network. Moreover, for countries with a growing and robust
Internet population, delivering information goods becomes increasingly feasible.

What are the different types of e-commerce?

The major different types of e-commerce are: business-to-business (B2B); businessto-
consumer (B2C); business-to-government (B2G); consumer-to-consumer (C2C);
and mobile commerce (m-commerce).
What is B2B e-commerce?
B2B e-commerce is simply defined as e-commerce between companies. This is the
type of e-commerce that deals with relationships between and among businesses.
About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce
will continue to grow faster than the B2C segment.
The B2B market has two primary components: e-frastructure and e-markets. Efrastructure
is the architecture of B2B, primarily consisting of the following:9
● logistics - transportation, warehousing and distribution (e.g., Procter and Gamble);
● application service providers - deployment, hosting and management of packaged
software from a central facility (e.g., Oracle and Linkshare);
● outsourcing of functions in the process of e-commerce, such as Web-hosting,
security and customer care solutions (e.g., outsourcing providers such as
eShare, NetSales, iXL Enterprises and Universal Access);
● auction solutions software for the operation and maintenance of real-time auctions
in the Internet (e.g., Moai Technologies and OpenSite Technologies);
● content management software for the facilitation of Web site content management
and delivery (e.g., Interwoven and ProcureNet); and
● Web-based commerce enablers (e.g., Commerce One, a browser-based, XMLenabled
purchasing automation software).
E-markets are simply defined as Web sites where buyers and sellers interact with
each other and conduct transactions.10
The more common B2B examples and best practice models are IBM, Hewlett
Packard (HP), Cisco and Dell. Cisco, for instance, receives over 90% of its product
orders over the Internet.
Most B2B applications are in the areas of supplier management (especially purchase
order processing), inventory management (i.e., managing order-ship-bill
cycles), distribution management (especially in the transmission of shipping documents),
channel management (i.e., information dissemination on changes in operational
conditions), and payment management (e.g., electronic payment systems
or EPS)
eMarketer projects an increase in the share of B2B e-commerce in total global ecommerce
from 79.2% in 2000 to 87% in 2004 and a consequent decrease in the
share of B2C e-commerce from 20.8% in 2000 to only 13% in 2004

Likewise B2B growth is way ahead of B2C growth in the Asia-Pacific region. According
to a 2001 eMarketer estimate, B2B revenues in the region are expected to exceed
$300 billion by 2004.

Is the Internet economy synonymous with e-commerce and e-business?

The Internet economy is a broader concept than e-commerce and e-business. It
includes e-commerce and e-business.
The Internet economy pertains to all economic activities using electronic networks
as a medium for commerce or those activities involved in both building the networks
linked to the Internet and the purchase of application services7 such as the
provision of enabling hardware and software and network equipment for Web-based/
online retail and shopping malls (or “e-malls”). It is made up of three major segments:
physical (ICT) infrastructure, business infrastructure, and commerce

The CREC (Center for Research and Electronic Commerce) at the University of Texas
has developed a conceptual framework for how the Internet economy works. The
framework shows four layers of the Internet economy-the three mentioned above and
a fourth called intermediaries

Is e-commerce the same as e-business?

While some use e-commerce and e-business interchangeably, they are distinct concepts.
In e-commerce, information and communications technology (ICT) is used in
inter-business or inter-organizational transactions (transactions between and among
firms/organizations) and in business-to-consumer transactions (transactions between
firms/organizations and individuals).
In e-business, on the other hand, ICT is used to enhance one’s business. It includes
any process that a business organization (either a for-profit, governmental
or non-profit entity) conducts over a computer-mediated network. A more comprehensive
definition of e-business is: “The transformation of an organization’s processes to
deliver additional customer value through the application of technologies, philosophies
and computing paradigm of the new economy.”
Three primary processes are enhanced in e-business:5
1. Production processes, which include procurement, ordering and replenishment
of stocks; processing of payments; electronic links with suppliers; and
production control processes, among others;
2. Customer-focused processes, which include promotional and marketing efforts,
selling over the Internet, processing of customers’ purchase orders and
payments, and customer support, among others; and
3. Internal management processes, which include employee services, training,
internal information-sharing, video-conferencing, and recruiting. Electronic
applications enhance information flow between production and sales forces
to improve sales force productivity. Workgroup communications and electronic
publishing of internal business information are likewise made more
efficient

What is e-commerce?

