E-Commerce, Where Online & Offline Come Together
Late last year Gerry Harvey famously declared that online retail wasn’t worth it in Australia and his comments caused quite a stir in the retail and technology sectors. It’s understandable that people would listen to Gerry’s views on this, his success in Australian retail is indisputable. He’s an industry leader and a thought leader, but in this instance he was also wrong.
Even in the midst of a global economic downturn and a national recession, Australian internet users have shown a consistent willingness to shop online. Not only that, there is considerable growth in several e-commerce markets as consumers shop aggressively for the best available price and take advantage of the convenience of purchasing online.
So if e-commerce is on the rise, and yet major retailers are still hesitant to dip their toes in the water, what are the major things to consider before launching an e-commerce site? Here are some suggestions:
- Price is key - you don’t have to have the cheapest price, but you definitely need to be competitive, it’s far too easy for internet users to go somewhere else for a better deal.
- Know your competitors - The internet is different to real world businesses, your competitors are more diverse and more numerous than you may realise. Just because you’re the only bookstore in your local area doesn’t mean you’re not competing with Amazon.
- Your offline business needs to support your online offering – Your real world operation needs to support your e-commerce efforts. Invoicing, ordering stock, sending out customer orders - there are many elements of an online business that need real world support.
- Communication is essential - Don’t forget that your online customer’s experience doesn’t end until their product has arrived safe and sound. Prompt delivery and clear communication while goods are in transit is essential.
- It never really ends - The web is a constantly evolving space. User habits change regularly and so do expectations. Even when you’ve built an excellent e-commerce solution, remember that you will need to continue to adapt your methods and your site as time goes on.
Like any business investment, e-commerce isn’t for everyone - but with a clear head and a careful approach you can enter the space with a strong plan, ready to face the challenges in front of you and to minimize the risks you may face.
