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Buying and Selling
     Online
Buying
Buying
Internet shopping by type of online order
Buying
1.   More and more Canadians from all demographics are
     shopping online

    According to Statistics Canada, Canadians used the
     Internet in 2009 to place orders for goods and services
     valued at $15.1 billion, up from $12.8 billion in 2007.
    In 2009, about 39% of Canadians aged 16 and over
     used the Internet to place more than 95 million orders.
     This was up from 32% and the 70 million orders
     placed in 2007, when the survey was last conducted.
    The increase resulted from more online shoppers and
     a higher volume of orders.
Buying
2. Online shopping in Canada is expected to continue to
    grow
   eMarketer estimates consumers in Canada spent $16.5
    CAD billion ($16.0 billion) in 2010 on both domestic
    and foreign sites for products and services (including
    travel). By 2015, that amount will nearly double to
    $30.9 CAD billion ($30.0 billion).
Buying
3. Online sales continue to grow faster than brick-and-
    mortar sales.

   B2C eCommerce will enjoy a compound annual
    growth rate (CAGR) of 10.6% according to
    eMarketer’s projections, and US retailers are well
    aware of the opportunity and are moving fast.
Buying
4. Statistic Canada research shows online stores
     complement brick and mortar stores

   In 2009, 52% of Canadians went online to “window
    shop,” that is, to research or browse products, up
    from 43% in 2007.
   Among all window shoppers in 2009, 69% reported
    subsequently making a purchase directly from a store,
    up from 64% in 2007.
   The Internet complements traditional retail for certain
    categories such as consumer electronics (cameras and
    DVD players), appliances and furniture, as well as
    clothing, jewellery and accessories.
Buying
5. Big American retailers are successfully entering the
     online market in Canada even with higher shipping
     costs passed on to the customer

   Fuelled by the recession in the states more and more
    American companies are now successfully selling their
    products in Canada further providing evidence that
    there is room in the Canadian online market place for
    new retailers.
   Canadian retailers should act now to carve out their
    space in the online market space as more and more
    American retailers offer their products in Canada
Buying
6. Canadians would rather spend at Canadian retailers

   Despite the American competition, a study released in
    2012 by American Express, says that Canadians are
    not only looking for value in terms of price and quality
    of a product, but also value in the more personal
    sense, whether that includes considerations like eco-
    friendly products, ethically-produced items, or
    products manufactured or sold from within the
    country
Buying
7. Having an online store allows your brand to
    extend its reach

   We live in a wide country and it is impossible
    to reach Canada’s entire potential market
    through brick and mortar stores.
   Offering shipping anywhere in Canada allows
    Canadian customers anywhere to become
    acquainted with your brand and purchase your
    products.
Buying
8. eCommerce allows businesses to generate revenue
     through their website and measure online marketing
     ROI

   Without an eCommerce capable website it is difficult
    to measure whether your website and online
    marketing tactics are creating any type of financial
    return.
   Using marketing tactics to drive traffic to an
    eCommerce website allows you to measure which
    tactics are the most effective in generating online
    sales.
Buying
Who is buying online ?

 51% of Canadians 16-34 purchase online
 42% are men 37% women
 70% window shop online
 69% of window shoppers report making a purchase
from a store
 Security concerns decline as Internet use increases
Selling
Canadians need to be competitive, but there are other ways we can win online
sales:

Ask yourself  how you can help rather than how you can sell.
Give shoppers a reason to purchase from you, with a focus on unique
merchandise, Canadian products, selection, competitive pricing & coupons.
Offer gift cards or digital certificates.
Offer free or flat-rate shipping.  Remind shoppers that shopping in Canada
means faster arrival of shipments and no surprise duty, tax or brokerage fees
when the item arrives.
Facilitate purchasing with secure, smooth transactions, and a mobile-friendly
website.
Get out there and network with shoppers through blogging and social
media.  Establish your brand on the latest social networks like Pinterest and
find creative ways to subtly promote your products. Compared to other social
networks, Pinterest referrals are 10% more likely to complete an online
purchase, according to Mashable.com.
Selling
Selling - Setting up store




http://www.shopify.com/
Selling - Setting up store




http://www.woothemes.com/woocommerce/
Selling
Things to consider when creating your store
• Type of products/services
     •Color, size, qty, number of nights, etc.
• Easy to manage the store and track orders
• Shipping
• Charging appropriate taxes
• Inventory
• Promotion and customer loyalty
     •Coupons
     •Repeat customer
     •Online advertising


http://www.zappos.com/
Choosing an e-commerce
solution for your website
•How many products do you want to sell? Does the solution have sufficient capacity to
handle your products?

•Does the solution provide room for growth (i.e. growth in number of products, sales)?

•Do you already have a website that you are satisfied with? If so, you may want to
consider software/applications that are compatible with your present hosting
environment. You can also check to see what your present host offers in terms of e-
commerce packages. Make sure that the software package you choose is compatible with
your present hosting environment.

