In today’s world, where technology reigns, people have become extremely dependent on the Internet. They communicate online, they work online, they do research projects online, and they spend their money online. For a business that wants to succeed in the electronic age, it is often necessary to jump on the bandwagon and set up an online store. This article contains a quick overview of eCommerce and how to effectively market a business on the Internet.
What is electronic commerce? Simply put, it is the buying and selling of products online. There are several key eCommerce items you will need to start selling online:
1. Website, Web Design and Hosting
2. Marketing
3. Online payment processors
4. Suppliers and Drop Shippers
Website, Web Design and Hosting
Selling online is impossible without a website. Through this website, consumers are introduced to your product, allowed to browse through what you have available, and then purchase a product and have their order delivered to their doorstep. While this all sounds easy, there is a lot of work behind the scenes that goes into getting a website up and running.
The first thing you will need is a good computer. While you probably won’t do the web design yourself, you’ll need to have access to your website to track visitors and purchases, as well as receive orders. If you can’t access your store through your computer, it’s a bit like being outside your store without your front door key. You’ll also need another computer to host the website, as well as handle financial transactions, but there are hundreds of hosting companies out there and you can rent a web host for as little as £20 per month for this purpose.
Your website and the way it is designed is perhaps the most important thing that affects sales. No one wants to shop on a website that opens slowly, is not aesthetically pleasing, is difficult to navigate, and requires too many steps to purchase the product. Buyers will quickly go to another website. Start by making sure your website has a good face, with well-chosen colors, good graphics (not too many, though, as graphics slow down webpage opening), and clear, easy-to-find categories and options. It is important to divide your products logically, creating ‘shelves’ or categories in your online store. Having to search too hard for a specific product is a turn off for most customers. You will also need to include a small amount of text with each product, giving all the relevant information about it.
When it’s time to shop, convenience is key. All of today’s websites include a ‘shopping cart’, where consumers can place the items they want to order while continuing to browse. This is conducive to making more sales, since the customer can buy several items at once, instead of having to buy one at a time. Payment options are another important aspect of your purchasing system. The most common purchase method is with credit cards, although now many people choose to pay with PayPal or other virtual wallet systems, which speed up the purchase process. More payment information will be discussed later in this article.
To put your website online, you need a host. A web host is a company that owns or rents a server on which it provides space for your website, as well as providing Internet connectivity. There is a wide variety of web hosts, all of which provide different levels of benefits. For an e-commerce site, a slightly more advanced web server is needed to allow financial transactions etc. There are some free web hosts, but most require a monthly or yearly payment.
Finally, make sure your website has a good domain name. Keep it short and simple, so it’s easy to remember. Try to link it to your products, keeping in mind your clientele.
Marketing
A great website does not generate sales by itself. You need to market your website, and one of the best ways to do that is with search engine optimization. Making sure your website appears near the top of a web search can lead to a lot of new buyers. Your web designer can help you with this, or there are several free guides online that offer advice. Pay per click advertising is another great form of marketing that will give you instant results. These are the ads you see appearing in search engines in the right hand column and occasionally at the top of the results pages. This can be expensive, but it can also yield great rewards if done right and your web designer should be able to help in this area as well.
Don’t forget about offline marketing methods when running an eCommerce business. Even though your site is online, your potential customers aren’t glued to their computers all day. They still read magazines and newspapers, look at billboards, and various other media that we are subjected to every day. If your website address is short and to the point, it will stay in their mind and you can effectively advertise anywhere to get new business.
payment processors
To complete financial transactions on your website, you will need a payment processor. A payment processor is a company that you designate to handle your credit card transactions. This company takes the credit card information that is offered and authorizes its use to make a purchase. It then places the payment in a merchant account, which is an account specifically designed to accept these payments. It also acts as an agreement between you (the merchant), your bank, and your payment processor. Again, there are many payment processors that provide different services with varying fees. Some include an integrated merchant account, while others do not. It’s important to research this topic thoroughly, as a bad payment processor can be a huge headache and cost you money.
The best place to start when looking for online payment processing is your bank. You’ll need a merchant account with them and it’s usually not worth comparing them as they all seem to be similarly priced. It’s basically just another account that holds the funds before depositing them into your business bank account. However, the payment processor is another story. The rates of these companies vary quite a bit and it is advisable to look at 2 or 3 to get an idea of the current prices. Sage Pay is one of the most popular today, offering a fixed monthly fee for a set number of transactions each month, making their service one of the best out there right now.
Suppliers and Drop Shippers
Unless you manufacture your product yourself, you will typically purchase products from a wholesale supplier and then resell the product at retail price. When selling products online, the need to have the item in stock at your physical store may not be necessary. Often, however, buyers’ decision will be based on the premise that they can get the item quickly. People who shop online today expect an item to arrive quickly unless it is clearly stated on the website. Many online businesses choose to use drop shipping services provided by a number of wholesalers. Instead of ordering the product, repackaging it, and mailing it to the customer, they ship the product directly to the customer from the vendor’s site. This system saves time and money by reducing labor costs and improving efficiency. However, one potential downside to the drop shipping method is backorders. There may be times when a purchase is made, but you find that the supplier is out of stock. Keeping in close contact with your provider can minimize these types of problems.
Getting involved in e-commerce can be challenging, but it may be just what you need to take your company to the next level in business today.