Archive for the ‘Ecommerce’ Category
7 ecommerce strategies for standing out in a digital world
Even in a dismal economy internet sales are growing. As people become more confident with ecommerce transactions and savvy with search, selling online just makes good business sense. The drawback is that more and more businesses are vying for a piece of the pie. As your customer reach expands so does the level of competition. The internet is gigantic and your customers are an impatient bunch.
Be unique or go home
That is why it is so important for web marketplaces and ecommerce stores to differentiate themselves from the crowd. It’s no longer sufficient to declare you have the best prices or selection, because the fact is, your visitors can compare these statements faster than you can spell them out on the page. The good news it that technology and creativity now make it easier than ever for small web stores to offer a shopping experience second to none.
Here are 7 ecommerce strategies for standing out in a digital world.
1. Use expanded descriptions, multiple product views to convey the real value of your products. You wouldn’t nail down shirts in a clothing store so why would you only offer one view of your products? This doesn’t have to use elaborate or expensive technology, multiple views, close-ups and live use photos can provide a lot of information other stores don’t bother to share.
2. Invite customer opinion with customer product reviews and real life testimonials. Consider adding customer comments as audio clips. Adding customers audio testimonials can be a simple as taping a phone conversation. (With permission of course) Using audio clips is simple, inexpensive and does not require technical expertise or expensive online tools. By itself an audio testimonial may not make the sale but it is a very effective tipping tool, helping to nudge reticent buyers over their hesitation and into a sale.
3. Offer relevant information that doesn’t sell. You heard me right, give people information for free without trying to sell them anything. Remember that the main reason people are online is to get information -period. That is the primary goal especially before they buy. Statistics show that the longer people stay on your website the more likely they are to buy from your store (even if they decide to buy at a brick and mortar store) Use an irresistible giveaway to capture emails of people not yet ready to buy and use your content to keep them engaged until they are ready.
You can write articles, give teleclasses, offer whitepapers, provide downloads, share interviews, recipes or helpful hints. Make sure the information is informative, entertaining and relevant to your customers rather than a veiled attempt to sell. People can smell hype a mile away and this is the kiss of death online. Always remember your competitors are only a click away.
4. Get into video. A brief welcome message that shares your value proposition can give s a call to action can engage visitors and move them down the buying path. Use videos to educate your visitors on product uses or assembly. Create a short comparing product features or demonstrate the product in use. Keep your videos short (under 3 minutes) and clear. Host your videos on public sites like Viddler or Youtube and post them on your website. Here are a few examples talking about connecting with your website visitors.
It might seem that video clips within product descriptions are a luxury but I foresee video product descriptions as being the norm within 5 years. According to Internet tracking firm comScore’s Video Metrix, Americans watched about 14.8 billion videos in January 2009, or roughly 101 videos per U.S. Internet user. Todays online shoppers are using alternate avenues like YouTube to research product. Get a jump on the competition by giving your online shoppers a bigger experience, not by lowering your prices.
5. Put a face on your store – people buy form people not computers. Yes they use the computer to do it but they want to know there are real people who will back up their purchases, especially with higher ticket items, or products they are not sure they need. This will become increasingly important in a slow economy because buyers are not as willing to risk a purchase if they feel their concerns will get lost in cyberspace.
Consider adding human pictures to your about us page. Include staff picks or reviews and encourage your employees to write on the blog, social media sites and to contribute articles. After all these are the people your virtual customers will interact with. Don’t hide behind a virtual storefront – don’t be afraid to let your customers get to know the people they are buying from.
6. Make sure your online store has a clear value proposition that speaks to your target market. This value statement must answer the question that is on your best customers mind; “Why should I buy form you over the other guys?” If your website cannot convey this critical piece of information then your visitors will definitely miss it. Your ideal customer should immediately recognize that they are in the perfect place when they land on your ecommerce site.
Many online stores resist crafting a clear value proposition that targets a particular type of customer for fear of alienating other visitors. Look at your statistics and you might see that you make most of your money from a niche group or groups. A clear value proposition targets these customers and tells them exactly why you are the best solution to their problem.
7. Use social media to establish relationships and get feedback. Believe it or not your customers are hanging out in communities online. No, you may not visit Facebook or Linked in but social media sites are doubling every year. They aren’t just for teenagers anymore. The purpose of social media sites is to share opinions and interests. Connect with target market through blogs, twitter, linked in, Facebook, Stumbleupon or any of the dozens of niche social media sites.
Your customers are having conversations with or without you so schedule in an hour a week to schmooze online. This is a way to make connections, not sales – keep it authentic , informative and reap the benefits of worldwide word of mouth referrals.
The way people buy has changed forever with internet ecommerce. The world is literally your marketplace and customers can live just about anywhere. Using just one of these suggestions could immediately increase your ecommerce store profits. Now imagine what implementing all 7 could do!
