eExporting for SMEs

Topics: Marketing, Electronic commerce, Business-to-business Pages: 3 (519 words) Published: October 1, 2012
E-exporting for SMEs
Definition of e-commerce
“…refers to the sale, purchase, or exchange of goods, services, or other information over the internet or other telecommunications networks.” E-commerce includes business to business (B2B); business to consumer (B2C); cutting costs in transactions between businesses and business to consumer Purposes of e-commerce

Advertising, payment, distribution, logistics, service, publishing information B2B and B2C

Benefits of e-commerce for SME exporters
* Reduce market entry barriers for SMEs => Diminishes importance of national barriers * Lower set-up costs and maintenance for e-commerce presence than for physical outlet * Ability to quickly change (e.g., product offering, marketing material) * Faster and cheaper communication flows leading to reduced transaction costs for businesses and consumers * Improve customer reach

* Develop ICT (information communication technology) capability of businesses * Improve efficiency of business operations
* Speed of transactions, cut middlemen in supply chain
* E-commerce as source of competitive advantage
Caveats (disavantages) of e-commerce
* No substitute for travel
* “Faceless” company
* Building trust with customers/partners
* Internet is not truly global
* Open to misuse
* Government regulations
* Openness to competition

Barriers to implementing e-commerce for SME exporters
* Cost (time and money)
* Banking
* Lack of ICT skills
* Lack of business capability
* Lack of motivation

Step-by-Step Guide to Going Online

Select domain name
* a URL should be short, simple, descriptive and memorable to customers in the target market. * Locally branded domain names or global? (, .com, – global positioning, foreign positioning, local positioning?

Register at Search Engines and local online retailers

* website registration with multiple search...
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