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AN
ECOMMERCE
GUIDE FOR
[ ONLINE RETAIL
BUSINESS
[
www.aspininteractive.com
Aspin Interactive Limited
3 Horsefair Mews The Horsefair Romsey Hampshire SO51 8JG
Tel: +44 [0]1794 500200 Fax: +44 [0]1794 500210 Email: info@aspin.co.uk
An eCommerce Guide for Online Retail Business www.aspininteractive.com
Contents
Introduction 2
E-commerce – background 3
A five minute history 3
Whatʼs out there now? 4
How e-commerce has affected the high-street 4
The Impact of e-commerce on consumer spending 4
Summary 14
Notes 15/16
Introduction
This document will provide your business with a starting point to
consider using e-commerce.
Terms of Use
It will not provide you with a costing for your specific needs.
E-commerce – background
“The conducting of business communication and transactions E-commerce encompasses every business function, from sales
over networks and through computers. As most restrictively and order fulfilment through to human resources management.
defined, electronic commerce is the buying and selling of Although it should never be viewed as a panacea to all business
goods and services, and the transfer of funds, through digital woes it can work in many areas beyond just buying and selling.
communications. However EC also includes all inter-company
and intra-company functions (such as marketing, finance, Your website could help your business to generate and process
manufacturing, selling, and negotiation) that enable commerce sales over a far shorter timescale. It could even be used as an
and use electronic mail, EDI, file transfer, fax, video conferencing, interface for providing real time sales reports and stock details,
workflow, or interaction with a remote computer. giving you a clear picture of how your business is performing.
Essentially e-commerce technologies can give you the flexibility
Electronic commerce also includes buying and selling over the and versatility to meet the demands of a turbulent marketplace.
World-Wide Web and the Internet, electronic funds transfer,
smart cards, digital cash (e.g. Mondex), and all other ways of For any business e-commerce really means:
doing business over digital networks.”
Savings on overheads
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There are still plenty of companies who have yet to get the
mix right: products, customer services, payment, deliveries,
promotions, pricing, branding and of course the website itself.
However as online retail spending continues to grow it has
become an issue which even smaller businesses cannot ignore.
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through the buying process saves time for both parties and so products suitable for packaging and shipping by courier? Will
saves money on the cost of sale which can be passed on to the carriage be too expensive?
customer. It also makes the customer feel more in control of their
purchasing decisions. Pricing
How much can you charge for the product? Will you be able to
The hands-off approach of an e-commerce site can sometimes pass on all the fulfilment and shipping costs to the customer?
be daunting for customers so offering a live chat system to
enable staff to help customers hesitating to make that purchase, How well you market products
or supporting after-sales customer queries gives a higher level of Is it safe to rely on search engines to attract business? How
customer service. This also gives them another reason to make a will your existing marketing and advertising strategies work for
purchase from your website at a relatively small expense. your e-commerce site?
Being open for business on the web provides access to How effective are your order fulfilment processes?
potential revenue that may be lost. The concept ʼ24 X 7 X How quickly can you pick, pack and dispatch goods? Do they
365ʼ is a considerable driving factor for shoppers as it costs get delivered on time and in one piece?
no more to have your store online while your competitors are
closed. The quality of your customer services
What will happen when customers have a problem? Will you
Whilst e-Commerce can give you access to the Global be able to help them online? Are you ready to handle their
Marketplace it can also reap benefits closer to home. calls? Do your customer services have the personal touch?
Providing your known customer base with a reliable and
well stocked e-commerce site saves money on additional How well is your e-commerce website constructed?
marketing communications and also means you have an Can it be easily accessed by everyone? Is it obvious what
existing customer base who are ready and willing to buy from people can do on your website? Is it secure? Do you provide
your online store. enough information? Does your website provide a pleasurable
shopping experience?
Cost of sale from e-commerce is a key factor in deciding to
go online. As with any retail outlet, products that are cheap Using reporting and analysis of data from the website
to source, stock and deliver helps reduce the cost of sale. Do you know which products are top sellers and which are
This enables you to pass savings onto consumers. Without dogs? Why do shoppers leave? What customer segments are
the need for shelf space, savings on costly displays and store you attracting? What is the average spend?
overheads are also removed.
Incentives, promotions and deals
Shrinkage is one of the biggest problems a retailer can suffer. Provide shoppers with a range of deals. Think about cross-
An e-commerce store needs no CCTV or store detectives selling and up-selling opportunities linking products together.
and with the implementation of a good card payment and Everyone loves discounts: quantity breaks, seasonal, voucher
processing systems using AVS and CV2 checking, credit card promotions, giveaways and timed specials.
fraud is virtually ruled out.
