Why Go Online?

• In 2018, of the 7.7 billion people in the world, 1.8 were digital buyers. That’s 22% of the entire population. When 2019 hit, this number continued to rise and e-commerce sales had accounted for 14% of the global retail sales.
• During the 1^st Quarter of 2019, 27% of e-commerce website visits converted into purchases. At the same time, smartphones accounted for 65% of retail site visits. While it is estimated that only 62% of the population owns a mobile phone, this number is expected to rise as people become more digitally inclined.
• 60% of the global population goes online to research new products and information. Consequently, online sales are estimated to be $4 trillion in 2020.

The online market is a global platform where many brands, items and offers are readily available. While the most unique items such as artifacts, original pieces, and antiques may be hard to find on the web, the possibility of doing so online is much higher than doing so offline. The online market is not only convenient, but it also offers opportunities for businesses to build their brand.

The Beginnings of an Online Business

On the web, almost all businesses are on the same playing field. It is merely a matter of experience and strategies that sets them apart. Here are some key things to consider when moving a business online.

Operations run 24/7

The online market never closes. Regardless of whether or not sellers or customer service representatives are available to answer any queries, customers can make a purchase, read about the product, and research their options any time. How can businesses prepare products to be always available? What kinds of automation might be put in place for when a business owner or staff member isn’t available to respond to questions?

The online market gives people easy access to such information. Buyers leave reviews and comments that save customers time in terms of testing an item’s credibility. In terms of pricing, customers can compare and contrast with ease. To compete, businesses moving online should be prepared to be transparent with information, and have a strategy around getting customer reviews posted. Additionally, thinking carefully about pricing, deals and sales is necessary given online customers’ tendency to price shop.

Staying open 24/7, gives a business endless possibilities, but must be built into a business plan.

Expenses look different

When a business sells online the business cuts out a lot of possible expenditures such as staffing, renting a store location and, operational costs – machinery, lighting, etc. This means that the business has more time to spend on inventory, shipping, and marketing. As such, a business operator can focus solely on the business instead of managing a specific area or store.

To succeed in the eCommerce industry, a business’s costs must be competitive. At the same time, a good web presence is a necessary investment to become credible in the eyes of buyers. If a business opts to create its own website, the business must invest in driving traffic to their website through ads, social media and more, all while managing expenses and returns. A deep focus on efficiency is required for this work.  

Select where to sell

There are a lot of places to sell online. Deciding where can be a bit confusing. For businesses that are just starting out, the amount of effort and money available is a key input to deciding where to sell. In fact, many businesses think creating a stand alone website is the only option available. While this option  can distinguish the more personalized aspects of the brand, it isn’t the only place to sell. In fact, a stand alone website may cost more to get started with than other online venues.

A business does have the option to become a member of well-known marketplaces – eBay, Amazon, AliExpress, and more. This allows a business to have some of its operational needs covered (e.g. with online checkout already developed), so that the business operator can focus on the product itself. Apart from that, marketplaces are also a great learning experience for business owners moving online. In addition to the low start-up costs and the opportunity to sell overseas, online marketplaces provide a level of trust between sellers and buyers, thereby lessening the need to ensure customers of the quality or credibility of products and services offered. This level of trust may make it easier for sellers to land their first sale. While sellers do have to operate by the standards set by the marketplace, buyers are more likely to be understanding of a mishap, as they too are given protection by the marketplace site.

On the other hand, if a seller is looking to build its own brand, network, trust and name then an individual website would be a better option. It may cost more time and effort upfront, however, there are lower cost website creating sites such as Wix, Squarespace and Shopify that let a business do the website design and content creation with little to no coding. Additionally, these website platforms offer businesses affordable plans for domain names.

Selecting whether to sell on a marketplace or brand-based website is certainly a key consideration to moving online.

