Selling Online Slides
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
934
On Slideshare
849
From Embeds
85
Number of Embeds
1

Actions

Shares
Downloads
7
Comments
0
Likes
0

Embeds 85

http://www.digitallincs.com 85

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Selling online has been the fastest growing sales channel for many businesses in recent years, but what’s the best way to get up and running? And how do you maximise your online sales?
  • 1. Get informed. The more you know, the better the decisions you will make. So look out for ecommerce articles in the press or on the internet, attend a trade show or two, and talk to people who are selling online already. Shop online whenever you can. Search on Google for related themes such as ‘ecommerce’ and ‘shopping carts’.2. Make sure ecommerce is right for you. If you are selling goods that customers do not need to touch, taste or smell before buying, at a fixed price, then the web is the place to be – especially if your products are hard for customers to find. The web can offer your customers the convenience of being able to shop when it suits them, without having to travel or queue. You may want to check out the competition by looking on Google for similar products.3. Budget for sales and marketing. It’s all very well opening your shop on the internet, but you need to think about how customers are going to find you and how you will persuade them to buy. The less you spend on getting your site up and running, the more you can afford to spend on promoting your site and bringing in customers.4. Plan your business operations. It’s good to take a step back, plan and spend the time properly identifying your objectives and strategy.You will need to plan in advance how every aspect of a transaction is handled, including payment and delivery. Processing payments is obviously a critical part of the process and there are several alternatives available for both start-up and established businesses (this will be covered in more detail in a future article).…. It may be considered part of the ‘business operations’ but we think it is such a key aspect to the success of any ecommerce site that it deserves it’s own heading. Keep your customers happy and you will not only get repeat business but also benefit from the best marketing tool there is: word of mouth.As part of your ‘customer care’,do provide a contact telephone number if you can, as opposed to just an email address or contact form. Customers do value having someone to speak to immediately if they have a question. If they have to write to you and wait for the reply, you risk not making the sale as customers may feel ‘the moment is gone’.Social Media Contacts … If people can’t get a response fairly quickly, they may well go elsewhere – as Caradiaz says, ‘the moment is gone’.
  • There are all sorts of ways for artists and makers to sell their wares online. Decent storefront options abound and generally come in one of three flavours:Shopify:"Shopify is one of those tools that every entrepreneur should be using. With this easy to use ecommerce solution, entrepreneurs save time and money, so they can focus on other aspects of their business.“GoodsieBig Cartel: Big Cartel is a simple shopping cart for clothing and tee designers, bands, record labels, jewelry makers, crafters, and other artists.E-commerce platform helping independent businesses and artisans go online by providing them with a free online store and free marketing.Etsy:Buy and sell handmade or vintage items, art and supplies on Etsy, the world's most vibrant handmade marketplace.Folksy:Buy beautiful handmade gifts and craft supplies from some of Britain's best designers and makers.To be fair, this is what the market place solutions are going for. Storebeez allows you to search across stores, as does Big Cartel (although this feature’s a bit hidden).
  • Etsy:Buy and sell handmade or vintage items, art and supplies on Etsy, the world's most vibrant handmade marketplace.Folksy:Buy beautiful handmade gifts and craft supplies from some of Britain's best designers and makers.
  • The heart of any web store is the software that it runs on, so it’s worth taking time to make the decision on which solution is best for your business. This article covers the main areas to consider in making your decision.Desktop or web-based software?Desktop software is the traditional route where the application is installed on a PC and the website uploaded to a hosting service. Web or server-based solutions are hosted on the supplier’s servers and accessed via a web browser so you can maintain your store from anywhere and updates are instantly available. Start-up costs are normally less, with a monthly fee rather than having an upfront cost with a desktop solution. Desktop solutions are worth considering if you don’t have high speed, reliable internet access or want to own, rather than rent, the software.Off-the-shelf or made-to-measure?Off-the-shelf, packaged ecommerce solutions are hugely powerful and flexible nowadays and normally offer a cheaper, faster and lower risk option than having a bespoke site built. However if you have specific requirements then a bespoke site will ensure your needs are met but is likely to be a more expensive option and take longer to get up and running.Marketplace or own web store?Many merchants opt to start selling on marketplaces such as eBay and Amazon. There are major benefits such as a ready source of visitors, but also downsides such as the high fees and the adherence to strict policies. With your own website you have complete control over management of your products, policies and processes. Or some online ecommerce solutions let you integrate both options.Use technology that already works and is reliableUse proven technology that is already working for other online stores; you don’t want to become a pilot for something that is work in progress. Your online store needs to be reliable and open 24/7. Get a recommendation or ask the supplier for their availability figures. Check the technical support arrangements.Make sure features and usability meet your needsMost ecommerce software providers let you try before you buy. Assess how easy is it for you to update and make changes to the design and layout. You may have specific functionality requirements such as shipping or tax charge calculations, or marketing features such as coupons, cross selling or gift cards.
