E-commerce and Growing the Venture

Entrepreneurship Unit 2
Objectives
❖ Identify the elements to consider before launching into E-Commerce.
❖ Assess the online potential of a venture
❖ Discuss the benefits of selling via the Internet
Elements to consider before launching into
E-Commerce
� (i) Networking potential; Dwayne
� Networking potential refers to the ability of e-commerce to amplify an
entrepreneur's capacity to increase strategic networking.
� networking potential also refers to the opportunities and advantages that
arise from building and nurturing relationships with various stakeholders.
� Before launching into e-commerce, it is important to consider the network
potential. E-commerce provides an opportunity to strategically expand and
strengthen relationships with suppliers, customers, and other stakeholders
through the interconnectivity of the web
Elements to consider before launching into
E-Commerce
� An entrepreneur must choose mediums that have a wide reach to
attract the intended audience and gather necessary information.
�

� By using the networking potential of e-commerce, businesses can

enhance their ability to influence a larger network and satisfy the
needs of their customers, vendors, and suppliers.
Elements to consider before launching into
E-Commerce
� (ii) integration of web into overall strategy; Dwayne
� The entrepreneur must devise a plan that will enable the integration of the
web into the overall strategy of the business. The business should ensure
that there is provision in its plan for a website to be professionally
designed. It must also see to the maintenance of the site. A poorly managed
website will not add any value to the business.
�

Integration of web into overall strategy provides the platform through which
trade of goods or services can be done more efficiently and effectively..
Elements to consider before launching into
E-Commerce. Dule
� (iii) Importance of lasting relationship with customers;
� A business without clients is no business at all. A steady flow of customers
must be a part of the equation in order for the business to succeed.
�
� The enterprise must place great value on its relationship with its customers
and these relationships, after they have been established, must be
maintained,as E-commerce is dependent upon repeat customers to ensure
marketability, data mining and sustained profit
Elements to consider before launching into
E-Commerce. Dule
� iv) on-going investment of resources;
�

� The entrepreneur must ensure that adequate plans are in place to ensure the
establishment of an effective website.

It is important to have on-going investment of resources in E-commerce to

expand reliability and currency of site. Creating a sustained and meaningful
presence on the web requires consistent and prudent investment of
resources, which includes time, money, energy and talent.
 Elements to consider before launching into
E-Commerce. Jayda
� (v) data mining.
� Data Mining is the process of searching through large volumes of data to identify
meaningful and useful information.. It is systematic way of extracting information
from data.
� Gathering information on the customers of a business is important for operations
and future planning (1). The website allows the business to gather needed
information on the consumption habits and preferences (1)
�
� Measuring the success of a web-based sales effort is essential to remaining relevant
to customers, as their tastes, needs and preferences are constantly changing.
Elements to consider before launching into
E-Commerce. Jayda

� Some uses of data mining

� Product search-users of a website can put in key words in response to a search prompt.
However, thousands of a particular item may be made available for viewing.
� Product recommendation- Data mining allows for the preferences and choices of users
with similar needs to be analyzed and presented.This saves the user from spending long
hours carrying out searches.
� Fraud detection- data mining picks up irregularities in the system.
Factors to be considered in assessing the
online potential of the venture:
Assessing the online Potential of the Venture
� (i) appeal to customers; Jayda
� The entrepreneur needs to understand the level of appeal of his/her product
offering. A thorough knowledge of the target market should help .To ensure
your online venture appeals to customers, you need to conduct thorough
market research. This includes analyzing customer demographics,
psychographics, and behavior to understand their needs and preferences.By
identifying what motivates your target audience to make purchasing
decisions, you can tailor your products or services to meet their specific
requirements. Creating a compelling value proposition that differentiates
your offering from competitors and resonates with customers is essential
for attracting and retaining a loyal customer base online.
Assessing the online Potential of the Venture

Keeping your customer engaged will bring them satisfaction.They will not
only keep buying your product but will bring other customers on
board.This can be achieved by
1. Create engaging content for customers

2. Encourage conversation -provide assistance to your audience through

the use of tools such as chatbots

3. Engage in Omnichannel marketing - This ensures that no matter the

type of device the consumer use or the social media platform they are
able to receive seamless shopping experience .
Assessing the online Potential of the Venture.
Shanneila
(ii) target market;
One of the best decisions an entrepreneur can make is to clearly define his/her
target market. This starts by observing the benefits that can be derived as a result of
using the business products.
After which you must Define your target market clearly by segmenting it based on
demographics, psychographics, and behavior.
This will help you tailor your online marketing strategies and messages to reach
the right audience effectively. Understanding your target market's online behavior
and preferences is key to maximizing your venture's online potential.

Regularly analyze the traffic on the different social media platform that the
business uses and on your websites.
Assessing the online Potential of the Venture.
Shaniella
� (iii) distribution cost
� The distribution cost will influence the final price of your product and will
have a direct impact on Sales. Many online products attract shipping and
handling costs. A shipping and handling cost is the amount that is charged
to package and transport a good to a particular location. If the cost is too
high, sales will be negatively affected. If the cost is too low, the profit
margin will be reduced.
� Some businesses attract customer with free shipping .
Assessing the online Potential of the Venture. Leona

� (iv) costs and benefits.

