Small businesses on the Internet are racing up beside large multi-national corporations on the information superhighway and giving them quite a scare. On the Internet a small business like can compete with, and even surpass, large national firms.
But can all businesses profit online? The best selling products online appeal to the technology savvy or a wide geographic audience. They are computer related items, specialty items difficult to locate elsewhere, or items that can be purchased less expensively over the Internet.
E-Commerce Lowers Business Costs
A global business on the Internet does not require bricks and mortar or staff around the world, just a Web site and perhaps one central warehouse. An e-commerce (electronic commerce) Web site costs about $600 a month. Generally, the cost of the site is about 8 percent of that business' revenues. Because business transactions are primarily handled electronically, there is no need for a large sales staff. The virtual storefront also minimizes theft, damage, or breakage of the inventory.
E-Commerce Is Accessible Anywhere, Anytime
The audience on the Internet is global. Consumers all over the world are shopping online. A Web site can be multi-lingual, allowing visitors to choose their language upon entering a site. When it is 3:00 am here, a customer in Sweden, where it is 10:00 am, can make a purchase. A business on-line is open seven days a week, 24 hours a day. Customers can shop at their convenience. The cash register is open all day and night, even while the business owner is sleeping.
E-Commerce Strengthens Customer Service
A Web site allows a business to address its customers on a personal level. The computer can recognize and greet repeat shoppers.
For example, when Mr. Smith, a frequent buyer of books on the Civil War, logs onto "booksale.com" a message could read, "Welcome back Mr. Smith! Check out our new book on The Civil War." The business owner can also follow up with Mr. Smith by sending him a catalogue of Civil War books. The computer can track customer's buying trends so the business owner can market accordingly.
E-Commerce Develops Customer Loyalty
How often do you learn all about a business upon entering a store? How often do you walk away with a free sample? A Web site allows businesses the opportunity to give customers information about their company while offering something of value.
For example, a company selling cooking utensils could offer the visitor recipes, a software company could provide interesting articles about the industry, a music store could offer sound bites of new music. By reading about the history and background of a company, the customer feels they have chatted with the owner. Personalizing a company creates customer loyalty. A Web site is soft sell. It gives the business an opportunity to market itself while gently leading the audience to purchase its products.
Brought to you by SCORE, America's small business mentors, at www.score.org.
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