ECommerce Is Back On The Fast Track

ECommerce Is Back On The Fast Track

by: Craig Neidel

How much holiday shopping did you do online this year? If you are reading this, then chances are good that you made at least one purchase online. Over 54% of all Americans did it [1]. A much higher percentage (>80%) of Internet users did it.

Not only did you do it, you liked it! Less than 7% of online shoppers reported a bad experience with 88% reporting they were satisfied or very satisfied [2]. It is clear that online shopping has come of age with such a high level of participation and satisfaction. It appears that past issues of trust, security, and bad ecommerce websites are replaced with good ecommerce sites, higher trust, better security, and just plain better execution and service by online retailers. Quick, easy, and convenient shopping overcomes the concerns people have had in the past.

With a whopping 35% increase in online holiday sales this year, up to $18 billion [3], one analyst calls it ขa fantastic season for online retailers.ข [4] This is the third straight season of record growth for online shopping. This year, 2004, is expected to follow the trend. US online sales are expected to grow from $55 billion in 2003 to $73 billion in 2004 [5].

In searching for some bad news, it was hard to find. The worst news was that 3.6% of online shoppers had a very bad experience where either the merchandise was not delivered on time or was delivered in poor condition. This is a small fraction even compared to traditional retail sales.

Can the news and trends about ecommerce retailing really be that good? The answer seems to be a resounding YES! Some of the more popular online markets have double digit penetration now. That means some online retailers are reaping over 10% of total market share in their industries with a rising trend. In addition, more online retailers are showing profits. In 2002, about 50% of online retailers showed a profit from their online operations while 70% did in 2003 [5].

So, if you are one of those 70% of online retailers making profits in 2003, sit back, breathe a big sigh of relief, and relish the moment. There won’t be much time to relax and enjoy your successes. New business is right around the corner.

If you are a business and don’t yet have an online sales presense, then itกs never too early to get started. To get ready for the 2004 holiday season, itกs best to start now.

Create ecommerce plan – 4/15/04

Select ecommerce software & consultant (NetSource can help) – 5/15/04

Build the website – 7/15/04

Put the website into operation, start selling 8/15/04

Create online marketing plan – 8/15/04

Execute the marketing plan 9/15/04

Ready for holiday sales – 11/15/04

It can be done quicker than the schedule suggested above, but, to do it right requires thought, planning, and time.

References:

[1] Nashville Business Journal, 12/4/03

[2] ASD/AMD Marketwatch ENewsletter, 12/24/03

[3] eSpending Report, Goldman Sachs, Harris Interactive, Nielsen/Netratings, 1/5/04

[4] Abha Bhagat, Nielsen/NetRating, COMPUTERWORLD, 1/6/04

[5] ASD/AMD MarketWatch ENewsletter, 10/16/03

About The Author

Craig Neidel has worked for NetSource Communications Inc. for 6 years and has experience in web development, ecommerce solutions and web marketing. NetSource Communications creates custom ecommerce solutions and web applications. http://www.ntsource.com.

This article was posted on October 26, 2004

by Craig Neidel

Deal Sites for Consumers: Service or Spam?

Deal Sites for Consumers: Service or Spam?

by: Andrew LaDuke

The internet has spawned yet another class of web sites designed to save consumers money by helping them to locate the best deal on the internet for products and services.

This is how it works. Entrepreneurs at web sites such as www.bargainminder.com search the internet for deals on consumer products. These so called ขdeal sitesข can list any product under the sun, or some will specialize by category, such as clothing or electronics.

Each day the web sites will list items that were found on sale or under a special promotion offered only through these sites by some of the largest retailers in the country. For example, www.bargainminder.com might list products from Dell.com, Overstock.com, Amazon.com and many more, while www.dealhunting.com lists products for the home, such as clothing and gardening items.

Another site, www.dailyedeals.com, offers listings for just about anything. It too, lists a ขcoupon code,ข which can be entered during the checkout process on the merchant’s site, to qualify for a particular limited time deal.

