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Business-to-Business Internet Marketing, Fourth Edition - Lifecycle ...

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Selling on the <strong>Internet</strong> 293<br />

Most early <strong>Internet</strong> order generation systems were home grown out of<br />

necessity, but now packaged systems are available that can get any business-<strong>to</strong>-business<br />

marketer up and running quickly and cost-effectively.<br />

E-commerce has now expanded so dramatically that there are a wide<br />

variety of packaged solutions offered by numerous vendors, priced from<br />

hundreds <strong>to</strong> hundreds of thousands of dollars. Some of these solutions<br />

are even being offered free, as long as the user agrees <strong>to</strong> utilize the seller’s<br />

online e-commerce services.<br />

One interesting example is Electrom.com (www.electrom.com),<br />

which claims <strong>to</strong> be the world’s largest business-<strong>to</strong>-business e-commerce<br />

portal. Electrom.com uses SitePlugs that work with Web design <strong>to</strong>ols,<br />

such as Microsoft FrontPage 2000, <strong>to</strong> enable merchants <strong>to</strong> plug<br />

e-commerce in<strong>to</strong> their Web sites. Then the merchants can publish their<br />

site and Electrom will manage it from start <strong>to</strong> finish for up <strong>to</strong> 250 products,<br />

free of charge.<br />

Even with the availability of off-the-shelf products and all-in-one<br />

resources, however, the implications of e-commerce on an organization’s<br />

existing systems should not be minimized. Legacy systems, such as financial<br />

and accounting, and possibly the entire order processing and<br />

fulfillment system, will need <strong>to</strong> be tied <strong>to</strong>gether with <strong>Internet</strong>-based operations.<br />

Ultimately, any e-commerce initiative will need <strong>to</strong> be integrated<br />

in<strong>to</strong> a company’s operations <strong>to</strong> gain maximum efficiencies. This fact<br />

has never been more obvious than in the experience of traditional retailers<br />

transitioning <strong>to</strong> the <strong>Internet</strong>. Some have yet <strong>to</strong> effectively meet<br />

the challenge of e-enabled inven<strong>to</strong>ry management and order fulfillment.<br />

The cost of a fully enabled e-commerce system should not be underestimated.<br />

Even in 1999, Gartner Group (www.gartner.com) found that<br />

building an e-commerce Web site from scratch cost an average of $1<br />

million, with 79% of the cost being labor related.<br />

Another major issue that should be addressed early on is whether or<br />

not you want <strong>to</strong> commit internal staff and resources <strong>to</strong> a major<br />

e-commerce effort. Maintaining an electronic s<strong>to</strong>re or catalog is no small<br />

feat. Products need <strong>to</strong> be pho<strong>to</strong>graphed, scanned, and uploaded. Copy<br />

needs <strong>to</strong> be written and published. Order numbers and prices need <strong>to</strong> be<br />

continuously reviewed and updated.<br />

That is just the creative side. An e-commerce operation requires serious<br />

site management on an ongoing basis. Maintaining pages and links<br />

and ensuring that all processes are in proper working order can be a<br />

laborious responsibility. At the very least, running an effective

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