These simple ecommerce strategies can help your online store stand out in a digital world.
By Jan Riley
Ecommerce Websites: 3 Tips To Avoid Liability For Actions of Your Online Resellers
Recent case law confirms once again: if online agreements are presented properly to end-users, they’re legally enforceable.
This continuing trend is good news for websites that contract with registered users though SaaS Agreements, Membership Agreements, Subscription Agreements, Terms of Sale, Content License Agreements, and the like.
Why? Among other things, this means that important legal disclaimers and limitations of liability are legally enforceable.
But what about liability exposure arising out of customer contracts entered into by your resellers? Are you liable for actions of your resellers?
The Direct Revenue Case
In the case of People v. Direct Revenue, the New York Attorney General in 2008 attempted to nail Direct Revenue for its distribution of software that served pop-up advertising software on consumers’ computers.
Direct Revenue is in the advertising business. It’s software client serves pop-up advertisements to consumer’s computer screens through the Internet. Direct Revenue does not charge fees to consumers. Instead, it charges fees to the companies whose products it advertises.
It’s interesting to note that one line of attack by the New York Attorney General focused on Direct Revenue’s “click-wrapped” (where the user clicks on “I ACCEPT”) end user license agreement (EULA) and Direct Revenue’s alleged deceptive and illegal practices. The court granted Direct Revenue’s motion to dismiss the claims noting that sufficient disclosure was given in the EULA, and the required elements for an enforceable agreement were followed.
Having failed with its first line of attack, New York’s additional line of attack focused on the customer agreements of Direct Revenue’s resellers in an attempt to hold Direct Revenue liable. The result was the same as with the EULA — Direct Revenue was held not liable.
New York conceded that Direct Revenue’s resellers were independent contractors rather than agents. Generally, a principal is not liable for acts of an independent contractor due to the lack of control over how the contractor’s work is performed. In addition, the court noted that Direct Revenue’s software distribution agreement required its distributors to obtain consent of consumers consistent with the EULA and prohibited distributors from holding themselves out as agents of Direct Revenue.
New York argued that Direct Revenue should be liable because it’s servers interacted with the consumers’ computers in the software installation process. The court pointed out that participation in installation was not enough for liability in the absence of participation in deceptive conduct that induced the installation.
Finally, New York argued that Direct Revenue should be held liable for the actions of its resellers on the ground that Direct Revenue ratified the conduct of its resellers. The court ruled that mere knowledge of consumer complaints was insufficient to impose liability on Direct Revenue, especially in light of the fact that when Direct Revenue had actual knowledge of a reseller misconduct, it took steps to remedy the problem.
3 Tips To Avoid Liability For Actions of Resellers
Potential liability for acts of online resellers is a major concern of ecommerce businesses which use reseller networks.
The Direct Revenue case teaches us that ecommerce sites may not be held liable for actions of their resellers if these 3 tips are followed:
- if you transfer anything to a user’s computer, require your resellers to obtain consent of end-users consistent with your EULA – this means consent in clear and easy-to-understand (not deceptive) terms,
- prohibit your resellers from holding themselves out as your agents, and
- if a reseller does engage in misconduct, take affirmative steps to deal with the situation, including termination, if warranted (particularly if the reseller’s actions tend to indicate an agency relationship).
These 3 tips won’t guarantee that you have no exposure, but they’ll go a long way to protecting you from liability for actions of your resellers.
By Chip Cooper
How Ecommerce stores can use articles to influence behavior
Article marketing is one of the simplest and least expensive ways to market your online store. Articles can drive traffic, build trust and establish credibility without having to sell at all. The opportunity for an article to engage, educate and influence consumers during the critical research and evaluation time is an ecommerce marketers dream. Yet, most online stores have little or no article content.
Why do so many eCommerce stores ignore the power of article marketing?
I suspect that this underused tool just slips under the radar for most online store owners. I have also wondered if web store owners feel that articles do not fit into the feel of an eCommerce store because brick and mortar stores don’t offer them. Perhaps they are not aware of just how powerful these unassuming tidbits can be. Articles have the power to attract a targeted group and influence behavior.
First people read – then they search
Statistics show “52% of college graduates said they conduct Internet searches for products or servicesthey read about in online articles either very frequently or somewhat frequently” Articles prompt a search queries about specific products, brands, features and comparisons. The reason a simple article has the ability to make consumers take action is because they consider the information to be more credible.
Your online customers are most likely looking for information before they buy and they trust articles more than brands or internet websites. Really this should be no surprise; after all it is the same thing you do when you when you shop online. The internet allows people to find information on their terms and within their comfort zone. Social media and articles have perceived trustworthiness that is well above that of paid advertising, business websites or internet ecommerce sites.
Are you avoiding your customers at a critical time?
