E-commerce on Main E-commerce on Main StreetStreet

Its more than just selling on Its more than just selling on line! line!

What Urban businesses need a What Urban businesses need a Web presence? Web presence? • Nearly all businesses can benefitNearly all businesses can benefit• Many can benefit through linkages to other Many can benefit through linkages to other

businesses in their own community – steering businesses in their own community – steering business to all of thembusiness to all of them

• Imbedded businesses - such as restaurants in Imbedded businesses - such as restaurants in large hotels - can be linked from the hotel’s large hotels - can be linked from the hotel’s home page to feature special services and home page to feature special services and meals, etc.meals, etc.

• Small businesses on main street that offer Small businesses on main street that offer services services un-related to their primary business can make un-related to their primary business can make this information available to customers this information available to customers through their websitethrough their website

What RWhat Rural ural Businesses need a Businesses need a Web presence?Web presence?

• Micro-businesses operating “out of the home”Micro-businesses operating “out of the home”• B&B’s in rural settingsB&B’s in rural settings• Agri-business / Agri-tourism businessesAgri-business / Agri-tourism businesses• Camp grounds and other recreational businesses Camp grounds and other recreational businesses

in remote locationsin remote locations• All businesses located in “countryside locations”All businesses located in “countryside locations”• Businesses that could use an “E-Bay” or other Businesses that could use an “E-Bay” or other

“Storefront” presence“Storefront” presence• Businesses that are operated more or less as Businesses that are operated more or less as

“hobbies” with limited marketing outreach“hobbies” with limited marketing outreach• Nitch market businesses / specialty productsNitch market businesses / specialty products

All businesses that are looking for more market All businesses that are looking for more market share and expanded profit need to be Web share and expanded profit need to be Web enabled!enabled!

All commercial and industrial All commercial and industrial sites need to have HS / BB sites need to have HS / BB

services available for services available for promotional purposespromotional purposes

• Sites without affordable High Speed / Broadband Sites without affordable High Speed / Broadband will be at a great disadvantage in attracting will be at a great disadvantage in attracting tenantstenants

• Central Business Districts without affordable HS / Central Business Districts without affordable HS / BB services will not be attractive to commercial BB services will not be attractive to commercial development, “walk-in” customers, or to “loft-development, “walk-in” customers, or to “loft-apartment dwellers”apartment dwellers”

• ““Lone Eagles” will not consider moving into areas Lone Eagles” will not consider moving into areas where affordable HS / BB services are not available.where affordable HS / BB services are not available.

In the next decade, businesses of whatever type In the next decade, businesses of whatever type that are located that are located outsideoutside the urban landscape will the urban landscape will not be able to compete affectively in the digital not be able to compete affectively in the digital market place without HS / BB servicesmarket place without HS / BB services

E-commerce and Broadband E-commerce and Broadband Telecommunication ServicesTelecommunication Services

It is unnecessary to separate “true E-commerce It is unnecessary to separate “true E-commerce applications” from the way an organization applications” from the way an organization uses its Broadband connection for internal uses its Broadband connection for internal activities…activities…

Increased profitability provides the same benefits Increased profitability provides the same benefits whether it comes from taking more orders on a whether it comes from taking more orders on a transactional web site, or from finding a great transactional web site, or from finding a great price for raw materials, office supplies or price for raw materials, office supplies or production machinery by browsing E-Bay…production machinery by browsing E-Bay…

Schools are using E-commerce Schools are using E-commerce activities to: activities to:

• Bid, order products and services, Bid, order products and services, undertake researchundertake research

• Facilitate on-line continuing educational Facilitate on-line continuing educational programming for staffprogramming for staff

• Advertise positions on staffAdvertise positions on staff

• Share calendars, budgets, schedules of Share calendars, budgets, schedules of events, fund raising, booster programs, events, fund raising, booster programs, sporting events, general outreach to parents, sporting events, general outreach to parents, PTA minutes, listing homework assignmentsPTA minutes, listing homework assignments

• Outreach to “Home Schooled” students. Outreach to “Home Schooled” students.

