Establishing a Presence on the Web
Used correctly, electronic commerce can give your business a boost

NOT too long ago, companies that simply established an Internet presence were ahead of the game. Now, to remain competitive and accomplish business goals, these same companies must do more than put up a static site. They need to maximize the use of the Internet in conducting their business. Used correctly, electronic commerce can give your business a significant marketing boost.

What e-commerce can do for you

There are numerous benefits to using electronic commerce. First and foremost, it enables you to provide services more quickly and more cost-effectively on a much larger scale. E-commerce allows a huge population instant access to your company – 24 hours a day, 365 days a year – while at the same time providing you with an opportunity to save on costs. For example, because e-commerce lets you electronically link marketing, distribution, and customer services, you may be able to drastically reduce expenses. You’ll also save money on personnel, phone, postage and printing costs.

E-commerce also allows you to learn more about the people who are spending money at your Web site. You can use tracking systems to quickly pull together invaluable information about your customers: demographics on age, sex, financial status, purchasing habits – all information that not only enables you to service your customers better, but allows you to target individuals fitting a similar profile who are potential clients. The net result is an opportunity for you to grow your business.

E-commerce can also help you improve your customer relationships. Site surveys and feedback forms enable you to get input from customers and others who visit your Web page – giving you the opportunity to provide immediate responses.

Based on the information you obtain, you can modify or refine existing products. This information also enables you to design new products and/or services to meet an expressed need.

A few tips on getting plugged in

Of course, e-commerce is technology-based, and if you’re not a master of technology, you may need some help. Specifically, conducting business on the Internet through your own Web site requires investments in cutting-edge software and hardware and in creative services that can easily get out of hand without strong oversight. You’ll also want to seek guidance on ways the Web site server may need to be connected with other elements of your corporate network. For example, if you’re selling something over the Internet, you’ll want your sales site connected to your accounting software so you can track not only the actual sale, but also your inventory. Failure to take this step will mean that your site will be less efficient and will demand higher overhead.

Designing your Web site

When you design your Web site, focus on navigation. Sites that rate poorly with customers may be well designed – but not easy to navigate. If getting from your home page to your service or product description page involves too many mouse clicks, you risk losing customers. And be sure to keep your site updated. You may not have new information to post every day, but it’s important that your site be kept current.

Also, keep in mind that privacy and security are top consumer concerns when it comes to Internet transactions. This is something you should address as you expand your Internet capabilities. In the U.S., the Federal Trade Commission now requires that Web sites post a privacy policy online and that the company follow the stated policies. Obtaining a CPAWebTrust seal of approval attests that your site addresses all three consumer concerns about doing business over the Internet: security, privacy and sound business practices.

Something else to think about: Electronic business transactions can only be successful if financial exchanges between buyers and sellers can occur in a simple, universally accepted, safe, and inexpensive way. Various systems have been proposed, some of them based on traditional mechanisms (credit card accounts), while others rely on new designs, such as electronic money. The key for success in your organization will be to find a few widely-accepted mechanisms that can be used by a majority of clients.

Data compiled and edited by The Lane Report.
Source: Kentucky Society of CPAs

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