Keep in touch with your customers
If your website has some form of content management system If theyʼve brought from you once and are satisfied there is
then it is possible to keep information up to date in a way thatʼs a much higher chance of repeat business. If they give you
just not possible with printed promotional materials. permission, tell them about your promotions and product
news and they will come back; especially if they know there is
always something happening at your e-commerce website. If
you offer a personal touch they will give you their loyalty.
Sales Analysis
Making your business electronic taps into a vital source of sales
and marketing data which can be monitored in real time, many e-
commerce interfaces include the facility to generate on demand
reports on visitors:
Customer Service
Many companies believe that as far as their customer service One successful way of storing large amounts of information on
goes all they have to do to satisfy the customer is handle their products is in a knowledgebase. This can be anything as simple
enquiries via e-mail. However, the reason many shoppers choose as clearly navigable web pages and documents to a question/
to make purchases with smaller retailers is because they value answer interface to find answers to problems. Discussion forums
a personal touch, something which it is hard to convey via an are also very useful for accessing customer experience on you
e-mail. products and services.
automatically send out e-mails to customers confirming both their experienced customer with problems. These experts may be
order and transaction. in-house company staff or trusted users who have volunteered
to maintain the discussion group. It is important to remember
But there are a number of features which can be built into a that these facilities should be carefully policed and any abuse
website that can improve the standard of customer service your should be dealt with as quickly as possible.
business provides:
Contact Forms
Online Chat System Ask the right people the right questions and you should be
Offering a friendly face, voice or even text message to able to reply quickly.
customers on the website will give them confidence to ask Although time is of the essence you need to remember that
you questions and give you an opportunity to lead them to a the top priority is to to provide the customer with accurate
purchase decision. information.
Knowledgebase Newsletters
Providing customers with up-to-date and accurate product You can send users targeted e-mail newsletters which offer
information along with manuals, updates and announcements different promotions depending on the products which they
is extremely helpful for existing customers and people looking have already brought.
to make a purchase. However, it is important to structure it in
such a way for it to be intelligible and easily accessible. Whatʼs more these features are not complex or expensive and
are not only the reserve of larger websites. As such they could
easily be included in an affordable e-commerce package for a
small to medium sized business.
E-commerce as a secondary
sales channel
There are always going to be some customers who are To balance these concerns there are e-commerce systems
apprehensive about buying goods and services on the web, so which can provide both a self-service shop for customers and a
it is crucial that you donʼt alienate them by shifting everything to sales order processing facility, whereby orders received by fax,
e-commerce. phone or post can be entered by the office. Such features help
to ensure that the changing to e-commerce does not jeopardise
In making the decision to launch or review an e-commerce your existing customer base. Roadmap to e-commerce: Business
website you need to evaluate the services which your business Plan Builder
already offers. If you find that there is a particular aspect of your
service which works well and that your customers value, then it is Many businesses believe that putting in place an e-commerce
foolish to let the website cannibalise it. website is all about having a visually attractive site but this is
only the tip of the iceberg. Adopting e-commerce will require
However, you may think that it is highly inefficient to run an e- more than just minor adjustments to your business strategy; it will
commerce website alongside your existing system, there are the require a new outlook.
obvious problems of duplicated orders and so forth.
The Internet offers numerous opportunities for enhancing your alone and unsolicited mass mailing campaigns are unlikely to
products and services. For example, a website which sells get the results you want, they may even tarnish your companyʼs
books could have an online product catalogue which included reputation.
sample pages that a customer could view before they made their
purchase. It is crucial that you do not approach your website as For smaller businesses cost, is always going to be a major
just an extension of your paper based marketing literature. constraint, so your options may be limited. Although, one of the
key factors of effective marketing is to get your positioning right,
In building awareness for the new website and your products so a small targeted mail shot or advert in a specialist publication
and services you are going to need to use the correct blend of may be sufficient to generate interest.
traditional and internet marketing methods. E-mail cannot stand
are valid, encrypted and secure. It also ensures that everything delivery address matches that of the billing address of the
reaches the correct destination. card holder.
However the nature of your business or the needs of your CSC – Credit Card security Code
customer may require your e-commerce website to be able to This system again uses a three digit security code which is
handle a wide variety of payment methods. For instance, some unique and printed on the actual credit card.
customers may want to download a paper copy of the order
form and pay by cheque. Retail customers may be happy to pay Payment Confirmation Process
using credit card. However, trade customers may need to raise a Your payment processing service should provide you and your
purchase order and require that you send a copy invoice. If your customers e-mail confirmation that the payment has been
e-commerce system is to become a valuable asset then it must processed.
have the versatility to cater to your entire customer base.
Order confirmations
Once you have decided your site will take credit card transactions Your e-commerce system should always display a confirmation
you need to be aware of the following items: of order screen which customers should be able to print out
and an e-mail should always be sent to the customerʼs e-mail
Merchant Account address. You should identify all stages where confirmation is
As a business you must have an internet merchant account necessary, including back orders and stock messages.
