Although online retailing has been around for more than two decades—Amazon was founded in 1994—in many ways the industry is still in its infancy. According to the U.S. Census Bureau, e-commerce sales have more than doubled since 2007, but as of the first quarter of 2016, they still only comprise 7.7 percent of total retail sales.
“E-commerce is still very much in major growth mode, because a majority of shopping is still done offline,” says Peter Gold, SHOP.COM’s chief digital marketing officer. “Walmart’s recent acquisition of Jet.com is proof that the competition is indeed fierce and that those operators with strong value propositions and differentiators are well-positioned to capture disproportionate market share from consumers. Small businesses have tremendous opportunities to enter or thrive, if already in, the e-commerce space.”
The e-commerce market is “hotter than ever right now thanks to the very low barrier to entry,” agrees Misty Starks, CEO of Misty Blue Media. “More and more people are discovering ways to make money online for little to no cost. With the mega success of companies like Airbnb, many entrepreneurs are vying to be the next big digital disruptor, which can be exciting for consumers, investors and the business community.”
Ways to Tap Into E-Commerce's Power
Whether you’re a brick and mortar using e-commerce as an additional source of revenue or you're completely online, the following pointers may help you increase your digital sales.
Bridge the gap between on and offline. “Offer the chance to ‘buy online, pickup in store,'” says Gold. “This gives customers the convenience of shopping online combined with immediate pickup in store.” Doing this may also help get them into your online store.
Offer online exclusives. “Brick and mortar companies can sweeten the deal by offering digital-only sales to drive traffic to their online stores,” says Starks.
“Along the same lines, use loyalty programs that provide existing customers with reasons to buy online and make repeat purchases,” adds Gold. “Cashback, loyalty/rewards points, VIP treatment, ‘the more you spend, the more you save’ programs are some great examples of this.”
—Misty Starks, CEO, Misty Blue Media
Tie into local. Online small businesses can localize by tapping into brick and mortar merchants, suggests Gold. “SHOP.COM has a program that deals with this called SHOP Local. The program allows local merchants to opt into the program and tap into SHOP.COM’s massive customer base in each market. It’s a turnkey business program that drives new customers and incremental revenue without SMBs having to do any heavy lifting or digital marketing.”
Make shopping easy. Having a great onsite search and simple navigation may help your customers quickly and easily find what they seek. If you don't have an easy to navigate or search site, they may go to a site that offers simple, fast service. “Use site personalization and product recommendations to be timely, relevant and contextual to each of your customers, because they are all unique,” Gold adds.
Provide great products and excellent customer service. The web is huge and the options appear limitless to consumers, so it’s critical that your products stand out, believes Gold. “If you can forge an emotional connection with your customers, even better.” And remember, “the customer is always right,” he adds. “The internet is a cold and impersonal medium, so e-commerce companies must compensate with superior customer service and hand holding. Being responsive is critical.”
Starks agrees. “Address customer complaints immediately and work quickly to resolve any disputes. As we see on a daily basis, consumers move quickly in leaving reviews and taking to social media to express their dissatisfaction with a product or service much more often than sharing a positive experience.”
Give customers assurance. “When customers shop online, they can't touch the merchandise and are in essence taking a gamble,” says Starks. “Whether it's in the form of a money-back guarantee or a generous return policy, help customers feel like the house isn't stacked against them by standing behind your offer. Companies that are e-commerce only should keep in mind that free shipping goes a long way with consumers, especially around the holidays."
Avoid excessive post-purchase emails. “Don't bombard your e-commerce customers with tons of emails after they've made a purchase,” says Starks. “While it's expected you'll advertise some of your other products and services, no one wants to feel spammed with daily or weekly emails.”
Don't sell your customers' information. “This is the holy grail of don'ts,” says Starks. “People patronize your online business because of the great products and services you offer; not to land on multiple lists for unsolicited emails from other businesses whose wares don’t meet their needs.”
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