START SELLING NOW: The Beginner’s Guide to E-commerce on a Budget
By Timothy Miller
Copyright (c) 2012 by Timothy Miller. All rights reserved.
Published by Timothy Miller in conjunction with Smashwords.com
Introduction: Starting An E-commerce Business
The retail industry has historically been a difficult
field to enter, especially for entrepreneurs with big ideas and small
budgets. Typically, opening a store required registering the business
and filing the necessary paperwork; finding a suitable location;
hiring staff for shopping hours; and stocking the necessary product
to sell. All of this required a large outlay of money even before the
first item had been sold!
Fortunately, for entreprenuers, the
times are changing. Now, it is easier than ever to begin an ecommerce
business with less time and money than ever before, and the book you
are reading is a step by step guidebook to establishing a thriving
e-commerce business quickly, efficiently, and at nearly no upfront
cost!
Please realize that this small book is not an exhaustive guide, but it does contain most of the information you need to know about beginning an online retail business. For business planning advice, we recommend that you consult your local SCORE (http://www.score.org) office, and for tax and legal advice, we recommend that you consult a qualified accountant or attorney.
Chapter 1: The Shopper
Before you begin to sell online, get to know the typical online buyer and the typical offline buyer. As an online retailer, your goal is two-fold:
First, you are attempting to persuade current online shoppers to choose your store, your product, and your service above other online retailers. You can do this by offering superior customer service, lower prices, and an easier shopping experience to people who are currently buying online.
Second, you are trying to convince people who never shop online to buy your product online instead of in a “real” store (unless, of course, you already have a brick-and-mortar store). This goal requires significant handholding, airtight security procedures, and an easy shopping experience.
To reach both groups of buyers, and to ensure customer loyalty, it is imperative to understand what buyers are seeking when they click through to your site. All shoppers are seeking a combination of value, convenience, and quality when they shop, and it is important to reflect this in your site.
Value is simply the concept that the product you offer is worth the money paid for it. Many buyers are also looking for “added value” — the idea that the product is worth more than they paid for it. A typical online store offers “value”; a discount online store offers “added value.”
Convenience is something shoppers are increasingly demanding in online shopping. Convenience means that there aren’t a lot of passwords to remember, that coupons aren’t difficult to redeem, and that shopping online is less difficult than shopping offline. Two keys to offering your shoppers convenience are fast shipping and easy online interaction.
Quality is harder to define, and the demand varies from consumer to consumer. For example, when this writer orders from Amazon.com, he is happy with a book that is readable, and will buy the lowest-priced book regardless of condition. Other consumers want a used book that is readable and display-shelf ready. The key to offering quality is to refuse to sell something you would not buy and to clearly communicate the condition of all the products you offer.