|Merchant Services, E-commerce and Credit Card Processing Information|
E-marketplaces from Sellers Perspective
What is an E-marketplace anyway?
E-marketplace is a business to business web based venue, where buyers and sellers meet online, generate business leads and conduct business transactions. The e-marketplace features are tailored in a manner so that a large numbers of buyers and suppliers can be serviced as a community. A participant of an E-marketplace can be a buyer, a seller or both. Unlike an E-distribution portal which is oriented to assist suppliers selling their products or an E-procurement system which is focused on buyers solely, an E-marketplace is a platform which caters buyers and sellers equally. As a participant of an E-marketplace you are able to explore buying and selling opportunities, make sales offers and buy products and services, add products and services to aggregated e-catalog and use numerous other value added features.
E-marketplaces are tremendously beneficial to all businesses that decide to participate in them. However, the potential benefits that a company can accrue from an E-marketplace are directly proportional to the factor - how heavily the company uses the offered features of that E-marketplace. Naturally, a company that makes e-marketplace as its primary sales channel and integrates its sales resources to supply chain solutions of the E-marketplace avail more in sales and administrative overhead cost savings, reduced paper work, better customer service, reduced product distribution costs and online sales growth than a seasonal user of the e-marketplace.
A committed participant of an E-marketplace can benefit from and improve two primary factors of company productivity: Revenue Growth and Cost Savings.
Expand Customer Base
A seller, once registered with an E-marketplace, gets immediate access to a large community of prospective buyers of his products or services.
Revenue Increase from Existing Clients
Existing clients get faster and easier access to product information, quicker response to their requests, get better customer support and buy products online.
Revenue Increase from Value Added Services
Once an E-marketplace is set as primary sales channel, freed resources can be used to create more value added services for clients. Some of the services that the E-marketplace offers also can be utilized to generate more value.
Order Processing Cost
The supply chain solutions of E-marketplace allow sellers to reduce order processing cost significantly. Studies show that cost of processing a purchase order can be reduced from US$ 70 down to US$ 6 only.
Sales and support costs
By automating sales and customer support processes companies can reduce over head costs over 25-30% easily.
Inventory keeping costs
Clearer visibility and forecasting ability allow companies considerably reduce inventory keeping costs.
Most executives agree that primary reason why they feel that the companies should participate in E-marketplace is its ability to streamline supply chain mechanism. Many inherent inefficiencies of supply chain process can be eliminated thanks to integrated to e-marketplaces supply chain solutions.
What sellers have to do in order to participate in E-marketplaces and reap numerous benefits that it can provide?
As most of the administrative and operational tasks are done automatically by the e-marketplaces, participation in them is not a difficult process.
These are the basic steps that a seller must take to participate in an E-marketplace:
Registration might be an easy job of filling up a form. It is much better to take some initial preparations before doing this.
Choose a good login name: your login can be used by the E-marketplace to give you subdomain name, i.e. login.e-marketplace_name.com.
Profile: A well-written profile increases company image.
Logo: your logo helps you brand your company.
Add your products or services to E-catalog
Most E-marketplaces furnish with easy to use forms or wizards for sellers to add their products to E-catalog. As the product and service classification used in the E-catalogs often is an industry standard, it is important to spend some times to find the perfect subcategories for your products or services. If you have any doubt contact the customer support of the E-marketplace. Fill up as many given fields are there for a product as you can. The more information buyer gets right away the faster his buying decision would be.
Most sophisticated E-marketplaces have various sales platforms apart from the E-catalog inclusion. Make general sales offers, time sensitive offers (hot offers ? with offer expiry dates) and auction offers of your products and services. Determine the terms and methods of price, payment and shipment.
Decide how you will handle portions of the supply chain that you have to do offline.
Although, most of the supply chain process can be done online, not all e-marketplace offer a complete end to end solution. You also have to figure out what part of your back office can be integrated to the E-marketplace.
About The Author
Nowshade Kabir, Ph.D., is the founder, primary developer and present CEO, of Rusbiz.com, a global business to business e-commerce portal with feature like storefronts, aggregated catalog, e-marketplace, trade leads, internal messaging system supply chain solutions, etc. With a doctorate in Information Technology, Dr. Kabir has worked an advisor to government projects and has over 12 years experience in International Trade. An author of many B2B and business related articles; he publishes a bi-weekly E-zine for online business community. You can subscribe to his newsletter free of charge from http://www.rusbiz.com.
