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Selling Online
The team:
Dave Briggs>>Fraser Henderson<<
>> Tim Wilson<<
Kind of Digital
Other opportunities for your businessWorkshop Programme, Summer 2012
Back to Web Basics
>> Selling Online <<
Digital Marketing
Social Media for Business
Running a business digitally
Online communitywww.digitalLincs.com
Housekeeping
• Fire exits• Mobiles off/silent mode• ERDF Forms• Breaks
Agenda6.00 -7.30pm
Topics
• eCommerce Landscape
• Buyers
• Selling options
• Online retail design
• Payments• Pricing• Payment processing• Regulations• Distance Selling• Fulfilling orders
Introductions and objectives
What do you buy and sell?
Your Online Shopping Experience
How much does it cost to buy everything on iTunes?
£9.7m to buy everything on iTunes
e-commerce landscape• eCommerce accounts
for 9.1% of all retail sales in UK.
• 45% of in store purchases influenced by online research.
• There are few “100% online only” retailers.
Change …• Increasing acceptance
and need to be online by consumers.
• Ageing population
• Perception that “online” is cheaper
• Comparison Culture.
There's never been a better time to start selling online!
• Despite the recession, online sales are growing at a rate of 17% each year.
• In Europe, the UK stands as the largest e-retail economy with over 37 million online shoppers, who, on average, spend £1,165 a year online (the highest amount in the world).
Things to ConsiderGet informedMake sure e-commerce is right for you
Sales and Marketing
Good Customer Service
Plan
• What do you want to sell?• Decide which commerce
solution is best (based on volumes, prices, audiences)
• Start building your catalogue/portfolio
• Secure your domain name• Determine how you’ll get
paid• Spread the word• Monitor Performance
How to sell online….
The buyers25-44 year olds are the most active users of eCommerce.
Success….Clear demonstration of Creative Industries selling power through online sales.
Fashion is the biggest recent success.
The Buying Process
What to sell
Revenue Model
Product or service sales
Subscription or rental
Commission based (e.g. affiliate, auction, referral)
Advertising (sponsorship)
Yourself
EU / Tenders Electronic Daily
Supplier and Contract Management Systems
J4b grants
Advertising (sponsorship)
£14.99 /month
17% of price
Existing,High-traffic
retailers
Ways to sell
MarketPlaces
Typical 5%Commission
Ways to sell
DIY – Pick your own transaction provider
Ways to sell
Ways to sell: Individual Stores
Ways to sell: Market Places
Shopping Carts – Recap:Take time to make the decision on which solution is best for your business.
Off-the-shelf or made-to-measure?
Marketplace or own web store?
Use technology that already works and is reliable
Make sure features and usability meet your needs
Crowdfunding
• Reduce times filling in forms (e.g. one-click purchases). No registration.
• Recommendations, Ratings.• Cross-sell.• Use product reviews.• Use promises and guarantees.• Create a “web exclusive” range for deal
focused people.• Use Video• Content is currency! Build user
communities, Google Penguin
Compelling and Easy
Store Design considerations• Clear navigation
• Prominent Search• High impact current image• Deep link into site• Commitment to buy / call to action• Avoid too many clicks• Re-enforce trust {images of staff and
premises, customer endorsements}• Imagine objections. Good copy.• Responsive/fast loading pages
Product Catalogue• Product detail pages (zoom, stock)• Own, easy URL• Narrative - Advantages, benefits over
other products or competitors.• Accurately described, correctly
categorised {never copy descriptions}• Include reviews and testimonials• Be clear about extra costs like shipping• Gifts & gift-lists
Evaluating PerformanceThe conversion rate• The number of people that visit your website
and actually buy something (no. of transactions / unique visitors): typically 1.6% - 3%.
• Cart abandonment rate: typically 75%• Typical session time: 2 minutes.
Payments and Pricing• Add up your costs• Products and services• Additional costs
associated with your business
• Building your website• Hosting domain• Employee costs• Shipping• Credit card processing
fees• Costs incurred for
damaged products
• Look at rivals. Do you have a competitive advantage? Froogle.co.uk
• Create “discounting” cushion.
• Consider “loss leaders”• Think about your credit
card or merchant costs!!
