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What should I know about selling products on the web? You, too, can make money on the Web. Thousands of small businesses already are doing it and the costs don't have to be so high as to send you into bankruptcy court. But, first, ask yourself: Is your business a good fit for the Web? A lot depends on the products or services you offer. Perishable food items, for example, do not lend themselves well to being shipped long distances. Timberyards, cattle stations and zoos also present significant issues in the fulfillment process. These may be extremes, but, hopefully, you get the picture. On the other hand, chances are you have a product that could sell as well in Adelaide as it could in Tokyo. You don't have to be global in scope. But you do have to have a specialty item or service that lots of consumers or other businesses will want to order online. If you do, it's time to explore the costs of setting up an e-commerce solution that would deliver your product to customers nationally or internationally. These costs will vary, but Web services available today can allow you to get started selling online for less than $50 a month. Just what is e-commerce, and why should you care? First, let's define it. Electronic commerce, according to Dictionary.com, is "the buying and selling of goods and services, and the transfer of funds, through digital communications." The definition also includes automated intra-company functions. Now, let's focus on selling across the Web, and on the mostly untapped opportunities this piece of e-commerce presents. Currently, only 28% of small businesses sell goods or services on the Web, according to online business researcher eMarketer. But the Internet's popularity is soaring. The question is: will small businesses be the laggards? What many small businesses don't yet realize is that there are a lot more robust opportunities online than there are in the brick-and-mortar world: better rates for ordering, shipping and receiving materials online, unlimited space on the Web for the products you could sell, and the ability to personalize and target customers by their demographics rather than by your store's location. If you have a brick-and-mortar store, keep it running. The melding of "bricks and clicks" is considered by many to be the best route to Web profitability. So, just what should you expect to spend setting up an e-commerce operation? It varies by your product line and by sales volume, and could range anywhere from under $1,000 to $100,000 or more. Most small businesses will spend somewhere between $5,000 to $25,000. This is largely for your Web site and design, and your ASP, an application service provider that will host the site and may provide other services. The more business you do online, the more you will want to invest in additions and enhancements -- such as automated e-mail, advanced shipping and returns, invoice tracking, market research, and cost-benefit analysis systems. Right product, right business model is key Many analysts say that small businesses can achieve customer satisfaction online with less expensive platforms, given the array of affordable services available today. Long term, they add, businesses with the right product and business model for the Internet should easily pay off their infrastructure costs. To serve more than a million customers immediately, it does take a lot of money, but, obviously, most small businesses are going to have to work up to that. The good news is that the economies of scale you should enjoy should allow you to ramp up fairly well. |
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