  • Crowdfunding - Human Capital: The skills and abilities that the crowd possesses is a determinant of successful crowdsourcing. ----------This provoked all sorts of excited chatter including this: Why 2012 will be year of the artist-entrepreneur. The thing that gets me is that Louis CK didn’t use any particularly new tools to do what he did. This has been possible for years now – In Rainbows came out in 2007.The artist-entrepreneur? It’d be about time. As time goes by there are bound to be more people looking to do this kind of thing and I’ll bet individual artists are more likely to move quicker than larger organisations (and it won’t suit everyone).
  • This allows Creative Commons licenses to be applied to all work falling under copyright, including: books, plays, movies, music, articles, photographs, blogs, and websites. Creative Commons does not recommend the use of Creative Commons licenses for software.[9] –Universal access to research, education, and culture is made possible by the Internet, but our legal and social systems don’t always allow that idea to be realized. Copyright was created long before the emergence of the Internet, and can make it hard to legally perform actions we take for granted on the network: copy, paste, edit source, and post to the Web. The default setting of copyright law requires all of these actions to have explicit permission, granted in advance, whether you’re an artist, teacher, scientist, librarian, policymaker, or just a regular user. To achieve the vision of universal access, someone needed to provide a free, public, and standardized infrastructure that creates a balance between the reality of the Internet and the reality of copyright laws. That someone is Creative Commons.
  • 1. Intellectual property - Issues such as copyright and trade marks should be considered, not just for items displayed on your site, but also metatags.2. Creative CommonsThis allows Creative Commons licenses to be applied to all work falling under copyright, including: books, plays, movies, music, articles, photographs, blogs, and websites. Creative Commons does not recommend the use of Creative Commons licenses for software.[9] –Universal access to research, education, and culture is made possible by the Internet, but our legal and social systems don’t always allow that idea to be realized. Copyright was created long before the emergence of the Internet, and can make it hard to legally perform actions we take for granted on the network: copy, paste, edit source, and post to the Web. The default setting of copyright law requires all of these actions to have explicit permission, granted in advance, whether you’re an artist, teacher, scientist, librarian, policymaker, or just a regular user. To achieve the vision of universal access, someone needed to provide a free, public, and standardized infrastructure that creates a balance between the reality of the Internet and the reality of copyright laws. That someone is Creative Commons.3. Security - be aware that selling online will necessitate the passing of sensitive data and payment instructions. An online vendor could be liable for breaches of security on their site.4. Access agreement - - it is important to have terms and conditions governing the use of your website. These must be set out prior to the customer proceeding to purchase - commonly the customer must click on an 'I agree' button to proceed, indicating acceptance of the terms and conditions.
  • 1. Give plenty of detailIt’s most likely that the decision to buy or not will be made while viewing product pages. Provide full product details, as not knowing precisely what you are buying or being unsure about its compatibility, colour, size, weight, and so on, could prevent a sale. Critical details such as delivery time and cost need to be prominently displayed, too. A picture tells a thousand words, and the importance of a clear product shot can’t be underestimated.2. Show related itemsWhen a shopper is looking at a particular item, there are always other items that naturally relate to it. Make this explicit to encourage a buyer to purchase these at the same time.3. Display stock levelsBe clear about your stock position. Having stock which is running low could encourage a quick purchase. Having high stock levels shows you can be counted on for large and repeat orders. Failing to show accurate stock levels can lead to upset customers, particularly if you can’t supply what they ordered.4. Top sellersNothing succeeds like success. You need to grab customers and start taking their orders at the earliest possible point. Your top sellers and best offers will always have the greatest appeal so make them clearly visible on your home page.5. Offer more for more moneyNever discount something that a lot of people will buy anyway; it is just giving money away unnecessarily. Offer them a great deal if they buy something else at the same time. This will please the shopper, encourage them to come back, and it will increase the value of each sale that you make.6. Use dealsA person with a voucher or coupon feels that they have a special deal. It also ties them in to buying from you, because they cannot redeem your vouchers anywhere else. Use vouchers to reward your loyal customers without losing out on potential revenue from one-time buyers.7. Encourage repeat visitsAnalysing customers’ sales patterns and giving them a special offer if they haven’t shopped for a while shows you’ve noticed and makes people feel valued.