Even when they decide to buy something, the majority of people use the web to research a product or service before they buy, especially for items with higher price points. Its’ important to recognize how the timing of article reading affects sales. It’s not only that they read it- it’s also when they read it that matters.
People use the internet to look for information while they are in the middle of the buying process. The newest stats by Adfusion, March 2009 report that “ 67% of people between the ages of 18 and 24, and56% of those making at least $75,000 per year say they are “very likely” or “somewhat likely” to read and act upon article-based advertising”
Credibility, Trust and Mindshare
Researching and evaluating is a very influential step during the buying process because it often sets priorities, desires and expectations. These elements affect how a person responds to your product and your ecommerce store. When a potential customer reads an article you have the opportunity to establish credibility, trust and capture valuable mindshare.
It is like a pre-introduction where you get a whole 600 words to say hello, rather than the usual 7 seconds. Every online retailer could benefit from more time, trust and credibility.
The people that read articles online are also the people who buy online.
Adding articles to your web store can also attract more customers. Keyword specific articles can be great Google food while submitting articles to directories can provide high quality links to internal pages. Unique articles can be used to share with joint venture partners on their websites as well as being posted in social media sites too numerous to mention.
Article marketing for ecommerce is inexpensive
Adding articles to your ecommerce marketing plan can save you money. Pay per click is getting more expensive everyday and when you quit paying – traffic stops. Articles can send visitors to your site for years at no additional cost to you. Even paying for article to be written is a very cost effective online marketing strategy.
A quick example of articles, traffic and expenses:
Lets say you do the keyword research and choose 15 longtail phrases to target. These longtail terms get a total of 10,000 combined searches per month. You hire a writer to create keyword specific articles for $25 a piece. ($375) and then hire someone to rewrite them for $10 each ($150), giving you two versions of the same keyword targeted article. You have spent $525.
One Keyword optimized article is posted to your website and the rewritten one is submitted to an article directory or social media site. If these combined articles attract just 5% of the organic traffic for your 15 phrases this would be 500 visitors per month. Over one year this would bring you 6000 new consumers. Your cost is just over 8 cents per visitor.
And these are not just any visitors – articles can attract people who are actively engaged in the process of research or buying and you can be in the unique position of influencing their activities. Articles are a great way to promote your online store without ever having to sell.
Jan Riley is the CEO and founder of LeadMastersUSA, a website marketing company founded in 2004 and based in Atlanta, Ga. Her entrepreneurial spirit and internet experience along with a talented staff has made LeadMastersUSA synonymous with innovative marketing tactics, increased ecommerce profits and business websites that build relationships. We believe that the true power of the internet is NOT technology – it is communication. People buy from people. Discover how your website can connect, capture and convert visitors into customers with our 3 minute weekly video series atwww.LeadMastersUSA.com You can contact Jan at 
678 318 7515.
By Jan Riley in Featured
Ecommerce Websites – 3 Tips To Avoid Liability For Actions of Your Online Resellers
Recent case law confirms once again: if online agreements are presented properly to end-users, they’re legally enforceable.
This continuing trend is good news for websites that contract with registered users though SaaS Agreements, Membership Agreements, Subscription Agreements, Terms of Sale, Content License Agreements, and the like.
Why? Among other things, this means that important legal disclaimers and limitations of liability are legally enforceable.
But what about liability exposure arising out of customer contracts entered into by your resellers? Are you liable for actions of your resellers?
The Direct Revenue Case
In the case of People v. Direct Revenue, the New York Attorney General in 2008 attempted to nail Direct Revenue for its distribution of software that served pop-up advertising software on consumers’ computers.
Direct Revenue is in the advertising business. It’s software client serves pop-up advertisements to consumer’s computer screens through the Internet. Direct Revenue does not charge fees to consumers. Instead, it charges fees to the companies whose products it advertises.
It’s interesting to note that one line of attack by the New York Attorney General focused on Direct Revenue’s “click-wrapped” (where the user clicks on “I ACCEPT”) end user license agreement (EULA) and Direct Revenue’s alleged deceptive and illegal practices. The court granted Direct Revenue’s motion to dismiss the claims noting that sufficient disclosure was given in the EULA, and the required elements for an enforceable agreement were followed.
Having failed with its first line of attack, New York’s additional line of attack focused on the customer agreements of Direct Revenue’s resellers in an attempt to hold Direct Revenue liable. The result was the same as with the EULA — Direct Revenue was held not liable.
New York conceded that Direct Revenue’s resellers were independent contractors rather than agents. Generally, a principal is not liable for acts of an independent contractor due to the lack of control over how the contractor’s work is performed. In addition, the court noted that Direct Revenue’s software distribution agreement required its distributors to obtain consent of consumers consistent with the EULA and prohibited distributors from holding themselves out as agents of Direct Revenue.
