E-COMMERCE4 STEPS TO START SELLING ONLINE

E-commerce now accounts for 7.4% of total retail sales, which is a 14% increase from 2014 to 2015.-- U.S. Census Bureau

More e-commerce traffic comes

through mobile devices than PCs.

-Shopify

Those who shop via mobile spend 66% more than

shoppers who buy only in store.

-SmartInsights

WHAT’S HAPPENINGIN E-

COMMERCE

THREE MAIN MODELS

Brick & Mortar/Online

Retailer sells both through a brick-and-mortar storefront and online channel

Things to consider:● Only sell most popular items online (or heavily stocked products)● Sell a custom/specialty line of products online to reach larger customer base ● Vendor drop shipping● Storage costs of additional inventory● Shipping methods and costs

Pick-Up or Digital Only

Retailer sells through a storefront and online channel, but doesn’t ship

Things to consider:● Provides customers online shopping opportunity without a lot of the

planning/execution● No need to worry about shipping or returns● Increases customer lifetime value by 30% (according to Google)● Sell gift cards or classes online that can be printed

Online Only

Retailer sells items only online and ships

Things to consider:● No storefront needed - low overhead costs● Still need to consider storage costs or third-party fulfillment● Need to compete more on originality than price

DEFINEYOUR GOALS

1

Define your goals

Drive foot trafficExpand product selectionLeverage cross-channel sellingIncrease customer engagementIncrease revenue through a new source or further grow income by improving your existing online store

DECIDEHOW TO SELL

2

▪ Large marketplaces▪ Niche marketplaces▪ Off-the-shelf tools▪ Custom website▪ Social media

Decide how to sell online

Each e-commerce option has some pros

LargeMarketplace

(Amazon)

NicheMarketplace

(Etsy)

Off-the-shelf

(Shopify)

CustomSite

(Consultant)

Social Media

(Facebook)

Pros Millions of eyeballs and strong searchability

Specialty focus can reduce need to compete on price

Plenty of flexibility and customization

Lots of built-in functionality and integrations with other valuable tools

Total control of your entire site and its functionality

Can be built to integrate with your POS

Reach customers where they’re spending time

As well as some cons

LargeMarketplace

(Amazon)

NicheMarketplace

(Etsy)

Off-the-shelf

(Shopify)

CustomSite

(Consultant)

Social Media

(Facebook,

Pinterest)

Cons

Competing with hundreds or thousands means lowest price usually wins

Not connected to your POS

A niche site may not exist for your vertical

Not connected to your POS

Not connected to your POS - extra to connect it

Can be very expensive

Additional costs for any updates

Tied to that consultant

Can’t sell directly through most platforms

Still young and unproven

ESTABLISH

3

POLICIES & PROCESSES

Establish policies and process before you start

▪ What product will you sell?○ Same as in-store, completely different from in-store, or

a combination?

Establish policies and process before you start

▪ Where are you storing these products and fulfilling from?○ Who will ship the orders (you, the manufacturer, or a

3rd party)?○ Will you stock the items in your store and fulfill the

orders yourself? Who specifically will handle this task?○ How will you keep track of inventory?

Establish policies and process before you start

▪ Service and returns○ Who will handle customer service calls, emails, and

online chat (especially after hours)?○ What is your return and exchange policy?○ Can online customers return to store?○ What will you do for the customer if the order is

damaged in transit?

4CREATE

YOUR BUDGET

Create your budget to sell online

Storage & Maintenanc

e

Marketing/

Advertising

Time

Start-Up

True Investment $

Start-Up

▪ Start-up costs vary based upon selected method○ E-commerce platform○ Images, product info

Storage & Maintenance

▪ Variety of costs fall into this category○ Payment processing fees can be 1-3%○ Image storage or SKU limits○ Warehouse costs○ Fulfillment costs○ Shipping (materials, postage)

Marketing/Advertising

▪ Promotional activities▪ Advertising▪ SEO

Time (Opportunity Cost)

▪ Time commitment per month to keep the products and catalog updated○ Will you have to hire someone?○ What work will this replace for you or existing

employee?

Shoppers who buy from a business both in-store and online have a 30% higher lifetime value than those who shop

using only one channel. -- Google

4 STEPSDEFINE YOUR GOALSDECIDE HOW TO SELLESTABLISH POLICIES & PROCEDURESCREATE YOUR BUDGET

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Questions?

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