Developing a Winning e-Commerce Strategy
One bright spot on the economic horizons around the world seems to be continued consumer spending and e-commerce is clearly a part of this, with sales estimated to be in excess of $9.9 billion in the next three months according to ACNielsen. But there is a dark cloud hovering over this sunny e-commerce landscape called poor web site design. Let's explore some of the reasons why consumers are not reaching for their credit cards after perusing an e-commerce web site.
The Secret Science Of Online Shopping
In theory you could create a retail web site with a limitless selection; an online store where every kind of merchandise known to man could be sold. Would people be interested in buying from such a huge enterprise?
The Plain Man?s Guide to Making Money Online
I'm a plain man who uses plain thinking in devising strategies for making money online.
Intranet Portals ? Collaboration through Team Rooms
Knowledge Management for beginners
What is SSL (the little padlock)?
Website Marketing: 10 Resourceful Things You Can Do With A Product That Doesnt Sell
Do you have any product that has not been moving well?
Ecommerce Comes from Customer Satisfaction
Online shopping is convenient, but many companies whose web sites do brisk sales often leave consumers wanting. That's according to ForeSee Results, a research company that studied customer satisfaction among Internet shoppers. One way to improve the experience is gift cards, according to Merchant Commerce (http://merchantcommerce.net), an e-commerce services provider. Gift cards can be used to reward loyal customers and to attract new clients. "People love to tell their friends about new shops or products they have found," said Rebecca Campbell, Manager of Merchant Commerce. "Gift cards get shoppers in the door, whether it's a Web store or a physical outlet."
Say Something Worth Talking About
I recently published a short e-book called 'One Thing I Know About Doing Business Online'. Seventeen people contributed - including Seth Godin, Jeffrey Zelman, Danny Sullivan, Jared Spool, Gerry McGovern and Ann Handley.
Is ClickBanks Popularity Drawing To An End?
ClickBank is the Internet's most popular payment processor for online payments but with many rivals appearing on the scene is ClickBank's popularity drawing to an end?
Shopping Carts and the E-Aisles
Have you ever gone to the store and thought you only needed a few things so you didn't grab a cart? The next thing you know your hands are full and groceries are crashing everywhere making a big mess. If only you had gotten a cart. Shopping carts are not necessary on your website as long as you do not mind doing a little extra work (just like carrying all those groceries) and processing each order individually. If you choose to forego having a shopping cart on your site, it is important to remember you will have to calculate all the taxes and fees yourself. This delay will ultimately kill your sales.
Doing Business Online ? Private B2B Exchanges
Business processes are the building blocks of an enterprise. If one of these processes fails to live up to its expectation, business starts to flounder. How to minimize the risks, get a better monitoring of the processes and, at the same time, reduce costs involved? The answer is ? business process automation.
Bringing the World to Your Door
According to Internet.com, by the year 2008 nearly 30% of offline purchases will be influenced by online research. If your site is a well-implemented ecommerce site, the web can significantly lower both order-taking costs and customer support costs after the sale has been made. You could also experience larger purchases per transaction. Through automation, you can sell the 'back-end" on the front end by suggesting additional items at the time the purchase is made. You can offer your customer more information, such as order tracking. A customer can shop from the comfort of her or his home, in her bunny slippers or his boxer shorts. You can give the customer a larger variety of offerings. No need to send a great big catalog through the mail anymore. When you run out of an item, you simply remove it from the website. Makes shopping so much easier.
Is ECommerce Right for Our Business?
If your business features products or services for sale, undoubtedly the topic of eCommerce has come up. What is eCommerce? Literally defined as "the conduct of financial transactions by electronic means," it refers to purchases made over the Internet. There are popular slang terms such as ebusiness, click and mortar, dotcom, cyber-mall and multiple spellings (eCommerce, e-commerce, E-Commerce), but they are all basically the same thing. Don't let the different phrases confuse you, it all comes back to the same principle: selling online.
