| If you have a brick and mortar establishment, you | | | | far as it goes, but the problem is that as retail |
| probably think that you have a good grasp of the | | | | customers change their purchasing habits it does not |
| various costs of doing business including your fixed | | | | go far enough. It brings you to the brink of |
| costs, payroll, inventory and transportation in terms of | | | | e-commerce, but the time has come to go past that |
| receiving goods and shipping them out again. However, | | | | brink and take the plunge. |
| have you considered another facet of your product | | | | Don't worry. The water is fine, the fish are-for the |
| delivery scheme that can have a very real and very | | | | most part-pretty and pretty harmless, and the bottom |
| direct effect on your sales, the transportation costs | | | | is littered with treasure for those willing to go after it. |
| incurred by your customers? Think about it: As the | | | | Online Business Components |
| price of fuel rises, customers are less interested in | | | | It does not take an arm and a leg to get going in the |
| getting into the car and driving out to your | | | | world of e-commerce. You need two things to be able |
| establishment. | | | | to conduct business online: A way for your customers |
| What Goes Into Fuel Prices and What are the | | | | to choose products and a way for them to pay for |
| Consequences? | | | | those products as well as for the shipping necessary |
| Fuel prices are more than just the price of gas at the | | | | to get their items to their doorstep. |
| pump. There are a large number of things that go into | | | | The Product Catalog. |
| the price per gallon that you have to pay (all figures | | | | This is the portion of your site where you showcase |
| are approximate): | | | | your products. Have a look around at other |
| - Crude oil prices: 53% | | | | e-commerce sites and see how they do it. You should |
| - Refinery processes: 19% | | | | have a photo of your product, a brief description, the |
| - Federal, state and local taxes and fees: 19% | | | | price of the item and a way for your customer to get |
| - Marketing and distribution costs: 9% | | | | further information such as a button that takes them to |
| - Retail station costs and profits: 3% | | | | a product page. Small stores with a low number of |
| What all of this adds up to is the price you pay at the | | | | products can get away with a simple menu on the |
| pump. Now, as that pump price rises-driven up by oil | | | | main page, with perhaps a small photo icon of the |
| speculators looking at growing markets like China, as | | | | product. Users can click on the icon and be taken to |
| much as by OPEC or anyone else, and threatening to | | | | the product. Larger stores, however, tend to need a |
| reach the $4.00/gallon mark by this summer-the | | | | more robust and sophisticated solution. These stores |
| willingness of customers to drive to your shop also | | | | usually have a single product per page and rely on |
| threatens to decrease. According to the National Retail | | | | either site search engines or hierarchical departmental |
| Federation's 2007 Gas Prices Consumer Intentions and | | | | menus or both to browse the store. |
| Actions Survey, more than 74% of consumers | | | | The Product Page. |
| believed that fluctuating gas prices had an impact on | | | | This page should offer all the information on the |
| their spending habits with over 40% reporting fewer | | | | catalog page as well as further information about the |
| shopping trips. There was also a marked increase in | | | | product itself, colors, prices and availability. It should also |
| customers shopping closer to home, taking advantage | | | | have a way for your customer to specify how many |
| of sales and using more coupons. | | | | of this item they would like to buy and way to send |
| Offsetting the Damage: Dealing with High Gas Prices | | | | that information to a shopping cart. |
| Now I am not saying that the days of city-dwellers | | | | The Shopping Cart. |
| driving out to the suburbs to shop are over, but that | | | | This is a temporary page that stores the information |
| behavior is declining. Fewer customers through the | | | | about your visitor's purchase. It is essential for efficient |
| door mean fewer sales and lower income for your | | | | online sales and luckily it is not difficult to obtain. There |
| business. So how do you offset this drain on business? | | | | are a variety of shopping cart modules available for |
| One thing you can do is change your marketing efforts | | | | purchase or rental, or you can have one designed |
| to make coming to your establishment a treat. Another | | | | specifically for your site. This last will, of course, require |
| way is to open your business to customers in a way | | | | you to hire a Web developer and is generally the most |
| that does not require them to come to you by opening | | | | expensive option. Rentals can be based on lease time |
| a virtual storefront on the Internet. | | | | (month to month or annually) or on the number of |