Electronic commerce or e-commerce refers to a wide range of online business activities
for products and services.1 It also pertains to “any form of business transaction in
which the parties interact electronically rather than by physical exchanges or direct
physical contact.”2
E-commerce is usually associated with buying and selling over the Internet, or conducting
any transaction involving the transfer of ownership or rights to use goods or
services through a computer-mediated network.3 Though popular, this definition is
not comprehensive enough to capture recent developments in this new and revolutionary
business phenomenon. A more complete definition is: E-commerce is the
use of electronic communications and digital information processing technology in
business transactions to create, transform, and redefine relationships for value creation
between or among organizations, and between organizations and individuals.4
International Data Corp (IDC) estimates the value of global e-commerce in 2000 at
US$350.38 billion. This is projected to climb to as high as US$3.14 trillion by 2004.
IDC also predicts an increase in Asia’s percentage share in worldwide e-commerce
revenue from 5% in 2000 to 10% in 2004

e-commerce carriers

So, you have decided to take a plunge in Electronic Commerce, but need to see the options and fathom the knowledge required, I must say you have chosen the right place then !

The developments of Internet and Electronic Commerce technologies have opened floodgates for Electronic Commerce professionals. The estimated figures for Businesses over Internet and consequent demand for professionals are mind-boggling. Not only Professionals with cutting edge technologies are in great demand but professionals in traditional fields are also finding new areas to work in.

Web site design and development

The activities involved are Web Site layout design, creation of web pages, graphic design and multimedia animations. Earlier web pages were created using HTML languages but today graphical Web authoring tools allow you to create attractive web sites with ease, which even beginners can learn quickly.

Skills required:

• Knowledge of Internet and World Wide Web
• Hyper Text Markup Language (HTML)
• Web creation tools

Popular web creation tools are:

• Microsoft Front Page
• Macromedia Dreamweaver
• Hotmetal Pro
• Fusion
• Adobe GoLive
• Graphic Design tools

Popular Graphic Design tools are:

• Adobe Photoshop
• Corel Draw
• Adobe Illustrator
• Fireworks 
• Photopaint 
• Gif Animator 
• Macromedia Flash

Content Development

Creation of innumerable web sites and portals have created a great demand for people who can research and provide written matter for the web sites. The job involves extracting and analyzing information from varied sources including Internet, write synopsis and prepare final content. People having knowledge and experience are hired to research and prepare write-ups in their area of expertise. Experience as a copy writer in an advertising agency or a journalistic background helps.

Skills required:

• Good written communication skills. 
• Knowledge in the area of subject. 
• Researching abilities.

Web Programming and Application Development

This is a techie job in the web development. The web programmer creates web pages that constitute a web site and also adds the required program functionality to it. At advanced level, the programmer creates complex applications that provide dynamic content, returns data from database and even provide Electronic Commerce functionality.

For programming, skills in the following areas are essential: 

• HTML, DHTML 
• VB Script, Java Script, CGI/C,CGI/Perl, Active Server Pages (ASP) 
• Java, Java Servlets 
• XML 
• CGI / PERL / PHP

There are various integrated development tools which are used extensively by programmers like:
Visual Interdeveloper
Visual Cafe 

Apart from above, for development of applications, the knowledge of following application servers is gaining: ColdFusion / Web Objects / Broad Vision / Silver Stream / Web Sphere / Web Logic

Database administration

The database administrator designs, develops and maintains database systems that act behind the scenes of commercial and information intensive web sites. Ensures that the database system has an optimum design that takes care of accurate and updated information whenever required. One must be familiar with the hardware such as servers and back up media and must have thorough knowledge of database design and maintenance.

The knowledge in following databases are preferred: 

• MS SQL Server 
• Oracle 8i 
• Sybase 
• Informix 
• MS Access

Apart from database, knowledge of various application servers is also required.

Benefits Of Ecommerce

E Commerce is one of the most important facets of the Internet to have emerged in the recent times. Ecommerce or electronic commerce involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be specific ecommerce would be buying and selling of goods and services and transfer of funds through digital communications.