Health facilities are using Health facilities are using E-commerce to:E-commerce to:• Bid-out and purchase products and services on-Bid-out and purchase products and services on-

lineline• Make appointments on-line / routine contact with Make appointments on-line / routine contact with

medical offices / obtain electronic medical medical offices / obtain electronic medical records / routine follow-up activities, etc. records / routine follow-up activities, etc.

• Provide continuing education for staff on-lineProvide continuing education for staff on-line• Offer disease management information to patientsOffer disease management information to patients• Provide on-line continuing education for Provide on-line continuing education for

certifications and licensure renewalcertifications and licensure renewal• Advertise available positions on staff Advertise available positions on staff • Support traditional Telemedicine / telehealth Support traditional Telemedicine / telehealth

applications using IP protocolsapplications using IP protocols• Share Medical Record information electronically Share Medical Record information electronically

across entire networks of providers through across entire networks of providers through Internet protocolsInternet protocols

Governments are using Governments are using E-commerce to: E-commerce to:

• Bid-out contracts, purchase products and servicesBid-out contracts, purchase products and services• Offer outreach services to the public on-lineOffer outreach services to the public on-line• Renew licenses for businesses, dogs, cars, driversRenew licenses for businesses, dogs, cars, drivers• Register permits for building, parades, use of public Register permits for building, parades, use of public

facilitiesfacilities• Provide on-line agendas, budgets, hearing Provide on-line agendas, budgets, hearing

schedules, simulcasts of meetings, “Blogs”, etc. schedules, simulcasts of meetings, “Blogs”, etc.

Governments all over the country are now in nascent Governments all over the country are now in nascent stages of going “on-line” with all types of new stages of going “on-line” with all types of new services through their web portalsservices through their web portals

Governments are interfacing electronically with Governments are interfacing electronically with Chambers, IDAs, SBDC, businesses, associations, Chambers, IDAs, SBDC, businesses, associations, NGOs, etc. on all types of economic and business NGOs, etc. on all types of economic and business development issuesdevelopment issues

Statistics on E-commerceStatistics on E-commerce

• 69% of households are connected to the 69% of households are connected to the Internet –74% of those use BB Services Internet –74% of those use BB Services [Nielson/Net ratings] [Nielson/Net ratings]

• 43% of adults buy on-line. They make 29 43% of adults buy on-line. They make 29 purchases a year, averaging $95 per purchases a year, averaging $95 per purchase [Digital Future Report]purchase [Digital Future Report]

• 60% of all small businesses have a Web site 60% of all small businesses have a Web site [E-Biz][E-Biz]

• There are over 8,058,044,651 Web pages in There are over 8,058,044,651 Web pages in use world wide [2005 data] use world wide [2005 data]

More Statistics on E-More Statistics on E-commercecommerce

• 1994 – $8 Million in 1994 – $8 Million in TOTALTOTAL Internet Internet revenue revenue

• 2002 – $1,234 BILLION 2002 – $1,234 BILLION [ActivMedia][ActivMedia]

• B2B sales 1998 - $8 BillionB2B sales 1998 - $8 Billion

• B2B sales 2003 – $1,331 BillionB2B sales 2003 – $1,331 Billion

• B2C sales -1998 - $43 BillionB2C sales -1998 - $43 Billion• B2C sales 2003 - $108 Billion B2C sales 2003 - $108 Billion

[Forester Research][Forester Research]

Affordable BroadbandAffordable Broadband services services are critical for economic are critical for economic

development:development:• The business sector is the slowest on taking The business sector is the slowest on taking

these enhanced high speed servicesthese enhanced high speed services

• 1997 – 1 million households had BB Internet 1997 – 1 million households had BB Internet

• By 2005 – 33 million households had BB InternetBy 2005 – 33 million households had BB Internet

• FCC – 2006 data indicated that HS / BB service FCC – 2006 data indicated that HS / BB service increased 33% to 50.2 million lines of service increased 33% to 50.2 million lines of service

• Example: Travel arrangements on-line have Example: Travel arrangements on-line have grown from $0.276 Billion in 1996 to $8.887 grown from $0.276 Billion in 1996 to $8.887 Billion in 2002 [Jupiter Communications] Billion in 2002 [Jupiter Communications]

