Biz Articles
Is your business right for e-commerce?
Author: Youth 2 Youth.
It's been proven that successful online selling comes down to what you sell, how you sell it, who you sell it to, and who you find as competitors. Having said that, it sounds pretty similar to offline selling. Wrong! If you're contemplating e-commerce, consider the following questions to determine how strongly matched you are to this sales channel.
What does your business sell?
Will your product or service 'move' once it's online? Thinsg sold through catalogues and other direct mail usually do well on the web, whilst services like travel planning are a good match for online sales because the nature of the service complements the medium.
Have been proven to do well online:
- Everyday entertainment goods (CDs, books)
- Products for fans or enthusiasts (craft supplies, sports memorabilia)
- Services where you don't often meet face-to-face (travel services, online trading)
- Frequently used business items (office stationery and cleaning products)
- Technology (software, hardware)
- Rare items (out-of-print books, rare autographs)
Have been proven to be hard to sell online:
- Products that are difficult to ship (furniture, large office goods, numerous boxes)
- Services that focus on a local market where contact is required (manicurists, hair salons)
- Items that benefit from "hands-on" assistance (wedding dresses, formal attire, engagement rings)
Are your customers online?
Do your customers 1) have internet access, 2) use it, and 3) use it to buy things? If your target audience buys online it's a good sign. Even better if your customers are busy, time-poor people who pay for convenience! E-commerce could also expand your business by reaching larger markets (national, even global!).
Are your competitors online?
Having competitors online is actually a good thing. It means your product or service may sell! The challenge, of course, is to make your web site and purchasing facilities more attractive and functional than theirs.
If you have a giant competitor online you could be in trouble. In this case, differentiate yourself by filling a hole in the market or serving a smaller portion of the market. For example, if you want to sell books but you're up against Amazon.com, then sell a type of book to a smaller market, like educational books to educational professionals.
Can you commit to e-commerce?
You need to be able to manage the communications, enquiries, privacy obligations, security, logistics and financial commitment of having e-commerce, so do your research first!