What should I consider before selling online?

Taking your company online requires more than simply designing a functioning webstore. It will take careful planning and logistical preparation to help you get the most out of your internet investment...

It is better not to trade online at all if you cannot respond to email enquiries promptly or deliver your goods on time.

To assess whether your business is ready to go online, you’ll need to consider many issues.

How unique is your product or service?

The most successful online businesses tend to be those with a distinct product or service. Capitalise on any strong USP (unique selling point) by:

• demonstrating key advantages through the pictures, copy and testimonials on your website
• incentivising customers to place an order, call, or visit your outlet.

If you are competing with other businesses offering similar products or services you will probably compete mainly on price. Going online will highlight this as the web makes it easy for customers to carry out price comparisons.

Other differentiators include a better delivery or availability of products or services – such as weekend or out of hours delivery options, or round-the-clock availability of service.

How competitive is your pricing?

If your price is not competitive, you may want to think twice about trading on the internet as customers are unable to try the quality of your goods and services for themselves. Even if your pricing is highly competitive you should also be trying to:

• make your site more attractive and easier to use than those of your competitors
• provide appropriate bundles of products and services
• offer customers a range of delivery options.
  
  

Can your business deal with out-of-hours orders and enquiries?

Providing a high level of customer service is an area that is often overlooked when businesses go online. In the offline world customers expect businesses to have office hours and not be contactable at all times. Online, they can (and do) log on at any time of the day or night and expect prompt responses.

If you can't respond to customer enquires and orders as they happen, you will not maximise the sales and loyalty opportunities the internet presents. You should consider measures like a telephone answering system, an email address for contact on your website and a list of frequently asked questions.

How quickly can you respond to email enquiries?

It's amazing how many companies – even multi-national corporations – fail to respond to customer emails within a realistic timeframe. For small business, doing this cost-effectively can be difficult. But it is also essential. Respond instantly by using automated email response - to let your customers know you have received their enquiry and the timescale they can expect for it to be processed in.

Can you deliver your product or service on a national scale?

The economics are simple. If you can deliver on a national scale then you can potentially access the total UK market. Once you've done that, you can start to think about international markets.

Do you have a 'no questions asked' refund and returns policy?

The fear that they won't be able to return faulty, damaged or unsuitable goods prevents a lot of internet users from buying online. If you do plan to sell online, the Distance Selling Directive gives consumers the right to return items they've bought within an agreed period of time. You will need to draw up a policy about this and put the details on your website.

Have you got time to update and manage your website?

Building and maintaining an online presence is time consuming in itself, but having a constantly evolving site is critical to success. Customers will only return regularly if your site contains:

• regular updates and special offers
• simple navigation
• accurate information about your products and services
• clear pricing and delivery details.
  
  

Are customers willing to pay by credit card?

If the answer is no, your ability to trade online may be limited. If they are prepared to use credit cards, you can start to trade online. Don't forget to constantly emphasize your security and payment policies as customers need reassurance. Also make sure there is a quick and easy process to take your customers from homepage to checkout.

How much will taking your business online cost?

Many businesses fail to track the overall contribution of their internet presence to their revenue and costs. When calculating your costs be sure to include:

• site build and maintenance costs
• internet connectivity charges
• online and offline advertising to generate awareness and traffic
• credit card processing fees.

Can your business cope with major swings in demand?

Putting your business on the internet exposes it to a potential worldwide audience. For some businesses, this can result in massive and sudden increases in demand. While may be what every business dreams of, it can mean you get swamped. Avoid this trap by:

• tracking future demand trends for your products or services
• outsourcing aspects of your business
• planning inventory and stock levels.