Building
Multi-channel retailing is becoming increasingly crucial for businesses to survive in an online age - Rebecca Spicer explores the options and steps required to build a successful e-store.
Thanks to the spread of broadband and wireless services at home, online business are growing rapidly, urged on by confidence in online brands such as eBay and Amazon.
The global ACNielsen Online Consumer Opinion Survey conducted last October found the vast majority of Australian internet users (87 percent) made a purchase over the internet. “Our ongoing e-commerce research clearly demonstrates an upward trend in Australian and global online shopping,” says Richard Sandlant, ACNielsen’s director of customised research.
So, how can your business tap into this growing market? While businesses may already
have websites to promote their business and provide additional information, it may be worth considering actually selling online as well.
David Lammey, general manager of business and consumer at web and application hosting company WebCentral, believes the decision for a business to expand online will be based on increasing its turnover and making the business more profitable. “What businesses are trying to do is sell more with less effort, and an online store can do that,” he says.
However, before embarking on developing your e-store, Lammey suggests asking yourself the following questions:
1. Is my product really going to sell; is it applicable; are people going to buy it on the internet? Anna Carosa started her accessory business, msAnna, just over two years ago. After successfully selling via mail-order catalogue she decided to launch online a year later. Selling mainly handbags and jewellery, she knew these were viable products to sell online. “I find with handbags, it’s more of a visual thing,” she says. “People know roughly what their style and taste is so most can buy jewellery and fashion accessories online relatively easily.”
2. How do you want to brand and structure the shop; do you want it to be a link off your main business website or a separate entity?
3. How am I going to do it? Analyse your current financial position—resources, costs, and so on—then ask yourself, can I afford this additional distribution channel? You’ll need to consider the extra resources needed to fulfil online sales and maintain the website, as well as set-up charges, ongoing maintenance and trouble-shooting costs.
4. Will you build and maintain the site in-house, outsource the job or use a combination of both? Deciding which way to go will depend on your time and resources, and how much risk you’re willing to take.
If you’re planning to sell online, the best research starting point would be to shop online yourself. Have a look at how other e-stores function and you’ll get an understanding of what consumers expect in terms of usability and security.
More on how to build your e-store: Building an E-Store by Rebecca Spicer, DynamicBusiness.com
