CostsP6

Costs

• An important part of an e-commerce strategy is identifying the costs.

• Whether they are specific prices or just isolating where the business will need to spend money, it is very useful for the practical implementation of the strategy.

• The costs which should be considered include the following…

Costs – Set up

• The hardware, software and networking elements will all need to be paid for.

• Will you hire them or buy them for the business?• Will you use an outside agency or internal skills to build

and develop the website? • Will you lease the equipment to set up the site?

Costs - Maintenance

• Once it is built, the website still needs a lot of work, most of it weekly or even daily, as products and other business elements need to be updated.

• Will this be done in-house or by an outside agency?

Costs - Security

• How many security features will you have?• What effect will they have on the running of your• site? • How will you tell your customers that you are protecting

the safety of their data and financial information to reassure them?

Costs - Advertising

• Consider the cost of printing, such as leaflets or posters, of adverts on television or radio, in magazines or newspapers, or paying for search engine listings .

Costs – Delivery Strategy

• How will customers receive the goods they have bought online?

• How much will delivery cost or will it be free?• Will couriers be used or the postal service?• Might charges increase for next day delivery?• Can the items be tracked and, if so, will that be through

the e-commerce site or the delivery company?

Costs – Staff Training

• How much training will your staff need- what are their skill levels at the moment?

• How much access will they have to the site and what level of permission will they have, for example will they be allowed to make changes?

• Will the training be done in-house, by an external company who made the site (if one has been used) or an external training organisation who specialise in training adults in IT?