•Is the solution compatible with other applications? (e.g. payment processing options,
payment gateway, orders, inventory, accounting, shipping).
Choosing an e-commerce
solution for your website
•If choosing a template option, are there a sufficient variety of templates and designs to
choose from?

•Can you easily import/export (i.e. transfer) data? If you have an existing product
catalogue will it be easy to integrate into the new software? If you change hosts can you
export your data without having to manually re-enter all your information?

•How easy will it be for you to update and change the website and product catalogue?

•Have you looked at various software products? You can browse e-commerce websites
to assess products and features. Service providers usually provide a trial period to test the
software. Consider the look of the online store, how easy is it to find products, and how
easy is it to make a purchase.
Choosing an e-commerce
solution for your website
•Do you need an automated sales tax and shipping cost calculation feature (depends on
the extent of your e-business and your customer base)? You may need a solution that
allows you to outline detailed shipping costs, particularly if you have international
customers.

Does the solution support a sufficient range of payment options?

•Are tracking tools such as Google Analytics easy to integrate into the solution?

•What level of technical support do you need? What level of technical support is being
provided?
Choosing an e-commerce
solution for your website
•Is the hosting company or e-business provider behind the e-commerce package
reputable? How long have they been in business? What work have they done in the past?
Have you checked their work and references? Is the technical support provided directly
by the company or do they outsource?

•If you are thinking of an open source solution - Is it compatible with your hosting
environment and other software? Is the product well established? Can an e-business
provider easily modify it to meet your needs?
Receiving payments
Merchant accounts

An Internet Merchant Account is an account issued by a financial institution
that enables a business to accept credit card payments online. Businesses must
obtain a separate Internet Merchant Account for each type of credit
card they wish to accept (e.g. VISA, Mastercard, American Express).

Merchant account fee structures include onetime fees, monthly fees and
transaction fees. The merchant account provider should clearly outline the fee
structure. Review any additional fees carefully and make sure you include all set
up fees when doing comparison shopping.

http://www.onlinemart.ca/EN/PaymentServicesPricing.asp
Receiving payments
Manual Credit Card processing

You can set up an e-commerce website where users can order online, but you
process credit cards manually rather than rely on online payment processing
options. With this option, credit card information can be obtained through a
secure server and the transaction can be processed manually. This option is
feasible when you have a limited number of online orders.
Selling - Payment gateway
Selling - Payment gateway
Selling - Secure Socket Layer
Selling - Secure Socket Layer
Buying and selling online

