e-commerce: Local firms comment on the latest way to expand business

The world is forever changing, especially the world of computers and the Internet. Legislators find themselves scrambling to define laws for this emerging commercial world and holding forums such as "B2B: An Emerging E-Frontier for Small Businesses."

Businesspeople are delving into electronic commerce to open new businesses, keep up with the competition or seek a new range of customers.

"Ever since the Internet got started, e-commerce is really the way it's been done. CompuServe, AOL you can't sign up with them without a credit card. That's e-commerce," said Paul Kelly, general manager of Panther Creek Information Services.

A Web site isn't necessarily an e-commerce site. To be an e-commerce site, it has to provide a way to select items online, to check out and to pay, said Brendon Cummings, professional services group manager at NetWorks Inc. E-commerce is conducted both business to business (B2B) and business to consumer (B2C).

While the Internet appears a level playing field because no online visitor can tell if a Web site business is backed by a traditional brick-and-mortar store or a tiny home office, that idea might be misleading. Deeper pockets can afford better designers, giving an edge to well-backed businesses.

"The costs of setting up a store (online) vary from a few hundred dollars to a few hundred thousand, depending on how elaborate you want it to be," Cummings said. According to him, the average is $3,000 to $5,000.

Businesses of all types and sizes are involved in e-commerce.

Wal-Mart President and CEO Lee Scott said in the Wal-Mart Annual Report 2000 that the new online Wal-Mart.com approaches the Internet as a whole new market of consumers, one with different retailing rules. He compared it to a foreign country.

O'Reilly Automotive Services Corporation also has a Web presence with oreillyauto.com. "We've had a Web site for several years, but the e-commerce site has only been up for the past few months," said Greg Henslee, co-president.

O'Reilly started the e-commerce site because: "It allows us to sell products to customers outside our market area and it allows us the potential to add value for our customers by providing pricing and availability on the Internet. We also have plans for the future to make it possible to have a part laid out so the customer can drive to the store and pick it up," Henslee said.

Brown Derby, too, is online, with brownderby.com. "It gives our storefront nationwide accessibility for anyone to get an idea of what we have in a brick-and-mortar store. For the worldwide consumer, it gives us a presence," said Brad Feuerbacher, Internet director.

ShortStoriesMagazine.com is an example of a business with no real storefront to go along with its virtual store. Publisher Sharon Kizziah-Holmes said, "I have a good business as far as people coming to the site and reading stories. But so far, people don't buy a lot of product."

How to sell is a major issue in e-commerce. Sometimes businesses have to experiment. Kizziah-Holmes has decided on some changes.

"In order for my site to make money, I've started selling collections of different kinds of short stories, and I'm going to start charging for subscriptions to the magazine. Everybody will have a password so they can get in and read. I'm also working on getting advertisers for my site," she said.

Craig Myers, Internet department manager at ProTel Systems, talked about what works in selling on the Internet. He gave Amazon.com as an example; it provides a broad selection of books that people can't find in their local bookstores. On the other hand, he said, e-commerce works with narrow niche markets, too, such as a dot-com that offers only cutting-edge technology books.

"I was in New Orleans recently and ran across a restaurant that had a Web site where you could order takeout. That's a waste of time to me. Now, Aunt Sally's in New Orleans makes pralines and ships them all over the world through their Web site. It works because it's a gourmet, high-demand item," Myers said.

Feuerbacher said, "The key is to find a technology firm who is able to bring what you have in your brick-and-mortar store onto the Web so your image remains consistent."

One special consideration for businesses such as Brown Derby is legal issues. "With regulations in the alcohol industry, we have to make sure we abide by the laws," Feuerbacher said.

Also, people need to know that a company offers a site. "We deal with a company who helps market our Web site on the Internet and we market it along with our other store ads in newspaper and radio," Henslee said.

Cummings recommended a simple, nicely-done site with ease of navigation. "A slow-loading e-commerce site will lose customers by the time they tire of waiting and go someplace else."

"The next generation of kids, the ones in middle school right now, have never not had the Internet. As they become 18 and start buying things online for themselves, that generation is going to be the most comfortable shopping over the Web. This is when e-commerce is really going to take off," Myers said.