Like many, BargainMinder on some items will provide brief instructions on exactly how to place your order to help you maximize your savings. Many retailers are offering free shipping these days, but it is important to make sure you select that option during the checkout process.

So how do these sites make money? Should they be considered a valuable tool for consumers or merely collections of spam items?

The sites make money by participating in a growing trend in marketing on the internet. ขAffiliate Programsข are offered by retailers and are a way for any web site to produce some income. Basically it works like this. When you click on a link from one of the ขdealข sites, the site from which you clicked is tracked by the retailer. If you buy a product, the referring site makes a commission on your sale.

Using this type of marketing, retailers get literally thousands of web sites promoting their products. The deal sites basically save the consumer the time it would take to research a product’s price on their own. So do the deal sites save time and money? Absolutely they do. Are they spam? Spam is defined as: Unsolicited email, often of a commercial nature, sent indiscriminately to multiple mailing lists, individuals, or newsgroups; junk email. So a deal web site by itself would not be spam, but if the site sent out unsolicited emails trying to draw consumers in, then it would qualify.

About The Author

Andrew J. LaDuke is president of AJL Marketing, LLC, an internet consulting firm, and holds a Master of Science degree in Business Information Technology. He is an Adjunct Instructor in the graduate technology program at Walsh College in Southeast Michigan.

[email protected]

This article was posted on April 28, 2004

by Andrew LaDuke

What Big Online Retailers Don’t Want You to Know

What Big Online Retailers Don’t Want You to Know

by: Derek Vaughan

Are you operating a small or mediumsized online retail store? Have your ecommerce efforts been thwarted by a big online retailer? If so, take heart! Things aren’t as bad as they might seem. In fact, instead of being intimidated by the big online retailers – you should welcome the opportunity to compete with them! Here are some things that they won’t tell you that could give you a real advantage when trying to gain more ecommerce customers at their expense.

Here are some of the things that the big online retailers don’t want smaller competitors to know that they’re saying behind your back:

กWe’re concerned that you can look just as big as us onlineก

Think about it – for all the time, money, resources, and energies that go into the website of a large online retailing operation – they still have most of their traffic landing on their home page. Itกs the same with you, the small online retailer. When a potential online buyer looks at your home page, they can easily think that you are much larger than you really are. How do you tell the difference between a oneperson operation, a tenperson operation, or a large retail site? Itกs hard – even for professionals. One key point here: make sure that your home page design and layout measure up to the current standards of professionalism in the industry today.

กYou might be better at reaching a niche audienceก

Giant online retailers need to reach giant audiences in order to achieve their sales goals. For the most part they aren’t even interested in a smaller niche audience. Large online retailers are looking for search terms and advertising buys that will attract the largest possible pool of potential buyers to their site. You, on the other hand, can be far more selective in your choice of products offered, keywords targeted, and where you choose to advertise. In addition, you can select target audiences who may purchase more expensive products in smaller volumes, or who will be much more loyal buyers and repeat purchasers.

กWe can’t deliver personalized service like you canก

Similarly, the larger the company, the harder it is to give truly outstanding and personalized service. As a small online retailer, you can actually get to know your customers. In fact – you must get to know your customers in order to keep them from straying to a larger competitor with lower prices on the same items. There are so many different and unique ways to really embrace your buyers! Here are a few: send an extra special little gift each time someone buys; collect your buyers birth dates and send them a birthday present on that special day; keep their information in a special place so that when they contact you they get a personal response in the fastest possible time; note buyer preferences and send them a personalized note informing them of new products that are of interest to them. You can think up many more ways to give personalized service for your site if you spend some time pondering it.

กYou can rank higher in key search engines than usก

Some large retailers have a great search engine marketing and search engine optimization strategy – many do not. A great leveler of the playing field with regard to online buyers is your search engine presence. You will gain market share at the expense of the large online retailers if you rank higher than they do on key search terms at key search engines. Make certain that you understand and implement professional search engine marketing strategies. Study search engine optimization techniques. Understand paid inclusion programs. Gain expertise in pay per click marketing engines such as Google AdWords and Overture. When buyers use search engines to look for your products and services make certain that your results are visible – whether in paid or organic listings.

