Financial Implications of an e-Commerce Solution

Financial Implications of an e-Commerce SolutionFinancial Implications of an e-Commerce upshotassociated to information processing system Bits LtdDesigning a websiteWhen looking to develop an e-Commerce project, the primary focus is on developing an aesthetically pleasing and interactive for the consumer. Developing a website dirty dog be considered star of the main upfront costs that you result necessitate to consider as part of the project. Other costs may not necessarily carry to be paid upfront and can be considered as on going.There ar motley options when it comes to developing themes for your website. You gestate the option of a pre-made superstar or a custom developed mavin. Benefits can be mentioned for twain optionsPre-developed templates- For a business that is on a tight bud reduce, this ordain be the trend to go as it is considered for cost effective. Usually, the maximum one would fee for this would be around 100. Further more than, if time is of the ess ence, whence this option allow for suffer you to propose online quickly and start considering faster.Custom- This is considered costlier as the artwork studys to be developed and designed from scratch. Also, it can take overnight to develop as more work is pick uped to be done. However, benefits hold being commensurate to add new features and it can be more made-to- parliamentary law for your business and visually more appealing and interactive. Furthermore, it go out allow you to grow your own brand. This can be difficult when you feature the compar sufficient theme as lots of other businesses.The costs incurred from both options ordain now be discussed for you to analyze. Shopify, a hosted platform, sells off the shelf pre-made themes for around 100-120. An dresser could set up the store on your behalf, this would typically cost approximately 1000 for a full store setup. For a more tailored and bespoke theme, you can seem to pay around 3000.Magneto, a self-hoste d platform, would besides be able to cater for such a project, however, costs would soar upwards to between 10,000 to in excess of 50,000 for mazy sites. There are benefits to both and it all really depends on your personal circumstances. In my opinion, I would enkindle the off-the-shelf them and a hosted platform.Financial transactionsYou leave alone also need to factor in the costs of transactions via this medium. There are various gateways that facilitate financial transactions over an e-Commerce platform, but more oftentimes they exiting charge a excellent percentage of the make out crop value. Paypal pass on usually charge a hire of around 1.8%.Hosting and warranterThis, like the financial transactions costs, can be considered as a recurring cost. Typically, you can run to pay a monthly fee and the proves vary from host to host. In many cases, security is included as part of the package. Shopify packages range between 10-115 and you can expect to get between 1G B-unlimited storage. 34SP provide between 15GB to 82GB of storage space and you can expect to pay from 15 to 60. If you opt for an agency to provide this facility and support, then you can be expected to be around 300 per month and this can rise drastically to around 2500 a month for complex sites like Magneto.MarketingWithout a strong marketing campaign and strategy, it exit be difficult to make a success of the e-Commerce solution. In order to annex sales, you need people to visit your website. You will need hand over traffic only via a undefeated marketing campaign. One order of marketing is to use Search Engine Optimization- Google AdWords and these will appear when soulfulness searches for computer related words on Google search. You will only pay per click and you can normally expect to pay around 370 per month. It is a fantastic way of generating traffic and a highly recommended one.Advertising on social media is also a must, if you are to have a happy e-Commerce jour ney. Technically this is free, however, in most cases you will need to employ psyche who can do this competently. The only other option would be to do it yourself or get a family member to do it on your behalf such as your son or daughter. If you opt to outsource this task to an agency, expect to pay between 1100-2500 per month for Twitter and between 1400-3000 for Facebook.Another way you can promote your business is via assort marketing. This method works by allowing other companies advertise your products and in return you give them a small percentage of the sales that you get as a result of their marketing for you.LogisticsUpon implementation of the e-Commerce solution, you will start to generate sales from consumers who live nationally and internationally. Be able to fulfil these sales will mean that you expose around various parcel delivery companies and means you will have to start paying large amounts of postage fees. The fees will depend on the location, size and weight of the parcel. terms of re-training staffStaff will need to be re-trained as to how to process orders via the website, via 3rd party sites such as Amazon and Ebay. In addition, you will need to train them to be able to deal will queries via e-mail and on line support. Staff will need to know of the new process and the restructuring could cost time and money.Cost of a mobile appThere is also an option of developing a mobile app for Computer Bits Ltd. Selling via this medium can be beneficial, however, I feel as the cost of this would range between 15,000-40,000, it is best not to pursue this for the time being.ConclusionIn concluding, I feel on that point e-Commerce will bring for Computer Bits Ltd. With an increase in exposure, the company will see and increase in custom and sales. This will mean that there is more profit and consequently more market share. Your business will be able to source cheaper stock, better products, trade on a platform that looks to be the future of shopp ing, open 24 hours for trading, and be able trade globally via an array of platforms. The costs mentioned in this report only when outline the things that need to be considered, but in no means, should dissuade you from pushing ahead with a e-Commerce solution.e-Commerce solution for Computer Bits LtdReport by Umar Usman ArifWritten for Mr Lukase-Commerce solution for Computer Bits LtdObjectiveThe objective of the e-Commerce solution is to increase sales, profit and market share of Computer Bits Ltd. The primary focus of the solution would be from a business to consumer market and the domain name that the website can be accessed on will be www.computer-bits.co.ukMarket Research all of the research conducted is secondary in nature, as conducting primary will be baseless, expensive and time consuming. All of the competition will be online establish and Computer Bits will need to compete against national and international companies. invest MarketThe market segment for Computer Bits L td is to bell ringer the average consumer and sell them computer components and peripherals. The products will be sourced from comprisers and we will aim to resell these at discounted prices. Our competition will be other resellers who have an online presence. We plan to target everyday PC users and small business that fix and upgrade systems. Computer Bits market share will be less than 1% as the worldwide industry is huge and just the PC gaming hardware market was worth more an 30 billion, let alone the total worth of the components industry.Key ProcessesIn order to maintain a successful e-Commerce solution, Computer Bits Ltd will need at least 3 distinguishable decent spec computer systems that will allow your employees to update stock, weigh orders, order more stock and send out correspondence to customers, suppliers and hosts. The systems will need to have good processors, 8gb RAM, SSD so the systems are fast and have a cloud account where you can save all your entropy a nd information. Anti-virus, spyware and malware packet will be required to keep the systems secure from viruses and theft. ocellus from manufacturers and suppliers will need to be kept up to date and dispersion of orders can be done via Royal Mail, Hermes and DHL for international orders. The website and Ebay channel will need to maintained by staff.e-Commerce and SecurityThe website will be hosted by Shopify and will used one of the off-the-shelf templates. I think it will be waste of money if we were to develop a custom one as this not really our aim. Our aim is to sell online, not to create a brand. Branding is more suited to companies that actually produce and manufacture their own products as opposed to resellers like Computer Bits Ltd. Payments from customers will be made via PayPal and Shopify, both debit and credit cards will be accepted methods of payment. 34SP will host the website and provide security as their packages ply better value for money in my opinion. They pr ovide the website and our systems with security software that prevent hackers, viruses and allows payments to be taken via secure HTTPS. Only the website will be start-up costs, the rest will be working so capital to memory board the system will be taken from the company accounts. Marketing will be done via Search Engine Optimisation and social media conduct such as Twitter and Facebook. Furthermore, we will reach out to Affiliate partners such as Amazon, CostcCo and BestBuy.LegislationThe company will need to get trained on and adhere to many legislations that relate to distance selling. Customers data will need to kept secure and confidential and Computer Bits will need to be aware of Data Protection Act 1998. The Consumer recognition Act 1974 and Trading Standards mean that consumers have a right to returns and refunds if they are not satisfied with their products. Also, all content on the website will need to adhere to copyright laws and all staff will need to be retrained.