Introduction to on-line selling. GrowBiz Peer Support Group September 2015
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- Marsha Booth
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1 Introduction to on-line selling GrowBiz Peer Support Group September 2015
2 The options Own site Your domain name.com/.co.uk You provide the infrastructure to handle the transaction/ payment/ customers Third party site Buying space to list and sell your product/ service e.g. Amazon Marketplace, ebay, etsy, HomeAway Pay them for each transaction made on their system
3 Own site Pros You control: brand/ product presentation Display of prices Terms of trade Service & site developments Targeting your marketing efforts Own your customer data Build a direct relationship with your customers Cons Need to have own site (but lots of options available) Responsible for managing technical updates/ security/ payment handling etc Plan for site development Need to do your marketing and build your client base
4 Third party site Pros Easy to use systems Lots of features Support/ guidance No upfront investment Pay on basis of sales Piggy back on marketing activity/ brand profile Cons Loss of control Presentation Display of prices Customer data Terms of trade Development and innovation Tied in? More difficult to build direct relationship with customers Big v Small
5 Payments on your own site Integrated payments Requires SSL encryption/ certificate (padlock symbol) annual fee. Requires access to payment system e.g. SagePay/ WorldPay Merchant account, standing and transaction charges. Hand-over to hosted payments e.g Paypal Seamless transfer from own site to theirs and back Volume dependent fee 3.4% + 20p
6 Payments third party site Pay to use their service e.g. HomeAway = 7% booking fee + 3% transaction fee Holiday Lettings = 3% booking fee, but want all your bookings if you have a free listing Etsy = 0.20 USD product listing fee+ 3.5% transaction fee + 4% payment processing fee +20p per transaction Depending on site: in-house system Third party specialist e.g. Yapstone for HomeAway Paypal
7 How do I choose? Own site might be best when I know who my customers are and I can reach them Repeat business is important I have a strong/ clear brand I have growing/ high sales volumes I have high value sales I want to define the sales experience 3 rd party might be best when My business is very new I need to reach a wide/ global market Low potential for repeat business The market place is very crowded and it is difficult to differentiate.
8 How do I choose? cont Where am I now? Where do I want to get to? When? Research Look at the options What are your competitors doing Which gives the best experience for your customers/ fits best with your business? Understand the small print Work out the cost of sale.and you can do both at the same time!
9 The cost of sale = The total cost of sales/by the total revenue expressed as a percentage. Compare costs of different options Depends on your business but might include: Website and advertising costs Transaction charges e.g. commission and card processing fees Postage & packaging costs Time spent managing listings/ enquiries/ sales/ aftersales
10 Selling well on-line Great pictures & description Consistent details Original content don t copy the manufacturers details Consistently good service Clear terms of sale Encourage customer reviews Build your brand and reenforce it Build brand loyalty: great products, service and customer knowledge Devote time to your online shop
11 Selling well on-line - 2 Don t sell your business short. Get the best on-line shop you can afford. Think about the functions/ features you need (and will need) Identify what is good on other sites Get professional help and advice Don t have empty shelf-space Avoid creating departments with very few (or only one!) product.
12 Why should I sell on-line? Your competitors will be Comparing options Very few business sectors where on-line selling not suitable Look out for new technological solutions The playing field has never been so level
13 The level playing field Wide range of on-line sales options available Wordpress Excellent value for money Customisable themes (templates) Plugins e.g. Woo Commerce Flexible product listing Account & stock management tools Integrated payment options, Paypal, COD, cheque payment Custom development booking module for self-catering Wide range of add-ons: Newsletter sign-up, gift vouchers, promotions tools, social media integration.
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16 Why should I sell on-line? (cont) Open for business 24/7, 365 days Reaching a global audience In 2015 Brooklinn Mill Holidays has had guests from: USA, Canada, Netherlands, Germany, Australia, Denmark, Ireland, Scotland and England Because you can do amazing things!
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