• Price versus value. Markup 10%>1000’s%
Sales Strategy• Don’t discount things that
people buy regularly• Provide accessories• Email electronic coupons
after sales• Appeal to the price
conscious (easyJet model)• Best overall value – not
necessarily the cheapest (John Lewis model)
• Make sure special offers are really special
• Offer further items at a discount once items have been placed in the cart.
Transacting Online“Online payments using cards are 'card-not-present' transactions.
There are higher risks of fraud with this type of payment and banks require you to operate within a well-defined set of rules and
accept a higher level of commercial risk than a conventional swiped card transaction in a shop.”
Method : Depends on volume of sales.
Reducing Fraud• Insist on delivery to cardholders address
• Design policies for when fraud is suspected (e.g. phone calls, fax of credit card, ask buyer to recall order, asking for alternative payment method).
• Don’t ship abroad
• Eliminate delivery risk with tracking/signatures
• Make orders an “Offer to buy” in case of pricing mistakes
WaysInternet Merchant Account : Direct to your bank account
- Already accept credit card payments- Have high volume of online transactions
Payment Service Provider: Collected on your behalf. £20/m +20p
- Medium volume of online transactions anticipated- You do not currently accept debit or credit cards in store
(Easier to get, less transparent, holding , fraud costs)
Bureau : Very few sales, lowest outlay3.5% + 20p
What to look forThink about services offered by your payment service provider. For example,
• 3D Secure (MasterCard SecureCode and Verified by Visa)
• Chargeback fees. Currencies.• Export of data for reconciliation• Shopping cart integration• Payment acceptance (e.g. Amex)• PCI DSS compliance
Electronic-payments.co.uk
Low volume sales
Monthly: £1.5k-6k = 2.9% + £0.2. Plus 1% for non-residential sales.
2.9% + 20p per transition. £50 set-up.
2.9% + 20p per transaction. **
High volume salesTalk to your bank.
Think about services offered by your payment service provider. For example,
• MasterCard SecureCode and Verified by Visa. Chargeback fees. Currencies.
• Address handling• Export of data for reconciliation• Shopping cart integration• Payment acceptance
Regulations1. Consumer Protection (Distance Selling) Regulations• Provide consumers with specific information before they place their order, an order
confirmation and information on their cancellation rights. E.g. provide your VAT no.
2. Electronic Commerce Regulation• Clearly identify commercial communications as such• Outline the steps that need to be taken for a contract to be concluded
3. Sale of goods act• Items as described• Fit for purpose• Returns in ‘reasonable time’
4. Privacy and data protection law
5. Creative Commons
Regulations1. Intellectual Property• Issues such as copyright and trade marks should be considered, not
just for items displayed on your site, but also metatags.
2. Creative Commons
3. Security
4. Access agreement• Terms and conditions governing use of your website• Terms set out prior to customer proceeding to purchase.
Fulfilling OrdersIt’s all about meeting expectations…
AutomatedOutsourced delivery, tracking
Digital Rights Management for digital downloadsDownloads (3 download policy)
Process line by line
Provide personal touch
Track the status
Communicate the status
Turn around quickly
Consider
packaging
Be realistic about
delivery date
Mange peaks e.g. Christmas
Handle Return
s
ChoreseCommerce ritual
1st and last hour every day : Check orders and respond to queries
Monday-Thursday mornings: Prepare product images
Afternoons: Enter details, prices, descriptions, images
Friday: Promote, build links and content
OperationsIt’s all about meeting expectations…
•No surprises for the customer•Make allowances for back orders (e.g. part shipment)•Pick a reliable courier•Don’t over-promise•Try to avoid serial returners•Plan returns by product category (cloths = upto 35%)•Always ask for a reason on returns
Top Tips• Work Works• Choose the Right Niche• High Production Values• Make Your Site Easy• Be Real• Emphasise Service• Promote Your Site• Lower Your Prices• Change Your Site• Patience
Top Tips - Selling
1. Give plenty of detail2. Show related items3. Display stock levels4. Top sellers5. Offer more for more money6. Use deals (seasonal?)7. Encourage repeat visits8. First purchase discounting
Many thanks for your time and contributions!
Sign up/Register: www.digitallincs.com
Tim:@timmy666 / [email protected]
Fraser:@frazzy123 / [email protected]