Chapter 4

E-Commerce Presence Development

Learning Objectives

  • Understand Development Questions.

    • Questions to ask when developing an e-commerce presence include:

      • What products will be offered?

      • Who is the target audience?

      • What are the main goals of the website?

  • Explain the Building Process.

    • Step-by-step guide to establishing an e-commerce presence.

      1. Conduct market research to identify customer needs and preferences.

      2. Define the site’s purpose, goals, and target audience.

      3. Design the layout and choose the technology stack.

      4. Develop and test the website (e.g., A/B testing).

Choosing Server Software

  • Major considerations for web and e-commerce merchant server software:

    • Availability of support and resources, performance capability, and ease of integration with other systems.

Hardware Issues

  • Important issues in selecting appropriate hardware for an e-commerce site include:

    • Capacity to handle peak traffic times (like during sales).

    • Scalability to grow with business demand.

Additional Performance Tools

  • Tools that can enhance website performance include:

    • Content Delivery Networks (CDNs) to speed up content delivery based on user location.

    • Compression tools to reduce the size of files transferred over the internet.

Mobile Development Considerations

  • Key considerations for developing mobile websites and applications:

    • Resizing images and optimizing layouts for smaller screens.

    • User Experience (UX) design focused on touch navigation.

Imagine Your E-Commerce Presence

  • Vision Components:

    • Mission statement: To provide high-quality products at competitive prices.

    • Target audience and market space: Young professionals aged 25-35 looking for trendy apparel.

    • A strategic analysis highlighting factors like competition and market trends.

    • Development timeline: Establish major milestones from inception to launch.

    • Preliminary budget: Estimate initial costs including design, marketing, and inventory.

Financial Planning

  • Identifying revenue and business models: E.g., direct sales, subscription models, affiliate marketing.

Market Characterization

  • Size, growth, and structure of the marketplace:

    • Example: The online apparel market is predicted to grow by 15% annually, indicating robust demand for fashion e-commerce.

Content Strategy

  • Sources of content for the site:

    • Product descriptions, images, user-generated content like reviews or testimonials.

SWOT Analysis

  • Analyzing strengths, weaknesses, opportunities, and threats:

    • Strength: Unique product offering.

    • Weakness: Limited brand recognition.

    • Opportunity: Growth in e-commerce adoption.

    • Threat: Intense competition from established players.

E-Commerce Presence Map

  • Visual representation of the e-commerce presence layout, including:

    • Homepage, product pages, checkout process, and customer service.

Systematic Approach to Building an E-Commerce Site

Management Challenges

  • Understanding business objectives such as what metrics define success (e.g., conversion rates, average order value).

  • Choosing the right technology that aligns with the e-commerce goals (e.g., using cloud hosting for scalability).

Factors to Consider

  • Key aspects like management, hardware architecture, software, design, telecommunications, and human resources must be aligned for success.

Systems Development Life Cycle (SDLC)

  • Five Steps:

    1. Systems analysis/planning - Determine what functionalities are necessary (e.g., user accounts, shopping cart).

    2. Systems design - Specify how data will flow through the site, including database design.

    3. System building - Develop the core functionalities of the site (e.g., coding the shopping cart).

    4. System testing - Conduct various tests like unit testing (testing individual components).

    5. Implementation - Launch the website and monitor its performance continuously.

System Analysis/Planning

  • Business Objectives: Define the website capabilities desired: for instance, a user-friendly checkout process.

System Design

  • Hardware and Software Platforms: Determine the right platforms for back-end server systems.

  • Building the System: In-House vs Outsourcing:

    • Decision factors might involve considering in-house expertise versus hiring external vendors for complex features.

Testing the System

  • Different testing types include:

    • Unit Testing: Validating individual components.

    • System Testing: Ensuring the complete system works as intended.

    • Acceptance Testing: Verifying that the system meets business requirements.

    • A/B Testing: Comparing two versions of a webpage to determine which performs better.

Implementation and Maintenance

  • Maintenance Costs: Plan for ongoing upkeep similar to initial development costs (updates, security checks).

Website Optimization Factors

  • Performance Improvement Techniques: Use tools like CDNs for faster content loading and monitor performance metrics post-launch.

Website Architecture

  • Two-Tier vs Multi-Tier Architecture: Multi-tier architecture separates functions into distinct layers, improving performance and scalability.

Web Server Software

  • Major Types include:

    • Apache: Well-known for being reliable and open-source.

    • Microsoft IIS: Preferred for its ease of use on Windows servers.

Merchant Server Software**

  • Functionality includes:

    • Online catalog, shopping cart, and credit card processing capabilities are essential for e-commerce.

  • Selecting Software Packages involves evaluating features for functionality, scalability, and compliance with industry standards.

Hardware Considerations

  • Right-Sizing Hardware Platforms involves matching capacity with peak demand periods (e.g., Black Friday).

  • Demand and Supply Factors:

    • Scaling Hardware by evaluating vertical scaling (adding resources to current machines) vs. horizontal scaling (adding more machines).

Features to Avoid in E-Commerce Sites

  • Common Issues for Customers: Annoying features include excessive pop-ups, poor navigation, and long-loading pages that can deter purchase decisions.

Successful E-Commerce Site Design Factors

  • Key Success Elements: Include aspects like functionality, ease of use, legibility, and fast load times.

Tools for Interactivity and Active Content

  • Common Tools:

    • CGI, ASP, Java, PHP used to create dynamic, interactive web content.

Personalization Tools**

  • Methods involve using cookies to customize user experience based on previous shopping behavior.

Mobile Website Development**

  • Types of Mobile Software: Includes responsive web design, native apps (e.g., specific to iOS or Android), hybrid apps combining both methods.

  • Mobile Presence Design Considerations: Important features include adapting to touch interfaces and considering hardware constraints like battery consumption.

Cross-Platform Development Tools**

  • Popular Options include frameworks like Objective C, Java, and open-source tools like PhoneGap for developing across multiple platforms efficiently.

Carnival Cruise Case Study**

  • Impact of Mobile App Integration shows how a dedicated app enhances user experience by facilitating easier booking processes and providing real-time updates for travelers.