Transcript

  • 1. Selling Online
  • 2. The team: Dave Briggs>>Fraser Henderson<< >> Tim Wilson<< Kind of Digital
  • 3. Other opportunities for your businessWorkshop Programme, Summer 2012 Back to Web Basics >> Selling Online << Digital Marketing Social Media for Business Running a business digitally
  • 4. Online communitywww.digitalLincs.com
  • 5. Housekeeping• Fire exits• Mobiles off/silent mode• ERDF Forms• Breaks
  • 6. Agenda 6.00 -7.30pmTopics• eCommerce Landscape • Payments • Buyers • Pricing • Payment processing • Selling options • Regulations • Online retail design • Distance Selling • Fulfilling orders
  • 7. Introductions and objectivesWhat do you buy and sell?
  • 8. Your Online Shopping Experience How much does it cost to buy everything on iTunes? £9.7m to buy everything on iTunes
  • 9. e-commerce landscape• eCommerce accounts Change … for 9.1% of all retail • Increasing acceptance sales in UK. and need to be online by consumers.• 45% of in store purchases influenced • Ageing population by online research. • Perception that• There are few “100% “online” is cheaper online only” retailers. • Comparison Culture.
  • 10. Theres never been a bettertime to start selling online!• Despite the recession, online sales are growing at a rate of 17% each year.• In Europe, the UK stands as the largest e-retail economy with over 37 million online shoppers, who, on average, spend £1,165 a year online (the highest amount in the world).
  • 11. Things to ConsiderGet informedMake sure e-commerce isright for youSales and MarketingPlanGood Customer Service
  • 12. How to sell online….• What do you want to sell?• Decide which commerce solution is best (based on volumes, prices, audiences)• Start building your catalogue/portfolio• Secure your domain name• Determine how you’ll get paid• Spread the word• Monitor Performance
  • 13. The buyers25-44 year olds arethe most active usersof eCommerce.
  • 14. Success….Cleardemonstration ofCreative Industriesselling powerthrough onlinesales.Fashion is thebiggest recentsuccess.
  • 15. The Buying Process
  • 16. What to sellRevenue Model Product or service sales Subscription or rentalCommission based (e.g. affiliate, auction, referral) Advertising (sponsorship)
  • 17. Yourself EU / Tenders Electronic DailySupplier and Contract Management Systems J4b grants Advertising (sponsorship)
  • 18. Ways to sell Existing, £14.99 /month High-traffic retailers 17% of price
  • 19. Ways to sell Market Places Typical 5% Commission
  • 20. Ways to sellDIY – Pick your own transaction provider
  • 21. Ways to sell: Individual Stores
  • 22. Ways to sell: Market Places
  • 23. Shopping Carts – Recap:Take time to make the decision on which solution isbest for your business.Off-the-shelf or made-to-measure?Marketplace or own web store?Use technology that already works and isreliableMake sure features and usability meetyour needs
  • 24. Crowdfunding
  • 25. Compelling and Easy• Reduce times filling in forms (e.g. one- click purchases). No registration.• Recommendations, Ratings.• Cross-sell.• Use product reviews.• Use promises and guarantees.• Create a “web exclusive” range for deal focused people.• Use Video• Content is currency! Build user communities, Google Penguin
  • 26. Store Design considerations • Clear navigation • Prominent Search • High impact current image • Deep link into site • Commitment to buy / call to action • Avoid too many clicks • Re-enforce trust {images of staff and premises, customer endorsements} • Imagine objections. Good copy. • Responsive/fast loading pages
  • 27. Product Catalogue• Product detail pages (zoom, stock)• Own, easy URL• Narrative - Advantages, benefits over other products or competitors.• Accurately described, correctly categorised {never copy descriptions}• Include reviews and testimonials• Be clear about extra costs like shipping• Gifts & gift-lists
  • 28. Evaluating PerformanceThe conversion rate• The number of people that visit your website and actually buy something (no. of transactions / unique visitors): typically 1.6% - 3%.• Cart abandonment rate: typically 75%• Typical session time: 2 minutes.
  • 29. Payments and Pricing• Add up your costs • Look at rivals. Do you have a competitive advantage?• Products and services Froogle.co.uk• Additional costs associated • Create “discounting” cushion. with your business • Consider “loss leaders”• Building your website • Think about your credit card• Hosting domain or merchant costs!!• Employee costs • Price versus value. Markup• Shipping 10%>1000’s%• Credit card processing fees• Costs incurred for damaged products