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Buying and selling online

  • 3. Buying Internet shopping by type of online order
  • 4. Buying 1. More and more Canadians from all demographics are shopping online  According to Statistics Canada, Canadians used the Internet in 2009 to place orders for goods and services valued at $15.1 billion, up from $12.8 billion in 2007.  In 2009, about 39% of Canadians aged 16 and over used the Internet to place more than 95 million orders. This was up from 32% and the 70 million orders placed in 2007, when the survey was last conducted.  The increase resulted from more online shoppers and a higher volume of orders.
  • 5. Buying 2. Online shopping in Canada is expected to continue to grow  eMarketer estimates consumers in Canada spent $16.5 CAD billion ($16.0 billion) in 2010 on both domestic and foreign sites for products and services (including travel). By 2015, that amount will nearly double to $30.9 CAD billion ($30.0 billion).
  • 6. Buying 3. Online sales continue to grow faster than brick-and- mortar sales.  B2C eCommerce will enjoy a compound annual growth rate (CAGR) of 10.6% according to eMarketer’s projections, and US retailers are well aware of the opportunity and are moving fast.
  • 7. Buying 4. Statistic Canada research shows online stores complement brick and mortar stores  In 2009, 52% of Canadians went online to “window shop,” that is, to research or browse products, up from 43% in 2007.  Among all window shoppers in 2009, 69% reported subsequently making a purchase directly from a store, up from 64% in 2007.  The Internet complements traditional retail for certain categories such as consumer electronics (cameras and DVD players), appliances and furniture, as well as clothing, jewellery and accessories.
  • 8. Buying 5. Big American retailers are successfully entering the online market in Canada even with higher shipping costs passed on to the customer  Fuelled by the recession in the states more and more American companies are now successfully selling their products in Canada further providing evidence that there is room in the Canadian online market place for new retailers.  Canadian retailers should act now to carve out their space in the online market space as more and more American retailers offer their products in Canada
  • 9. Buying 6. Canadians would rather spend at Canadian retailers  Despite the American competition, a study released in 2012 by American Express, says that Canadians are not only looking for value in terms of price and quality of a product, but also value in the more personal sense, whether that includes considerations like eco- friendly products, ethically-produced items, or products manufactured or sold from within the country
  • 10. Buying 7. Having an online store allows your brand to extend its reach  We live in a wide country and it is impossible to reach Canada’s entire potential market through brick and mortar stores.  Offering shipping anywhere in Canada allows Canadian customers anywhere to become acquainted with your brand and purchase your products.
  • 11. Buying 8. eCommerce allows businesses to generate revenue through their website and measure online marketing ROI  Without an eCommerce capable website it is difficult to measure whether your website and online marketing tactics are creating any type of financial return.  Using marketing tactics to drive traffic to an eCommerce website allows you to measure which tactics are the most effective in generating online sales.
  • 12. Buying Who is buying online ?  51% of Canadians 16-34 purchase online  42% are men 37% women  70% window shop online  69% of window shoppers report making a purchase from a store  Security concerns decline as Internet use increases
  • 13. Selling Canadians need to be competitive, but there are other ways we can win online sales: Ask yourself how you can help rather than how you can sell. Give shoppers a reason to purchase from you, with a focus on unique merchandise, Canadian products, selection, competitive pricing & coupons. Offer gift cards or digital certificates. Offer free or flat-rate shipping.  Remind shoppers that shopping in Canada means faster arrival of shipments and no surprise duty, tax or brokerage fees when the item arrives. Facilitate purchasing with secure, smooth transactions, and a mobile-friendly website. Get out there and network with shoppers through blogging and social media.  Establish your brand on the latest social networks like Pinterest and find creative ways to subtly promote your products. Compared to other social networks, Pinterest referrals are 10% more likely to complete an online purchase, according to Mashable.com.
  • 15. Selling - Setting up store http://www.shopify.com/
  • 16. Selling - Setting up store http://www.woothemes.com/woocommerce/
  • 17. Selling Things to consider when creating your store • Type of products/services •Color, size, qty, number of nights, etc. • Easy to manage the store and track orders • Shipping • Charging appropriate taxes • Inventory • Promotion and customer loyalty •Coupons •Repeat customer •Online advertising http://www.zappos.com/
  • 18. Choosing an e-commerce solution for your website •How many products do you want to sell? Does the solution have sufficient capacity to handle your products? •Does the solution provide room for growth (i.e. growth in number of products, sales)? •Do you already have a website that you are satisfied with? If so, you may want to consider software/applications that are compatible with your present hosting environment. You can also check to see what your present host offers in terms of e- commerce packages. Make sure that the software package you choose is compatible with your present hosting environment. •Is the solution compatible with other applications? (e.g. payment processing options, payment gateway, orders, inventory, accounting, shipping).
  • 19. Choosing an e-commerce solution for your website •If choosing a template option, are there a sufficient variety of templates and designs to choose from? •Can you easily import/export (i.e. transfer) data? If you have an existing product catalogue will it be easy to integrate into the new software? If you change hosts can you export your data without having to manually re-enter all your information? •How easy will it be for you to update and change the website and product catalogue? •Have you looked at various software products? You can browse e-commerce websites to assess products and features. Service providers usually provide a trial period to test the software. Consider the look of the online store, how easy is it to find products, and how easy is it to make a purchase.
  • 20. Choosing an e-commerce solution for your website •Do you need an automated sales tax and shipping cost calculation feature (depends on the extent of your e-business and your customer base)? You may need a solution that allows you to outline detailed shipping costs, particularly if you have international customers. Does the solution support a sufficient range of payment options? •Are tracking tools such as Google Analytics easy to integrate into the solution? •What level of technical support do you need? What level of technical support is being provided?
  • 21. Choosing an e-commerce solution for your website •Is the hosting company or e-business provider behind the e-commerce package reputable? How long have they been in business? What work have they done in the past? Have you checked their work and references? Is the technical support provided directly by the company or do they outsource? •If you are thinking of an open source solution - Is it compatible with your hosting environment and other software? Is the product well established? Can an e-business provider easily modify it to meet your needs?
  • 22. Receiving payments Merchant accounts An Internet Merchant Account is an account issued by a financial institution that enables a business to accept credit card payments online. Businesses must obtain a separate Internet Merchant Account for each type of credit card they wish to accept (e.g. VISA, Mastercard, American Express). Merchant account fee structures include onetime fees, monthly fees and transaction fees. The merchant account provider should clearly outline the fee structure. Review any additional fees carefully and make sure you include all set up fees when doing comparison shopping. http://www.onlinemart.ca/EN/PaymentServicesPricing.asp
  • 23. Receiving payments Manual Credit Card processing You can set up an e-commerce website where users can order online, but you process credit cards manually rather than rely on online payment processing options. With this option, credit card information can be obtained through a secure server and the transaction can be processed manually. This option is feasible when you have a limited number of online orders.
  • 24. Selling - Payment gateway
  • 25. Selling - Payment gateway
  • 26. Selling - Secure Socket Layer
  • 27. Selling - Secure Socket Layer