With the e-commerce market continuing to grow, Turner Little provide advice on the key areas to consider when setting up an ecommerce site.
Whilst it is relatively easy to enter the ecommerce marketplace competition is strong. The Centre for Retail Research reported that sales in the UK, Germany, France, Sweden, The Netherlands, Italy, Poland and Spain will grow from £132.05 billion (bn) [€156.28 bn] in 2014 to £156.67 bn [(€185.39 bn] in 2015 (+18.4%), reaching £185.44 bn (€219.44 bn) in 2016.
The key considerations when entering the e-commerce market include the following:
Pricing
Savvy consumers are familiar with price comparison tools and sites and always on the look-out for a bargain. Businesses should therefore make sure that they are pricing their product or service competitively online; particularly if the product does not have a strong unique selling point.
Website usability
Businesses should ensure their website is easy to navigate and mobile friendly with intuitive navigation and calls to action. Consumers will expect a quick, convenient and visually pleasing experience when shopping online.
Technology
Technology is key and the usability of your website may also depend on it. E-commerce relies on quick site and page loading times and engaging calls to action. Consumers will want to navigate and purchase quickly, potentially whilst on the move. They will become frustrated, lose interest and potentially exit your site in favour of a competitor site if loading times are slow or technical issues arise. Invest in a professional well-built site which conforms to best web practice guidelines.
Profit
Products on the high street are typically priced around 70-80% above their production or purchase cost and as a rule, e-commerce should also operate in this way. Without the traditional shop front associated overheads costs should automatically be lower. As with any business a proper business plan and profit and loss accounts are essential as profit is key to growth and ongoing business success.
The customer is always right
As with any retail experience the customer is always right. Engaging and dealing with complaints or reviews is key to your reputation online as a business. When issues are not resolved offline customers tend to air complaints or issues online. The majority of consumers will use online reviews to assist a purchase. Look to remain professional and friendly and deal with issues in an apologetic, timely and efficient manner.
Turner Little
Turner Little was founded in 1998 and it has since become a well-established UK based professional Company Registration Agents, Registered Bank Intermediaries and Business Consultants, as well as Trust providers.
