Online Selling

Not the Impossible Dream

Having a full-blown e-commerce capability like Amazon.com is not the only option for Web selling.

There are three phases in enabling purchasing on your site, and you can start with phase I right away, then gradually evolve your capability as your site expands.

The 3 phases of e-commerce

How can you make it easy and pleasant for web site visitors to shop online?

In phase I, you go beyond merely having product descriptions posted on your Web site to giving actual prices.You also include ordering instructions along with shipping and handling options.

You then take orders offline. Web site visitors can call an 800 number posted on your Web pages, just like in your offline catalog.

Add an HTML or PDF order form to your Web site. Encourage people to print the order form, fill it out, and fax or mail it to order - again, just like an order form in a catalog.

In phase II, you replace the HTML or PDF order form with an online order form that is interactive.

Visitors no longer have to print the order form and fill it in by hand. They can enter information to fill in fields on the screen and click boxes to indicate their preferences (e.g., regular vs. priority shipping).

When they are finished, they submit the order form with their payment, which is typically credit card information.

On your end, you have to run the credit card number manually to get approval.You may also have to transfer the customer information to a database to keep a record of the transaction. If there is a problem with the credit card, you can send an e-mail to notify the customer and resolve it.

In phase III, you have a full-fledged online catalog or shopping cart system on your Web site, similar to Amazon.com or other high-traffic commerce sites such as Victoria's Secret.

Phase III is the online equivalent of a mail order catalog or retail store. You can flip through the pages or walk the aisles, pick the merchandise you want, put it in your cart or on your order form, then check out at a cash register to finalize your purchase.

Unlike phase II, a phase III e-commerce site usually checks, authorizes and charges the credit card automatically, eliminating the need to do this manually. If there is a problem with the credit card, the site automatically notifies the customer and does not accept the order until it is corrected.

Almost all e-commerce Web sites, whether in phase I, II or III, offer online shoppers a money-back guarantee of satisfaction. If you do not, online buyers will go elsewhere.

When you implement e-commerce phase II, II or III, promote your product sales on your Web site. One way to do this is with banners that pop up announcing specials and sales.

Any special offers should appear in the upper-right-hand corner of your home page, because this is the most read area of your site.

Make some noticeable change to your home page frequently - every 8 to 10 days. These changes can include new banners announcing new specials, news items or graphics. Basic colors and navigation tools should not be changed.

Credit cards and cybercash

The best method of handling payment is to accept major credit cards at the time of the transaction. It's convenient for the customer and ensures that you get your money.

Surveys show that nearly 90% of online shoppers pay by credit card. Of 220 million Americans, 144 million have Visa, 93 million have MasterCard, 41 million have Discover, and 25 million have American Express.

However, only 28% of large businesses surveyed say they can process a transaction online.

If you plan on taking orders on your Web site, get "merchant status" with, at minimum, American Express, Visa and MasterCard. "Merchant status" allows you to accept credit cards for purchase payments both online and offline.

If your business caters to certain market segments, you may want to consider other types of credit cards. For example, if many of your customers are Japanese, you probably want to accept orders from JCB (Japan Credit Bureau) cardholders. For European customers, consider Diner's Club.

To get established as a Visa and MasterCard merchant, start with your own bank. If you have a long-term good relationship with your bank, that gives you some powerful leverage. Be willing to use that leverage to get what you want. After all, banks are in business for the same reason as the rest of us - to serve their customers and to make a profit. Another payment option is to work through a service bureau that can process the online payments for you.

Design for Your Visitors - Not for You

Let's delve into the design of your site. Visitors want fast downloads, light graphics we've already established that. So keep it simple. There's nothing more depressing than watching a user on a dial-up connection attempting to download a page that's comprised of dozens of hefty images.

Loading speed can make the difference. One site decreased visitor bail-out rates from 30% to 8% just by reducing its download time by 1 second per page! One study found that 84% of web sites examined downloaded too slowly. Don't fall into this trap!

So, yes you can sell online by following the few basic but important steps. Start small and you never know where it may end!