Selling on the Web is not as simple
as you may think. Learn the various elements that you need to implement a
successful e-commerce strategy.
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1.
Make sure you have a market.
Who is going to buy your products
online? The best place to start is your current customer base. Will going
online make life easier for them? Are you going to save them time and money
by allowing them to purchase online? You probably have a basic web site
already; are you getting requests for online buying from potential
customers? It is never truly possible to judge in advance whether a market
exists, but there should be at least some indication of a demand for an
online presence.
2. Use a
clicks-and-mortar strategy if possible.
The clicks-and-mortar approach is
the most effective and economic. This combines offline resources, such as
store brands, channels with an online e-commerce presence. The other option
- a pure play dot-com - is now rare. Consumers are looking for brands that
they know and trust. They also like the fact that a business has a physical
presence, a place where they can go if something goes wrong. Pure play dot-coms
found that they had to spend a lot of money on marketing just to maintain
awareness.
3. Integrate the
shopping experience.
Consumers look to the web primarily
for information; they may use the web site initially to find out about the
product, then buy by phone or in person. However, repeat purchasers more
familiar with the web are more likely to buy online. They will be able to do
this more easily if their personal details and purchase history can be
stored for subsequent purchases.
4. Plan how you
will deal with content, pricing, stock management, fulfillment, support,
payment, returns, support and security.
These are the basics of any
business, but there can be added complications online. You need to address
the following:
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Content: This must be updated
frequently.
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Pricing: If you are selling direct
for the first time, you may have problems with your distributors and
retailers, who will not want you to underprice them. If you are selling
brands by other manufacturers, there may be problems involved in selling in
foreign marketplaces. Are you going to offer prices in a range of
currencies? If so, which?
-
Stock Management: Are you going to
use the same stock base to sell online and through your physical
distribution channels? If so, you need an integrated stock management
system.
-
Fulfillment: Precise information on
order status is essential. Each order should have a tracking number so that
the customer can get information on the status of the order right up to the
point of delivery. If you haven't sold by mail order before, you will have
to plan for packaging and fulfillment. This can be a major cost, and needs
careful management. If, for cost or other reasons, you decide not to fulfill
to certain countries, you must make that very clear on the web site.
-
Payment: How will people pay? What
credit cards will you accept? How will you manage fraud?
-
Returns: What is your return policy?
Studies indicate that returns can be a major cost for e-commerce.
-
Support: How will you support the
products you sell online? You must plan for a support section on your web
site to answer basic questions from customers. Will you also offer telephone
and e-mail support?
-
Security: Security will be a central
issue in an e-commerce strategy. Fraud and hacking of computer systems are
ever-growing problems.
5. Develop an
easy-to-use purchase process.
An alarming number of consumers
abandon their attempts to buy online. One of the reasons given is a badly
designed purchase process. Your purchase process must be reliable and very
easy to use. It is a good idea to tell the customer upfront how many steps
there are in the purchase process, and to keep that information prominently
displayed at the top of the web page. An example of the purchase steps is as
follows: "Shopping cart - Account - Shipping - Payment - Verify -
Confirm."
6. Consider
localization issues.
If you want to sell seriously to
foreign marketplaces, you will have to localize the web site. Studies
indicate that, without localization, sales will be minimal. More worryingly,
returns are very high because of misunderstanding by people who are
purchasing in a foreign language.
7. Consider
customer relationship management and personalization.
The Internet offers many
opportunities for a better understanding of customer's behavior and for
developing a closer relationship with them. Customer relationship management
and personalization systems allow for the collection and application of
comprehensive information to create a more customized environment for the
consumer. While the potential for such systems is substantial, they are
complex and difficult to implement, and, if not professionally managed, can
lead to the abuse of consumer privacy.
8. Make sure that
you buy the right software.
There is no need to do all the work
internally, as there is now a wide range of quality software for e-commerce.
9. Make sure you
have a team in place.
An e-commerce web site needs
day-to-day maintenance. Technical problems must be fixed, new content must
be published and old content removed, and the web site must be constantly
marketed.
10. If you don't
market, they won't come.
Opening up an e-commerce web site is
rather like setting up shop at the North Pole: nobody knows you are there.
It is not enough just to register with search engines; you will need an
aggressive marketing campaign to make your target market aware of what you
have to offer. The ideal situation is a seamless integration with marketing
strategy of the offline business.
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