mortar is the investment in their physical offices and warehouse. In many cases, a company can host it’s business out of a home office. When your company grow to have many employees, you can set up your offices in class B or C space as you have no need for a fancy store in the right location. A company may be able to start a smaller space and move on to a larger one. Information technology: choosing the right ecommerce platform is one of the most important decisions that any company will make. Your company will either want to build and host their own system or outsource it. By building a Saas platform, you don’t need to host or manage the system in-house, the company may still need web developers on staff. Choosing to outsource the development and hosting may reduce the overall cost of the company, but the company will incur higher cost for any future changes to the website. Marketing and advertising: Of all the infrastructure elements, marketing may be the most important. To succeed your company’s website must be found. Once visitors are on your company’s site, the marketing team must to keep them there and compel them to buy from you. That is the job of the marketing team. Whether it is website design, social media, search marketing, merchandising, email or other forms of advertising. It is all about marketing. To effectively manage marketing activities in-house is very challenging. Most small e-commerce businesses therefore sometimes outsource some aspect of marketing. Support/customer services: there are many choices today for delivering high quality customer services. Your company can manage these activities in-house or outsource to a third party. Basic customer service for sales and post sales activities can be handled using email and by providing an 800 number for more extensive phone support. A
customer management system will make these activities easier, but for a smaller company, it is not a requirement. Live charts will impact your operations as someone needs to be available during specified hours of operation. Fulfillment: another key decision is whether your company will manage it’s own inventory or outsource it’s activities to a fulfillment house or through drop shipping arrangement with their suppliers. Managing the company inventory provides a high level of control, but it can tie the company cash in inventory, warehouse and space. Finance and Administration: again a company can decide whether it wants to manage it’s finance and administration in-house or outsource it or have a hybrid of the two. If the company ecommerce platform is tightly integrated to your accounting system, you may have very little need for an in-house bookkeeper and vice versa.
You've reached the end of your free preview.
Want to read all 9 pages?
- Spring '20
- Dr. ASRAVOR
- Marketing, Business-to-business