E-commerce on Main Street

1. E-commerce on Main Street Its more than just selling on line!

2. What Urban businesses need a Web presence? • Nearly all businesses can benefit • Many can benefit through linkages to other businesses in their own community – steering business to all of them • Imbedded businesses - such as restaurants in large hotels - can be linked from the hotel’s home page to feature special services and meals, etc. • Small businesses on main street that offer services un-related to their primary business can make this information available to customers through their website

3. What Rural Businesses need a Web presence? • Micro-businesses operating “out of the home” • B&B’s in rural settings • Agri-business / Agri-tourism businesses • Camp grounds and other recreational businesses in remote locations • All businesses located in “countryside locations” • Businesses that could use an “E-Bay” or other “Storefront” presence • Businesses that are operated more or less as “hobbies” with limited marketing outreach • Nitch market businesses / specialty products All businesses that are looking for more market share and expanded profit need to be Web enabled!

4. All commercial and industrial sites need to have HS / BB services available for promotional purposes • Sites without affordable High Speed / Broadband will be at a great disadvantage in attracting tenants • Central Business Districts without affordable HS / BB services will not be attractive to commercial development, “walk-in” customers, or to “loft-apartment dwellers” • “Lone Eagles” will not consider moving into areas where affordable HS / BB services are not available. In the next decade, businesses of whatever type that are located outside the urban landscape will not be able to compete affectively in the digital market place without HS / BB services

5. E-commerce and Broadband Telecommunication Services It is unnecessary to separate “true E-commerce applications” from the way an organization uses its Broadband connection for internal activities… Increased profitability provides the same benefits whether it comes from taking more orders on a transactional web site, or from finding a great price for raw materials, office supplies or production machinery by browsing E-Bay…

6. Schools are using E-commerce activities to: • Bid, order products and services, undertake research • Facilitate on-line continuing educational programming for staff • Advertise positions on staff • Share calendars, budgets, schedules of events, fund raising, booster programs, sporting events, general outreach to parents, PTA minutes, listing homework assignments • Outreach to “Home Schooled” students.

7. Health facilities are using E-commerce to: • Bid-out and purchase products and services on-line • Make appointments on-line / routine contact with medical offices / obtain electronic medical records / routine follow-up activities, etc. • Provide continuing education for staff on-line • Offer disease management information to patients • Provide on-line continuing education for certifications and licensure renewal • Advertise available positions on staff • Support traditional Telemedicine / telehealth applications using IP protocols • Share Medical Record information electronically across entire networks of providers through Internet protocols

8. Governments are using E-commerce to: • Bid-out contracts, purchase products and services • Offer outreach services to the public on-line • Renew licenses for businesses, dogs, cars, drivers • Register permits for building, parades, use of public facilities • Provide on-line agendas, budgets, hearing schedules, simulcasts of meetings, “Blogs”, etc. Governments all over the country are now in nascent stages of going “on-line” with all types of new services through their web portals Governments are interfacing electronically with Chambers, IDAs, SBDC, businesses, associations, NGOs, etc. on all types of economic and business development issues

9. Statistics on E-commerce • 69% of households are connected to the Internet –74% of those use BB Services [Nielson/Net ratings] • 43% of adults buy on-line. They make 29 purchases a year, averaging $95 per purchase [Digital Future Report] • 60% of all small businesses have a Web site [E-Biz] • There are over 8,058,044,651 Web pages in use world wide [2005 data]

10. More Statistics on E-commerce • 1994 – $8 Million in TOTAL Internet revenue • 2002 – $1,234 BILLION [ActivMedia] • B2B sales 1998 - $8 Billion • B2B sales 2003 – $1,331 Billion • B2C sales -1998 - $43 Billion • B2C sales 2003 - $108 Billion [Forester Research]

11. Affordable Broadband services are critical for economic development: • The business sector is the slowest on taking these enhanced high speed services • 1997 – 1 million households had BB Internet • By 2005 – 33 million households had BB Internet • FCC – 2006 data indicated that HS / BB service increased 33% to 50.2 million lines of service • Example: Travel arrangements on-line have grown from $0.276 Billion in 1996 to $8.887 Billion in 2002 [Jupiter Communications]

12. E-commerce supports growing businesses and communities Extensive use of E-commerce activities in a community generally indicates that the community is progressive and functioning in the Information Age • Business relationships develop within the community that benefit all concerned • Adds value to products produced in the community • Wireless HS / BB increases “Foot Traffic” and “loft-apartment dwellers” in the CBD

13. What can communities do to foster E-commerce? • Provide enhanced TA services directly to businesses both on and away from main street, industrial parks, commercial areas • Partner with Chambers, IDAs, Community Colleges/ U’s, SBDCs, EDCs, Main/Elm Street programs and others in the provision of training programs on the use of E-commerce • Develop partnerships with service providers – establish non-traditional relationships between sectors in the community

14. Examples of NGO’s providing TA services to main street businesses: • STE, STC, STW RPDBs - NY • Northwest, SEDA, Southern Alleghenies RPDCs - PA • Tri County Council – MD • First TN DD – TN • Lenowisco, Cumberland, New River PDCs - VA • Birmingham RPC – AL • Three Rivers PDD – MS • Mid – Ohio Valley RC - WV • And other similar organizations around the country