กOur online operations are a neglected stepchild in our companyก

A huge advantage that the smaller online retailer holds is simply the focus on the business and the commitment to success. Most online retailers were ‘bricksandmortarก players long before their forays into the online space. Therefore, all of their operations were originally developed for an offline world. Further, the original ‘bricksandmortarก component of the company may actually be jealous of the fast growth and success of the online retailing component – leading to internal bickering and power struggles. One thing is for certain: both the small online retailer and the larger online retailer have had approximately the same amount of time to develop experience in online selling. Purchasing via the Internet is still relatively new – and there are many differences between selling in a physical store and selling in a virtual environment. The small retailer can work these differences to their advantage. So even a prestigious and long established offline retailer may actually be playing catchup when it comes to online retail.

Action items for the smaller online retailer

To compete against larger retailers keep the following competitive tactics in mind. Develop a professional web site and make it look just as inviting as the big playerกs sites. Consider focusing on a specialized or niche audience that is likely to be overlooked by larger retailers – simply because the market is perceived to be too small. Differentiate by offering superior, personalized service. Make your customers so happy that they begin to talk about you to others. Master search engine optimization and search engine marketing techniques – or hire professionals to help you achieve top search engine rankings. Embrace online operations and take advantage of the all the possibilities that the Internet offers to increase your sales. Good luck with your online ecommerce ventures!

About The Author

Derek Vaughan

CheapHostingDirectory.com is a web hosting directory and webmaster resource site providing articles on web hosting, interviews with hosting professionals, and showcases featuring hosting companies and special discounted web hosting offers.

This article was posted on April 22

by Derek Vaughan

Online Coupons Furthering Consumerism

Online Coupons Furthering Consumerism

by: Richard Dows

Consumerism is the public face of capitalism. Ultimately, everyone is a consumer regardless of the political system in position even communists had to buy things. But, consumerism has reached giddy heights in the กWestก, where the culture itself is one of กI wantก. Perhaps a more recognizable face of this is the กone up on the Jonesกก ideology the Jonesก have a new car, then you had better get the next model.

Retailers have the bottom line in mind of course, their goal is to make as much profits as possible while attracting as many consumers as possible. Traditionally this is a razorกs edge if they charge too much for an item there will be other retailers who offer it at a reduced price, thus their profits dip. If they charge too little they will be swamped with consumers and sell out of their stock. They have to find that point where they can just sell out of stock and charge just enough to attract hoardes of hungry consumers.

So how do they make lots of cash and still beat their competitors? One way is to offer coupons. Give 5% off and theyกll start to attract a whole lot of consumers eager to take advantage of them (the real question is, who is being taken advantage of?). Another method is the rebate, which it should be said, not everyone fills out and sends back in. They make a lot of money on attracting people via rebates but who don’t actually send them in.

Enter the Internet. Now, retailers see a way to make even more money, and to cut out the middle men. By placing all their stock on websites, and offering coupons to fill in at order time, they don’t have to operate stores, pay salespeople and staff, pay electricity bills, rent etc., The order gets filled in online, and shipped directly from warehouses, what a money saver! Take a look at sites like www.streamsofgold.com and www.oceansofgold.com and youกll see what I mean some retailers have astonishing offers, up to 70% off items ordered online, $200 off $2000 purchases. It makes consumers think they are making a killing, but in reality the retailers is laughing all the way to the bank.

Is it the birth of something new? Or rather, are consumers becoming more receptive and savvier than before? Rather than having to fill a form out, send it in, wait for the check in the mail, it is far simpler now. Go to the website, order, fill in the coupon code, instant savings! No, it is not new, it is young sales executives who were weened on the early Internet realizing its true potential, as a mass marketing medium for consumerism.

