One question that is often asked is “can I make money from e-commerce?” In a word, “Yes”. Of course you can, otherwise why would so many e-tailers be springing up at such a rapid rate?
However, the amount of money you can make will depend on what you sell, how organised you are, your marketing strategies and so on. And as the public becomes more aware of Internet shopping and its advantages, the opportunity to make money on the Web is expected to grow dramatically.
If there was not a good return e-commerce would not be worth the investment of time and money. Anyone can create a Web site. However, it is not as simple as “build it and they will come”.
Your Internet customers will be the driving force behind the amount of dollars that are rolling in. So making sure they are well catered for is the key. The question then remains how can you make money from having an online presence?
E-commerce experts believe many dotcom failures can be put down to a lack of customer service and dedication. If you do not make the shopping experience as easy and as pleasurable as possible, it is highly likely you will not get a second chance.
What makes a site successful?
If you want your Web site to make money it must be effective in a number of areas which include:
Second-to-none customer service
Quality Web site content including product and service information, which is regularly updated
Professional approach to Web page design and function
An excellent knowledge of your target audience. This will help you pitch your approach
Relevant marketing strategies which will drive more traffic to your site.
E-commerce can provide high financial returns for a relatively small financial outlay.
While your sales will provide the primary financial base to your site, there are other add-ons where you can also make money through having a Web site.
These include:
Offering advertising space on your Web site
Affiliate programs where you obtain a fee or commission when customers go to another Web site through yours
Streamlining operations through less manual labour and better time management
Reducing costs such as advertising and printed promotional materials. Unlike printed material, the Web site can be updated every day and change according to your needs.
You are really only limited by your ideas and budget when it comes to making money through e-commerce. Preparation is the key and the more you know the more you’ll grow.
For example, one e-tailer saw an opportunity to make money on the back of failed e-commerce businesses. Overstock.com is an American-based online store. According to the site, it is the Internet leader for name brands at clearance prices.
As the saying goes, one man’s loss is another man’s gain and that is the case when it comes to Overstock.com. Apart from selling manufacturers’ excess inventory at extremely competitive prices, the site also buys the stock from failing or struggling e-commerce businesses at a very cheap price. It then sells on to the customer at a marked down price while still making a profit.
Internet uncertainty
If you are still a little uncertain about your business and its possible application to e-commerce consider a few of the following points.
You do not have to be a computer genius to have a Web site. It is just a matter of knowing what you need, why you need it and how to get it.
E-commerce is for you even if your business is currently going through a financial downturn. You may need, now more than ever, to get some new customers or to find new prospects. Your online store does not need to break the bank. With an online presence your potential customers number in the millions.
Going online is for you if you have a niche product or service. These kinds of niche markets work extremely well on the Internet. Things such as collectables can turn out to be very profitable when taken online.
E-commerce is for you if you realise your competitors are already, or planning on, using the new technology to their advantage.
