What is electronic trading?

No part of e-commerce is more compelling than electronic transactions. The so-called electronic trading refers to buying and selling transactions online. Electronic trading will no longer simply open up a new online sales channel. It will use technology to improve your business model, increase business revenue and efficiency; it will reduce operating costs and help companies establish closer cooperative relationships with customers, suppliers and partners. This way, you can connect dealers and manufacturers online, optimizing the transaction process and reducing paperwork. You can also profit by establishing a network of direct connections with suppliers, thereby reducing inventory and transportation consumption and responding to user requests quickly. You can also improve your relationships with customers and suppliers through an online billing and payment system.

In this way, companies can not only win the trust of customers, but also improve ordering efficiency, reduce inventory losses, maintain full capital turnover, and reduce actual sales expenses, thereby reducing costs and increasing profits.

According to "Business Weekly", "the amount of electronic transactions between enterprises is about five times that of users' electronic transactions, which was about 43 billion US dollars last year." According to the forecast of "FORRESTER Research", the amount of electronic transactions between enterprises will rise to 1.3 trillion US dollars by 2003, which is about 10 times that of users' electronic transactions, accounting for 9% of the total trade of the United States, and even exceeding the nationals of the United Kingdom or Italy. Gross production value. "

In 1998, consumers around the world spent $8 billion online. This number will grow to $130 billion in the next four years. But this is just the beginning.

In 1999, China had 4 million Internet users (CNNIC 99/7) and will maintain a growth rate of 47% in 2000 (IDC 99). Internet transaction revenue will also increase from US$41.98 million in 1999 to 181.56 million. US dollars (IDC 99). From online transactions to electronic transactions, China’s online consumers are growing rapidly (MCKENSY REPORT)

Some authoritative consulting companies, such as ERNST&YOUNG, predict a bright future for electronic transactions. The future. Because about 32% of Internet users have shopped online, and 64% have used the Internet to conduct product research before shopping through conventional methods

In the next five years, the Internet and TV will use seamless communication. The interface *** uses a delivery channel.

In the next few years, sales of goods will increase rapidly.

Sales in the service industry will increase. >

The development of electronic transactions has become a general trend, are you ready?

Electronic transactions will turn your website into a profit core

Providing goods and services through the Internet has impacted many industries. Profound impact. For example: More than $750 million in airline tickets were sold online last year, and the brokerage industry currently controls $200 billion in online transactions.

Includes:

Electronic display of goods and services

Online ordering and billing display

Automated user account inquiry

Online payment and Transaction Processing

How to implement electronic transactions?

Develop a dynamic database-driven online catalog

Secure your front-end interface with your ordering system. Integrated.

Transfer static billing data to a web server

Implement electronic payment methods (such as credit card, EFT, etc.) for full transaction purchases or bill payments. .

Effects

Using e-commerce based on electronic transactions can enable your company to:

Increase company profits by using relatively low-cost online channels. /p>

Reduce costs associated with the writing process, including: postage fees, printing fees, and processing fees.

Transaction efficiency can be improved by adopting electronic transactions/real-time payments.

< p>Provide users with faster services and respond more quickly to customer requirements

IBM's advantages

With the improvement of scalability, security and reliability. , IBM electronic trading solutions enable you to implement business-to-business and business-to-customer Internet transactions.

Through long-term cooperation with financial institutions, public utilities, governments and manufacturers, IBM has accumulated a large amount of professional experience in different industries. We are able to provide end-to-end electronic trading solutions. These solutions integrate your customer service and supply chain management - SCM systems. They fit into any environment and protect your existing hardware and software investments.

How to develop a successful electronic trading war

"A technology or idea was born, and its impact is profound, powerful, and applicable, enough to change everything. Electronics Transactions will transform every business in the world, leading to the survival of the fittest. It will change the way we do business, the way we educate our children, and the way we communicate and communicate as individuals."

--Lou Gerstner. IBM Chairman and CEO

What is electronic trading?

Electronic trading is more than just opening a new online sales channel. It will streamline your business model, increase revenue and improve efficiency through technology. It will drive revenue and profits by reducing costs and building closer, more responsive relationships with customers, suppliers and partners.

Electronic transactions allow you to increase revenue while building customer loyalty, and reduce costs by increasing order processing efficiency. Reduce inventory and warehouse expenses while maintaining full inventory and lowering the actual cost of sales transactions.

Essentials for Success in Electronic Transactions

At first glance, setting up a Web site is very simple. Almost any operator can do it. But building a successful electronic trading site can be challenging. Some businesses are losing millions, while others are making huge profits. Some companies struggle with handling traffic, while others are surprised that no one is interested in their sites. What is the difference between an electronic trading website that costs only $25 a month and one that costs millions of dollars a month? And how do you future-proof yourself—that is, how do you ensure you keep up with rapid changes in technology and business?

