E Commerce: The "Netpreneur"!

How to promote and run your business web site!


By: Bruce Wong
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E-Commerce has grown in leaps and bounds since the popularity of the Internet invaded the common house hold. E-Commerce has developed from an infant stage to a more growth-mature stage more recently. However this period is only about four plus years to this date. We can say that E-Commerce is here to stay. Each year the amount of business transactions that occur on the Internet grows exponentially almost doubling each year. One organization has said that the transactions could topple the 100 billion dollars value. An early successful Web entrepreneur is the creator of AMAZON.COM. They were the first ones to get online and explore the book market. Now they are the biggest booksellers on the World Wide Web today. They are utilizing the latest technology as well as in all aspects of their web business. Therefore, how do we get from a web page to start handling transactions and deal with customers via the Internet? I will explain how to market and set up your online business.





GETTING STARTED


Plan Ahead:


Before you plunk your money down for an ISP to host your web pages, you must ask yourself "What purpose does this Web page have?" Just having a web page just for the sake of having a web page will only waste your time and money. For example, If you are an owner of a small pizza takeout in a small town your target market may only be the customer of a 5-10 mile radius. However, the market could be best served by a telephone book instead.

Cost of a Web site startup:

  1. You need to design a web page. If you want something simple buy an HTML book or even get the information from the Internet.
  2. A unique domain name from Internic. The cost of the domain name have decrease from 100$ US to 70$ US now, a savings of $30 dollars even more in Canada. There are some Web companies that offer free domain names and email addresses but they often have their main domain name in your free domain name and email addresses but it is free!
  3. Then next step is you need to have an ISP host your web site. The costs range from $15.00 to $40.00 per month but watch what you pay for. The server could be down a lot or even have bad technical support or limited technical support for hosting.
  4. The total costs should range around 300-400$ a year on a skimpy budget. Well worth any company to be online. (Credit card service not included) However, this will only create a passive presence for your web site. If you want to create an impressive web site you will have to put in work to update and maintain the web site otherwise people will just see it and surf by.

Setting up a small business


Setting up a small business requires several things.
  1. You need a business license from your local chamber of commerce. The cost should be around $150-200 depending on the type of area of the business
  2. You might think of being incorporated so that when you use Illegal materials your own personal assets will not be exposed. Costs around $300 for an "Incorporate yourself Kit" and about $1000 with a lawyer assisted incorporation.
  3. What about Credit card services? You will have to apply for a Merchant Visa or Master Card at your local bank. The Credit Card Company will check out your financial background to determine if you qualify for credit card services. If approved the credit card companies will take between 1.5% to 4% per transaction
  4. You will also need a business banking account. Keeping the account will cost about 3 dollars per month and 0.80$ per transaction (deposits and withdrawals). In addition it will also charge you 3.75 dollars per month to keep your Visa or Master Card account active.
  5. If you need to keep in contact with telephone orders you may need a cell phone which cost about 80-125 dollars for the phone and 19dollars to 36dollars per month for use of the phone.
  6. Nonetheless, good E-commerce software would be handy to transmit the customer supplied credit card numbers in a secure and encrypted transmission (cost TBA)
  7. Lastly the Government has to keep track of you so you will have to apply for a GST number which is your business number.

Are profits to be made?

According to ActivMedia, less than a third of online merchants are making a profit from their sites. In fact, most Internet users look up and research the product on line and then buy it elsewhere. So it may not generate sales but will generate sales by other means. As for companies focusing on business to business e-commerce, there are not out to turn a profit as to cut expenses and improve customer service.

Create Value!


When people want to buy something it is because they have a need. When people have to buy something over the Internet, the product value must be higher than it should be. For example, people would rather subscribe to the print form of the Vancouver province because it contains information that is important. Where as the online version would not have much value because of its lack of content. We must view the Internet like the Phone. We use the phone rather than just watch TV.

Typical target market


They typical e-commerce customer is a 30+ white male earning $78,000 per year. Men combines about 69-79% of purchases. Statistics show that buyers will buy on line according to four guidelines.
  1. Sex and Love
  2. Make dreams come true
  3. Money
  4. Bargains

How do I attract online customers?


The unwritten rule on the Internet is that INFORMATION IS KING. People search the Internet the way we use the phone. Here are some rules of thumb from - www.builder.com

Specific target markets


My tips on how to find online customers is to find web sites that cater to that market. For example, if you were selling some cameras on the web you would have to market photographers. Try to find online photography magazines and place some advertisements there because that is your market. The people reading the magazines have an interest in photography as well as cameras and they would be the ones willing to put out the money in an impulse buy because you have reached a common interest with each other.

Market to a Niche


Most people realize that the web is getting to be a crowded place. There are now more than a thousand pages on any subject and companies selling a million products. Thus, how are we to market? We should focus on marketing to niches. We may have bumped into a super depot of some product. But the future is small-specialized boutique style stores placed in a well-hit page like AOL. The trend is to place stores in high traffic sites that have rent to pay. Some vendors are paying over excess of $250,000 to put their site on AOL or similar well-known web sites.

Modeling


When we try to market on the Web we can follow the steps of Mail Order Advertising and Marketing. Ads are sometimes in the form of a classified ad that is worded properly to bring interest to the ad. One must use key words that people have an interest in. For example Sex, money, health etc. The title or headline must be an attention grabber otherwise interest will fade another link is clicked upon.

Competition


When you set up a web site, you will have to find out what your competitors on and off the web site are doing. That way you will understand what your competition is offering in terms of price, products and promotions. Once you have some idea, you may be able to produce a site that is comparable to the competition.