  • 30. Sales Strategy• Don’t discount things that • Make sure special offers people buy regularly are really special• Provide accessories • Offer further items at a discount once items have• Email electronic coupons been placed in the cart. after sales• Appeal to the price conscious (easyJet model)• Best overall value – not necessarily the cheapest (John Lewis model)
  • 31. Transacting Online“Online payments using cards are card-not-present transactions. There are higher risks of fraud with this type of payment andbanks require you to operate within a well-defined set of rules and accept a higher level of commercial risk than a conventional swiped card transaction in a shop.” Method : Depends on volume of sales.
  • 32. Reducing Fraud •Insist on delivery to cardholders address •Design policies for when fraud is suspected (e.g. phonecalls, fax of credit card, ask buyer to recall order, asking for alternative payment method). •Don’t ship abroad •Eliminate delivery risk with tracking/signatures•Make orders an “Offer to buy” in case of pricing mistakes
  • 33. Ways Internet Merchant Account : Direct to your bank account -Already accept credit card payments -Have high volume of online transactionsPayment Service Provider: Collected on your behalf. £20/m +20p -Medium volume of online transactions anticipated - You do not currently accept debit or credit cards in store (Easier to get, less transparent, holding , fraud costs) Bureau : Very few sales, lowest outlay 3.5% + 20p
  • 34. What to look forThink about services offered by your paymentservice provider. For example,• 3D Secure (MasterCard SecureCode and Verified by Visa)• Chargeback fees. Currencies.• Export of data for reconciliation• Shopping cart integration• Payment acceptance (e.g. Amex)• PCI DSS complianceElectronic-payments.co.uk
  • 35. Low volume sales Monthly: £1.5k-6k = 2.9% + £0.2. Plus 1% for non-residential sales. 2.9% + 20p per transition. £50 set- up. 2.9% + 20p per transaction. **
  • 36. High volume salesTalk to your bank.Think about services offered by your paymentservice provider. For example,• MasterCard SecureCode and Verified by Visa. Chargeback fees. Currencies.• Address handling• Export of data for reconciliation• Shopping cart integration• Payment acceptance
  • 37. Regulations1. Consumer Protection (Distance Selling) Regulations• Provide consumers with specific information before they place their order, an order confirmation and information on their cancellation rights. E.g. provide your VAT no.2. Electronic Commerce Regulation• Clearly identify commercial communications as such• Outline the steps that need to be taken for a contract to be concluded3. Sale of goods act• Items as described• Fit for purpose• Returns in ‘reasonable time’4. Privacy and data protection law5. Creative Commons
  • 38. Regulations1. Intellectual Property• Issues such as copyright and trade marks should be considered, not just for items displayed on your site, but also metatags.2. Creative Commons3. Security4. Access agreement• Terms and conditions governing use of your website• Terms set out prior to customer proceeding to purchase.
  • 39. Fulfilling OrdersIt’s all about meeting expectations… Automated Outsourced delivery, tracking Digital Rights Management for digital downloads Downloads (3 download policy) Provide Process line Track the Communicate personal the status by line status touch Be realistic Mange peaks Turn around Consider Handle about e.g. quickly packaging Returns delivery date Christmas
  • 40. Chores eCommerce ritual1st and last hour every day : Check orders and respond toqueriesMonday-Thursday mornings: Prepare product imagesAfternoons: Enter details, prices, descriptions, imagesFriday: Promote, build links and content
  • 41. OperationsIt’s all about meeting expectations…•No surprises for the customer•Make allowances for back orders (e.g. part shipment)•Pick a reliable courier•Don’t over-promise•Try to avoid serial returners•Plan returns by product category (cloths = upto 35%)•Always ask for a reason on returns
  • 42. Top Tips• Work Works• Choose the Right Niche• High Production Values• Make Your Site Easy• Be Real• Emphasise Service• Promote Your Site• Lower Your Prices• Change Your Site• Patience
  • 43. Top Tips - Selling1. Give plenty of detail2. Show related items3. Display stock levels4. Top sellers5. Offer more for more money6. Use deals (seasonal?)7. Encourage repeat visits8. First purchase discounting
  • 44. Many thanks for your time and contributions!
  • 45. Sign up/Register: www.digitallincs.com Tim: @timmy666 / tim@kindofdigital.com Fraser: @frazzy123 / fraser@kindofdigital.com