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e-commerce
Online shopping is becoming a national pastime. The increase in Internet connections, both at home and at work, means that online shopping is a possibility for most people. The increase in penetration of broadband means that it is an increasingly attractive option for more people.
The Internet is revolutionising commerce. It is essential that you understand how this impacts your business.
Low barriers to entry
The entry costs to becoming an online retailer are low, especially compared with setting up a new offline shop. This gives rise to 2 great opportunities, one for existing retailers and the other for anyone further back in the supply chain. Both these opportunities arise from the ubiquitous reach of the Internet.
Existing retailers
If you are already, the cost of setting up an online shop is low. An effective solution for most small retailers should be less than £5k. You can pay much less if you are handy with technology and have the time at your disposal. If you are more ambitious, more money will buy you more sophisticated tools that will allow you to do more. The benefit is the hugely extended reach that you can achieve.
The reach of a "bricks and mortar" shop is defined by its location. Its competitors are other shops within the range of its customer. This includes, of course, online retailers. If a shop wants to increase its reach, traditionally it needs to improve its location, or set up another shop. Increasingly that shop is now online.
New retailers
The Internet challenges the established relationship between a retailer and its customers. It places potentially hundreds of competitors within easy reach and threatens to erode the value of the trust that has been built with the customer over time. Most people primarily shop on cost; they will buy from the cheapest source. There are, of course, other factors that are key to the buying process, for example, convenience, customer service and advice.
e-commerce needs more than just a shop
An online shop is just the start. The "build it and they will come" model is not viable. You will also need a clear strategy for generating visitors.
Online marketing will be a key part of that strategy, but offline promotion may also have great potential. (An integrated strategy that sees on and offline as a single strategy will see the best results.) As with any marketing activity, it will be essential to understand your customers and the relationship that they have with you and with your product.
Packaging
If you were offered a piece of media that the owner could guarantee that all of your customers would see, you would be a fool not to buy it. This dream media does exist and, what's more, you own it! Whenever your customers buy or use your product, they see the packaging. If you want to promote your website, where better to do it! You have to design and produce the packaging anyway, so why not make it produce some value.
Relationship marketing
Your customers have already chosen you as a supplier, so they are more than likely to buy from you again. The Internet offers a highly cost effective way of maintaining a relationship with your customers; go to Relationship marketing to find out more.
Business to business
The volume of B2B commerce online is even greater than the consumer activity. Companies are using the Internet to facilitate many aspects of their business, from managing their buying processes (inviting suppliers to participate in online auctions to bid for contracts, for example) to delivering their services. For those who are prepared to look at the opportunity the potential benefits are enormous.
Are you ready?
The Internet is revolutionising the way that people do business. Are you ready to take part, or will you be sidelined?
Relevant resources ...
UK Buyers research first onlineChristmas online sales 'rise 50%'
E-tailers beware: Office of Fair Trading 'web sweep' imminent
eCommerce sites
Shipton Mill goes live
Re-designed and redeveloped, the site and shop are both fully content managed.
"The site is great to use and has delivered a marked increase in sales." Tom Russell @ Shipton Mill
