SELLING ONLINE
Many entrepreneurs sell goods or services on
the Internet. Why? The Internet provides access to a large and growing market.
Approximately 627 million people were shopping online worldwide in 2005,
according to ACNielsen, a global information-marketing company.
By
selling on the Internet, a neighborhood shop or home-based firm can reach a
national or even international group of potential customers. When
entrepreneurs sell online, they are on a more level playing field with larger
competitors.
There
are costs to Internet selling, certainly. But the price of creating and
managing a Web site has dropped, and the number of Web site design and
management companies has grown. In fact, some entrepreneurs find it less
costly to run an Internet store than to hire a large sales force and maintain
one or more bricks and mortar — or actual — stores.
Some
businesses — books, airline travel, and the stock market, for example — have
been transformed by their success in online sales. Others, such as amusement
parks, bowling alleys, or utility companies, may not at first seem well suited
to the Internet. But a Web site also can be used for selling tickets, offering
discounts, or letting customers make payments over the Internet.
To
start an online business, an entrepreneur must:
·
Register a domain name — an Internet name and
address.
·
Purchase a server or contract with an
Internet service provider to host the Web site. Buy Internet software to create
a Web site or hire an expert to do so. Design an attractive and easy-to-navigate
online store.
·
Create an online catalog. Provide clearly
written in formation, without technical language or jargon. Use lots of photos
to encourage potential customers to buy. Include clear instructions to order by
phone or online.
·
Establish a payment method. Some companies
bill a customer before or after shipping merchandise. This may cause payment
delays, however. Another option is to have customers use credit or debit cards
online. A business can get a bank-authorized transaction-processing account
(merchant account) for handling the revenue (and fees) from credit card
transactions from a bank or other institution that processes credit cards
online. Alternately, it is possible to hire an online payment service, such as
WorldPay (www.worldpay.com), to handle these transactions.
·
Make the Web site secure, especially to
protect customers’ financial information. Hiring a technology expert is time
and money well spent as compared to the potential risk of security violations.
·
Establish a policy for shipping. Options
include letting the business absorb the cost (no charge), including costs in
the listed prices, or explicitly listing shipping charges. Customers should
never be surprised at the end of a transaction with shipping costs. Customers
may cancel the sale.
·
Offer customers an e-mail address or phone
number for complaints, suggestions, or compliments, and respond to them. This
can boost customer loyalty.
After
creating an online store, there is still much to do. An entrepreneur needs to
attract potential customers. There are many ways to advertise a Web site. One
is to print a Web address on business receipts, letterhead, newsletters, and
other materials.
Another
is to contact search engines like Google and Yahoo, and to use key subject
words in the Web site design so that search-engine users are directed to the
entrepreneur’s Web site. For example, a restaurant specializing in food from
Afghanistan might include the key words and phrases “Afghan cuisine,”
“traditional recipes,” “contemporary cooking,” “bulani,” “hummus,” “korma,”
“kabobs,” “kofta,” “lamb, “ashwak,” “steamed dumplings,” and others like these.
Web site promotion is crucial. Getting
noticed is the first step to making online sales.
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