New York argued that Direct Revenue should be liable because it’s servers interacted with the consumers’ computers in the software installation process. The court pointed out that participation in installation was not enough for liability in the absence of participation in deceptive conduct that induced the installation.
Finally, New York argued that Direct Revenue should be held liable for the actions of its resellers on the ground that Direct Revenue ratified the conduct of its resellers. The court ruled that mere knowledge of consumer complaints was insufficient to impose liability on Direct Revenue, especially in light of the fact that when Direct Revenue had actual knowledge of a reseller misconduct, it took steps to remedy the problem.
3 Tips To Avoid Liability For Actions of Resellers
Potential liability for acts of online resellers is a major concern of ecommerce businesses which use reseller networks.
The Direct Revenue case teaches us that ecommerce sites may not be held liable for actions of their resellers if these 3 tips are followed:
- if you transfer anything to a user’s computer, require your resellers to obtain consent of end-users consistent with your EULA – this means consent in clear and easy-to-understand (not deceptive) terms,
- prohibit your resellers from holding themselves out as your agents, and
- if a reseller does engage in misconduct, take affirmative steps to deal with the situation, including termination, if warranted (particularly if the reseller’s actions tend to indicate an agency relationship).
These 3 tips won’t guarantee that you have no exposure, but they’ll go a long way to protecting you from liability for actions of your resellers.
Do you need to tweak your ecommerce website?
As an owner of your own ecommerce website, how do you know when is it right time to revamp and tweak things? How do you find things are not working the way it supposed to?
Website owners are aware of the time and stress involved to go through the entire process of building a website that works for their business. The feeling of relief when the site goes ‘live’ is immense. The result being that entrepreneurs are so darn glad when the job is finally over, that they just don’t want to even think about changes or God forbid a new website design anytime in future! Unfortunately, in this age of rapid technological changes and virtual access to just about anything the customer wants, ignoring your website would be a disaster.
Just as there are indications before a natural disaster strikes similarly there are indications that your website might be headed towards disaster, if you do not upgrade it when required.
Be alert to the following signals that indicate when your ecommerce site needs to be tweaked, upgraded or redesigned to continue serving your business in the best possible manner:
1) Difficulties with various browser platforms:
Your e-commerce website is the heart and soul of your online business. Imagine if it looks disfigured on different browsers (IE, Fox, Netscape, etc). Such cross browser issues might not surface immediately, but when the browser’s upgrade their own software, the results can be quite damaging for your website. Problems could be as minor as graphic design defects to major issues like functional problems, shopping cart problems, problems with online payment etc. Such problems will virtually push your visitors away from your site to a faster, quicker and sleeker competitor out there, who can make life easier for the average online shopper.
Point to remember: Always ask the web designer to test your website on various platforms and to personally test this to ensure the website coding is compatible on all the major web browsers.
2) Business Model has changed or diversified:
No business owner can afford to work with a static and stagnant business model, if they plan to grow and succeed. Innovation, research and development are part and parcel of every business, ensuring products/services stays in line with the current needs and requirements are in alignment with your industry, competitor and clients. Changes could be minor ones in the product/services or major ones like offering brand new products or services, or broadcasting changes when your firm expands and enters diverse industry verticals.
Point to remember: It becomes very imperative to reconsider the changes to your business and make sure the same is reflected factually, accurately, lucidly in a timely manner in the structure, design and strategy behind your website.
3) The site looks dull and old:
Online visitors are bombarded with creative visual stimulants and images with latest technological aids from all the sides. If your website in comparison looks like it was made in 1990s, the race is over before it began. Your website is definitely outdated if it’s chunky, has slow loading graphics, and has an old table layout and frame, if the various table design panels loads separately and irritatingly slowly, if there are very few eye catching graphics, flash, animations to attract and retain attention throughout the site or if it’s too overloaded with text. An e-commerce site cannot survive, if it’s so behind the times. Besides creating a poor impression that you don’t care enough about your business it also shows your complete lack of awareness when it comes to technological innovations.
Point to remember: Never lose touch with technological changes occurring in your particular industry. Check out the competitor’s site, other relevant industry sites, ask customers their preferences, and encourage them to complain (if necessary) about problems faced while shopping online on your site. This will give you precious nuggets of intelligence to keep your site modern, user friendly and credible.
4) Your site is annoying your customer:
Yes, website can annoy online visitors. According to a recent online survey the following were major pet peeves of online visitors:
Ø 93% of consumer said POP-UP ADS extremely annoyed them
Ø 89% were annoyed by REQUESTS TO INSTALL EXTRA SOFTWARE
Ø 83% noted LOG-IN / REGISTRATION PROMPTS (to access content).
The result was: 75% of customers said they’d never return, 74% of customers said they would unsubscribe from the company’s messages, 71% said they viewed the company in a negative way and 55% said they bad mouthed the firm to friends or associates. (That’s dangerous!)