E-commerce supports growing E-commerce supports growing businesses and communitiesbusinesses and communities

Extensive use of E-commerce activities in a Extensive use of E-commerce activities in a community generally indicates that the community generally indicates that the community is progressive and functioning in the community is progressive and functioning in the Information AgeInformation Age

• Business relationships develop within the Business relationships develop within the community that benefit all concernedcommunity that benefit all concerned

• Adds value to products produced in the Adds value to products produced in the communitycommunity

• Wireless HS / BB increases “Foot Traffic” and Wireless HS / BB increases “Foot Traffic” and

“loft-apartment dwellers” in the CBD“loft-apartment dwellers” in the CBD

What can communities do What can communities do to foster E-commerce?to foster E-commerce?

• Provide enhanced TA services directly to businesses Provide enhanced TA services directly to businesses both on and away from main street, industrial both on and away from main street, industrial parks, commercial areasparks, commercial areas

• Partner with Chambers, IDAs, Community Colleges/ Partner with Chambers, IDAs, Community Colleges/ U’s, SBDCs, EDCs, Main/Elm Street programs and U’s, SBDCs, EDCs, Main/Elm Street programs and others in the provision of training programs on the others in the provision of training programs on the use of E-commerceuse of E-commerce

• Develop partnerships with service providers – Develop partnerships with service providers – establish non-traditional relationships between establish non-traditional relationships between sectors in the community sectors in the community

Examples of NGO’s providing Examples of NGO’s providing TA services to main street TA services to main street

businesses:businesses:• STE, STC, STW RPDBs - NYSTE, STC, STW RPDBs - NY• Northwest, SEDA, Southern Alleghenies Northwest, SEDA, Southern Alleghenies

RPDCs - PA RPDCs - PA • Tri County Council – MDTri County Council – MD• First TN DD – TN First TN DD – TN • Lenowisco, Cumberland, New River PDCs Lenowisco, Cumberland, New River PDCs

- VA - VA• Birmingham RPC – ALBirmingham RPC – AL• Three Rivers PDD – MSThree Rivers PDD – MS• Mid – Ohio Valley RC - WV Mid – Ohio Valley RC - WV • And other similar organizations around And other similar organizations around

the country the country

Universities / Colleges that Universities / Colleges that provide TA services, training, provide TA services, training,

courses:courses:• Jamestown CC / Delhi U. – NYJamestown CC / Delhi U. – NY• Penn State, Kutztown U. - PAPenn State, Kutztown U. - PA• Findlay College – OHFindlay College – OH

• Marshall U. – WVMarshall U. – WV

• GA Tech, North Ga. U. – GAGA Tech, North Ga. U. – GA• U of Tenn. – TNU of Tenn. – TN

• Auburn, U of Alabama, numerous others Community Auburn, U of Alabama, numerous others Community Colleges - ALColleges - AL

• Glenville State College – WVGlenville State College – WV• And others across the country And others across the country

Changing Your Community’s Changing Your Community’s “Cultural Mind Set” to “Cultural Mind Set” to

“Pro-eBusiness Development” “Pro-eBusiness Development”

On-going, community based, direct Technical On-going, community based, direct Technical Assistance promoting ecommerce services Assistance promoting ecommerce services can change the community’s view of itself:can change the community’s view of itself:

• BEV – VABEV – VA

• La Grange – GALa Grange – GA

• Statesboro – GAStatesboro – GA

• Delhi – NYDelhi – NY

• Glenville – WVGlenville – WV

• Rome - GA Rome - GA

Who needs to be trained?Who needs to be trained?

