e-commerce: 4 steps to start selling online
TRANSCRIPT
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
1234
Questions?
Don’t forget to register for our next two webinars!