Other extreme irritations include:
Ø Dead links (86%)
Ø Confusing navigation (84%)
Ø Slow-loading pages (83%)
Ø Ineffective site-search tools (80%)
Ø Moving text (59%)
Ø Poor color, fonts and format (55%)
Point to remember: It is good to make use of various online marketing tools and technology available at your disposal. But don’t go overboard and clutter your site with unnecessary features to such an extent that it annoys your customer and makes them view your ecommerce site negatively. Keep the site as clean, simple and as user friendly as possible. The goal is to make them shop and not run away.
5) Textual Content on your site is a turn off:
Have you ever sat down and read the content (site text) aloud? Try it. Does it make you cringe? Do you sound phony? Are your claims too tall, to be believable? If you yourself feel the content sounds insincere and information is not up to date/ wrong/misguided, imagine the plight of your online visitors.
Point to remember: Seek professional content writer’s help, if you are not good at business communication and especially online content writing. Although it might cost initially, it is truly worth every penny you spend.
6) You are not proud of your site:
If you find yourself feeling apologetic when referring your ecommerce site or handing out your business card, then it’s obviously time to tweak your site. Your website should be a source of pride for you and your employees. If you find yourself apologizing for outdated information, broken images, poor design, difficult navigation or anything else on your site, then you need to redesign the site without delay. Your website offers your clients and prospects an easy access to information on your business and it is very important to have a site that is top in shape and looks impressive and makes your client believe that your business is in good shape.
Point to remember: View your online website as an investment that needs regular inputs in terms of resources, time, energy and funding to help it grow strong and turn into a profit centre for your business.
7) The Navigation Has Become Confusing
As websites grow, so does the visual hierarchy of links. Your site may have started with only a few web pages and now you realize you have so many links that it’s hard for visitors to navigate through all your content. An overgrown or scattered link structure is a good reason to redesign your existing site. Below are some solutions to interface design:
- Drop Down Menus
- Collapsible Navigation
- Dynamic Flash Menus
- Good Hierarchy Layout
- Site Map
Point to remember: Redesigning your site “just for looks” is definitely not the best move. There could be existing elements that are working with your current website that you may wish to consider incorporating into the new design. Thinking about your visitors and search engine friendly web pages is also crucial. You should analyze your web statistics to find out which pages are most popular, helpful to visitors, and required so that you can include them into your website redesign.
Last but not the least, poor customer service:
Ecommerce sites are tricky since there are still many barriers and prejudices plaguing the mind of the customers when they go online to shop. The only way to remove this and help them give the assurance they need to take that plunge and ordering online, is offering them superb customer service. Since they cannot, see, touch, feel the product or service before buying, it is all the more important to make your firm as humanized as possible. If your ecommerce site fails to address issues sent on inquiry form or contact us form, if customer do not receive confirmation with shipment details, if your customer feels cheated/fooled/scammed after buying from your site, then your business will not be successful for long. As an ecommerce site owner, ensure to go step ahead of the normal website to provide instantaneous support and help to your customers. If it’s possible to offer live help service, it would be great. If not, display your customer care contact information very prominently on all pages and encourage your customers to call on your toll free numbers to sort their problems. Read and re-read FAQ section to make sure you have covered all the doubts and fears faced during online shopping, no matter how ridiculous or stupid it might sound to you.
By Mark Walsh in Featured
The Rumors of Ecommerce Death
As Nasdaq sputters along in dot com shame, a few million dogged Internet consumers have ignored the crash. They continue to happily buy away. The good-news story is not popular with business writers, but Web retailing continues to grow seemingly unaware that the online mall is crashing down around them as they choose garden tools, sell sports cards and order vacation packages. Things aren’t perfect. There has been somewhat of a dip since Christmas, but I think most Net retailers can live with a post-holiday slump. Retailers have weathered after-Santa blues since the English switched from wassailing to kids toys in the mid-1800s.
We decided to take a look at recent reports on Internet retail sales just to see if the Net stock gloom was blunting the steady expansion of online commerce. We found some softening in the rate of growth, but we certainly didn’t find any contraction in consumer behavior. The shrinking effect right now seems limited to the number of dot coms rather then the number of consumers. In fact, if you subtract the bizarrely heightened expectations for the Internet, its growth is coming along just fine. By any standards other than the Net-boom mentality, Internet expansion continues to be fairly spectacular.
Net buyers hit ten quarters of continuous buying
Greenfield Online reported that for 10 consecutive quarters, 60 percent of U.S. Online consumers have made at least one purchase on the Web within a 90-day period. And 28 percent of these shoppers have clicked on Internet ads while shopping. Not surprisingly, those with an annual income of $50,000 and above are more likely to purchase goods (81 percent) than those whose income is below $50,000 (64 percent). Women on the Net buy at a slightly higher rate (74 percent) than men (71 percent). The top categories of goods continues to be books and CDs, followed by clothing, toys and computer software.
