Basics of e-commerce success
E-commerce technology is now so sophisticated that you can set up a bare-bones retail site in just a few hours. But no matter how large or small your company’s e-commerce operation, it will be more successful if you clearly understand your goals and have a solid business plan. This plan should lay out a strategy for market and customer research, how to select the right e-commerce platform, payment methods, logistics and customer service.
Researching the market
Adapting to overseas markets
“If you’re just getting started,” says Stairs, “you may want to focus on markets that share your language. The U.S., U.K. and Australia are great places for English speakers to begin. And always think about how your product descriptions will be read abroad. If you’re in the fashion category, for example, be sure to provide the sizing for other markets.”
What buyers you are trying to reach?
What do these customers expect, not only from your products, but from your customer service and after-sales support?
How does the local culture impact the way they buy online?
Can you attract customers through marketing campaigns? If so, what channels should you use? Be aware of cultural differences which can even determine how you package your goods.
The shape of things to come?
According to a 2015 report from Morgan Stanley, “The first half of 2014 saw 26% of China’s online purchases being made through its 780 million active mobile devices. Of those, 58% were registered in lower-tier cities, where the users’ first experience of the internet was likely to be on a cellphone. Indeed, there has been a strong correlation between online shopping and smartphone penetration since 2011. Faster and cheaper 4G network connections should help accelerate mobile usage.”
Basic e-commerce platforms
Getting mobile
It is essential to invest in platforms that can effectively reach the company’s potential customers. Since more and more people use mobile devices for online shopping, the platform should work as efficiently with mobile apps as it does with desktop software. “User experience is important because the shift to mobile is already here,” says Brennan Loh, Shopify’s Director of Business Management. “More people are visiting Shopify sites from mobile devices than they are from desktops.”
Choosing payment methods
Ensuring fast, reliable logistics
Taking care of logistics
“You need to have your shipping processes set up from the beginning,” says Stairs. “Whether it’s Canada Post or couriers, understanding what it will cost to get your package to those markets is key to making sure your sales in those markets are profitable. Also, having a return policy for international customers is important—it’s the minimum you need if you’re going to succeed in retail e-commerce.”
If your Canadian customers need after-market support, you can bet your international customers will need even more. Be prepared to provide this support and to handle language and cultural barriers.
If you can’t respond immediately to a question, use an automatic response email to tell them when they can expect an answer. All questions should be answered within 24 hours.
Provide clearly written and easily understood policies that cover returns, warranties and guarantees. Make them easy to find.
Ensure that your logistics are set up to handle international returns. Fulfilment services may be able to handle this for you.
Talking to customers
“For us,” says Josh Fine of Manitobah Mukluks, “e-commerce is more than half our business, which is unique for a footwear company. It means we can communicate directly with our customers, and that allows us to learn and grow. It means we can speak with thousands of consumers, where before we had a lot of layers between them and us. And I think that many Canadian companies have the same potential.”
