E-commerce Readiness – Are you Ready To Go Online?

If you want to earn profits through an online business, owning a good web site is not enough.

You have a brand new E-commerce web site ready to launch to the world. You have spent thousands of dollars and worked many hours building it. The most thorough content and the highest quality products support the site. In addition, you have an Internet marketing plan that has been put into action. Now, all you have left to do is the official launch. Then you will wait and see if your hard work has paid off.

If your goal is to increase awareness or market your company, then a good web site, along with a great online marketing plan, may be all you need. But, if you want to earn profits through an online business, owning a good web site is not enough. You can have the best brand, the best content and the best product, but it all means little if customers are not interested in your product. It also means little if your employees do not support your online objectives, or your products are not conducive to selling on the Internet. In other words, on a basic level - if your products, internal business processes, or market do not support an online presence, a great web site may not get you very far in your goal to make online profits.

Analyze your business from all angles before you invest time and money into an online presence. What do you see? Is your company E-commerce ready?

Your Product

The type of product you sell will impact your business's online success. Consider these questions:

Is my product unique?

If you have a unique product that is not readily available in traditional retail outlets and therefore not easily found or purchased, your chance to earn online profits is improved, particularly if you have a great online marketing plan that lures potential customers to your site. In addition, if you have a unique product then it is likely you will have a very targeted, niche market that other retailers may not be interested in or have access to.

Does my product require high-level customer service?

Customer service has become a primary indicator of online success. If your product requires high-level customer service; for example, it requires installation and maintenance, you must be able to provide excellent service. Otherwise, you may risk losing customers to competitors.

How much is my product?

The perception of insecure transactions has made customers weary about spending large sums of money online. As a result, smaller items such as books and music are common purchases. At the same time, if your product is a low priced item, it is important to consider your profit margin. For example, will shipping costs and other charges drain your profits?

Does my product require special shipping considerations?

Products that require special shipping considerations, such as refrigeration, can open the door to potential problems, particularly from a return policy perspective. Research has found that return policies influence buyers' decisions to shop at an online store. Therefore, it is particularly important to provide flexible return policies for products that have special shipping arrangements. Furthermore, it is also important to consider the cost of products that may be returned to you i.e. storage.

Does my product have a lot of competition?

If your product has stiff competition, from either online competitors or traditional retail stores, then it is particularly important to set is apart from others. If you cannot differentiate your product from other competing products, it may be difficult to make online sales.

How easy it is for me to localize/customize my product?

When you have an online store, it is accessible to everyone who has a computer and access to the Internet. As a result, if customers outside your target market are interested in your product, you may want to take advantage of this opportunity to provide a product that can be tailored to their specific needs.

Does a potential customer have to touch, see and/or smell my product before making a purchase decision?

If customers need to feel, see or smell a product before making a purchase, it may be more challenging to sell online. For example, if you sell clothing, a customer will likely want to try on the article of clothing and see how it fits on their body. Selling these types of products online is best when customers are already familiar with the product and buy online for convenience. Or, they may visit the site to get ideas and make a follow-up purchase at the actual retail outlet.

Your Business

The processes, operations and people that drive your business forward can potentially create barriers that obstruct your online success. Consider these questions:

How supportive of my E-commerce objectives are my employees, management team and suppliers?

Resistance to change, and lack of communication and commitment from people who make your business successful will make selling your products online a challenge. For example, because of increased demand, product delivery becomes increasingly important in an online environment. If your supplier does not support your online goals, they may not clearly see the importance of delivery to your online operations and negatively impact your business's ability to meet delivery timelines. As a result, it is important to ensure that all people within your company have an opportunity to contribute towards the decision-making process. In this way, they will gain a better understanding of where the company is heading and recognize that their contributions are valuable to the success of the company.

Can my business handle increased demand?

Every Christmas season, online companies are tested in their ability to deliver products on time. Companies who fail to deliver in a timely manner risk losing valuable, potentially profitable customers. Before you decide to sell your products online, think about how an increase in demand will affect your company and gauge whether the costs are justified.

Am I prepared to maintain a web site in the long-term? Have I identified someone to maintain the site?

If customers visit your site and meet the same problems they faced in the past, or are greeted with old content, they may never visit again. Once a web site is developed and launched, the work has not ended. The site must be regularly updated to reflect the needs of your audience and the market over time. As a result, it is important that you have technical expertise available to ensure the site operates effectively at all times.

How flexible are my technology solutions?

As newer technologies become available, you will want to be able to take advantage of them as quickly and easily as possible. When the time comes to alter or improve your existing technology, and your current solutions are not flexible enough to incorporate newer solutions, your company may have problems providing consistent service to existing customers.

Your Market

To have a successful online business requires that you have a strong understanding of your online market. Consider these questions:

Do I know the size, location and buying behavior of my online market?

In order to market to and reach your target audience, as well as utilize your company resources effectively, it is important that you know who your market is. For example, if you have determined that your largest market is in Canada, you will be able to allocate your budget appropriately. To increase customer satisfaction, and maximize revenues and profitability it is important to understand your buyers' behavior, which will give you a clearer picture of your customers and enable you to provide a positive shopping experience to them.

Who is my online competition?

If you do not know who your competitors are, they will most definitely know who you are. Understanding and analyzing your competitors' behavior can provide you with insight into their strategies for gaining customers. You can also gain a clearer understanding of their core competencies, enabling you to take advantage of opportunities to set your company apart from them and attract customers.

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There is ample opportunity to make money from the Internet. According to Giga, online revenues will total approximately $90 billion in 2002, eventually reaching approximately $165 billion in 2004. To get a piece of the pie, businesses need to look beyond the development of a great web site and look at their business on a basic level. Will customers buy your products online? Are your products conducive to selling on the Internet? Do your employees support your online goals? Measuring these factors will help you to decide whether your company is E-commerce ready and enable you to make changes within your business that will improve its chances for online success in the future.