Trading Online: Getting Started
This white paper will explain the implications of trading online and the basics regarding what you need to know before you get started.
Have a bright idea
Before you get started on any business, you need to have an idea! Without this idea you can't proceed. Get a business plan together, decide on what it is you want to do and how you are going to do it.
The URL
Consider having 2 or more URLs (web address) and use something generic such as www.clothes.com instead of your company name. Remember that there are many more choices than .com address' but make sure you can legally use the name you register to trade under.
Can you source the product?
Whatever it is you want to sell, you need to make sure that you can source it from somewhere. You will probably need to make sure that you can source this product on a regular basis or make sure you supplier is in a position to produce on demand and on time. Something4 can help you source supplies if necessary from our wide portfolio of contacts.
Work out your costs
Make sure you know what you costs are! Overspending can be a disaster. Make sure you choose an affordable package to run you online business. A reliable package such as CnB can make the steps to selling online quick and simple.
Shipping and taxes are costs that you must consider and can vary depending on what type of business you run. You should be aware of all your costs before you start to design your website and begin trading. Professional businesses will require a business account with a bank and this is no simple task! Many banks will have different plans to suit your business needs, so choose carefully and make sure you get the best deal that suits you. Don't rush into anything; shop around for the best deal - but remember the cheapest option may not always be the most robust or complete service.
Online Marketing: Pay Per Click
If you have extra cash to spend, you might want to consider Pay Per Click advertising. If you want to drive more customers to your website via a search engine it is easy to buy your way to the top of the search listings. These are sponsored links provided by the search engine on your behalf which are often larger, more colourful and conveniently placed to attract customers.
Google's PPC program is called ‘Adwords' and displays links on Google.com, Ask.com and other search engines. Yahoo's program is controlled by its sister company Overture and provides results for MSN, AltaVista and Yahoo.
Paying for advertisements is not such a bad thing if you can make more money from a customer visiting your website via the PPC link than it costs for you to get them there!
When considering how much money you want to spend on such programs, doing a little research will help you come to a conclusion. Find out what popular search phrases are relating to your business and the products you sell. How much are you willing to spend on this search criteria? And what proportion of browsers can you turn into paying clients? Something4 can help you with this if you are unsure how to research this yourself.
Determine your needs
You will need to plan and organize your website carefully before you start spending money and signing agreements. Asking yourself questions will help you determine your needs and how to achieve the goals you set!
Ask yourself questions like - who will use your website and how many people? What capabilities does your website need? Who will market your business, both online and offline? How much can you afford to spend on stocks, warehouse space, employees and shipping?
Also consider your goals - what kind of sales volumes to you want to achieve? What are you fulfilment costs? And how soon do you wish to obtain your desired goals?
Planning is essential before you start to build your online website. Click and Build from Something4 can make it easier, but its still important to have a clear navigation, structure and content in mind first.
Catalogue System
Now you're all organized and ready to go, start thinking about your online store. With Click and Build you will find it a quick and painless experience with unlimited content pages and product descriptions, there is no limit to what you can sell online!
An important note is; don't make your website too complicated! Use simple colours and text to advertise and list your products. Navigation is a key issue so make sure access to the catalogue is obvious and easy to reach. Customers want fast and efficient services so they can get what they want in a few easy steps!
Traffic
Start to think about attracting traffic to your web store. It can cost almost nothing and requires just a little input from you. Hotlinks and searches result for 83% of traffic that is generated on the internet and they are found in the natural listings on the web.
Submit your site to the major search engines and go to their website to find out how this is done! Also think about related sites that may be able to attract customers to your store and email them and see if they would be willing to place a mutual hyperlink on your store.
Consider advertising the old fashioned way! Newspapers and magazines can attract many customers and companies and you may even get listed on their websites!
Getting paid: Online Payment Processing
If you are selling on the web, you need to know about setting up a merchant account with providers such as HSBCi, Barclays Merchant Services, Girobank and Lloyds TSB cardnet.
There are also many different intermediary companies that can help process your payments (such as WorldPay, Paypal and Protx). These services process credit and debit card transactions and pass them to the card companies, and after the transaction is complete the money will be deposited into your merchant account.
Think about using WorldPay because a third-party processing system is sometimes faster and more cost-effective. WorldPay is the prefered merchant account provider for Click and Build and the largest processor of online transactions in the world. Paypal is another package, but is considered cheaper but a less sophisticated and robust service. This is also available via Something4.
For more information about Online Payment Processing, SEO, and Pay Per Click marketing, see our other white papers available from the something4 website.
