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E-Commerce for Small Business
Jennifer Glover
Cornell Cooperative Extension of Oswego County, NY

Introduction

The ability to communicate online has drastically changed the way business is conducted. With the increase in e-mail and online messaging services, companies can contact employees, suppliers, and customers quickly, saving time and money; online banking has allowed business owners to quickly transfer balances and pay bills; and, with the increased ease of buying and selling online, even the small business owner has been catapulted into the realm of electronic commerce. E-commerce has made instantaneous communications possible - the ability to transfer thoughts, ideas, products, and services to a worldwide audience - faster and cheaper than ever.

Why the Small Business Owners?

Small businesses are in a unique position to benefit the most from electronic commerce. With an effective Internet Business Plan, an entreprenuer can easily save money and time, while marketing their business to a worldwide audience. The absence of a large, hierarchical structure also adds to the adaptability of the small business owners' web site - decreasing the time needed to accommodate their customers, suppliers, and employees.

Bricks-and-mortar businesses have also proven to be more successful than the "dot-com" business model. With a solid customer base (ideal for e-mail marketing) and an already desired product, small businesses are poised to accelerate their business through the Internet.

Many small businesses make their leap to electronic commerce through the development of a brochure/catalog web site. While brochure/catalog sites do not generate money directly (through "shopping cart" software), they often lead to an increase of sales by customers who visit the store location, as well as orders placed via telephone and fax. However, those businesses that do accept credit cards via the web will see an increase in product movement. With many consumers' fears of online credit fraud diminishing, stores that offer online sales can benefit from return shoppers.

Internet service providers and web hosting services are beginning to understand the needs of small business owners, and thus have made it easier and more affordable for all businesses to have a web site. Increased sophistication in shopping cart technologies has helped small businesses offer their goods to an online audience at a more affordable rate.

Of course, the advantages stem much further than online selling. E-commerce saves time for the small business owner who may have few, if any, employees. An online presence can help answer customer service concerns and e-mail allows the entrepreneur to respond to inquiries when it is most convenient for them. Additionally, larger suppliers, which may be adding new online systems, can provide benefits to the business owner looking to restock or contact the company at any time - including late nights, weekends, and holidays.

The opportunities abound for any business owner looking to implement e-commerce into their business structure. But, with so much information needed to start, how can the small business owner begin to implement their own Internet Business Plan?

What is Access Pennsylvania Main Street?

Access Pennsylvania Main Street is a 12-hour curriculum designed to introduce the small business owner to the fundamentals of electronic commerce. The workshop series, which is conducted in four, three-hour sessions, was developed by the University of Minnesota Extension Service and has been successfully offered by Cooperative Extension Systems in Minnesota, New York, and Pennsylvania.

The program enhances rural development by:

· Educating local government and business leaders about the potential or electronic commerce,
· Demonstrating electronic commerce at public access sites,
· Providing curriculum that helps businesses learn to conduct business online,
· Building community capacity by establishing forums to discuss the benefits of electronic commerce,
· Encouraging school-to-work partnerships that use the technical ability of young people,
· And, training local technology support persons to implement e-commerce within business.

For more information, visit www.ebusiness.psu.edu

Jennifer Glover is a Community Educator for Cornell Cooperative Extension of Oswego County. She can be contacted at 315-963-7286.


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