Rich buyers seek service basics online
Forrester Research looked at the shopping habits of rich consumers, those with investable assets of $1 million or more, and found that these shoppers are more interested in strong, basic service than they are in virtual exclusivity, extravagance and entertainment. “Affluent shoppers have been buying longer, feel more comfortable buying, buy more frequently and, of course, spend more money,” said Ekaterina O. Walsh, a senior analyst at Forrester. “They buy online for the same reasons that all online buyers do and care about price and positive experiences with Web stores.” Forrester recommends that sellers of luxury goods should concentrate on purchasing ease and a convenient return process.
Visitor traffic dips
PC Data Online found that traffic to leading ecommerce sites declined about 4 percent in February following an 18 percent seasonal drop in January. Goldman Sachs analysts cited port-holiday seasonality, a slowdown in the rate on new consumers adopting ecommerce, and slower overall consumer spending as the factors in the slower month-by-month growth of Internet retailing. However, this year’s figures are up 63 percent over last year. Hey. Did anybody see that? I’ll say it again. We’re up 63 percent over last year! Some blues.
Features that will keep your sales growing
Consulting giant PricewaterhouseCoopers released a survey that identified the site features that are most likely to capture sales. The research found that with the exception of search capabilities and close-up product views, most Website features are never used by the majority of Internet shoppers. The search function is overwhelmingly the top feature used by consumers, with 77 percent saying they have used search functions while shopping.
Other site features such as wish-lists and personalization were found to be less important to shoppers. As a side note, we found a study by the International eRetail Association that listed wish-lists as a tool that works well for building loyalty, so go easy on making assumptions based on Internet studies.
The take-away on all of the recent information about Internet retailing is that it continues to grow rapidly in spite of the gloom that fills the business media. To paraphrase Mark Twain, the rumors of the death of retail ecommerce have been greatly exaggerated.
By Rob Spiegel
Understanding Key E-Business Terms
Whether you’re operating your own online business, wanting to start one, running affiliate programs, or wanting to advertise in e-zines – or sell advertising in your own e-zine or on your web site, it’s important to know and understand the relevant terms used in e-business today.
Hits:
You see this term everywhere, and often, it is misunderstood and misused. Each hit to a web site doesn’t necessarily represent one visitor. Generally, hits refer to not only the web page itself, but all files requested, including all graphics. Therefore, if a page has 25 graphics, each visitor to that page represents 26 hits – one hit for the page and 25 for the graphics. As you can see, hits can be very misleading when representing web site traffic.
Page Views – Also known as Impressions:
As the term indicates, this refers to the number of times each page on your site is viewed by a visitor. If your site has 20 pages, and a visitor goes to all pages, that visitor generated 20 page views. Keep in mind, every time that same visitor returns to your site, they will again generate more page views, regardless of the time between visits. Please note that some affiliate programs use the term page views or impressions synonymously with unique visitors.
Unique Visitors:
This, by far, is the best and most reliable measure of traffic. A unique visitor is one visitor to a web site, regardless of how many pages he or she visits or how many pages or files/graphics the site contains. Unique visitors are counted only once for a specific period of time – depending upon how the site statistics are configured. Generally, a visitor is only counted once in a thirty day period, no matter how many times they may have returned during that time. Keep in mind, this time period varies wildly in the industry, so when talking about unique visitors, make sure you know how long it takes for a visitor to be counted again.
CTR – Click Through Ratio:
Used primarily in affiliate programs and advertising, this is the ratio between the total impressions of a banner or link and the number of times a site visitor actually clicks on (or executes), the banner or link. For example, if a banner/link had 10,000 impressions in a month, but the advertiser’s banner/link was only actually clicked 2,000 times during that same period, the CTR would be 20%.
CPC – Cost Per Click:
This represents the amount of money (or other consideration), an advertiser would pay to the site owner each time their banner or link was clicked by a site visitor.
CPI – Cost Per Impression:
This represents the amount of money (or other consideration), an advertiser would pay to the site owner each time their banner or link was viewed by a site visitor.
CPM – Cost Per Thousand:
This is the amount an advertiser would pay a site owner for every thousand units. I’m using the term UNITS to represent whatever the site owner and advertiser agreed to base payments on – per click, per impression, per subscriber (in e-zine advertising), etc. For example, if you were being paid $.20 cents for each click through, and in a month your site generated 10,000 click throughs for a specific advertiser, you would be paid $2,000.
There are many more terms you should become familiar with, but these are the most commonly used terms with regard to web site traffic, affiliate programs, and web site and/or e-zine advertising.
