I did all my Christmas shopping online last year. I searched in the US, UK and Australia, compared products and prices, and arranged delivery directly to my loved ones. It was convenient, simple… and took under two hours. I’m one of the 59% of Australian adults who spent $13 billion online in 2013. I helped online retail skyrocket by 27% last year, compared with 0.4% for traditional bricks ‘n’ mortar retail.
So why do 44% of retailers not even have the tiniest bit of interest in introducing an online sales channel?
My customers don’t buy online They’re too old or not web savvy. Are you sure? Studies show that Australians aged between 15 and 49 spend the same amount online. Nearly one-third of people over 50 own a smartphone and use it to shop online. And Australians over 60 spent $1.74 billion on the Internet last year. The secret benefit of online sales You don’t actually have to sell a single item online to increase your sales… all you have to do is have an e-Commerce facility. That sounds crazy, so let me explain.
According to Google, 94% of Australians have researched a product or service online.
They won’t necessarily make a purchase then and there, but they will compare features, prices and availability… and then contact a business or visit in person.
In this sense, an e-Commerce facility is like an online catalogue, a virtual sales tool to drive customers to an in-store purchase.
How do I set up e-Commerce? All you need is a shopping cart, a piece of software you add to your website that allows customers to browse your catalogue, add selected products to a basket and place an order. There are two types of shopping carts:
- Hosted: as the name suggests, this is online software, hosted on the developer’s server and paid for by a monthly fee and sometimes sales commission.
- Licensed: you buy the software and host your shopping cart with your website provider. It takes more time and money to set up, but ongoing costs are smaller and there’s more flexibility in customising the code to suit your individual needs.
Neither is intrinsically better — what suits best depends on your individual skills and needs. A hosted shopping cart is great for the less techno-savvy, those who want to use an easy template, rather than play with code. The host does all the updates, upgrades and maintenance, leaving you to simply sell products. It’s fast and cheap to set up, but may cost more in the long run. A licensed shopping cart is perfect if you’re a bit of an IT junkie like me or have a trusted IT person. You can customise the software to suit your exact taste and needs, and can change your hosting service at any time. This option does take more money and time to initially set up, but costs less in the long run. What else to look for in a shopping cart From a business owner’s perspective, a good shopping cart:
- Blends seamlessly with the style and function of the rest of your website
- Looks professional and inviting
- Has good security and fraud protection
- Is optimised for smartphones (responsive)
- Integrates with Facebook, if you have a business page
- Integrates with the most common payment gateways, such as PayPal, Visa and MasterCard
- Allows you to provide clear, value-added information to appeal to potential customers
- Suits Australian businesses.
For customers, a good shopping cart:
- Has a beautiful and easy-to-browse catalogue, including large product thumbnails and a search box
- Provides specific product descriptions, including style, size, colour, availability and price
- Has social media sharing functions
- Is intuitive to use… it leads them, step-by-step through the buying process and explains what will happen next
- Allows purchases to be reviewed before the final check-out, including the ability to edit and delete items, or click on links back to individual products in your catalogue
- Clearly outlines shipping terms, options, costs and times
- Includes an account area where existing customers can update their details, view previous orders and retrieve lost passwords
- Provides a way to contact you for help.
How to make the final choice I wish I could give you the name of the single best shopping cart but, alas, it’s not that easy. However, now you the two basic types and the key features to look for, I suggest you search for reviews and comparisons, which will allow you to weigh up the pros and cons, and work out which one best suits your individual situation. Create a short list, then search for examples of live sites powered by those shopping carts and test them as a customer.
Before making a final decision, call and email their customer service with pre-purchase enquiries to test how timely and useful responses are.
And finally… take the plunge! The right professionals can make the process smooth and less time-consuming for you as a business owner. The huge gap between how many Australians are spending big dollars in cyberspace and the limited businesses offering online shopping presents an incredible window of opportunity for you to establish a strong and trusted e-Commerce presence.
