Electronic Commerce

It is important that we consider the internet as simply another direct sales channel and integrate our web based initiatives with our other sales and marketing activities.

Benefits

One of the primary benefits of a web site is as a sales outlet that never closes, providing people with the opportunity to buy when it is convenient.

For the online retailer, this not only means increased sales, but other benefits too. Orders arriving electronically can be processed at off peak time and are generally more accurate and complete.

Another major advantage of publishing a catalogue on the internet is the ability to make instant changes to products and pricing. If you can get your customers to visit your site regularly, it can be a great way of clearing out end of line stock.

Approach

Given the benefits of electronic commerce, but also the uncertainty of success, the best business approach is to minimise risk. This means minimising up front expenditure, without compromising the chances of success.

There are two parts to selling on the internet, technology and marketing. Technology is about providing the ability to sell online. Marketing is about the design of the site, and the promotion that causes prospects to visit in the first place.

The technology needs to be as simple and low cost as possible. This leaves attention and budget for marketing, which is what will really determine whether your site is successful or not.

Technology

The most important factors considered by your customers will be speed, reliability and security. Speed and reliability can be achieved by choosing a professional hosting package which suits your specific requirements. Security can be achieved through a number of options. Having your own secure server with appropriate certification is ideal for the larger business. Opting for a shared server provided by your internet service provider will provide similar levels of security more economically. Finally using specialist software such as Actinic Catalog will provide you with a complete shopping solution with in-built security encryption.

Marketing

Setting up a sales web site can be like printing a batch of brochures and storing them in a cupboard. Your customers need to know where you are and what you are selling.

The most effective way to promote your web site is to publish your internet address on every piece of paper that your business produces. Other ways of driving traffic to your web site include advertising in traditional media and Internet based methods like search engine submissions.

Costs

It always helps to have an idea of costs. You should be able to have a sales web site developed for you with 200 - 2,000 different products for around £2,000 to £3,000 plus annual costs of less than £500 with the cost of marketing on top of this. Not bad for a new sales channel.

In conclusion

The Internet is not a shortcut to riches, but it does present a significant business development opportunity. Competitive advantage can be gained by careful planning and by choosing an integrated package that meets both the needs of your business and, more importantly, the needs of your customers.

Follow this link if you want to accept credit cards for online sales.

Follow this link to review our Electronic Commerce Checklist, which will help you identify how ready your business is to embrace the Electronic Commerce opportunity.