Clear Full Forecast

Using the Internet to Increase Sales

By

Monday, January 09, 2006 03:30 AM

Due to geographic location, businesses in the Prince George region have a limited market to sell to. This means that any business that wants to expand their customer base, and increase revenues, must look outside of our immediate area. While sending out salespeople to cover other areas is a method that has been used successfully by a number of Prince George businesses, there are other tools available.

One of the tools that has seen phenomenal growth over the last ten years is the Internet. While the memory of the dotcom crash is still fresh in most people’s mind, it shouldn’t be a deterrent for expanding your market. Businesses have learned to utilize the Internet in a number of ways. Some have relied extensively on the Internet to “run their business”, while a significant number use the Internet to supplement and enhance their existing “bricks and mortar” operations.

However, no matter how you utilize the Internet for your business, there are some key success factors that will increase your use of the Internet for business.

First you need to use words and phrases that will show up on a search engine. For example, instead of only using the word Internet, you may want to add words such as “the web” or “online.” The secret here is to think the way your customers do. Use the words and phrases that they will use when listing information on your website.

Keep your website design simple, easy to read and navigate through, and allow surfers to easily load pages. This means that you should keep any graphics, video, flash or pictures to a minimum. At the very least, give your online customer the chance to choose whether they want to view these files or just bypass them. A good rule of thumb is to use thumbnail photos and give the customer the option of loading a larger version if they so desire. Remember, your customers aren’t looking for a flashy website, they’re looking to purchase your products or services, not to mention that not everyone has access to high speed Internet service.

Ensure that your system is set up to take orders online and that the process is easy for customers to understand and follow. You will need to make sure your site can accommodate shipping information from other countries. For example, the United States uses Zip Codes and has states, not provinces. Other countries have different phone numbers and area codes than those used in Canada.
Don’t forget that some of your customers might be viewing your site in another language so take the time to have someone interpret the site back from languages, such as French and Spanish.

Using online auctions, such as ebay, is one of the easiest ways to get started in the online sales format. While you have very little control of how the site looks, or how the product is presented, there are a number of benefits that make this form of online selling attractive.
One of the most attractive aspects of online auctions is that you don’t have to build or expand your existing web site to accommodate the online sales. Not only does this save money, but the time to develop and maintain the website sales is very minimal. In fact, in some cases you pay a listing fee at the time of the sale, so if the product does not sell you don’t pay.

Another significant advantage is that these online auctions have a very large built in customer base. Literally millions of potential customers are online looking at your products. This means that your business can be exposed to hundreds of new potential customers throughout the globe. Added to this is the fact that a number of businesses use online auctions to source older, harder to find parts and equipment. This means your business can sell off old or outdated stock without having to spend a great deal on marketing.

An overlooked benefit of online auctions is that you don’t have to sell your product as an auction item, but instead can list it at a specific price. Ebay calls it the “buy it now” option. You can also list the number of available items for purchase for those customers who want to buy more than one.

A key factor that online auctions can add to your business is that they can create “instant” credibility and allow customers to purchase from you with a level of confidence that you aren’t a “fly by night” outfit that is going to “rip them off.” As most online auctions have public feedback potential for all sales, this helps to eliminate the chance that unscrupulous sellers or buyers are at the other end of the transaction.

Of course, the methods you use to take payments can have a significant impact on your sales, both in actual number of sales and dollar amounts per sale. As mentioned, ensuring credibility, accompanied by an easy payment method, is a must. As well, customers are very concerned with the security aspects of sending payments to you, either via mail or online. The use of third party payment systems is a must, as most potential customers will not purchase from you unless they are sure their information is safe. The number one reason that people do not use the Internet to purchase goods and services is the security risks involved with personal information and payment.

Whether you intend to conduct all your business online, or are going to use the Internet to supplement your business, make sure you pay attention to those key success factors that impact your online business. Just because you build it doesn’t mean they will come. 

-Myron Gordon owns TMSG Management Services Group, which provides management and financial services to growing businesses.

Previous Story - Next Story



Return to Home
NetBistro

Comments

Great article Myron. This is a great way for businesses to reach outside their regional boundaries. A couple of points I would like to add: While potential customers are not looking for a flashy website, they do expect to see a professional one. The customer needs to trust that you are who you say you are and will deliver on your product and guarantees. I personally will not purchase from a site that looks like it was thrown together by Uncle Bob. When you are in the mall, you usually go into the store that has the best display that catches your eye and peaks your interest. It is the same on the net, your website is just one of many on a search engine list and to keep the buyer interested, you have to have a great display. Then you have to give them the information they are looking for to build the relationship so they will take the next step and either contact you or make a purchase. Remember that internet users are always on a mission, they are looking for answers and advice. Holding back on those answers and forcing users to call you for more info often will result in them surfing off to another site that has what they are looking for and you will never know that you missed that sale.
Ebay auctions are a great way to get started in online sales, however there are a few things to note. You do pay a listing fee for everything you list whether it sells or not, however the fee is quite a small percentage and Ebay often has special times or days when you can list for half price. Paypal is one of the payment methods offered to Ebay sellers and is fast becoming a popular method for accepting payment in lots of retail sites even those that are not connected to Ebay. If you are setting up a shopping cart or retail sales on your website, consider Paypal as an option. It has a lot of features and is very easy to implement and the rates are low. One thing to remember is that Ebay is an auction site and is frequented by buyers who are looking for and expecting to find a deal. You will usually not get full price in an auction and even if you use Buy It Now you can still end up selling your item for much cheaper than you would like as buyers can still bid lower and win the auction. You pay a higher listing fee for using Buy it Now so it is not always cost effective. The only way to protect your bottom price is to set a reserve price and most buyers are wary of this and may not bid at all. Ebay is also a time consuming method of sales. You get comments and questions constantly from prospective buyers who expect an answer right away. You are constantly monitoring your bids and how the auction is progressing and must send out emails at the end of the process to ask for payment, confirm shipping etc...Another important thing to note is that becoming a seller on Ebay does not give instant credibility. In fact the opposite it true until you have achieved a sufficient volume of sales. The rating and feedback system on Ebay is amazing and does increase a buyers sense of security in making a purchase. However buyers are wary of new sellers and will often not take a chance on them. For each sale you make, your number goes up and once you get a sufficient number of completed sales under your belt with good feedback and we are talking 97% good or better than the credibility part will kick in. Ebay is great to experiment with and is the best way to get rid of Grandma's old china and collectibles. It is also a great way to test out a new product to determine viability and potential interest. Many website stores use Ebay auctions to draw more buyers into their actual online store through links in the description and the buyer profile. This can be a great way to increase traffic to your online store when you are just starting out.