Speaking of E-Commerce

"Fat Sam" <janetandsam.RemoveThis@btbroadband.com> wrote in message
news:c64bkq$7ockr$1@ID-227183.news.uni-berlin.de...
 >
  > >
  > > What language would be running on the web server, the backend?
  > > I would it this online so you're not restricted to Windows users only.
 >
 > The code it would spit out would be ASP, simply because that's what I'm
most
 > familiar with.....I definitely want to go down the route of a desktop app
 > with this one....Basically, I want to create something that appeals to
 > business owners, retailers and market stall traders who have only an
average
 > or even below average level of IT literacy, but which will still allow
them
 > to get their foot on the first rung of the e-commerce ladder without
 > breaking the bank in the process......I see that demographic as
predominanly
 > windows users.....

In reading this thread I can its a good idea overall... but it doesn't show
the best business sense.

As far as the overall idea goes, it is viable and you should be able to sell
it to some businesses... in fact, there are already companies that sell a
similar package.

You plan is to create some software package for the IT illiterate small
business owners... something they can use to punch in their inventory, click
the "GO" button or what have you, and then get a website output and with a
little uploading to the net they are done and have a shopping system

Thats where we hit the first snag: they need hosting (if they are IT
illiterate are they going to know what they need for a database, for
scripting, etc?), then they'll need to know how to upload this site, how to
make changes, a domain name, etc.

The next problem is your cash flow... so you create this nifty program in
the hopes it'll save them money. Say you sell it to them for $500...
everytime somebody buys it you pocket the money and move on to selling it to
the next guy, never to make any more money off the site. You are out of the
picture because thats where you put yourself.

If you want this idea to really work where you can maximize your income,
what you should maybe consider is:

1) Instead of making it a VB application, you make it an internet based
application.
For this you would make an admin section that they can log in to update
the database. They go in, enter a category for the item, add an item, set
its options (if its a shirt: what sizes it comes in and what colors are
available) and finally the price for the item. It has the same core idea of
the VB application (they enter the data to a database) but they dont' have
to worry about anything else, its all handled in real time with their
website.
2) You don't just sell it and then send them on their way. You provide
hosting for the site and charge them a set monthly fee, handle domain name,
support issues, etc. You bill them somewhere around $100-200 a month or
more for the hosting.
3) What does their website look like? This thing is probably going to be
pretty generic so you offer them design services. This becomes your set up
fee. To build a basic site template you might charge them $500 for, so that
becomes your setup fee.
4) Do they want real-time inventory integration? You could again start
charging them for that as well... you would host their database online and
your site will pull the data from their database (or you modify their
in-store cash register system to integrate with the online database)...
again charging more per month and a setup/installation fee.

So we've moved from something you sell them for $500 and then you are out of
the picture... to something that they pay a $500 setup fee and you bill
them a few hundred dollars a month

Think that sounds too expensive? Think that no merchant would go for that?
You would be incorrect, since they already do (alot of the places out there
now already charge upwards to $1000 or more for a setup fee and up around
$400+ a month for hosting).

Some of the higher end programs cost alot more than that (the AccPac system
with most of the options including them hosting your company database costs
about $75,000 for the software, another $5,000-15,000 for setup costs and
then $2000-5000 a month in hosting fees)

Why do they do it? The alternative is to open a new store... one where they
might make $25,000 a month in gross sales (for a smaller shop), pay $7000 a
month in rent, 5% of the gross a month to the mall and then pay $2000-2500 a
month for employees to run the place... the internet site, even using a high
end ecommerce application has alot more room for profitability, even if it
doesn't make the same amount of sales a new store would generate.

Using those numbers (which are pretty close to being accurate) a store like
that would probably generate about $1700 to $3000 a month in net profit...
comparativly, an internet store where they are paying $250 a month in
hosting would have to sell about $3200 to $5000 a month in merchandise to
provide the same return on investment... anything more than that is all
bonus

Atleast, thats my 2 cents on it all...

Clint<!-- ~MESSAGE_AFTER~ -->