As with any business move or expansion, considering an online presence can raise a sometimes dizzying list of questions for an entrepreneur. Exactly what must be put in place to make it happen? How does an online presence change the market for the business? What are competitors doing? How will people shop? What kind of security is required? How will customers pay online? We put together this guide, a primer of sorts, to help answer those questions.
Small businesses that have little or no e-commerce capabilities on their websites will learn about taking the next step in converting their marketing sites into selling locations that extend their customer bases, images and sales in entirely new ways.
Why Go Online?
The most amazing aspect of e-commerce is its ability to impact sales and marketing efforts immediately. By going online, suddenly a neighborhood bakery or a home-based consulting service expands its reach to a national, or even international base of potential customers. Web-based sales know no international boundaries.
Forrester Research, which analyzes online trends and statistics, projects the online retail market for U.S. businesses to be $230 billion by 2008. That’s a full 10 percent of anticipated total U.S. retail sales.
Not only is the internet increasing the number of potential customers that a company can reach, but it’s also driving profitability. The survey discovered that internet operations boosted businesses’ bottom lines:
- Of small businesses that sell online, 64 percent said the internet has increased their revenues or sales.
- 48 percent felt the internet helped to expand their geographic reach in the United States.
- And 73 percent saved money by decreasing administrative costs.
What It Takes to Go Online
There are two resounding traits that help entrepreneurs overcome the challenges of starting a business and reaping the rewards of their labor. Just like opening a physical store, setting up shop online takes passion and demands a high level of optimism.
Moving a business online doesn’t have to be an arduous process. To set up an online business, entrepreneurs should apply their passion and positive thinking to three key areas: the planning process, developing a marketing strategy, and understanding technology needs.
The Planning Process
First and foremost, every small-business owner needs a well-thought plan. The plan should look at every aspect of the proposed online business with a critical eye, including:
- Does the web make sense for this business? Even businesses that seem physical in nature can benefit from an online presence through ticket sales, discounts, videos, and online payments.
- What are other competitors doing? A competitive analysis helps equip online business owners with the information needed to promote and differentiate their businesses.
- Who is your target audience? Every audience is unique, so merchants should tailor their marketing in a way that connects consumers to their businesses.
- What about shipping charges? Online shopping breaks down most often over shipping charges. Try to make a profit on shipping charges — your store is more likely to lose the sale than gain the margin.
- What are the elements of the customer service policy? Nothing frustrates an online shopper more than sending an e-mail and waiting days for a response.
Article from Entrepreneur