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WEB SEMINAR

True Story of E-Commerce
by Ron Mader

PLANETA WIKISPACE
WEB 1, 2, 3 FORUM

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PHOTO GALLERY: Dialogues


FYI -- This document is part of our popular Web Seminar. As such, it is always a work in progress and we welcome helpful editorial suggestions. If Planeta.com can assist you, please consider making a financial donation or organizing a webinar.

MAKING CONTACT -- Email sent to Planeta may be published. If you don't want that to happen, just let us know. Requests for anonymity will be honored. (Email Tips)


Planeta has altruistic and commercial motives.


Planeta has partnerships with various online stores, including Amazon.com which has an Associates program to keep track of sales.

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OBSERVATIONS

The development of e-commerce is still maturing. A friend writes: "We have contacted a hotel that needs a deposit to hold a reservation, but they nly accept a giro telegrafico! It is too difficult, costly and cumbersome for us to do ourselves."

I google the hotel's name and while they do not have a website of their own, they are mentioned on another site that says staying there "will give you a sense of what the town was like in years past." Indeed!

I wonder if they take Western Union?

Another colleague who directs seminars for travel agents asks if operators are working to ease the sale. Does the site have online booking?

SHORTFALLS

Most transactions focus on an all-or-nothing approach. If you click from Planeta to Amazon.com via a recommended book title, we receive a commission. But if you consult our site and then stroll to Amazon more than one click later, then there's no transaction.

Likewise, many travel companies keep track of the direct links from Planeta to their sites. By and large, the traffic is good. But again, if you return to the site later to make a purchase or if you recommend a business you saw online Planeta to a friend, that "click" is not counted in the virtual realm.

Another shortfall of e-commerce is that is blind to the gift economy. E-commerce does not recognize anything except a financial transaction.

Be aware that the one-time big ad is more likely to fail than a consistent small ad.

Says Bill Christensen, webhost of Sustainable Sources: "It's a well known maxim in advertising that consistent advertising does yield sales. So, though the advertiser may not get a click through immediately (or ever), the fact is that the message is being seen. The more it's seen, the more likely the person who has need of the product or service offered will think of that advertiser when the time comes to purchase."

DIRECT AND INDIRECT SALES

Sales can either be made directly (purchasing online) or indirectly (purchasing offline), thanks to information on the Web.

PRACTICALITIES

Online banking remains complicated in developing economies. Many small businesses do not have accounts online PayPal or other electronic payment services. The potential of doing business at the most basic levels remains untapped.

At a global level, we are still at a loss when it comes to buying or selling airline tickets.

In 2001 Canada's dominant carrier, Air Canada, registered only about 3 percent of its bookings come through its portal "well under expectations." What did the top execs suggest? Drive more business to its website.

While this measure may sound reasonable, it was an invitation for failure. The Web should not be an end to itself, particularly for those interested in travel.

The most effective travel operations combine Web and old-fashioned telephone communication. Says one operator:

Many travelers call us with questions, when they are on our site. I encourage potential clients to speak with a "live specialist." Many still prefer calling a toll free number answered by informative salespersons instead of sending an email because it is more immediate. Some of us talk more than we write!"

If a travel website provides contact information, then it is doing its job. If it does not -- -- and many websites in the march toward e-commerce fail in this regard -- it stands to lose clients. Travel operators and national tourism boards need to provide the information travelers are seeking, or many travelers opt for the easiest solution -- staying home.

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AUTHOR

Ron Mader is the Latin America correspondent for Transitions Abroad and host of the award-winning Planeta.com website.


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