14.03 – Selling Goods & Services Online
Selling goods and services online has revolutionized how we conduct business, covering a wide array of products from books and DVDs to computers, medicines, and financial services. The online market has even expanded to include vehicles and real estate. With the surge in digital transactions, items like holidays, airline tickets, software, training, and even university degrees are now commonly bought and sold online. Notably, the online gaming market alone boasts over 217 million users.
However, the extent of online penetration varies across different business sectors. According to Smart Insights, clothing and footwear represented nearly a third of all online sales, a significant rise from 8 percent in 2014. In contrast, only 11 percent of food sales occur online. For more detailed insights, visit Smart Insights’ report on online retail sales growth.
Handling Sales from Your Website
Choosing to manage sales directly from your website puts you in complete control but isn’t the sole way to establish an online business. Another effective approach is to leverage third-party websites to handle sales, dispatch goods, and manage payments. Each method has its own set of advantages and disadvantages.
Using Third-Party Websites
Partnering with established e-tail platforms can simplify your entry into the online market. This approach allows you to avoid the complexities of managing an online sales system, which includes showcasing products, handling orders, and ensuring payment and fulfillment.
- Amazon: Offers tools for easy inventory upload and provides extensive services such as payment processing, insurance, and distribution. Fees vary based on product types, with no fixed-term contracts.
- eBay: Known for its broad user base, it’s an ideal platform for selling a wide range of products. The site also provides resources and success stories to guide new sellers.
- Alibaba: A global e-commerce leader assisting SMEs to reach international buyers. It offers tools for storefront setup, advertising, and traffic analysis.
Building a Store Front
Creating your own online store allows greater control over your brand and customer experience. Platforms like Shopify, Wix, and BigCommerce offer comprehensive solutions for setting up and managing online stores.
- Shopify: Popular for its user-friendly interface and scalability, Shopify supports businesses of all sizes with various pricing plans and features.
- Wix: Provides a flexible platform for creating customized web presences, including e-commerce capabilities. It’s suitable for beginners and offers advanced plans for growing businesses.
- BigCommerce: Known for its robust e-commerce solutions used by major brands, offering competitive pricing plans similar to Shopify.
For those just starting, platforms like Square provide almost free storefront products, ideal for testing the waters in online sales. As you scale, you can transition to more advanced shopping cart software for enhanced inventory management and sales analysis.
Getting Paid Online
To facilitate online transactions, setting up a reliable payment system is crucial. PayPal is a leading option, offering a seamless way to accept payments from major credit and debit cards. With no setup fees and a quick application process, PayPal is accessible and efficient, though it does come with transaction fees.
Other notable payment services include WorldPay and Durango, each with unique features tailored to online business needs. Staying informed about the latest in merchant accounts can be achieved through resources like the Merchant Account Forum.
Fulfilling Orders
Fulfilling orders efficiently is key to maintaining customer satisfaction. You have two primary options: manage fulfillment in-house or outsource to a fulfillment service.
- MetaPack: Offers automated solutions for improving customer delivery, from printing dispatch labels to booking courier pick-ups.
- Amazon Fulfillment: Provides comprehensive services that may be more cost-effective than managing fulfillment yourself.
Alternatively, dropshipping allows you to sell products without handling inventory, making it a streamlined option for many entrepreneurs. Shopify offers valuable tutorials and articles on getting started with dropshipping.
By exploring these various strategies and platforms, you can optimize your online selling process, ensuring a seamless experience for your customers and a profitable venture for your business.
