In the seemingly never-ending battle to quell the ecommerce rumor mill and put the kibosh on misinformation -- for would be web merchants and online store veterans alike -- this article provides 10 common misconceptions about online selling.
1) Ecommerce Means Easy Money.
Merchants should never jump into online selling without a solid business model that answers key questions like: Why ecommerce? What is my target market? How do I target it? and Do I need funding for my venture? If you study classic “dot com” failures, the two major reasons cited for the collapse are lack of foresight and financial funds. A successful online business starts with a solid plan.
2) Hosted Applications Are Not Effective.
Market research firm Gartner predicts that by 2010, 30% of overall software revenue will be derived from software delivered via hosted, software-as-a-service applications. More and more people are realizing the potential of hosted applications, specifically when considering the advantages like lower overhead, faster time to market, distributed software management, and world-wide accessibility to data.
3) Online Customers Are Easily Sold.
Online consumers are savvier than ever. As online shopping offers customers easy access to thousands of online stores at a click of the mouse, the idea of “customer loyalty” online is questionable at best. Serve your customers with genuine information and let them decide as to what is best for them.
4) Build It and They Will Come.
Today, a comprehensive online marketing strategy is mandatory for any online store to be successful. Although the techniques are different, you have to work just about as hard marketing an online store as you do a brick and mortar one. Enlist the help of a internet marketing firm that specializes in online marketing if you need help with getting your online store to reach its target audience.
5) Order Fulfillment Is Simple
The systems required for online businesses to fulfill orders can be complex and involve varying degrees of interactivity depending on the merchant’s business model. Try to keep fulfillment for your online store as simple as possible. While it may seem attractive to integrate third-party supply chain management solutions, be sure to review these options carefully and do what makes the most sense for your business.
6) Ecommerce Is All About Having a Cool Website.
While it is important that your website presents a credible and compelling image, online business is not driven by a snazzy website. The difference between world-leading retailer Amazon.com and other sites is brand recognition, but Amazon achieved that recognition by selling the right products at the right time to the right customers. The key lies in matching an intuitive online shopping experience with a solid business model.
7) The Security Threat Is Just a Bunch of Hype.
“Phishing schemes,” online fraud, and other security challenges remain for online shoppers. Many consumers have taken note and will not shop on a site unless it is clear to them the site is secure. At minimum, help your customers feel safe by both implementing and advertising secure sockets layer (SSL) security features on your site.
8) Customer Service in Not Important.
Customers will often make the decision to return to your website based on your past behavior with them. Be prompt and responsive to your customers concerns and there is a good chance they will return time and again.
9) Search Engines – Who Needs Them!
If you want to attract new customers to your online business, effective search engine marketing is vital. Statistics show that 90% or greater of the total traffic referred to many sites is driven by search engines. Be sure to include search engine marketing as a primary component of your overall online marketing strategy.
10) Selling Online Costs a Fortune.
Compared to owning and operating many brick and mortar operations, ecommerce comes cheap!
While your success ultimately hinges on the demand for your products, competition, and other factors, overall operating costs of running a web storefront (especially via a hosted solution) can be highly cost effective especially when taking the visibility and reach of the web into consideration. For a few thousand dollars you can sell your product to anyone in the world.