� The benefits of the online business must outweigh the costs in order for it
to be feasible. The entrepreneur must analyse both variables. The cost of
the online business will include the costs of purchasing a domain name,
hosting designing and maintaining the website amongst others. Some of the
benefits are as follows:
� The business is never closed.
� There are costs that are incurred in physical businesses that are absent from
the online businesses.
� Paperwork is reduced.
� Less warehouse space
Benefits of a selling Online : Leona
� (i) capacity to enhance customer service and convenience;
� The level of customer service that is offered to customers can stimulate the
growth of a business clientele. There must be the careful planning and
implementation of a professionally designed website with just right graphics to
captivate the interest of customers .
�
Online stores must describe products for sale with text, photos, and multimedia
files, whereas in a physical retail store, the actual product and the manufacturer's
packaging will be available for direct inspection (which might involve a test
drive, fitting, or other experimentation). Some online stores provide or link to
supplemental product information, such as instructions, safety procedures,
demonstrations, or manufacturer specifications. Some provide background
information, advice, or how-to guides designed to help consumers decide which
product to buy.
Benefits of selling online
Selling on the internet can greatly enhance customer service and convenience
in several ways:
1.Accessibility: The internet allows businesses to be accessible to customers
24/7, regardless of time zones or geographical locations. Customers can
browse products, make purchases, and contact customer service at their
convenience, without being restricted to traditional business hours.

2.Ease of purchase: Online shopping provides a seamless and convenient

purchasing experience for customers. They can quickly search for products,
compare prices, read reviews, and make secure payments with just a few
clicks. This ease of purchase can lead to increased customer satisfaction and
loyalty.
Benefit of selling on the internet
3.Faster response times: The internet enables businesses to provide swift and
efficient customer service through various channels such as live chat, email,
social media, and chatbots. Customers can get immediate assistance with their
queries, issues, or requests, leading to enhanced satisfaction and retention.

4 Transparency and feedback: Online platforms allow for transparent

communication between businesses and customers. Customer reviews, ratings,
and social media interactions provide valuable feedback that businesses can
use to improve their products, services, and overall customer experience. This
transparency builds trust and credibility with customers.
Benefits of selling online Natz
� (ii) have greater interactive communication;
� Websites have the ability to keep customers engaged every minute of the
day. The entrepreneur must recognize the ability of the website to be used
to engage in two way communication. These features that can be included
in the website design are:
� Blog icons that allow users to share their opinions.
� Report problems icons
� Chat Rooms
� Bulletin boards
� Online lectures
Benefits of selling online Natz
Have greater interactive communications with customers and
understanding their needs – through adequate data mining, customers taste
and preferences can be tracked (1). This data will allow the business to send
notifications of new products for their information, thus reducing search time
for the customer (1). Additionally the company with the demographic data on
the customer is able to customise its service as well as personalise its delivery
(1).
When somebody buys something online, he or she want to know when it is
going to arrive at his or her door. Emailing them when their product is
dispatched is great. Giving them a tracking number if using a delivery service
that supports online tracking is even better. Keep the user informed at every
step of the process, before and after the sale, about as much as you can.
Benefits of selling online RiRi
� (iii) lower cost of doing business; ability to grow faster;
� The internet has allowed many businesses to realize their dreams. They are able
to do more with less.There is no longer a need for a traditional brick and mortar
operations, hence less cost for maintenance and rental.1)Business can be
operated 24 hours with no additional cost for overtime staff, less need
for in-house inventory on site, thus more flexibility (1)
� Businesses could multiple distribution sites globally hence reducing
transaction and delivery relates time and cost (1). It requires less staff
for inventory services as more machines with software can be used to
deliver the service the previously provided (1).
All this provide businesses with the opportunity to grow faster while
spending less.
�
Benefits of selling online DaVi
� (iv) track sales results;
Allowing the business to track sales results – website provides a
digitized platform (The Customer Relationship Management System (
CRM))which allows for instant access to information on all sales
transactions (1). It allows the business to get specific information on the
consumption patterns of group or individual based on demographic
information (1). It is therefore able to tell which customers are driving
the operations and what changes are taking place among customers (1).
Benefits of selling online Kay
� (v) ability to spot new business opportunities.
�
� The Internet is connected and therefore entrepreneurs can use it to spot
opportunities anywhere on the global marketplace (1). It allows businesspersons
to establish networks and partnerships unconstrained by geographical boundaries.
It allows investors to identify points along the value chain where business
partnerships can be established (1).

� Current customers and other users usually give leads as to their changing needs
and also what is trending. The business should deliberately engage users in
meaningful constant communication that will allow it to detect changes in the
market. The websites of key competitors should also be monitored.
Benefits of selling online

Vi)Able to reach other markets quickly – the Internet is connected to the

global marketplace through a click on the computer/allow businesses to
quickly expand their reach to their market . (1). The usual travel barrier is
significantly decreased (1). Through the use of web cameras and multimedia
systems one is able to see as well as understand the best practices in these
markets places (1). The information will allow businesspersons to develop
robust market entry strategies by leveraging the information gathered from
virtual interactions, market research, and understanding best practices in other
markets, businesspersons can develop robust market entry strategies