With business rates and rents increasing for high street businesses, e-commerce sites are becoming ever more popular for companies deciding to replace bricks and mortar with the digital marketplace. E-commerce is a fantastic tool, making it easier than ever to purchase everything and anything at the tap of your finger. Likewise, it can also be a very cost effective way of operating a retail business. But is this the right move for you?
Reach more customers
Having an online store will instantly open your local business up to a regional, national, or even global audience. No longer are you restricted by local footfall. It is important to note however, that this larger audience will only be reached by having some form of digital marketing to get traffic to it. Long gone are the days where you can have a website which delivers sales without a planned marketing strategy. So be sure to factor the marketing costs into any forecasts.
24/7 Business
In a world that’s increasingly impatient, it’s beneficial to have an online marketplace that is open 24 hours, 7 days a week. For your customers looking to make a purchase at 3am on a Sunday morning – you’re still open, ready for business. We have seen big increases in overall sales, by adding e-commerce to an existing site, just because the products are available to order at the convenience of the user, during evenings and weekends.
Targeting and upselling
E-commerce brings a whole new level of data collection, allowing your business to track customer buying habits, giving you the option of heavily targeted marketing. Data collection such as spending habits or cart abandonment rates can help improve your stock and gives insight into what you should be spending your marketing budget on. It even opens up the possibility of upselling – simply providing bolt on suggestions or alternative products your customer may be interested in. Much more intuitive than conventional retail.
Offline Benefits
The other benefit, is the ability to show local or existing customers your comprehensive ranges for them to browse, before coming instore. For smaller shops offering larger products, this may mean being able to display a more extensive range of products than floor space will normally allow.
For example, Howards Cycles is a bike shop in Wymondham who wanted to improve their functionality whilst also showcasing their stock to customers before they visit their physical store. Their website has all the features of an e-commerce site with stock, pricing and descriptions of products but without the check-out option.
So should I take the step?
Finally, e-commerce is a fantastic tool to add to your business, however it isn’t always required and crucially, isn’t always viable. Having a strong understanding of your clientele is imperative before creating an online store. With ever increasing amounts of data regarding search volumes, competition levels and user behaviour, a realistic business plan with marketing spend can be calculated before committing to the project. We love e-commerce projects and have enjoy many successes, but always recommend a thorough, calculated approach before making the step.
If you are thinking about a step into online sales, we are always happy to help plan it with you, and will give you honest, tangible advice and insight. Call us today on 01603 859007 to arrange a meet up and a coffee.