Section 3.1 — Business Considerations
You don’t have to be a large business to take advantage of the benefits of e-Commerce.
By simply obtaining a computer with a modem and gaining access to the internet, your business can enhance communication with and improve service to your customers.
Regardless of the e-Commerce strategy businesses decide to implement, there are some key business issues that need to be considered.
Business issues to be considered:
Understanding your current and potential customer base. ![]()
You need to know how many of your current and potential customers are able and willing to conduct business with you over the internet.
Will they have up to date and efficient technology available?
What aspects of the “transaction”, if any, are they willing to conduct online. For example, clothing customers may want to see what is available but not purchase.
Are your customers likely to understand the process of electronic payment and ordering and will they be comfortable with it?
Linking e-Commerce goals and your business objectives. ![]()
Your e-Commerce strategies should support your business objectives. With new opportunities emerging from e-Commerce you may need to review your business objectives and consider the ways in which e-Commerce can assist in achieving your goals.
Market Opportunities ![]()
e-Commerce may present new opportunities for your business.
- Are you going to service an existing market with e-Commerce or aim to open up a brand new market?
- Are you simply going to make slight amendments to your products/services to cater for online consumers?
- Are you going to develop new digitally based products and services to increase your revenues in the electronic marketplace?
Identifying market opportunities is equally important for e-Commerce as it is for traditional business operations.
Current business capabilities and processes. ![]()
What potential effect will e-Commerce have on your current business processes? For example, can your distribution channels cope with increased orders from the internet? How will you accept returns? How will you provide after sales support? If you have poor business processes now, the introduction of e-Commerce into your business may simply accentuate the problems.
Investment of time ![]()
You will require time to:
Online skills of staff ![]()
The implementation of e-Commerce will require training for employees who will use new online applications and/or be involved in changed business processes. What type of training will be required? How will your employees access the training? When should the training be conducted and how much will it cost?
Current technologies used ![]()
What technology do you use in your business? What are the efficiencies that this provides to save you time and money?
Initial and ongoing financial costs ![]()
e-Commerce systems range enormously in both complexity and costs, from the very simple low cost options through to expensive complex systems. There are usually initial establishment costs when implementing e-Commerce strategies eg purchase of computer equipment, registration of a domain name, the design and development of a website.
There are also ongoing costs such as maintenance of your website and internet service provider costs.
Level of Risk ![]()
You need to determine the level of risk for your business when implementing e-Commerce solutions. Taking small manageable steps reduces risks and enables your business and employees to adjust and "bed down" new processes, and to maintain security of your valuable business information.
Leadership and managing change ![]()
Sound business management practices apply equally to the online environment. The business manager/owner needs to “lead” the planning, implementation and monitoring of the transition to e-Commerce.
To successfully lead the transition to e-Commerce, you need to understand the business issues, the potential benefits of e-Commerce, the appropriate e-Commerce options for your business and the key steps to implementation. Engaging in e-Commerce does not necessarily mean you have to have your own website. You need to consider the options and make decisions based on your business needs.
As e-Commerce enables new ways of doing business, it follows that a change in the business’s organisation culture may be required.

