Digital Parallel - E-Commerce and Retail Planning
You don't need to be a technologist to sell online. Here are eight reasons why.
You don't need to be a technologist to sell online. Here are eight reasons why.
We built a few e-commerce sites for our clients recently and realised the process we went through and the tasks that we completed were extremely similar to what one would expect when opening a brick-and-mortar retail store. Here are the similarities we came across:
Store Concept
Translated to e-commerce, your store concept is your website design concept. Your e-commerce site is way more than a place to facilitate transaction. It represents your brand, defines your positioning, and tells people why they need to buy your products. You need a good story to tell on your website because a good story gets around. People do not magically appear on your website and start buying just because you are online (I don’t know why many people still think that).
Finding the Right ‘Mall’
Identifying the right e-commerce software platform is like finding the right shopping mall that provides the right hardware for your shop. Like some malls that do more to bring in footfall than others, e-commerce platforms vary in functionalities that help you sell and bring traffic to your site. Some platforms are great for big stores and some are great for small shops. Therefore, in selecting an e-commerce platform, you have to have a good idea of the size (number of products, revenue) of the business you want to build and the level of traffic you expect to attract.
Customer Flow and Product Placement
Converting a visit on your website into sales requires the same strategy in converting a footfall into a purchase, but only easier online because of tools such as web analytics. These tools let us know exactly how people ‘walk’ on your site, giving us insight on where we cross-sell, up-sell, or even hard-sell! What should we put near the ‘entrance’? Or what should go near the ‘cashier’? These are common questions to ask online too.
Inventory Management
Like running any stores, you constantly have to place bets on what products sell. Good e-commerce platforms will provide product statistics that help you make more informed decisions.
Warehouse and Shipping
Your e-commerce site may be virtual but your warehouse and shipping logistic are as brick-and-mortar as they can be. Figuring out your delivery logistics that are economical for you and your customers is the most challenging aspect of any e-commerce endeavour.
Payment
Should we accept credit cards? Do we accept cash on delivery? How much sales tax should we charge? Same questions we would ask when running a store.
Customer Service
Things may have gone smoothly setting up your store and you may be meeting your near term sales target, but in the long run customer service can make or break your store, especially in today’s world of social media. One mistake and all your loyal customers will know about it. Are you replying your enquiries promptly? Do you personalise your communication (i.e., email)? Do you do post-purchase follow up on customer satisfaction? Is your return policy clear and fair? Online or offline, you need to answer these questions regardless.
Promotions
Any classic retail promotion ideas apply online too – e.g., seasonal, cross/up-selling bundle, buy one get one free, etc. In addition, because of the ease of access online, a whole slew of online only tactics can also be considered, e.g., time-limited offer by the hour, group buying offers, auctions, etc.
You get the point right? You do not need to be a technologist to sell online. Your retail experience is directly applicable when selling online.
Happy selling.