7 Key Steps To Reduce Refunds and Chargebacks
One sure-fire way to loosing out big time on your business profits is from incidences of excessive refunds and chargeback requests. If the number is high in any period you could risk loosing your third party merchant account altogether. So what do you do when there are some who will request a refund within 15 minutes of purchasing your product? Or even more pettier are those who will wait until the last possible moment to request a refund. Well not all is lost because merchant account providers are very well informed as to the credit card numbers of persistent refund and chargeback claimants. Just like their list of fraudulent credit card users, stolen credit cards etc they have a database of what I call "Refund Junkies". There appears to be no end to the unethical tactics some people will use to get your product for free.Use the following tips to further safeguard against refunds and expensive chargeback costs. The good news is that refunds are easy to process and do not carry any additional fees. However as a merchant you want to ensure that refunds are kept to a minimum.1. Clearly State the Billing NameFirst and foremost state the name of your third party credit card processor on your sales pages and include them in your terms and follow up email receipts so that customers are fully aware of what company name will appear on their billing statements. This will reduce the number of customers who do not recognize the billing name on their statements from contacting their credit card issuers for a chargeback. This one factor can lead to an unprecedented number of chargebacks claims.2. Provide Your Customer Support DetailsProvide your email address so that customers can contact you regarding any queries about their order. Make sure that you answer them in a timely manner to avoid unnecessary delays. If a customer is not responded to promptly they are very likely to make a refund request.3. Offer Lifetime UpdatesOffering your customers lifetime updates to your product and services to add value and will encourage them to remain customers in the knowledge that they will always receive your most current edition of your goods.4. Reward Loyal Customers With Exclusive PrivilegesOffer your customers a product that can be used freely as long as they are fully paid members, as part of a membership site. Or use a tool which is only available to customers and cannot be accessed after a refund request is made. As long as your offer is valuable to your customers and members you are will substantially reduce the number of refund requests.5. Provide The Best GuaranteeYour guarantee could become a thorn in your side if you have a very short time span before customers can test out and use your product. But studies show that the longer the guarantee period the less refund requests are made because customers are more comfortable with their rights to cancel if the product or service does not meet their needs.This is at your discretion as a merchant so testing is important to work out what is best for you. Remember to take into account that some third party processors have a limit on the maximum refund time their merchants can issue to customers.6. Accurate Product DescriptionsAvoid making bold claims that are "too good to be true" if you cannot deliver the results. You could be setting yourself up for a big fall and your customers will request refunds if your product description does not fulfill their needs. You could also be breaking the law and be liable to charges if a law suit is brought against your company. Make sure your sale letter accurately reflects your goods for sale and highlight the TRUE benefits of owning the goods.7. Surprise BonusesIt is a great surprise when you buy something and receive additional unadvertised bonuses. This can warm your customers to your company and can only please them. It also demonstrates that you do not need to publicize your bonuses because you believe in your product so much that it will sell on its own merit.Dispelling MythsAll too often I have read articles and statements claiming that with third party merchant accounts there are no chargeback fees and that you never have your company name display on customer statements. These claims are inaccurate. The facts are that some do not have chargeback fees. I have personally researched 90+ third party processing companies and have contacted them to verify certain key points in their terms of contract and fee schedule. There are some third party processors that do not issue chargeback fees or refunds, such as can be found with some digital gold currencies. In this case the merchant must initiate a refund directly to the customer.There are some third party processors who do not levy chargeback fees but you will find that these are very few in number and they will typically have a higher processing fee to cover their costs. Don't be mistaken in thinking that third party processors do not pass on chargeback fees to their merchants. You only have to read their terms in full to find out exactly what you can expect to be charged for per chargeback incident. I highlight these important facts in my book The A-Z of No Merchant Accounts for your convenience.
10 Reasons Why People Wont Buy A Second Product From You
1. You didn't follow up after the first sale. After the
A Tale of Two Revolutions - Ecommerce: A Historical Perspective
The World As It Then Was
ECommerce Scenario in Pakistan
Pakistan with highest growth rates in 1960s and bad politics in 1980s and 90s but, the stage is totally changed in 2000s as the economy is managed by those who once run the most successful Global Financial Houses. Today Pakistan has achieved 8.3% growth rates with highest percentage earning share zone in the whole world. Welcome to Pakistan 2005
Accept Credit Cards Online Without a Merchant Account
There are two major ways to accept credit cards on your website. The first and most expensive is to have your own merchant account. Not only is this option expensive, it also requires extensive credit checks, lots of paperwork, and usually takes days or weeks before you get approved. Fortunately, there is an alternative.
Precautions Necessary for an Online Brokerage Business
Maybe no business requiring little or no capital pays as big as the online brokerage business. Perhaps this also explains why this business attracts so many rogues, dreamers, time-wasters and even mischievous people. Knowing how to avoid these characters is one of the keys to your success.
Six Components Of A Good E-Commerce Site
Businesses, which are still sitting on sidelines and not doing business on the Internet, should think seriously about their position! If you are one of them, chances are there, that you have to pay dearly for your indecision as you might lose significant market share to your more proactive competitors in a very short period of time.
|home | site map|