(IMA.) This is different to a standard merchant account that
many retailers use for credit card processing.
Payment Gateway
Whether you develop your own e-commerce site or you
employ an e-commerce supplier you will need to provide
your customers with a simple to use and secure method of
payment. There are a number of internet payment processing
companies who can provide multi-currency, authorisation and
point of sale services.
Returns Policy
Make sure that customers know where they stand regarding the
return of goods that are faulty or damaged. Again see government
legislation to check your obligations and your rights when
customers want to get their money back or exchange goods.
Branding
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How you approach branding issues will depend on how well your
brand is developed, how well your customers know your brand
and what message you are trying to project with your branding.
You may wish to review your companyʼs identity and conduct
research into you are perceived by your customers. Do you
create a new online brand dedicated to your e-commerce site
or do you just want a good looking website with your company
logo on it?
Many people think that the branding of the website concerns only
the visual design and its ʻlook and feelʼ, other critical issues need
to be addressed. The branding of your website and the products
you sell on it will also influence where and how you choose to
promote it.
Accessibility
Accessibility touches on a number of issues. You need to make
sure that the website can be accessed via a variety of different
internet connections. Therefore you need to check that your
website is fairly fluid even if visitors are accessing it using a
56K modem rather than with a 128 KB ADSL connection. A site
which makes heavy use of flash animation may not be the best
approach.
You also need to assess the accessibility of any potential website Disability Discrimination Act Part 3
design in light of the Disability Discrimination Act Part 3. The
purpose of this legislation is to ensure that disabled users can
have equal access to a website. Many of its recommendations
not only ensure greater accessibility, they also promote increased
usability which can only be of benefit to both you and your
customer.
For instance, the DDA states that a website should not have “Assess the accessibility of any
overly complex menu systems, should use clear language so that
text readers can easily interpret a site and should refrain from
potential website design in light of
using brash banner advertising which can distract people from the Disability Discrimination Act”
the main body of a site.
Advertising
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Website advertising tends to be the first media used for promoting TV and radio may also be a more cost effective solution as your
a website, but itʼs not the only option. Traditional offline advertising local customers should not be ignored. Local media advertising
and TV media are just as important to consider. For a small will attract local customers. So itʼs important to refer back to your
business advertising on Google is a very cost effective form of customer groups looking at locality and how you will target local
using a search engine combined with banner advertising. Local national and overseas customers.
Promotions
A favoured method for boosting site traffic and sales is to run a The problem is that if too many people visit the website as a
promotion or special offer on a particular item. Usually a promotion result of the promotion then it may liable to crash. Not only do
needs to be supported by a mail shot or e-mail campaign to bring you risk losing sales, there is the danger that anyone who could
people into the site. However, before running a promotion on not take advantage of the promotion will not come back to use
your website you should think carefully about whether you can the site again.
handle any unanticipated demand which it might trigger.
Link Exchanges
As with search engine optimisation companies caution should many companies have been duped into linking with disreputable
be exercised. Many companies tend to believe that if they get websites using underhand tactics to try and work their way up
other websites to link to their own then they have a greater search engine rankings. In many cases the end result has been
chance of getting a good ranking on search engines. However that the websites have been penalised by the search engines.
Editorial
There are a number ways of getting editorial. Firstly, there are likelihood of people visiting your site it can also help to push your
traditional methods such as paid placements in trade magazines, pages up through the search engine listings.
whereby you pay the publication to write a promotional article
about your company. However, there now a number of websites There are a few pointers for submitting a good press release. The
which allow companies to submit press releases. One of the article must be newsworthy i.e. how the website or the products
advantages of this approach is that web press releases can and services you offer will provide something new to your market?
include links to your website. Not only does this increase the You need to ensure that the copy is succinct yet informative.
Affiliates
This is a method favoured by many of the larger e-commerce Having links to reputable affiliated websites not only boosts the
websites. Typically, affiliate websites will have some kind of credibility of your own site it also provides visitors with useful
relevance to the products or services which a website offers. information.
Summary
E-commerce has become a profitable revenue generator for retail
business of all sizes. It has the potential to enable the small to
compete with the big players online. Internet shoppers are very
quick to find a bargain and are equally quick to go to a competitor.
But if your site gets the key elements right it can be rewarding for
you and your customers.
Aspin Interactive Limited is part of the Aspin Group of companies © Copyright 2004 Aspin Interactive
www.aspininteractive.com
Notes
Aspin Interactive Limited is part of the Aspin Group of companies © Copyright 2004 Aspin Interactive
Notes
Aspin Interactive Limited is part of the Aspin Group of companies © Copyright 2004 Aspin Interactive