The benefits of Ecommerce:

• Ecommerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
• The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.
• Ecommerce is ideal for niche products. Customers for such products are usually few. But in the vast market place i.e. the Internet, even niche products could generate viable volumes.
• Another important benefit of Ecommerce is that it is the cheapest means of doing business.
• The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to invest in improving their competitive position. A mature market, increased competitions have all reduced the amount of money available to invest. If the selling price cannot be increased and the manufactured cost cannot be decreased then the difference can be in the way the business is carried out. Ecommerce has provided the solution by decimating the costs, which are incurred.
• From the buyer’s perspective also ecommerce offers a lot of tangible advantages.
  1. Reduction in buyer’s sorting out time.
  2. Better buyer descisions
  3. Less time is spent in resolving invoice and order discrepancies.
  4. Increased opportunities for buying alternative products.
• The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas:
1. Document preparation
2. Error detection and correction
3. Reconciliation
4. Mail preparation
5. Telephone calling
6. Data entry
7. Overtime
8. Supervision expenses
• Operational benefits of e commerce include reducing both the time and personnel required to complete business processes, and reducing strain on other resources. It’s because of all these advantages that one can harness the power of ecommerce and convert a business to ebusiness by using powerful turnkey ecommerce solutionsmade available by ebusiness solution providers.

E-commerce and its future in Pakistan

E-commerce is a very hot issue these days. After the revolution of Internet, more and more countries are getting involved in it. 

However, in general, if we use any type of electronic devices in getting orders and sending catalogues, like telephone, fax or any other such instruments, we are supposed to be applying electronic business techniques. However, the real sense of e-commerce is the business on the internet  of which there are different modes, like opening a retail store on internet, where all transactions are done on line  from selection of product to payment of bills 

The over-all volume of e-commerce is more than $4 billion annually. Doing business on internet is not a very costly investment. It is estimated that in near future, almost 25 per cent of the traditional business will be converted into internet business. 

Trends: E-commerce is an information technology trend developing fast in the business world  The corporate and the business world, aptly supported by the IT industry, already stands transferred, which by recent estimate will exceed $400 billion this year. 

As we start warming up to global e-commerce in Pakistan, we must understand that almost 78 per cent of the e-commerce activity takes place in the USA, obviously driven by the use of internet in that country. As the January 2000,over 110 million people have internet access there compared to 279 million the world over. 

Nevertheless, Pakistan can make good use of this opportunity with proper planning and execution. To begin with, let us focus on the domestic front before going all out for the global market. 

Domestic activity: Offer for improving and productivity to bring it to the excellent level. It also allows our entrepreneur to test their web business and marketing skills before taking on the international markets. E-commerce is not for all but for those who understand it. Yet, e-commerce is not a technology. 

The issue at the individual level, it is purely a business matter. At the govt level, it is a matter of providing infrastructure for transactions on internet. E-commerce or business through internet is becoming very popular mode of trading around the world particularly in the developed world. E- commerce is a broad term used to quantify the trading taking place on the internet. 

Most studies, however, suggest that e-commerce runs through four steps. The very first step is, to build a website to let the world know about your existence. The website contains information about the company, product/services and other related information, which can help visitors to learn more about the hosts. The second step involves asking customers to loose their pockets and buy on line. 

This step requires adopting advance level of software capable of handling orders. In the third stage inventory, management adds to the system and lastly, providing provisions of payments through online banking partnership between buyers and sellers, the most difficult and complex part of e-commerce. 

The most common and popular forms of e-commerce are business-to-consumers (B2C) and business-to-business (B2B). Business-to-government (B2G) and government-to-citizens (G2C) are other forms, running on the internet but with low steam. However, the use of former two still dominates the internet. 

However, Pakistan is still far behind in chasing the west in this regard. Entrepreneurs in Pakistan are of the opinion that e- commerce means being able to make and receive payments through internet and any other activity through internet is not considered as e-commerce. This low level of understanding has led many Pakistani firms to give low priority to e-commerce due to unavailability of proper framework for the internet in the country. 

In Pakistan, e-commerce is still in its infancy and faces many barrier to grow. The notable barriers are: unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power] limited user of internet hardly one per cent of the entire population have access to the internet], the issue of security of transactions on the internet, high bandwidth rates, and last but not least the rigid and monopoly role of the PTCL. 

However, the SBP has recently put a crack on the barriers when it approved the merchant ID accounts to facilitate online transactions. But there is still a long way to go and requires government to continue to grease the wheels of e-commerce to speed up the process. 

Prospects: Those who create, distribute, and sell goods and services to consumers also have reason to look forward to this new mechanism. All enterprises, including the small and medium sized can reach customers throughout the world instantly and comparatively inexpensively. Many vendors can sell globally without the costly infrastructure of worldwide retail stores, sales offices, distributors, or warehouses. 