By Todd W. Winslow
10 Ways to Reduce Chargebacks & Fraud
Merchant concern about online credit card fraud and chargebacks is rising at a significant rate. According to the 2001 Online Fraud Report, conducted by Mindwave Research, it revealed that, “41% of merchants say the issue of online credit card fraud is ‘very serious’ to their business.” As e- commerce continues to flourish the number of instances of credit card fraud and chargebacks will continue to mount higher. It should go without saying that the need to take certain measures to reduce and virtually eliminate chargebacks and fraud is certainly paramount.
Here are some ways you can greatly reduce the instances of chargebacks and fraud, even potentially eliminate the risk altogether:
#10 Interactive Voice Response (IVR) Terminals
IVR Terminals, developed by VoiceStamps, are a relatively new solution that greatly reduces chargebacks and fraud by collecting a “voice stamp” or voice authorization and verification from the customer before the merchant ships the order. The voice recorded order verification is then automatically e-mailed to the merchant for filing in the event the customer tries to dispute the charge on their account.
#9 Collect CVC2 and CVV2 Verification Numbers
This tactic alone can not only reduce instances of chargebacks by 26%, according to Visa, but also reduce any pass-through fees that may be charged when a credit card order is conducted. On the back of MasterCard, most Visa and Discover credit cards is a 3-digit security code located right after your credit card number. Requiring customers to give the 3-digit code acts as an additional verification measure.
American Express cards also have a similar security code that is located on the front of the card right above the cardholder’s account number and is usually 4-digits long. Most online payment processors support entering the security codes when processing credit card orders. Check with your payment gateway provider (i.e. Verisign, Authorize.Net, ECHO Inc., etc) for details.
#8 Use Address Verification System (AVS)
AVS checks to ensure the address entered on the order form matches the address to where the cardholder’s billing statements are mailed to. People ordering products and/or services using a stolen card number will never use the real cardholder’s billing address, so this is your chance to stop the order before it’s too late. AVS only works with orders conducted in the US. Failure to use AVS when processing credit card transactions will always result in paying higher credit card processing fees.
#7 Scrutinize orders from developing foreign countries
A large percentage of fraudulent Internet purchases are made from Indonesia, Russia, and other eastern block or developing countries. Accept orders from such countries at your own risk until a worldwide AVS system is developed.
#6 Let customers know what name will appear on statements
Many merchants who use 3rd Party Processing companies have run into problems because the company name that appears on cardholder’s monthly statements is usually the name of the 3rd party processing company and not the company name of the site the cardholder made their purchase from. This isn’t always the case, but in many cases it is. If you use a 3rd party processor, and even if you don’t, make sure the customer knows what name will appear on their credit card statement at the end of the month. This will help to reduce any confusion that might otherwise occur.
#5 Handle suspicious orders accordingly
If an order seems suspicious the best way to handle the situation is to either call or e-mail the customer and attempt to verify that they placed the order. As a rule of thumb, if in doubt, check things out. It may be a good idea that if a customer makes an unusually large volume purchase from your site to follow-up with a verification call. This is where a system like IVR terminals, previously mentioned above, can come in very handy.
#4 Watch out for orders using free e-mail addresses
Be wary of accepting orders from people who used a free e- mail address when ordering (i.e. Hotmail, Yahoo, etc.). Tracking people who used a free e-mail address is almost impossible, it’s much easier for them to get away then if they used their Internet Service Provider (ISP) or their own company web site e-mail address. To check whether an e- mail address is a freebie or not just take the part of the address after the “@” symbol, add “www” to the front of it and see what website it brings up (i.e. joe@yahoo.com = www.yahoo.com)
#3 Signatures on delivery
If your business delivers products, use a carrier that requires a signature on delivery and allows you to have a copy of the signature. Retain these for your records.
#2 Request fax copies of ID and credit card
You may want to request your customer to fax a copy of both sides of their credit card and driver’s license. This tactic usually works best in a B-to-B (business to business) sales environment. While this is not a defense under Visa or MasterCard rules, it is yet another way to deter fraud.
#1 Posting a warning message
Taking the time to post a warning message on your order page to those who may attempt to make a fraudulent order will greatly deter the number of instances of fraud. Be sure to mention that IP (Internet Protocol) addresses are being logged. IP addresses can come in handy when locating people about fraudulent orders.
Taking measures to deter and eliminate fraud and chargebacks from occurring are a necessity in order to operate a successful online business. Each day companies dedicated to risk management are developing solutions to provide merchants, like yourself, with extra protection because of the financial burdens chargebacks and fraud can bestow if ignored.
By Jim Conley II
5 Things About Offshore Banking Every Online Business Should Know
“Offshore Banking” – maybe this term conjures up images of secret Swiss accounts, James Bond, and sipping Martinis at a chalet in Lichtenstein. The fact is though that doing a portion of your banking in a financial institution outside of your national borders is not only easy, it also offers numerous benefits to those who make their living via the internet.
