E-Commerce: A Recession-Proof Business
by Dan Jablons, Chief Operating Officer
www.retailrev.com

As a retailer, you already know the importance of having a Web site. Maybe you already have one.

Some retailers I talk to agree that they should “have a Web presence” but have not yet taken their e-commerce business seriously enough to take it to the next level. However, there is a change coming in the economic climate, and retailers who don’t invest in their Internet business are headed for a rough time.

• Many retail stores are forecasting lower sales in their brick and mortar establishments for 2008.
  
  
• However, the National Retail Federation just published a forecast for e-commerce sales in 2008. They are up 17%, growing that sector to a little more than $204 billion.
  
  
• Nielsen Media Research (the company that measures what people watch on TV) predicts that in two years, advertising dollars spent on the Internet will exceed advertising dollars spent on television. It is actively restructuring its company to measure the Internet.
  
  
• In addition, there are tons of consumer surveys that tell us consumers prefer to look online first before they go to a store. They expect a store’s Web site to offer the same products as the store and in some cases even more.
  
  
• Surveys also show that customers who purchase on the Web are more loyal. When they find a site they like to buy from, they visit it often and make repeat purchases at regular intervals.

While there are no guarantees that your Internet retail business will succeed, the odds are more in your favor than you think. Typically the initial investment can be small, and there are more resources available to you today than ever before.

What You can Do About It

Okay, so we know the demand is there. Now, how do you prepare for it? How can you set up your retail business to win on the Internet? For many, this is a scary proposition. There are lots of horror stories out there about failed Internet businesses, runaway expenses, and confusing techno-speak that have many retailers thinking that they can never succeed online.

A Beautiful Web Site Is Only
the First Step

Okay, let’s assume that you’ve put together a beautiful Web site. It exists, it’s on the Internet, and people can get to it. You’ve told your buddies about it and perhaps promoted it to some mailing lists you’re on. You’ve even told Google, Yahoo!, and MSN that they should know about it.

Congratulations, you are now but a grain of sand on an endless beach. That’s harsh, I know. But it does make the point.

The existence of the site does not mean that people will go to it. In fact, when you boldly go to Google and tell Google that your site exists, Google will promptly search your site ― in 2 to 6 months. Other search engines will take more or less time, depending on their size and the number of sites they are trying to register.

So the step after the creation of the site is the creation of actual, bona fide marketing to that site. No matter what anyone tells you, no matter how bold the promise or guarantee, nothing gets sold without marketing. This has been true since Roebuck first stood over a barrel in an open marketplace and will be true when future generations operate vending machines on Alpha Centauri.

Marketing on the Internet is not like other marketing. The good part about marketing on the Internet is that there is a large audience, and does not cost as much as traditional marketing. The bad part is that the audience is, in fact, so large that getting noticed requires a better-than-great understanding of how to drive traffic and ultimately buyers to your site.

SEO vs. SEM

You’ll hear these two terms thrown around a lot. Let’s get some good definitions for them so that you know what they are, and what they do for you and your site.

SEO stands for Search Engine Optimization, and it is the activity of improving various elements of your site so that the search engines like your site, and list you as high up as possible.

SEM stands for Search Engine Marketing, and it includes various activities to market your site to active buyers. Search engine marketing includes such things as: email blasts, pay-per-click advertising, and article marketing. Many Web designers tell you that they’ll “optimize” your site for you. Be careful! Optimizing a site is done with very specific tools, and should always be done for a specific keyword phrase. So if your Web designer says he’ll optimize the site for you, and he doesn’t ask you which keyword phrase he should optimize on, then he is not doing anything for you. When your site is first launched, SEM is far more important than SEO. SEM will drive buyers to your site, and that’s vital in the beginning. It’s also more efficient, more direct, and more proactive.

SEO Activities

Here are some great ways to market your site right off the bat.

Email Marketing Email is still free, and sending email messages to clients is a great way to get them to your Web site. There is a tool that should be part of your Web site called an autoresponder. This is a utility that enables you to send email messages easily and efficiently to your customers. Autoresponders can send a series of messages to potential customers at intervals that you choose. For example, you can put a note on your site that says, “Register on our site and get our free series, ‘Ten Fashion Tips for Spring.’Then, every few days, you can send them a new tip. It causes your store to be on the mind of the people you are sending these messages to. In the earliest stages of your site, email marketing is probably your most effective tool.

Information Article Marketing. This is a great way to get potential customers to know you better. With this type of marketing, you write informational articles about your industry and publish them to the various article directories on the Internet. When readers find them, they’ll learn something, get to know you, and visit your site. It also establishes some trust in you, as you become an opinion leader who has been published. There is no cost to sending out these articles, and it does put your name out there on the Internet.

Press Releases
This is another type of article marketing. Press releases are similar to information articles, except that there is a definite time frame to them. You can issue press releases on the Internet for about $40 per release and they will drive traffic. Find reasons to issue them, such as the launch of the site, a special sale, or a special event you are having.

Pay-per-Click Advertising
This is one of the biggest topics in Internet marketing, and it goes far beyond the scope of this white paper, but we can get some basics understood. Pay-per-click advertising (PPC) is an extremely effective way to get targeted traffic to your site. It’s also one of the more expensive methods, but done correctly it will more than pay for itself. In pay PPC, you bid on keyword phrases that you think customers would type into a search engine to find you. Each time a customer types in that phrase, your ad has a chance to appear. If it does, and if the customer clicks on it, then you pay for that ad. Each click can be as low as $.05, and has high as $10. But before you panic, there are lots of rules to this to keep you from going broke while working in this area. If there is one area that requires mentoring and supervision, it’s this one. You wouldn’t buy stocks without a stockbroker, right? Don’t go here without someone who understands this business and can answer your questions fully.

Summarizing the Essentials

Let’s get down to the simple basics, now that you’ve heard what can go right, and what can go wrong. Here are the essential elements of any successful Internet business:

Great Web Site
Take the time to study what your competitors do and what you want your site to be like. Go over the features listed above and decide which ones are critical for your operation. Get several quotes from Web designers, and have them show you a portfolio of work they’ve done. This should take three to four weeks to execute.

Great Education and Industry Knowledge Remember that Internet marketing is a business, no different than aerospace, retailing, or window-washing. There are techniques that you must learn. Invest in yourself and you can make it happen. Trying to do this without learning the ropes will be deadly and/or expensive.

Great Marketing
Ensure that you take all the elements above and run with them. Work each element of the marketing to its finest potential and get your message out.

Great Mentoring
If you have not been in this business before, or even if you have, unless you’re making your living at it, find someone who knows the ropes and let him help you. Great mentors save you a ton of time, aggravation, and expense. They’re worth every penny.

Internet marketing can be a fun, rewarding, and lucrative adventure. We wish you tons of success.

Dan Jablons has worked or consulted in retail for the past 30 years having helped retailers large and small to grow their business, increase efficiencies, and become more profitable. Because of the opportunities for retailers to grow their business through the Internet, Mr. Jablons has turned his focus towards helping retailers establish profitable web businesses. He can be reached at 800.980.1746 x6 or by e-mail at dan@standardinternetmarketing.com