By John Greenfield

There have been plenty of promises made to small businesses
about how e-commerce can transform a poor business into a
thriving success through simple technology. Let me say from the
outset, e-commerce must be thought of as an extension to
existing business models. What do I mean? Well, if you have a
solid business model prior to expanding online, there is a good
chance that your business will prosper through e-commerce. If
your fundamental business model is flawed, then going online
will only compound the problem. OK that said, this article will
deal with the latter scenario, i.e. you have a strong business
model and are looking to propel your business to new heights and
profit levels.

So what are the secrets to succeeding at business online?

1. Don’t reinvent the wheel - How often have you heard that
saying? There is good reason why the phrase has become a clichй.
One thing you can be sure of is that you are not the first
person to venture online, so don’t make the same mistakes as
others. In particular, I am talking about paying too much money
for someone to build you a shopping cart (required for online
transactions). Purchase an off-the-shelf shopping cart that is
open-source, i.e. the code is free to modify. That way, you can
customize the cart to meet your exact requirements at a fraction
of the cost to build one from scratch. I have seen it too many
times, companies will outlay 10’s of thousands of dollars to
design a shopping cart which in the end may meet their exact
requirements, but suffers from serious security flaws.
Additionally, ask yourself the question; how long will it take
me to make those 30 thousand dollars back?

2. Pay extra for a quality design - Some people are going to
argue this one, but let me explain. Put yourself in the position
of a consumer; you visit a website and it looks a little dodgy,
are you prepared to submit your credit card details? Making a
purchase online is all about confidence, a customer must feel
assured that you are a reputable company, and the best way to
project that image is through a quality designed web site.

3. Set up a real-time payment gateway - do not even think about
accepting credit card payments online unless you have a secure
merchant gateway to a bank. With the threat of hackers ever so
prevalent on the web, you should NEVER store any credit card
details. Let me repeat this point - NEVER STORE CREDIT CARD
DETAILS, the risk is just too great. Besides, the benefit of
real time payment gateways is that you will receive your money
straight away, and more people will be willing to purchase
online if you have the facility to charge their card at point of
purchase.

4. It’s not all about price - Don’t fall into the trap so many
businesses make when going online. Keep prices competitive, but
concentrate on the value-added products and services. For
example, offer next business day delivery; most people who shop
online are strapped for time. Nothing impresses busy people more
than having their goods delivered fast. Also, why not throw in
some complimentary items? You’d be surprised how much people
appreciate a gift with purchase, even if it is just a chocolate
mint.

5. Keep them informed - A quality newsletter keeps your business
fresh in the minds of your customers, but don’t overdo it. The
key is to send out newsletters only when you have something
important to say or offer your customers. Nothing annoys people
more than receiving newsletters every week.

6. Viral marketing is the key - This should be your PRIMARY
marketing objective. People often spend thousands of dollars
trying to promote their business through online advertising
campaigns but forget the most important facet of a good
marketing plan - the customer. You will receive more business
through word of mouth than any other advertising medium. You
must get people talking about your business (in a positive
light).

7. Employ affiliates to promote your website - This is
especially important when trying to promote online shops,
because most e-commerce websites are dynamic. I.e. they are
database driven. Why? Well it comes down to how search engines
index your web site. Despite modern techniques, Google, Yahoo
and other search engines have difficulties adding dynamic web
pages to their index. Hence, getting found on the web can be
very hard. A good affiliate can direct traffic to your website
for a small commission should a sale be made.

8. Keep inventory levels to a minimum - This applies not only to
online business, but to bricks and mortar operations also.
Excess inventory ties up cash and reduces business efficiency.
The trick is to improve your supply chain so that inventory can
be replenished fast from suppliers. There is always a trade off
between offering your customers everything and not making them
wait for out of stock items. If in doubt, stock up on your main
sellers and have a clause about availability of low selling
items (keep in mind point 4 above -re: fast delivery).

9. Provide customer testimonials - OK, there is a golden rule
about testimonials - don’t fake it!! Nothing turns customers off
quicker than hearing how you are the best thing since sliced
bread. Keep it REAL - only post testimonials which are
believable.

10. Don’t wait! - Seriously, this is paramount. The internet is
evolving at a rapid pace, most businesses realise that getting a
web presence is essential, fewer realise that the window of
opportunity is decreasing fast. I have seen it firsthand, those
businesses that were making huge profit margins a few years ago,
are beginning to see the market flatten out with increased
competition. There is still the potential to make a LOT of money
through e-commerce, but the time to act is now. There you have
it, my 10 secrets to success; I cannot guarantee you will make a
fortune if you follow the above principles, but I do guarantee
you will be better off than someone that doesn’t.

About the author:
John Greenfield http://www.easy2find.com.au has
more than 12 years experience in internet related business
specialising in e-commerce and online business strategy.

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