PROMOTING YOUR WEB SITE:


Don't pay to submit your domain name to all directories Some companies offer services that will submit your URL to all the directories and search engines. However, a person would realistically use five of the major search engines. In fact you would have more results if you would just spent your time defining your content to submit to the major search engines and save the money you were about to send to these companies. A way to test advertising You can set up an URL address that has a different address connected to the ad. If the customer clicks on the ad, the web master can see that it is from which ad.

Image Counts


First impressions count and a good web page often leaves a lasting impression not only about the page but the company the site is about. Also, your product and service must be above par, otherwise you will not have any repeat customers. The repeat customers are the ones that companies make the most money on because the happy customer will spread the word how great a certain company or product is and will promote your product and site. And they will often purchase more in the future. This in turn will help create your brand name recognition and respect that famous companies acquire.

Set up an Auto responder!


Auto responders are an excellent way to respond to email inquiries 24 hours a day. They provide a sense of action to the e-mailer and increases interest as information is being processed and dealt with. Setting up an auto responder is not complex. Once you choose a company you would like to obtain the auto responder from, it's as simple as emailing the text of your auto responder message to the company that provides the service for you. Things to be aware of: Places to obtain an auto responder:
For extra service and money www.infoback.net/services/ks10295

Build your own Banners!


Once you have a web site going, you may think of advertising your web site in the form of the banner. Easy way to make one is by going to the Banner Generator www.coder.com/creations/banner/ You can create banners in minutes for free. For an animated banner go to: www.mediabuilder.com/abm.html For a 3d banner go to: www.zyris.com/ Or if your are artistically inclined, you can create your own banner on Paint shop pro or any graphic program.

Bulk email vs. Opt-In


There are two forms of direct email marketing. Unsolicited bulk email and opt -in Direct email.
  1. Bulk email- The practice of transmitting large quantities to email to large lists of unqualified email addresses. This is called "spamming". Although this is cheaper than postage mail, it is not a good practice because you will be a target for those people angered by your unsolicited email.
  2. Opt-in Direct mail-This is the practice of sending commercial email to recipients that have approved of commercial email. It is the politically correct way of emailing to people commercially.

Good sources are:

E*zines


E*zines are fast becoming popular for indirect advertising on the Net. E*zines are electronic newsletter on the web focusing on a topic. It could be an E*zine about cars, computers or any subject. Even the Online Magazines count as an E*zine. People that are segmented into subjects of interest are browsing the E*zine. Classified Ads in the E*zine would encourage more potential sales because the customers are already interested in the subject. Also, encourage sending in an article to be printed on the E*zine. This would promote a helpful presence of your company as you would promote your company as well as help readers with your expertise and information.

NewsGroups


Best way to promote your product or site. An excellent way to communicate about products but most Netcitizen do not like "spamming" on the net. People do not want to be sold things directly in Discussion group. However, you may also provide useful information to people in need of help and answer some of their problems. In the end of your reply you may add you website or service at the bottom to promote yourself. This way other people can see how knowledgeable you are and you can make a name for yourself in the Newsgroups. This kind of exposure is the best method in Newsgroups.

Around the Horizon


Now there is a movement to web email. This is an HTML coded web site used as an email message. Instead of the drab emails, you now have a brightly colored and pleasing email in the form of HTML. Microsoft and AOL have anticipated this new form of email and have geared their operations to this. Microsoft has recently bought HOTMAIL so they can start and develop this market as well as AOL focusing their HTML email with their subscribers. Some further information can be found on www.lycos.com and www.yahoo.com.
Another marketing idea is "Web Cards". These are post cards with your Internet site on one side and the other contains some information about your site. Some sources to find information about this is from www.printing.com. Their prices are about 95$ US for 500 Cards.
Coupons work even on line A new advertising method is to offer a coupon that is printable and that can be used to buy your product.

GENERAL BUSINESS TIPS:


A New Wrinkle to business transactions


Do you ever wish that Net surfers could find a product they like and contact your business directly from their own computer to your business phone? Well there is an innovative product called Surf and Call from www.vocaltec.com. A customer can browse the catalog and have some questions. She can contact the company through the browser itself and speak to a customer service representative, technical staff or sales support. This new software seems to bring new interactive capabilities that will enhance sales and service online commerce 100 billion by the year 2000

Merchandising Tips


Don't ignore years of direct and mass marketing experience. Buy buttons should be prominently displayed on all online product pages. Use strong call-to-action language to draw the user's attention. OK is weak; Buy! Is powerful.

Payments Tips


Sadly, many Web site operators don't seem to understand this. A few innovators like Amazon.com and Virtual Vineyards speed the ordering process by storing their customers' billing and credit card data, thus making second purchases easier. But many sites don't accept credit cards at all, forcing the user to break the online connection and call an 800-number. Still other places calculate shipping and tax offline, leaving the buyer clueless as to the final cost of their purchases.

Ordering Tips


Navigation to and from the product and ordering pages is critical, but not always fully considered. Exactly how will users get from the home page to a product page to the shopping list to the credit card order entry screen? Less obviously, how will they get back to the product page if they forgot to choose something?

Service and Support


Service is still the name of the game. Without question, round-the-clock, Internet-savvy customer and post sales support are the keys to customer loyalty. Once the order is committed, users should be immediately thanked onscreen--and have their orders confirmed. Another key component of customer loyalty is trust. Make a point of telling your Web site visitors exactly what you're doing with the data you collect. Finally, once your e-commerce site is up and running, take the opportunity to enhance it with value-added content.

Follow up with email


A good idea for recent customers is to send them an e-mail thanking their patronage. Often, this thoughtful act will create a huge impression of professionalism in your company. Even better would be to e-mail past customers that have done business in the last 6 months. These friendly reminders will promote your business even further as well as keeping contact with those customers that are loyal.

Merchant Server Software

Minimum of 25000$ for software caters to high end servers. Not suitable to small to medium sized businesses. I don't even want to talk about it.