Greater sales and inventory efficiency maybe possible through the increased interaction with prospective customers that electronic commerce can afford. One to one marketing becomes possible on massive and global scale. Active and alert supplier will also benefit from the new structure of product and service distribution likely to results from electronic commerce. With conventional distribution ,a manufacturer must reply to wholesalers and retailers to serve customers in large volumes. E-commerce's automated customers self-service capabilities can eliminate the need for these intermediaries .The manufacturer no longer has to share profit with others. In addition, the manufacturer gains direct contact with consumers that can facilitate future sales. 

With this, as the role of conventional intermediaries-such as retail store clerks, travel agents, bank tellers, and wholesale representatives may diminish or end, new intermediaries have started to appear. 

Electronic commerce connects manufacturers directly to consumers. The consumer gets product information directly from the ultimate source. The manufacturer can get customer preferences and needs directly from the ultimate source. Each consumer's physical location no longer determines whom the consumers contacts to purchase a product. With the purchase of intangibles that can be delivered electronically, physical location becomes irrelevant to product delivery as well. The internet makes the connection between a French consumer and an Egyptian supplier virtually indistinguishable from the connection between a Persian consumer and a Parisian consumer and Parisian manufacture. 

It can be concluded that there is a lot of scope of e- commerce in Pakistan, and most companies are eager to going to the digital world, but at present due to absence of any policy framework and limited internet market companies are holding their plans to start e-business until clouds of barriers as discussed are disappeared.

3 Trigger Email Marketing Tips for Ecommerce Marketers

In email marketing, an event-triggered email , often called trigger email marketing, is a message that's sent to a list subscriber based on "a customer behavior or a lack-of-action response from the customer," according to Wendy Lowe, director of product marketing for Campaigner.

For example, trigger events could be a new sign-up form submitted on your site, an abandoned shopping cart, or a customer who looked at a product or downloaded a demo. There are countless events and customer actions that marketers use for trigger email marketing.

 Trigger email marketing uses automated and very relevant emails that offer a significantly higher ROI than general email blasts. According to Forrester Research, however, despite the high ROI, fewer than four out of 10 email marketers currently use triggered messaging.

The first requirement for effective trigger email marketing is to have an automated email marketing system in place.  "Automation provides an efficient way to do trigger email marketing,” said Lowe. "It creates a plug-and-play process where you set up the parameters and let it run. Then, all you need to do is track and monitor results."

Here are three tips from Wendy Lowe to help you manage successful trigger email marketing campaigns:

1.  Pre-Determine the Triggers

Email marketing automation lets you set the time, frequency and other options for pre-determined triggers.  Triggers commonly used on ecommerce websites include automatically emailing a welcome letter when a customer registers on-site or when a customer abandons a cart on your website.

"You can also use triggered email for lead nurturing," said Lowe. "If you offer a free download or 'test-drive' on your website, you can set the email system to send out an email a couple days after they tried the service."

Other useful email marketing triggers could include the submission of a quote or warranty form, a membership renewal, reminders that products or services are about to expire, or simply to remind dormant customers who have not logged in for period of time about your business. You can also use triggered emails to up-sell and cross-sell when a customer looks at specific products or makes a purchase on your site.

2.  Keep the Message Relevant and Personal

One reason triggered email marketing is so successful is that an automated email system lets you personalize the communication and make it very relevant to the customer.

"The main priority is to work on building customer relationships," said Lowe. "Use all the automation tools and customer information that is available to you and really personalize the email so the customer relates to the contents of your email marketing message."

Start this process by using a personalized subject line. If the customer abandoned a cart on your site, mention the product they added to the cart by name. If you have more than just an email address for this person, be sure to insert the customer's name and other personal details in to the email as well.

In most cases you want to remind the customer of what she was doing on your website.  If she viewed your 'latest fashions' section, include images and relevant content from this category in the email.  Insert direct products and page links that the customer visited for added relevancy -- not generic homepage links.

3. Follow-Up Immediately with a Good Tone

Follow-up immediately with the customer, but use a good customer service tone in the email. When you contact a customer immediately after a behavior trigger, you don’t want be appear pushy or too sales-focused.

