Article: Should I Sell Online?
Feb 15 , 2007
Kelowna, BC
For your reading (and entrepreneurial) pleasure
Acro Media Inc. humbly suggests that you ponder this burning question:
Should I Sell Online?
Well, hey, it is a good question – maybe even one that you ignore at your peril. Ecommerce is growing (if I dare say it here in the seasonal aridity of BC’s Okanagan Valley) like wildfire.
Statistics Canada’s 2005 numbers (the latest posted) confirm it:
- online sales increase: at least 38% (fourth year in a row)
- overall value of online sales: $39.2 billion
- $7.9 billion of this paid for goods and services for personal/household consumption; some predict it doubling to $16 billion by 2009
- British Columbians and Albertans were the most active online shoppers
Salivating yet? Take a minute to consider these before you take a bite:
1. Will my offerings sell well? Top online sellers include travel services, books, magazines and digital products. But what about your offerings? Will going online add value to them? Will your clients appreciate 24/7/365 shopping from home? How about personalized welcomes, two-step ordering, simplified reordering or real time shipping costing?
Ecommerce factoid: 2006 online retail spending reached $102.1 billion (accounting for 2.8% of total sales), up 24% from 2005 (2.4% of total sales). (eMarketer, Jan. ’07, U.S. Census Bureau Feb. ‘07)
Do you sell items that people prefer to buy in person? Over 9 million Canadians shopped online in 2005, but over 60% of them purchased directly from the retailer. Might a Web site do your selling, even if the transaction occurs offline?
2. Will my marketing investment pay off?
If you rely solely on a local market, an online shopping cart may not pay off (but make sure you at least have a Web site for basic business information such as location). However, if you target a geographically wider area or a narrower audience, the Internet helps you reach them effectively and at some of the cheapest rates.
Even if your offerings are specialized, search engine optimization (SEO) and pay-per-click (i.e. Google AdWords) campaigns help drive qualified shoppers to your virtual storefront.
3. Who will buy from me?
Age and income still count: younger users and wealthier households are more likely to buy online. Irrespective of these factors, niche market communities do congregate online. Research your market and target it accurately to uncover your opportunities.
Users’ concern over security remains a big barrier, so clearly convey your trustworthiness. Would you provide personal and banking data to a site that didn’t?
Ecommerce factoid:The first things consumers do when they arrive at a retail site: 27% type a product name into the search box. 23% click the product category link from the homepage. (MarketingSherpa and Guidester, Online Shopping Research Survey, Jan. ‘07)
4. Find an able ally!
The ideal Web development partner has extensive ecommerce and marketing savvy, and provides business-class hosting, long-term maintenance and support. They communicate clearly and meet expectations at every stage of your relationship, from sale to invoice.
Peruse portfolios. Evaluate clients’ actual sites. Look at case studies. Get a quote.
Looking for an able partner is akin to online shopping – if it isn’t a pleasant experience, don’t buy. Online research helps (e.g. Google “web design firm”). There’s no shortage of choices – seems everyone is selling online these days.
Ecommerce factoid: Google drives roughly 10% of ecommerce visits. (Hitwise, Dec. ‘05)
(Adapted from an article appearing in April ’07 edition of ‘Business Thompson Okanagan’)
Have you any questions or comments? Can we help you at all with your Internet-based marketing needs? Please contact:
Duane Bentley, Marketing Manager
Tel +1.250.763.8884
Free +1.877.763.8844
media@acromediainc.com
About Acro Media
Acro Media is a professional Web design company and full service Web marketing firm delivering:
- Branding, logo designs, & identity packages
- Corporate marketing & communication
- Web site design & implementation
- Web site promotion & Internet marketing
- Ecommerce software solutions & Web site hosting
- Custom software & Web applications
- Multimedia/Flash design & development
The privately held firm has 31 talented, energetic employees, most of whom drink way too much coffee and all of whom have calloused fingers.