15. Universities / Colleges that provide TA services, training, courses: • Jamestown CC / Delhi U. – NY • Penn State, Kutztown U. - PA • Findlay College – OH • Marshall U. – WV • GA Tech, North Ga. U. – GA • U of Tenn. – TN • Auburn, U of Alabama, numerous others Community Colleges - AL • Glenville State College – WV • And others across the country

16. Changing Your Community’s “Cultural Mind Set” to “Pro-eBusiness Development” On-going, community based, direct Technical Assistance promoting ecommerce services can change the community’s view of itself: • BEV – VA • La Grange – GA • Statesboro – GA • Delhi – NY • Glenville – WV • Rome - GA

17. Who needs to be trained? • Individuals in the local business community • Education and health sector staff • NGOs • Tourism promotion personnel • Economic development staff • Chamber Staff • IDA staff • SBDC staff • others

18. Rome – GA NW - Alabama SEDA – PA Western – NY Knoxville, TN Bedford – PA Delhi U – NY Glenville State – WV North GA College – GA Allegany County, MD Western NC Pilot demonstrations the ARC is aware of in the ARC region

19. It’s more than just selling on-line……… • Cut operating costs • Save time and money • Find cost effective service providers • Research competitive information • Locate products and services which add value to current offerings • Build credibility & gain repeat customers • Maintain relationships with old customers • Attract new customers

20. Reach customers beyond your door step Small companies have the most to gain: • 24% of business with websites generate direct revenue [U. MN] • Satisfied past customers return to the site offering continuing sales opportunities • A web site is cost effective for promoting unique products • Virtual tours, catalogues, or “Showcases” of products reach those who will not “just walk–in off the street” • Want proof?90% of Bed and Breakfasts have a web site!

21. Cut operating costs • Accept client requests on-line for revisions to a product or a service during manufacturing or delivery • Send/receive specifications, drawings, pictures, other illustrative formats on-line • Prevent errors to avoid costs • Direct job-site access to information stored at the office

22. Start a .COM business on-line • Some businesses do business totally on-line through catalogues / order forms / other formats • Some artists make sales based on illustrated products as seen on their websites, and many allow clients to specify custom designs or modifications • Virtual tours of businesses are frequently parts of WEB sites and they are used to draw in “Clicks” – “Eye Balls on Screen” • Custom builders use webcams in the manufacturing facility so buyers can watch their item being created.

23. Research your competition Find out what your local, regional, national competition is doing – all information on the Internet is public information • Learn from your competitor • Study new pricing strategies • Adopt new marketing techniques • Develop new / unique services • Introduce new products

24. Do you have to have your own Web site, or can you use a “Virtual Store Front” ? • Amazon’s Zshop costs $39.99 / month • Ebay Stores costs $9.95 / month • Yahoo Store costs $39.99 / month • All of these services have added costs associated with them based on sales, number of items listed, sales transaction fees, etc.

25. Attract customers & boost sales • Offer promotional items, special sales • Provide unique functionality on web pages • Show videos / pictures of past events / activities / items that have been sold to gain the attention of a viewer on the web page • 69% of browsers click for further information after watching interactive videos • Present virtual tours and on-line catalogues • in many instances it is critical to host the website at a facility with HS BB access • Research your competition’s websites to learn their strengths… and weaknesses • For instance, banner ads are becoming less effective and POP-UPS are hated

26. Is E-commerce important to the local economy? • It generates NON-ecommerce transactions in the community – TA/support, Hosting, Web design, maintenance services, sales of equipment and software, shipping, etc. • Develops new relationships between related / unrelated businesses – referrals from each other’s web sites can lead to sales • E-cards allow affiliated / cooperating local businesses to share expenses and generate activity • E-newsletters are a source for new contact information on potential clients • “Blogs” interfaced to other WEB sites keep “piquing” interest in the business and sometimes the local community

27. It does not matter what your business is, but it does matter how you market it!

28. Don’t let your Web site become a COB-WEB!!!!!! • Any mention of a date must be current! • Monitor your site weekly / daily depending on what / how you are selling, and what purpose the WEB site is serving • Add new items and replace old items in catalogues • Check for email and respond promptly! Once a business gets its first order, it will never go back!

29. So is this “blue sky” or not? Consider an Internet / E-commerce business plan for your business. • Does it cost money? – yes • Does it take time? – yes • Can it increase market share? – probably What are you waiting for?

30. ARC’s E-commerce Workshop for Small Businesses This is not a “How-to-Set-Up-Your-Website” workshop. Instead, it is “What do small businesses need to know about E-commerce?” • Requires two 4 ½ hour blocks of time. Best offered on consecutive days / nights • Needs to be held in a computer lab that is served by high- speed broadband services with no less than 15 – 20 computers • Free of charge but taught only in the Appalachian region. Must have at least 15 business people in attendance

31. Yes, there is a web site!

32. Harry L. Roesch Appalachian Regional Commission hroesch@arc.gov Jim Baker SEDA-Council of Governments jbaker@seda-cog.org Thank you………..