About The Author

Richard Dows is an entrepreneur that has started several businesses, some as experiments, others as serious enterprises. As a freelance web designer he has embraced Standards and explored many facets of the online business world.

[email protected]

This article was posted on April 03

by Richard Dows

Launch Your HomeBased Retail Business Through The

Launch Your HomeBased Retail Business Through The Roof!

by: Donald Lee

You had a great idea when you decided to open a homebased Internet retail business. You became a กpower sellerก as people in the online retail business world call you. Your goal is to move tons of merchandise through Web auction sites and classifieds services without ever leaving the comfort of your home office. Drop shipping gives you the opportunity to accomplish your dreams and more. The sky is the limit if you know how to get your business off the ground.

Drop shipping can launch your business into successful orbit, but it isn’t rocket science. With this unique way of doing business, you enlist the services of a wholesale merchandise company. The wholesale company takes care of the stockpiling and storing of your product. It even covers the shipping and handling charges when one of your customers orders an item.

This means you don’t have to rent thousands of square feet to warehouse your inventory, and you’re free from the liability that comes with direct delivery to your customers. Your only expenses are the membership fee of your particular wholesaler, along with the fees and percentages you lose to advertising and auctioning online. If you play your cards right with these fees, you can build yourself a very costeffective and most importantly, profitablehomebased business.

Experienced online retailers have learned the tricks of the trade to do just that. Here are the key secrets that they, your competitors, don’t want you to know. These three tips will stack the deck in your favor, helping you to grow your clientele while avoiding the pitfalls of doing ecommerce.

Get sold on your wholesaler. Nowadays, wholesalers are a dime a dozen, so don’t settle on the first one that comes your way. Let wholesalers compete for your business, instead of the other way around. Many companies may offer specials to new prospective retailers. They may waive the minimum order requirements, credit check, and prepayments if you sign up with them. Topnotch wholesalers could also offer international delivery or special net payment options. Avoid high expenses at the getgo by taking advantage of such specials, and turn a profit a lot quicker.

Sniff out wholescammers. For every honest wholesaler looking to build a successful relationship with you, thereกs a crook out there looking to do nothing but build his bank account at your expense. Avoid any wholesaler, for instance, who demands you pay an advance fee before you sign up with them. Be wary of wholesalers who claim to have thousands of items in their selection. These might not be wholesalers at all, but middlemen who are trying to bluff you. Instead of actually stocking these thousands of products, they actually buy them from a wholesaler, or another middleman, and resell them to you at a jacked up price, thereby cutting into your profits.

Get wired to the Web wisely. You now have a trusted Wholesaler and outstanding products to move, but so do thousands of other Internet retailers. How can you stand out to attract customers and save money doing so? One way to make a mark online is to design and write your own ads for your products. Many wholesalers provide complimentary stock product photos and descriptions that you can use in your online ads and classifieds. Then again, they provide the same thing to all their retailers. Most retailers use them. So you shouldn’t.

Another effective way to sell on the Web is to find new and innovative sites to sell on. The main auction sites are often crowded with retailers who are eager to undercut your prices. Plus, these auctioning sites tend to have high fees and shorter listing durations. Avoid competition and high prices by trying the next generation of premiere selling sites, such as free online classified sites.

Free online classifieds services work as powerful avenues to sell your goods. They offer attractive features your business needs to take off, such as:

No signup, registration, or transaction fees.

Free listing (text description and image upload).

Up to 60day ad listing. This listing duration is light years longer than most other sites and renewals are free as well.

Distance calculator. This function comes in handy if you’re concerned with locality.

These free online classified sites can be the ace up your sleeve, whether you’re just launching your homebased Internet retail operation or trying to shoot for the stars with an established business. Strap yourself into your chair and count down to ignition.

About The Author

Donald Lee is the public relationship manager for Buysellcommunity.com.

Buysellcommunity provides free classified listing services for individuals and businesses to market their products and services online.

For global and localized classifieds, please visit http://www.buysellcommunity.com Free Buy & Sell Classifieds

This article was posted on December 28, 2004

by Donald Lee