The cost of selling on the Internet

Working for one of the UK's leading providers of online shopping websites to the retail industry I am regularly surprised at the lack of awareness that many business owners have in respect to the costs of running a shopping website for their business.

Unfortunately this seems to be more of a reflection on the state of our industry than anything else, website design companies have got used to simply handing over websites like apples to business owners who have little idea of how to make them become tangible assets for their existing businesses. More often than not this is down to a distinct lack of knowledge by website design and development companies themselves.

At present retail owners both large and small are flocking onto the Internet in their droves in response to a steep upward trend in online shopping over the past two or three years. Its been well documented in the press how the high street has taken a battering from competition on the internet which saw an increase of 76% in online spending in 2007 over 2006, furthermore predications are that by 2009 15% of all shopping in the UK will be done on the internet.

With the internet changing the way we shop and small to medium sized retailers feeling the pressures of the high street giants getting to grips with the internet for many retail owners is fast becoming an absolute necessity. As well as keeping up with the competition diversifying onto the internet also offers an extension to a retailers traditional high street sales channel.

Unfortunately though the internet is not the 'get rich quick' solution it's often made out to be. The net is a vast marketplace and unlike a high street store that aims to target consumers within its immediate vicinity the web provides the ability to target the masses nationally and even internationally. This in turn makes the internet not only the busiest marketplace anywhere in the World but also the most competitive.

The potential of the internet for all businesses is of course unquestionable and also its central lure, many a web designer, developer or associated sales rep will spout on about the huge rewards it can bring to your business, however buyer beware as many of these web companies have little or no experience of running online shopping websites and as such can land you with a website that simply drains your resources.

As with any business attracting custom is the key to it's success, and this is no different on the internet. A useful way to think when considering an online shopping website is that it's comparable in many respects to opening a new branch of your business, there will be running costs as there are with a bricks and mortar establishment.

One of the most significant costs that should be considered is marketing and advertising. Your business will be new on the internet and as such establishing its brand awareness within its new marketplace will be essential to its long term success. You may not have either the expertise or time to undertake this yourself and therefore relying on your website provider to offer services will be necessary. Again ensuring a provider with a proven track record for effectively marketing websites on the internet is essential.

Ultimately the question is how much does it take to run a successful online shopping website. Well alas there are no particular figures set in stone however the things to consider are this... Paying for the design and development of your website is very much the beginning. Additionally consider the marketing and advertising costs that you already know of, most of us have run ads in newspaper or magazines, printed flyers or perhaps indulged in TV or Radio advertising. Most importantly consider these costs at the time of website development, not after! If you can choose a provider that specialises in online shopping or 'eCommerce' solutions and ask them directly for them to give you an accurate idea of what they think it will take for your business to be successful on the internet.

For more information on ecommerce and selling on the internet contact us today