IBM helps thousands of companies implement successful electronic trading solutions. Some of the key factors for successful electronic trading may not seem obvious, but when ignored can create serious business challenges. These factors include:

· Execution management should have reasonable business strategies and goals

· Focus on customer solutions, services, long-term relationships and value

· Pay attention to all aspects of the sales cycle, including awareness, interest, desire, behavior, service and support

· Understand and tap into the unique aspects of the Internet and standards-based technologies

· And business processes A robust and scalable infrastructure that is tightly integrated with information systems

Establish a global view of electronic trading

A reasonable electronic trading strategy should have a global view of the business, not only from within but also from External observation - that is, from the customer's perspective. Electronic transactions span all departments of a company, serving as a forcing mechanism to remove internal barriers. An effective e-commerce strategy requires executive leadership and collaboration and accountability across all areas of the company, including marketing, sales, development, manufacturing, information technology, legal and public relations.

As the world's largest outdoor apparel retailer, US REI's electronic transaction revenue is growing at an almost 400% annual rate. At the same time, REI Online has become the largest store among outdoor retailers in terms of sales. Upstate's Tool Crib, a cataloger and retailer of power tools, achieved a 100% return on its Web investment in two months, saving $5 per order compared to cataloging orders. e-Chemical brings the efficiency of business-to-business electronic transactions to the chemical industry through its Web's first online chemical product store, allowing its customers to save 20% compared to traditional wholesale channels. Lagostina - a leading Italian manufacturer of cookware and kitchen equipment - expected to have $1 million in revenue by the end of the year, and its online store actually achieved this goal in two days.

Once you get started, you quickly need expertise - not just web site administrators, which may be beyond your company's capabilities. This means working with experts outside the company, but also having an open mind and a willingness to collaborate. IBM knows from its customer experience that having the necessary expertise in place from the outset can save time and money later on.

Effective electronic trading strategy

The first step in achieving electronic trading - and one of the most challenging - is based on the opportunity to provide time value to customers, defined A dynamic business strategy. Crafting this strategy requires an understanding of the company's unique strengths and brand characteristics, industry dynamics, the capabilities and unique attributes of Internet technology, and the vision for a future of pervasive high-bandwidth computing. Although it seems simple, the difficulty of formulating a long-lasting electronic trading strategy that can withstand the test is often extraordinary. In many cases, companies develop electronic trading programs as a survival or competitive response rather than as a competitive advantage. Industry leaders will be those who can think creatively, fully understand how electronic transactions will impact their businesses, and then take full advantage of the unique power of the Web and their companies.

To gain a competitive advantage, a comprehensive electronic trading strategy needs to be developed, including the following goals:

· Improve customer service

· Increase awareness share, market share and wallet share

· Extend geographic reach

· Reduce customer turnover

· Improve supply chain processes

· Increase revenue and profits

· Company or product brand

· Streamline business processes, reduce errors, improve efficiency and productivity

An effective electronic trading strategy should be able to withstand test and make it increasingly difficult for others to enter. Over time, this strategy should make switching customers increasingly costly, especially if it requires excluding competitors. Developing and maintaining an effective strategy requires regular competitive analysis. It should be based on core capabilities and the value seen by your target audience. In fact, your key customers may actively participate in shaping the strategy. Some of the following questions should be considered when formulating an electronic trading strategy:

· What is your current business? What new markets do you plan to explore?

·What are the core strategic assets?

· Can these assets remain strategic in a networked world?

·Who are the competitors? Where will new competitors emerge?

· Which processes need to be fundamentally rethought?

· Why are customers compelled to do business with you—i.e., what is the value proposition that stands the test?

· How to achieve profit margins in a world where competition is increasingly fierce, buyers are more sophisticated and have higher expectations than before? Where can a product quickly become a commodity?

Success Criteria for Electronic Transactions

In the wave of building Web sites, it is often forgotten to define the criteria and measurements of success. Just as there are numerous value propositions, there are also various success criteria and measures. It is true that some measurements are difficult to achieve, but there are also some measurements that are easy to determine and of great value, but are often overlooked.

These measures include:

· Revenue and profit, total and per customer

· Order size and number of units per order

< p>· Cost of goods sold, cost per transaction, cost per visitor, cost per repeat customer

· Revenue

· Inventory turnaround

· Conversion rate

· Page views per order

· Cart abandonment percentage

· Customer acquisition cost

· Repeat Visitors, total visitors, visits

· Time on site

· Customer satisfaction

· Improved customer service, lower prices

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· Email redirects

· Stock prices

· External measurements of response times and availability

· How users discover your site

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· Ad Clicks

Finally, remember to develop all aspects of your Web site from the customer's perspective, not yours. Too many Web sites are designed around corporate internal structures, focusing primarily on products and services—rather than solutions and customers. Customers will quickly abandon you if they don't find what they are looking for - by their standards, not yours, which is the core of developing a successful e-commerce strategy.