• Individuals in the local business Individuals in the local business communitycommunity

• Education and health sector staff Education and health sector staff

• NGOsNGOs

• Tourism promotion personnel Tourism promotion personnel

• Economic development staffEconomic development staff

• Chamber StaffChamber Staff

• IDA staffIDA staff

• SBDC staffSBDC staff

• othersothers

Pilot demonstrations the ARC is Pilot demonstrations the ARC is aware of in the ARC regionaware of in the ARC region

• Rome – GARome – GA

• NW - AlabamaNW - Alabama

• SEDA – PASEDA – PA

• Western – NYWestern – NY

• Knoxville, TNKnoxville, TN

• Bedford – PABedford – PA

• Delhi U – NYDelhi U – NY

• Glenville State – WVGlenville State – WV

• North GA College – North GA College – GAGA

• Allegany County, Allegany County, MD MD

• Western NCWestern NC

It’s more than just selling It’s more than just selling on-line………on-line………• Cut operating costsCut operating costs• Save time and moneySave time and money• Find cost effective service providersFind cost effective service providers• Research competitive information Research competitive information • Locate products and services Locate products and services

which add value to current offerings which add value to current offerings • Build credibility & gain Build credibility & gain

repeat customersrepeat customers• Maintain relationships with old Maintain relationships with old

customerscustomers• Attract new customersAttract new customers

Reach customers Reach customers beyond your door stepbeyond your door stepSmall companies have the most to gain:Small companies have the most to gain:• 24% of business with websites generate 24% of business with websites generate

direct revenue [U. MN]direct revenue [U. MN]• Satisfied past customers return to the site Satisfied past customers return to the site

offering continuing sales opportunitiesoffering continuing sales opportunities• A web site is cost effective for promoting A web site is cost effective for promoting

unique products unique products • Virtual tours, catalogues, or “Showcases” Virtual tours, catalogues, or “Showcases”

of products reach those who will not “just of products reach those who will not “just walk–in off the street” walk–in off the street”

• Want proof?Want proof? 90% of Bed and Breakfasts have a web 90% of Bed and Breakfasts have a web site!site!

Cut operating costsCut operating costs

• Accept client requests on-line for Accept client requests on-line for revisions to a product or a service revisions to a product or a service during manufacturing or deliveryduring manufacturing or delivery

• Send/receive specifications, Send/receive specifications, drawings, pictures, other illustrative drawings, pictures, other illustrative formats on-line formats on-line

• Prevent errors to avoid costsPrevent errors to avoid costs

• Direct job-site access to information Direct job-site access to information stored at the office stored at the office

Start a Start a ..COM business on-COM business on-lineline

• Some businesses do business totally on-line Some businesses do business totally on-line through catalogues / order forms / other through catalogues / order forms / other formats formats

• Some artists make sales based on illustrated Some artists make sales based on illustrated products as seen on their websites, and many products as seen on their websites, and many allow clients to specify custom designs or allow clients to specify custom designs or modificationsmodifications

• Virtual tours of businesses are frequently parts Virtual tours of businesses are frequently parts of WEB sites and they are used to draw in of WEB sites and they are used to draw in “Clicks” – “Clicks” – “Eye Balls on Screen”“Eye Balls on Screen”

• Custom builders use webcams in Custom builders use webcams in the manufacturing facility so buyers the manufacturing facility so buyers can watch their item being created.can watch their item being created.

Research your competitionResearch your competition

Find out what your local, regional, Find out what your local, regional, national competition is doing – all national competition is doing – all information on the Internet is public information on the Internet is public information information

• Learn from your competitorLearn from your competitor

• Study new pricing strategiesStudy new pricing strategies

• Adopt new marketing techniquesAdopt new marketing techniques

• Develop new / unique servicesDevelop new / unique services

• Introduce new products Introduce new products

Do you have to have your own Do you have to have your own Web site, or can you use a Web site, or can you use a

“Virtual Store Front” ? “Virtual Store Front” ?

• Amazon’s Zshop costs $39.99 / monthAmazon’s Zshop costs $39.99 / month

• Ebay Stores costs $9.95 / monthEbay Stores costs $9.95 / month

• Yahoo Store costs $39.99 / month Yahoo Store costs $39.99 / month

• All of these services have added costs All of these services have added costs associated with them associated with them based on sales, number of based on sales, number of items listed, items listed, sales transaction fees, etc.sales transaction fees, etc.

