E-Commerce Checklist
Planning is key when deciding to set up an e-commerce business.
By Cassie Woolworth
Is an e-commerce business your dream? Before you start to sell on the Web, you first must determine what you are going to sell. What is your product or service?
Next, determine the "variations" in your product (or service). Is there a need for size or color selections, for example? Will you need additional information from your customer, such as the size of a room? All of these factors need to be considered before you begin designing your online presence, so that you build a site that meets your business needs.
One of the most important considerations in e-commerce design is ease of use for the customer. You need to set up your store so customers can buy using the "three-click" method. You don't want to make the sales process so difficult they quit halfway through the purchase. The three-click rule says visitors should never have to visit more than three pages after the home page to find the information they want.
Issues to Consider
Below is a checklist of issues surrounding an online store and the questions you need to ask. Don't worry if you haven't yet handled all the issues, just start now.
- What will you sell? This seems easy, but you have to determine what you will sell and how you will get product images on the Web. Do you have a digital camera? Will your supplier provide a catalog image?
- How are you going to structure your store? Will you put multiple pictures on a single page? Maybe a single item with its description on the page? What will the page look like?
- What is your pricing? Are you going to give discounts for multiple products? Will you offer coupons?
- How will you take payment? Credit card merchant account, Paypal, C.O.D. or checks? If you decide to take credit cards directly, you will need to decide on whether you want to do the processing online automatically or by hand (with equipment rentals). The fees are lower with equipment rentals. Keep in mind that Paypal only charges when you get an order, while credit card processing through a merchant account has monthly minimums. You also must determine a refund policy. Will you give cash refunds or exchanges only? Will you charge a restocking fee?
- How will you ship? Are your shipping fees applied per item or by weight? You might want to link directly to UPS or FEDEX for specific rates, or you may need to add a handling fee. Do you need "threshold" shipping?
- How will you fill the orders? Does your supplier "drop ship," or will you have to get packing materials. Do you need to talk to a fulfillment house?
- How will you promote your store? Will you link from your company Web site? How about search engine optimization? Just as in the "real" world, you have to get traffic to your store to sell.
Building Your Site
After you have addressed these issues, you need to decide how you will build the e-commerce site. Will you hire a Web developer, or by an "off-the-shelf" software solution. If you decide on a software package, find a product that will help you sell online with all the features you need. Often the best solution is to get the basic package and expand from there¾adding the features you need.
Lastly, will you build the online store and maintain it yourself, or do you have a Webmaster? If you are going to manage the store, you may want to look for a site that has store templates provided. Remember, working the online store is just as important and difficult as working your "bricks and mortar" store. There will be an ongoing process of updating inventory, adding products, changing prices and handling payments, so this might be a good time to train yourself on the system. Remember, this is a business, and you must treat it as one.
Cassie Woolworth is sales director for SPIDERtel, a Web solutions company. You can reach her at (816) 645-3336 or www.spidertel.com.
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