Lowe said that the first contact should be sent immediately following the customer action, then typically a second follow-up in the next day or two, depending on your business and the action.  A third follow-up should be sent in a week.  After the third follow-up, if you do not recover the customer then Lowe recommends that you abandon your recovery process for that person. 

These automated trigger emails should remain focused on building a relationship over time.  “When you follow-up right away the emails should be used to 'gently' remind the customer of the product or behavior,” said Lowe.  She also said that promotional discounts should not be offered in the first couple of emails, but you can provide incentives later in the follow-up cycle.

7 Ways to Help Customers Trust Your Ecommerce Website

Whether a customer trusts your business is often the difference between a successful shopping cart conversion and one that's abandoned. Including a few simple pieces of information on your small business website will encourage trust your business and improve the chances of customers completing their purchases.

In this article, I'll explain seven ways to adjust your website design to build customer trust -- chances are you already do most of them -- but have you told your customers?

1. Everything They Need to Know

A customer shopping online is relying on you to provide information about the product he can use to make a purchasing decision. He can't hold the product to see what it weighs, or put it on to check its fit, so your role as an online merchant is to tell them all you can about the product.

If an item of clothing is smaller than usual for a particular size, tell the customer upfront so he can order the correct size. If an item doesn't include batteries mention that too, and perhaps offer a link to suitable batteries for purchase. If your customer receives a wrong size or missing accessories on delivery, it won't endear them to your business, and you'll likely lose repeat purchases.

2. Testimonials and Reviews

Testimonials and reviews about products and your business not only help customers learn more about the products you sell, they help develop trust in your business. Encourage existing customers to review the products they buy and to write recommendations about their experience in buying from you.

Aim for reviews that are more than simple star ratings -- descriptive information about a product is more meaningful to potential customers. Always make sure the reviews you post on the site are genuine and never write them yourself. Also, don't be too concerned if a product doesn't always get stellar reviews -- what one reviewer thinks is a negative might be a positive to other buyers.

3. Tell Them What They Just Bought

At every step of the checkout process it's important that customers know exactly what's in their shopping cart. They will feel more confident in completing the purchase when checkout screens clearly show each item number, the item cost and product details -- such as color and size -- so they can verify everything is correct. Always give a customer the ability to change quantities at the checkout. If they accidentally hit the Add to Shopping Cart button one too many times, they can easily remove an unwanted item without having to jump through hoops.

4. Show Customers You Care

Shopping over the Internet requires your customers to put their trust in you. After all, they're giving you access to their personal and credit card details. Showing customers that you understand their concerns reassures them that can trust your site.

If your business is accredited with BBB Online, or if you use an especially secure method of handling credit card transactions, make that clear by including images of the appropriate seals on your site. It's just as important to tell customers that you have these measures in place as it is to actually have them, and don't assume customers will know this automatically.

Ensure that your SSL certificate is always up to date and that your PayPal account is confirmed. Remember too, that the absence of seals and security statements reflect negatively on your site.

5. State your Personal Data Policy

For every piece of data that you collect from a customer, make sure to clearly state how you will use it. If you're going to sell it to someone, then you need to tell your customers. If you want to share the data with affiliates or other businesses, ask your customers' for permission and if you don’t get it -- don't share it.

SMBs that are clear about how private data will be treated and do so in easy to understand language engender a sense of trust in their customers. A small business website that doesn't make this information readily available suggests that its owners don't understand the sensitivity of the data, and that's not a positive signal to send customers. Burying the information in pages of legalese is just as bad.

6. Post Your Return Policy

Be clear about your business's return policy. If items are broken, if they don't fit or if the customer just plain wants to send it back, make it clear what your return policy is and how a customer should go about returning the item. If you don’t accept certain items on return, then state this clearly, too.

This information should be available to customers before they commit to purchasing the item, and it's also a good idea to include it in the email confirming the sale.

7. Provide Contact Information

SMBs that hide behind the Web and don't publish any contact information raise warning flags in the eyes of their customers. If you don’t provide a contact phone number for customers to contact you if something goes wrong, or if they have questions about their order, paints a negative picture of your relationship with your customers.

Providing an email address and a contact form go part of the way towards redressing the situation but you must reply promptly. Also be aware that some people prefer to browse online and then order by phone. If you don’t give them a way to contact you, you'll lose out on sales.

If you're forthright and show respect for your customers, the more likely it is that they will trust your business and buy from you. When you operate an online store, you're not there in person to forge a connection -- your website design has to do the work for you.