Customers have different goals and needs

Realizing the convenience online shopping brings, “Generation Xers”, individuals born between 1966 and 1981 take to it with much enthusiasm. This is why they are the top buyers in the online market. The reason this generation and others shop online is that they do not want to go through the hassle of going from store to store just to find something. Not only is this very taxing, but also the time consumed to go shopping could be used for other activities. Additionally, buyers shop online to save time spent on traveling. Of course, buyers do need to wait for their purchase to arrive.

In thinking about moving a business online, it’s important to support these pillars. Make it easy for shoppers to find what they are looking for. Offer options for faster shipping. Make the language used to describe products clear and compelling. Keep in mind that the buyer is shopping online to save time.

Engaging customers and asking for reviews

Website viewers could convert into potential customers and potential customers could become loyal patrons. This means that it’s important to keep viewers and customers engaged and involved. One important thing is to ask for positive reviews and feedback from customers.

While the easiest way to encourage positive reviews is to simply ask, there are other ways to incorporate it into the customer’s experience.  Adding a link to a review site after an email signature is one of the many ways. Sending an email of gratitude is a plus and sending customers to the review area is an even bigger plus. Keep in mind that customers who have expressed their satisfaction with products and services are much more likely to give positive feedback. Additionally, ensuring that a customer does not need to navigate through the site to find where to leave a review will make them more likely to give their thoughts.

If a customer shares a negative experience regarding the transaction, the business can ask what could be done better or how could the problem be remedied. This allows customers a voice and it allows sellers a chance to show responsiveness.

To ramp up customer engagement even further, social media posts and question-and-answer websites can be used. They give customers reasons or platforms to understand the brand, its purpose and products offered.  At the same time, forums and discussions allow customers to learn more about the product from others. Through that, they can also learn how involved a seller is with customer’s concerns.

Marketing becomes a big opportunity

There are hardly any limitations to a business’ audience when they move to online commerce. The online market does not have the same geographic location restrictions that in-person stores might have. That said, there are some key things a business can do to improve their reach.

If a business has opted to develop their own website, one opportunity for growth includes putting in effort to study and analyze SEO to expand reach even further. Google, as the number one search engine, had to create systems to ensure that only the best and most searched for content and creators are at the top of the search list. If companies become buried at the bottom of the search results, it becomes harder for them to gain website visitors. To stay on the first page of search results for items or categories takes time and effort. Companies that make use of Search Engine Optimization Analytics to understand how Google works and how they can crack the system are the ones that stay at the top.  

In addition, most social media platforms such as Facebook, Twitter, and YouTube have free services that a business can use to increase their online presence. In fact, there are 3.5 billion social media users worldwide, 90% of which are millennials, 78% generation X, and 48% baby boomers make up active users. Social media allows users to share news, video posts, and other interesting content with family and friends. In a sense, it is a great way to connect, stay updated, and find common interests with others. Many potential customers and even current customers of businesses are using social media and it’s a great place to reach new customers.

A survey conducted by Marketing Sherpa also discovered that 95% of people were likely to follow a brand on social media. Social media contributes to an online businesses brand personality. Now that the competition between brands is extremely high, people look for something more besides quality and pricing. Great brands share purpose and ideals with their users and followers.

Traditional media outlets – television programs and radio channels – have been using famous personalities to endorse their brand. Businesses moving online can do the same. Actors and Actresses may be hard to acquire, however, social media influencers are much easier to create a contract with. While some do charge cash for their posts or endorsements, an online business could find influencers who are willing to exchange services for merchandise. This kind of trade will save a business moving online money on advertising if they can find influencers who are willing to do so. Influencers can help build brand trust. As much as 49% of consumers are reliant on their recommendations for purchases. Birchbox, HiSmile, and ASOS are some of the few companies that have made use of influencers to gain success online.

The online era

As more and more businesses move their operations online, it is important to keep these operational, customer, and marketing considerations in mind. With a growing percentage of the global population going online to research new products and information, an online presence is more important than ever.