The Fundamentals of E-commerce Success by Stephen Joyce
Many retail business owners are being pressured into setting up shop online.
But is this a realistic expectation or is it an exercise in futility. There are
some very important key questions that have to be answered before considering
the move to online sales.
1.Are your products conducive to mail, phone or online sales?
You might think that every product can be sold online and, to some degree, you
would be correct. However, should every product be sold online? The answer is
no. Many products just don't sell well online because they are not conducive to
impulse purchases, the demand is low, or the product itself has a long sales
cycle. Given that most people will be making purchases online using a credit
card, the products or combination of products should be easily purchased with a
credit card that has a limit of $1,000 to $5,000.
2.Are you prepared to sell your products online?
This may seem like a very basic, but it will validate your motivation to
succeed online. If your motivation to sell online is driven by a belief that
"everyone else is doing it and so should I" , then you should serious consider
the implications of selling online. Once you have made the mental decision to
sell online, you can begin to formulate your strategy for doing so.
3.Do you have the Subscriptions to sell online?
Are you prepared to handle five, ten, a hundred, five hundred orders a day? Do
you have the staff to fulfill orders, manage online customer service, and make
updates to the website. Do you plan on doing this work yourself? If so, have
you considered the impact this decision will have on the rest of your business?
Create a plan that sets definitive goals for your online storefront, as you
would for any business opportunity. Remember, managing a successful e-commerce
website is a full-time job.
4.Who will build your site?
One of the biggest myths about e-commerce is that anybody can build and run an
online store. The truth of the matter is that anyone can build and run a store
online, but only a select few can do it well. There are many online store
builders, shopping cart programs, and hosted applications that let you build a
site and start selling your products online, but realistically you get what you
pay for with most of these services. Consider hiring a company who specializes
in developing online commerce sites for you. The result will be superior to a
home grown site and will ultimately result in increased credibility and sales.
5.What is your budget?
Get quotes from a variety of vendors. You will find that the quotes you get
back will range from a few hundred to tens of thousands of dollars. A
reasonable amount to budget for your new website is around $10,000 for a full
build out including custom web design and software, and ongoing server and
maintenance fees of about $300 to $500 per month. When you consider your
budget, take into account that the more you spend upfront, the less likely you
will be to change the site. On the Internet, keeping your website fresh and
updated is crucial to your credibility.
Now that you have answered the fundamentals, you will want to ensure you take
the following steps to get your online store set-up correctly and efficiently:
1. Set-up an Internet Merchant Account
This is a must. You may be tempted to use Paypal, 2Checkout, or some other low
cost online payment solution, however, in the end, when your site becomes
popular and you start generating significant revenue, you will find that the
discount rate you pay with a true merchant account will be much less. Although
there is a little more work involved in setting up an Internet capable merchant
account, your credibility, not to mention your payment tracking, will be
greatly simplified.
2.Purchase a Secure Certificate
This is also a must. Securing your site is mandatory in order to avoid possible
issues with credit card theft. All merchant account providers will require you
have a secure certificate installed on your server before they issue you the
account. Secure certificates range in cost from around $80 CAD to $500 CAD
depending on the level of security and authentication you require. For the most
part, a basic certificate is all that is required for online sales.
3.Organize your product data
Having your product data organized in a spreadsheet will go a long way to
speeding up the set-up of your store. It will also help you organize your store
layout and determine what products will sell best online.
4.Take good product photos
Since your online customers won't be able to hold or touch your products, a
good photo is your next best option. Your photographs should be bright, with
good contrast, and show the product either alone or in combination with
complimentary products. For example, when selling a pair of jeans, take a photo
of a person (preferably someone who looks attractive in the jeans) actually
wearing the jeans. Have the person wear other complimentary products from your
store like a popular shirt, shoes, and a purse. Customers will be more inclined
to buy the jeans if they can see the jeans in context with other products.
5.Set-up a newsletter
Permission based newsletters are an excellent way to keep your customers coming
back to your store. Sending a monthly newsletter that highlights new products,
sales, or promotions can be a great way to retain and attract new customers.
6.Visit stores that you like and make notes
Do your research. Look at the sites that are at the top of their game and find
out what they do. How are their products displayed? How does their shopping
cart work? How often do they update their site? The more information you can
provide to your web designer and developer, the closer they will come to
meeting your expectations.
In summary, don't rush in to anything. Like all good things, a high quality
revenue generating website takes time, money and effort to build. There's
nothing wrong with starting small, but remember to constantly re-invest in your
online store. Make improvements whenever you can and keep it fresh. The days of
"build it and they will come" have long been over. Talk to a marketing expert
and plan your strategy accordingly.
About the Author
Stephen Joyce is President of Sentias Software Corp, a software development
company based in North Vancouver, British Columbia, Canada. Sentias develops
multi-lingual web-based business software including Content Management,
E-commerce solutions, Tour Operator Software Solutions, and solutions for the
Art Publishing industry. For more information regarding Sentias, please visit
http://www.sentias.com.
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