In the realm of online stores, there are “pure-play” businesses without physical locations and “bricks-and-clicks” stores that combine a physical storefront with an online presence. Both demand meticulous planning, much like opening a new store on Main Street. Online retailers maximize their potential when they prioritize customer needs and proactively meet them.
Getting Acquainted with Your Online Shop
Online sales, contrary to what some advertisements may suggest, don’t guarantee instant riches. Success requires a reasonable amount of effort and investment. Moreover, leveraging your knowledge of retail marketing strategies is essential for your online store’s success.
Marketing Essentials
Instead of delving into the technical aspects of setting up an online storefront, this chapter focuses on the marketing aspects of an effective online businessBusiness-to-business (B2B), also known as B-to-B, is a form of transaction between businesses, such ... More. It covers aspects such as merchandising, streamlining the online sales process, boosting revenue, and providing excellent customer service.
Delving into Crucial Components
For those who have never shopped online before, the process might seem daunting. If you’ve never shopped online before, this should be your first task. Pay close attention to other online stores, especially those of your competitors. Make a purchase and evaluate how your competitors handle product quality, order fulfillment, shipping, customer service, website usability, and pricing. Examining established online businesses like Amazon.com, BarnesandNoble.com, eBags.com, or LLBean.com can provide valuable insights into running a successful store. Only after this research should you begin building your own shop.
Common Features with Similar Products
Your inventory should be well-organized and presented consistently through a product catalog. Unless you have a small selection of items, it’s customary to input each item’s name, category, description, price, and image filename into a database or spreadsheet.
Product Cart
Customers should be able to view their partially paid items in a shopping cart. The cart should also track their contents, allowing them to remove or adjust quantities and providing a total breakdown. For small businesses selling only a few items, an online order form can be a suitable alternative. Ensure that the form’s programming automatically handles calculations.
Finalizing the Purchase
In this section of your online business, you can securely collect shipping and billing information, including credit card details. It should also calculate taxes and shipping costs. During the checkout process, customers should receive an order confirmation, and an email confirmation should be sent.
Order Tracking and Reporting
Unless your store is quite small, having clear data on sales, customers, and product popularity is highly beneficial. For larger stores, additional store analyticsAnalytics are used for websites, as well as in social media and email campaigns. When reviewing or t... More may be necessary. Providing order fulfillment and shipment status updates benefits both you and the customer.
Additional Features
In larger, high-tech establishments, integration with accounting, point-of-sale, and inventory systems is possible. Additionally, they may connect with other enterprise-level solutions, such as CRM systems to track customer engagement or live sales interaction capabilities.
The Four Ps of E-Commerce Promotion
Even with e-commerceE-commerce or electronic commerce is the exchange of products or services using computer networks, s... More sites, the four Ps of marketing—product, price, placement, and promotion—remain.
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Selling Goods and Services to Other Businesses Online
It may come as a surprise, but more than 90% of all online purchases in North America are between businesses, not individuals. If your primary audience consists of businesses, you can set up your online store much like a brick-and-mortar store, focusing on user-friendliness and customer service. Given that most businesses make bulk purchases, expect adjustments in pricing, marketingBusiness-to-business (B2B), also known as B-to-B, is a form of transaction between businesses, such ... More, and packaging, along with a shift in your online advertising approach.
Crafting a Virtual Storefront
Merchandising involves selecting and arranging items for sale in your store. There’s no rule stating that a bricks-and-clicks business must offer the same products online and in-store. For instance, Jelly Belly discovered that their 1-pound jelly bean bundles didn’t perform well on their website, but their high-margin accessory gift sets did. While online jelly bean options differ significantly from those in physical stores, online shopping for jelly beans is still available.
Selecting and Pricing Products
The products you offer and their pricing are key factors in your online success. Some items sell better online than others, and online pricing is highly competitive. Consequently, you need to be astute when deciding what to sell and how much to charge for it.
Choosing a Product Line
Decide whether to sell a portion or the entirety of your product line. Consider what makes a product suitable for online sales, especially if you’re just starting your business.
Personalizing Your Catalog by Selecting Individual Items
Determine the initial and final number of products in your catalog. Catalog size is an important consideration when choosing a storefront solution. Unless you have a very niche market, having a critical mass of products and options is crucial due to online competition and customers’ desire for extensive choices.
Setting the Right Price
Finally, establish your pricing strategy. Use the pricing recommendations from Chapter 2 to your advantage. Analyze competitor pricing using comparison sites. Be aware that online prices may differ from those in your physical store unless you actively encourage customers to visit your physical location or arrange for item pickup.
Showcasing Products
Most online stores follow a hierarchical structure. The main page typically displays thumbnails of each category, similar to departments. Depending on the quantity and type of merchandise, categories may further subdivide into logical subcategories for customer convenience.
Choosing Featured Items
Consider featuring products that are category bestsellers, have high profit margins, or are soon to be discontinued. Ensure that featured items are placed above the fold, making them visible without scrolling, and at the top of category displays.
Sorting Products
Avoid the temptation to categorize everything by price or alphabet, even for larger businesses. In some cases, simply moving an item to the top of the display can improve its visibility.
Highlighting Unique Items
Create a dedicated space, similar to an endcap at a supermarket, for displaying special offers, seasonal products, discounts, gifts, or events. Make customers aware of these opportunities.
Informing Customers of Available Products
Customers should have the option to select product attributes like color, size, or other features on the product detail page. Provide comprehensive product-specific details, including warranties, servicing, and technical support. If your products offer various color options, consider including color swatches on the product description page.
Enhancing Revenue through Upselling and Impulse Purchases
Your storefront software may include features to increase revenue, such as raising the average purchase value or encouraging repeat business.
Upselling
Utilize techniques like “People who bought this also bought…” on product information pages to suggest related items to customers. Ensure that these upsell suggestions are integrated into your product database.
Hottest Sellers
Highlight a category of best-selling items in your online store. Most stores generate this list automatically based on recent sales. Make it easy for repeat and regular customers to discover new items by marking them as “new” in the product database.
Hot-Sale or Speciality Items
Sort your store’s products into a dedicated section for sale or clearance goods. This category can appeal to various types of bargain seekers, and you can update its contents as needed.
Gift Suggestions
Consider classifying gift suggestions as a subcategory or standalone category in your product catalog. Customers who are uncertain about what to purchase can find pre-packaged search results for gift ideas.
Impulse Purchases
Implement an impulse buy section on your website, similar to displays near the cash register in physical stores. You can also include impulsive purchase options on your shopping cart or checkout pages.
Gift Registries and Wish Lists
Offer features like gift registries and wish lists to allow users to save products for future purchases, whether they are waiting to accumulate enough funds or conducting further research.
Reminders for Important Dates
Send email reminders to customers a week or two before important events, prompting them to consider purchasing gifts. Make sure your checkout process includes fields for the recipient’s address, gift notes, and gift wrapping options to facilitate gift giving.
Discount Codes
Prepare and apply promo codes judiciously. Most online stores can only handle a limited set of promo codes.
Showcasing Product Specifications
Unlike physical shopping, online consumers rely solely on sight and sound. To compensate for this limitation, utilize text, images, 3D, and VR on product description pages.
Top-Notch Product Images
Any online business worth its salt will have high-quality product images. Use close-up shots and provide a variety of angles. For complex products, consider using 3D, VR, or video to showcase them from different perspectives.
Conclusion
To ensure your online store’s success, it’s essential to focus on customer needs, effectively market your products, and provide an exceptional shopping experience. You may build a successful internet company by following these methods and paying close attention to what your customers want.
© Image credits to Steve Johnson
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