Attract customers & boost salesAttract customers & boost sales

• Offer promotional items, special salesOffer promotional items, special sales• Provide unique functionality on web pages Provide unique functionality on web pages • Show videos / pictures of past events / Show videos / pictures of past events /

activities / items that have been sold to gain activities / items that have been sold to gain the attention of a viewer on the web pagethe attention of a viewer on the web page– 69% of browsers click for further information after 69% of browsers click for further information after

watching interactive videos watching interactive videos • Present virtual tours and on-line cataloguesPresent virtual tours and on-line catalogues

• in many instances it is critical to host the in many instances it is critical to host the website at a facility with HS BB access website at a facility with HS BB access

• Research your competition’s websites to Research your competition’s websites to learn their strengths… and weaknesses learn their strengths… and weaknesses

• For instance, banner ads are becoming less For instance, banner ads are becoming less effective and POP-UPS are hatedeffective and POP-UPS are hated

Is E-commerce important Is E-commerce important to the local economy? to the local economy?

• It generates NON-ecommerce transactions in It generates NON-ecommerce transactions in the community – TA/support, Hosting, Web the community – TA/support, Hosting, Web design, maintenance services, sales of design, maintenance services, sales of equipment and software, shipping, etc.equipment and software, shipping, etc.

• Develops new relationships between related / Develops new relationships between related / unrelated businesses – referrals from each unrelated businesses – referrals from each other’s web sites can lead to salesother’s web sites can lead to sales

• E-cards allow affiliated / cooperating local E-cards allow affiliated / cooperating local businesses to share expenses and generate businesses to share expenses and generate activityactivity

• E-newsletters are a source for new contact E-newsletters are a source for new contact information on potential clientsinformation on potential clients

• ““Blogs” interfaced to other WEB sites keep Blogs” interfaced to other WEB sites keep “piquing” interest in the business and “piquing” interest in the business and sometimes the local community sometimes the local community

It does not matter what your It does not matter what your business is, business is,

but it but it doesdoes matter how you matter how you market it!market it!

Don’t let your Web site Don’t let your Web site become a COB-WEB!!!!!!become a COB-WEB!!!!!!

• Any mention of a date must be current!Any mention of a date must be current!

• Monitor your site weekly / daily depending Monitor your site weekly / daily depending on what / how you are selling, and what on what / how you are selling, and what purpose the WEB site is serving purpose the WEB site is serving

• Add new items and replace old items in Add new items and replace old items in cataloguescatalogues

• Check for email and respond promptly!Check for email and respond promptly!

Once a business gets its first order, Once a business gets its first order, it will never go back!it will never go back!

So is this “blue sky” or not? So is this “blue sky” or not?

Consider an Internet / E-commerce Consider an Internet / E-commerce business plan for your business.business plan for your business.

• Does it cost money? – yesDoes it cost money? – yes

• Does it take time? – yesDoes it take time? – yes

• Can it increase market share? – Can it increase market share? – probablyprobably

What are you waiting for?What are you waiting for?

ARC’s E-commerce Workshop ARC’s E-commerce Workshop for Small Businessesfor Small Businesses

This is not a “How-to-Set-Up-Your-Website” This is not a “How-to-Set-Up-Your-Website” workshop. Instead, it is “What do small workshop. Instead, it is “What do small businesses need to know about E-businesses need to know about E-commerce?”commerce?”

• Requires two 4 ½ hour blocks of time. Requires two 4 ½ hour blocks of time. Best Best offered on consecutive days / nightsoffered on consecutive days / nights

• Needs to be held in a computer lab that is Needs to be held in a computer lab that is served by high- speed broadband services served by high- speed broadband services with no less than 15 – 20 computers with no less than 15 – 20 computers

• Free of charge but taught only in the Free of charge but taught only in the Appalachian region. Must have at least 15 Appalachian region. Must have at least 15 business people in attendancebusiness people in attendance

Yes, there is a web site!Yes, there is a web site!

Thank you………..Thank you………..

• Harry L. Roesch Harry L. Roesch

• Appalachian Regional Appalachian Regional CommissionCommission

• hroesch@arc.govhroesch@arc.gov

• Jim BakerJim Baker

• SEDA-Council of SEDA-Council of GovernmentsGovernments

• jbaker@seda-cog.ojbaker@seda-cog.orgrg