Whether you’re thinking of starting up a new business or expanding an existing business to include Internet-based transactions, with a good amount of research, a little hard work, and an effective marketing strategy you can create a successful online store.

Consider the following as you venture into the realm of online commerce and you will be well on your way to joining the ranks of thriving online entrepreneurs.

What is E-commerce?
First things first.  Electronic commerce, or E-commerce as it’s more commonly known, is the name given to any type of business or commercial transaction conducted over the Internet. It includes a wide range of different business types from retail sites selling goods and services, auction and music download sites and business to business electronic transactions.  To get an idea of successful E-commerce sites click here.

How can E-commerce enhance your business?
The E-commerce industry is exploding and growth is predicted to continue as convenience surpasses tangibility and more consumers turn to the web to make their purchases.  Entrepreneurs are turning their efforts towards online endeavours primarily due to finances: start-up costs are reasonably low, many E-commerce businesses can be run from home, and the profit potential is substantial.  In addition online stores offer 24/7 shopping, turn-key check-outs and in essence perform as your non-stop workhorse without the expense of annual leave, sick days or pay rises. 

Steps to building an online store
There are many components to building a successful online store, and your victory will come from qualified research, strategic planning and implementation.  Some of the things to consider are:

Step 1: Business Plan
A well researched and discussed business plan is the foundation of any successful online business.  This document will help you cover all the bases and think through the risks associated with your business before making an online investment.  WebFarm provides customers with a step-by-step guide to assist you in compiling your E-commerce business plan.  Visit our Business Plan section to learn more.

Step 2:  A Good Domain Name
A Domain Name is your online identity.  A good domain name is short and easily remembered.  Misspelling of words (cofeee.com vs. coffee.com) and the use of hyphens to try to mimic a taken domain (cup-o-coffee.com vs. coffee.com) are examples of domains that prove to be difficult for consumers to remember.  Also keep in mind that business names are usually trademarked so that any domain variation of a big brand (selling like items of that brand) could result in legal action (trade-me-cars.co.nz vs. trademe.co.nz). 

Step 3: A Reliable Web Host
Web hosting is the space used to display your website.  Having a reliable web host is imperative to making sure that your doors are open for business.  If your web host’s server goes down then your site will not be accessible until they get it up and running again.  For an online business this is equivalent to a landlord coming and locking your door so no customers can enter.  WebFarm has been in business since 1997 providing customers with 99.9% server uptime, reliable customer support, products to grow with your business, and prices to match the pockets of start-ups.  All WebFarm hosting packages come with a free domain name, e-mail accounts and a variety of tools including databases and web analytics.  

Step 4: Website Design
Your website will form the basis of your company’s identity both online and offline.  It will be the face of your business and what will instil customer confidence or turn away sales.  Its colours and images will be the reference for your marketing and promotional activities so it’s important to invest the time and money necessary to get the right look and feel.  Consider a graphic designer who will work within your budget to accomplish your goals.  Of course the bigger the budget the more bells and whistles, but this should be discussed with your designer.  For a list of designers in your area click here.  Alternatively you can create your own template website using a tool such as WebFarm’s SiteBuilder.  However this gives you less flexibility overall giving you a more standard looking site and means that you will have to create and maintain the site.   

Step 5: Shopping Cart Software
Your shopping cart will run your store from displaying products to inventory management to checkout.  It is therefore important to choose a shopping cart that can grow with your business.  Consider how many products you’ll be selling, what features you will require (ability to charge NZ GST or perform multi-currency calculations), and what payment processing solution you will use so that your shopping cart is compatible.  To understand more about shopping carts click here.  WebFarm offers a variety of shopping carts to suit small to large businesses.

Step 6: Credit Card Merchant Account
To accept online payments you’ll need a merchant account, which is an account with a bank or other financial institution that enables you to accept credit card numbers.  In New Zealand, only authorised banks or WorldPay have the authority to assign such an account.  Other payment gateways such as DPS, PayStation and PayPro require you to have both a merchant account with a NZ bank and an account with one of the gateways, so you pay two sets of fees.  Read our article about payment gateways to learn more.

Step 7: Accounting Software
To gauge your business’s success you’ll need to have an accounting program that fits your business model.  This program should plug all your numbers into readable data to let you know if you’re making money.  Popular applications include Quickbooks, Peachtree,SoEasyAccounting and SBA 2006.

Step 8: Security
Your web host will keep your site secure, but you must also consider the safety of your business data stored on your computer.  Security programs to research include Symantec, Maxtor, Norton and the free application AVG.

Step 9:  Marketing Plan
The mistake that many online merchants make is the assumption that if they build a website customers will come.  With online business the advantage of location is thrown out the window as you sit side by side with millions of competitors.  However you’re market isn’t the world, it’s targeted and most likely local so you have the task of educating your audience on how they can find you online and how you’ll make their life better as a result.  This includes advertising, public relations, newsletters, search engine optimisation, links, customer referral programs, contests, etc.  Check out the E-marketing articles to find out more.

Step 10: Dedication to your business
Lastly you need unshakable resolve to your cause.  Treat your business plan as a living document that’s updated as you change and grow; maintain your site and add new elements regularly; ensure that your business data is secure and backed up regularly; remember to renew your domain name (once this has expired it’s up for grabs) and hosting account; and get others involved for constant refinement.