eExporting for SMEs
E-exporting for SMEs
Definition of e-commerce
“…refers to the sale, purchase, or exchange of goods, services, or other information over the internet or other telecommunications networks.”
E-commerce includes business to business (B2B); business to consumer (B2C); cutting costs in transactions between businesses and business to consumer
Purposes of e-commerce
Advertising, payment, distribution, logistics, service, publishing information
B2B and B2C
Benefits of e-commerce for SME exporters * Reduce market entry barriers for SMEs => Diminishes importance of national barriers * Lower set-up costs and maintenance for e-commerce presence than for physical outlet * Ability to quickly change (e.g., product offering, marketing material) * Faster and cheaper communication flows leading to reduced transaction costs for businesses and consumers * Improve customer reach * Develop ICT (information communication technology) capability of businesses * Improve efficiency of business operations * Speed of transactions, cut middlemen in supply chain * E-commerce as source of competitive advantage
Caveats (disavantages) of e-commerce * No substitute for travel * “Faceless” company * Building trust with customers/partners * Internet is not truly global * Open to misuse * Government regulations * Openness to competition
Barriers to implementing e-commerce for SME exporters * Cost (time and money) * Banking * Lack of ICT skills * Lack of business capability * Lack of motivation
Step-by-Step Guide to Going Online
Select domain name * a URL should be short, simple, descriptive and memorable to customers in the target market. * Locally branded domain names or global? (.co.nz, .com, com.uk?) – global positioning, foreign positioning, local positioning?
Register at Search Engines and local online retailers
* website registration with multiple
Definition of e-commerce
“…refers to the sale, purchase, or exchange of goods, services, or other information over the internet or other telecommunications networks.”
E-commerce includes business to business (B2B); business to consumer (B2C); cutting costs in transactions between businesses and business to consumer
Purposes of e-commerce
Advertising, payment, distribution, logistics, service, publishing information
B2B and B2C
Benefits of e-commerce for SME exporters * Reduce market entry barriers for SMEs => Diminishes importance of national barriers * Lower set-up costs and maintenance for e-commerce presence than for physical outlet * Ability to quickly change (e.g., product offering, marketing material) * Faster and cheaper communication flows leading to reduced transaction costs for businesses and consumers * Improve customer reach * Develop ICT (information communication technology) capability of businesses * Improve efficiency of business operations * Speed of transactions, cut middlemen in supply chain * E-commerce as source of competitive advantage
Caveats (disavantages) of e-commerce * No substitute for travel * “Faceless” company * Building trust with customers/partners * Internet is not truly global * Open to misuse * Government regulations * Openness to competition
Barriers to implementing e-commerce for SME exporters * Cost (time and money) * Banking * Lack of ICT skills * Lack of business capability * Lack of motivation
Step-by-Step Guide to Going Online
Select domain name * a URL should be short, simple, descriptive and memorable to customers in the target market. * Locally branded domain names or global? (.co.nz, .com, com.uk?) – global positioning, foreign positioning, local positioning?
Register at Search Engines and local online retailers
* website registration with multiple