By Nathan Strum
It is needless to say that online retail sales are increasing and will keep increasing year after year. Consumers enjoy not having to leave their home, stand in lines or deal with fighting someone over the last pair of shoes on display. There is so much that the online retail market has to offer to consumers, which is what is making it so successful. Brent Gleeson a contributor to Forbes reported the following, “Online retail sales increased roughly 15.7% in 2014 when compared to the previous year while total retail sales only grew by 4.4%. What does this mean? More and More people are purchasing from their home or mobile device instead of driving to the store.”
Setting up an E-commerce is a spectacular way for your business to make more money and be more accessible to consumers. With an open mind to learning new things and the dedication to get this off the ground and running, there is no reason why your company should not have a successful online website. Here are a couple areas you may be struggling with and need some light shed on.
Choosing a price point for your product
Some may think that anything will sell on the internet, regardless of the price. If I can sell it in-store for this price, it will sell online, right? Well, it gets a little more complicated than that. Consumers typically are not too comfortable spending a large amount of money without first wanting to speak with someone over the phone, email, chat, etc.; thus, it would be a process to try to sell to these clients, but the expenses that go into that can be paid off by the product price itself. By the same token, a low cost on a product can get you a low return on investment. Brent Gleeson and Jeff Oxford note in their article, 3 Steps To Launch Your First eCommerce Website, that an average price point would be between the $100 and $200 price range. Majority of consumers feel comfortable placing an online order at this price point.
Keep carrier costs in mind
UPS, USPS and FedEx tend to provide good shipping services, until a package gets lost or broken. Lost or damaged, when a shipping carrier loses a package, not only does it cost you money, but it upsets your client as well. Here is Armando Roggio’s experience with shipping carriers, “In November and December of that first year, carriers lost something like 11 percent of my packages. The carriers seemed to eat them. One post office in New York State lost ten out of ten packages that it processed from for the company —if memory serves — including a second and third attempt to get products to one particular customer. That same holiday season, UPS returned two large boxes to us — each had contained a Radio Flyer Rock and Bounce pony — that had been crushed. One had the clear imprint of a large work boot on it.” For this reason, it is important that you keep the costs in mind.
Plan to bring traffic into your site
In her article, 10 Dos and Don’ts of Launching an E-commerce Site, Ilya Pozin notes that it is not safe to assume that once you launch your site, everyone will know about it. You have to generate traffic. She states, “No one will end up on your site accidentally–the Web is just too big. Every person who visits your new site searched, saw an ad, or was somehow told to visit your site. You need to have a plan to get traffic to your site in a very direct way, so enlist the help of a PR or advertising firm to assist with SEO efforts and getting back links to your site.”
Hope these few tips give you a little more insight on things to consider.