In this article, we will explore some of these benefits. We will also try to answer some of the most common questions regarding offshore banking in the hopes of demystifying the topic for the benefit of our fellow internet marketers and others who make their income online.
1. Is Offshore Banking ‘Legal’?
This is among the first questions asked when discussing this topic. The answer is YES. Many of the largest companies in the USA do their banking offshore including Exxon and Boeing, among others. You do not need to be a giant corporation though to reap the benefits of an offshore bank account as we will soon explain.
You may wonder why you don’t see many ads for offshore banking. If you live in the US, the reason is that federal law denies international banks the right to advertise within the borders of America. Of course this is to the benefit of domestic banks.
Remember, you have just as much legal right to a bank account offshore as you do to a domestic account.
2. Why Bank Offshore?
For the internet marketer and any business that creates income online, there are several benefits to having an offshore bank account. These benefits encompass privacy, asset protection and wealth building.
One concern that offshore banking helps deal with is privacy. The current laws in some countries, including the USA, allow the government full access to anyone’s domestic financial information for almost any reason at all. The act of creating a foreign bank account helps make some of your assets harder to access by those who should be minding their own business. A good foreign bank will usually not require your Social Security number, they won’t answer questions from US sources about your credit and banking history, and they will not provide your financial information to any domestic data collection agency.
An offshore account can also help you with wealth building. First, there are the tax advantages. Offshore accounts can be arranged in jurisdictions that do not impose taxes on income earned abroad. This can be very beneficial when arranged correctly. There is also the ability to earn a higher return on your investments with an offshore account. Many foreign banks are not as tightly regulated as domestic ones and can offer higher interest rates on accounts. This is due to their ability to make more lucrative investments and also the fact that the overhead to operate a bank is lower in many countries.
Finally, the ability to expand your business globally increases when you create an additional bank account outside your own borders. Many offshore banks allow you to do business and hold your funds in multiple currencies. This allows expansion of your customer base which in turn can help increase profits.
3. What Country Should You Bank In?
Choosing the jurisdiction to do your offshore banking in will depend on a combination of your business situation, asset planning goals and even to some extent your personal taste. There are several factors that should certainly be considered when doing your initial research though.
Is the country you are considering a stable country? You usually do not want your account in a country where coup d’etats are a regular occurrence. On the other hand, if the financial system is strong enough, it will withstand even political turmoil as in Panama when Manuel Noreiga was forcibly removed by an outside government. Most of those with bank accounts and corporations in Panama were not affected by this, since the financial system had a solid backbone.
What are the country’s banking secrecy laws? There are still several countries with strong banking secrecy laws who will go all out to protect your financial privacy as long as you are not breaking the law. Switzerland and Panama come to mind immediately for not bending to international pressure to allow outside government agencies to peer into their customers’ accounts whenever they want.
How far away is the country? Some individuals prefer their offshore accounts to be geographically close, since the time zones are often similar and communication is a little more convenient. Americans might prefer their offshore accounts to be located in the Caribbean or Latin America, while a citizen of the U.K. might prefer an account at an institution located on the Isle of Man, all other considerations being equal.
4. Accessing and Managing Your Money
Thanks mainly to the internet and advances in international communication technology, offshore banking is fairly straightforward. Most accounts can be arranged with online access to your information. Transfers of funds can be done online as well. As far as accessing your money, most offshore banks will offer a debit card with your account so you can retrieve your money whenever you want, wherever you are from most ATMs.
As you can see, accessing and managing your funds in an offshore account need not be any more difficult than doing the same with a domestic account.
5. Acquiring an Offshore Bank Account
Once you decide that an offshore account is right for you and you have done some further investigating to select the appropriate country to open your account in, the actual process of acquiring the account can be relatively straightforward.
There are a number of legitimate offshore financial planning and asset management firms who will complete and submit all the paperwork for you for a reasonable fee. The advantage to this is they usually have connections with the banks they represent and can arrange your accounts more quickly and easily. Also, they can often offer you added perks such as secured credit cards, merchant accounts and incorporation services.
Be sure to compare the fees charged and services offered and always get feedback from previous customers. Of course, be wary of any offers that sound too good to be true, such as outfits offering unsecured credit cards with your offshore bank account. This is almost impossible to arrange with a new account, and anyone offering an unsecured credit card offshore may just be planning on taking your money and disappearing.
Otherwise, do your research, ask questions and review testimonials. Deal with a reputable firm and you will be well on your way to reaping the benefits of an offshore bank account.
We hope this article has helped not only clear up any misconceptions about offshore banking, but also given our fellow internet marketers pause to consider this financial tool as part of their overall wealth building and asset protection plan.
By James Allen (c)
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