| Market the Experience | | | | items you plan to process each month. |
| Everyone likes to be treated like a star. Consider: If | | | | Bringing it all Together: Store-building Software |
| Johnny Depp and Helena Bonham Carter waltzed in | | | | Today, affordable store-building software takes care |
| with a straight-razor, meat pie and a song; after picking | | | | of all of these issues for you. These stores include the |
| your jaw up from the floor, how would you treat | | | | shopping cart, and now allow you to add, delete, or |
| them? You would do everything you could to meet | | | | temporarily hide products, change prices, set up sales |
| their needs, right? You might even eat the meat pie | | | | and promotions, pick up orders securely, manipulate |
| (though I can't recommend the shave) just to show | | | | graphics, and integrate the online operation with existing |
| how important they are to you. The point is that they | | | | accounting and inventory systems and you can do it all |
| would walk out of your place feeling like royalty. Do | | | | from your desktop Internet browser. |
| your current customers exit your establishment feeling | | | | Store-building software also maintains an online |
| like royalty or like something else, something | | | | database where such information as product name, |
| considerably less regal? Take an inventory of how | | | | SKU, descriptive text, price, weight (to calculate |
| your customers see their experience in your | | | | shipping), and the file name of the product photo can |
| establishment. Discover what you are doing well and | | | | be kept. With such a system you can easily select the |
| what you need to improve upon. Some things to | | | | products you want to appear on store pages. In more |
| consider include: | | | | sophisticated and powerful store-building applications, |
| - Customer Interaction. How does your staff treat your | | | | you can also assign departments and |
| customers when they come in? Do you meet or | | | | sub-departments to each product for easy |
| exceed their expectations? Have you gotten to know | | | | cross-linking within the store's searchable online |
| them? Do you remember things about them such as | | | | database. |
| their favorite items, special days, etc.? | | | | Getting Paid. |
| - Delivery Options. Do you deliver in a timely manner? | | | | This is what it is all about, isn't it? While merchants can, |
| Are your customers satisfied or can you do a better | | | | and sometimes do, take electronic checks, the primary |
| job in getting your goods and services to them faster | | | | mode of payment for online sales is the credit card. |
| and more efficiently? | | | | The reasons are obvious since credit cards are: |
| - Prices. Are your prices in line with your competition or | | | | - The only truly universal electronic medium of |
| are they higher or lower? How can you adjust your | | | | exchange. |
| price structure to satisfy the most customers while | | | | - A way to sell more products and services by |
| remaining competitive and meeting your financial needs. | | | | offering convenience in ordering. |
| - Payment Options. Have you made payment as | | | | - An automatic way to handle foreign currency. |
| convenient and as flexible as possible for your | | | | The key with credit and debit cards is convenience. |
| customers? | | | | After all, there is no substitute for being able to order |
| - Incentives. What do you do to keep your customers | | | | something and instantly consummate the deal. Still, |
| from going across the street? Clubs and frequent | | | | simply because you accept credit cards, that doesn't |
| buyer cards, referral incentives and other things can | | | | mean you should not offer other purchase alternatives |
| have a real impact on how your customers see their | | | | as well. Have an order form that can be mailed in with |
| relationship with you. | | | | a check or money order for those who don't wish to |
| | | | use-or don't have-credit cards. While you will be |
| Opening Your Virtual Storefront | | | | certainly catering to the fringe of your customer base, |
| For many brick and mortar businesses, their Web site | | | | having this option will attract some shoppers that you |
| is a way to showcase their goods and services, share | | | | would have lost otherwise. |
| some information about their business and key | | | | Rising gas prices, even a coming recession, don't have |
| personnel, tell a story or two about their most satisfied | | | | to mean a reduction in your business. By taking steps |
| customers and give their site's visitors a way to | | | | to make your business as convenient and accessible |
| contact them and even directions to the store. In this | | | | as possible, to raise your marketing and customer |
| case the Web site is, for all intents and purposes, an | | | | service to the next level now, you can head off any |
| online brochure. There is nothing wrong with all this as | | | | problems that may be coming down the road. |