If 2020 taught us anything, it’s that when pressed, people will find a way to get the products they want, and those who offer them in the most user-friendly, convenient way will almost always win the business.

Before 2020, I was what I’ll call a “half and halfer.” I still loved to browse the racks in a physical store and enjoyed the experience of “just looking” when it comes to fashion, books, jewelry, etc. I’m also a savvy online shopper that doesn’t mind targeted ads and a personalized shopping experience based on my previous online behavior (marketing nerd, check).

So when 2020 decided to be a jerk and demand we stay home for more than half the year, my ratio of in-person to online shopping went way askew like everyone else. Suddenly, I was an “all-in” online shopper, ordering everything from clothes, shoes, groceries, and books online. That’s probably why “through the first three quarters of 2020, consumers spent $546.62 billion online, up 32.6% year over year from $412.32 billion for the same period in 2019, according to Commerce Department figures.” (Source: Digital Commerce 360)

So, everyone needs to immediately start an online store, right? Wrong. While many people have jumped on this new bandwagon and launched an online store, we’re likely to see a big percentage of those last less than 18 months. Why? Because launching an online store sounds easy enough, but many are going in blind, unprepared for what to expect, and unrealistic about their return on investment. And when some certain factors are not considered in the early stages of development, the result can be a poor customer experience online, disappointing revenues, and even a hit to the company’s brand.

So, to avoid making those mistakes, here are three things you should know before launching an online store:

Be very clear on why you want to launch an online store & who your ideal customer is

That’s easy. To make more money, right? If increasing revenue is the number one reason you want to launch an online store, you might want to take a step back.

Many small business owners fall into the “get rich quick” content out there promising sold-out stock and six-figure results, even if you have no audience. In reality, those kinds of stories are few and far between. That’s not to say you can’t make good money through online sales, but it shouldn’t be your primary motivation. If it is, and the sales fall short of your projections, you’ll be tempted to throw in the towel and cut your losses, losing any potential goodwill you have with your existing customers and not to mention, losing the money you invested launching the store in the first place. Consider goals of increasing brand awareness and offering customers various ways to engage and support you instead.

Choose the right online platform.

It’s difficult to know exactly what you’re going to need from an online commerce platform before you even have a shop opened. And with the plethora of choices out there, the decision-making process of which platform to choose can be paralyzing. When I opened the Nonprofit Template Shop, I originally hosted my shop on my Squarespace website. I loved the platform, it was integrated with my website seamlessly and offered what I needed to get products added quickly and efficiently. But about six months in, I realized all the limitations I couldn’t have known earlier and found myself frustrated with the entire thing. I ended up moving my online store to Podia and it has been a wonderful experience. But, it took quite a bit of time and energy to get everything moved over and running smoothly again.

Before you choose your online store platform, talk to similar business owners who have already gone through the process. Find out what they love and what they don’t about their own platform. And be sure to consider these questions at a minimum:

• How will the online storefront integrate with your current website? Will potential customers need to leave your website to make a purchase? If so, can you use a sub-domain to present the website as part of your own? And, how can you capture your online traffic results (i.e,. will it play nice with Google Analytics?)

• Can your other software integrate with your current website? Many eCommerce tools can make your life easier, but they’re useless unless they integrate with your website. For example, advanced EDI platforms for eCommerce, like Spark Shipping, can exchange data between businesses, suppliers, or logistics providers. It can integrate with all major shopping carts and platforms, such as Shopify, Amazon, BigCommerce, and more. 

• What kind of fees will you pay with each transaction? Are you charged a monthly rate regardless of sales? A per-sale fee? Get very clear on what it will cost you behind the scenes for every online sale. This is critical information to know before deciding how to price your online merchandise or services.

• How will you manage inventory? The most common hangup I see with physical stores that want to add an online component is trying to figure out how to manage their inventory between the two (or more) locations.

• How much control do you have over the platform’s design and branding? At a minimum, you want to have some great SEO features, the ability to customize the site to match your company’s brand, and the ability to use CSS in case further customization is needed.

Have a strategic marketing plan before you launch

Build it, and they will come, right? Not exactly. Getting your online store up and running is simply step one. Next, you must make the case for why buying online with you is the right decision for your customers and clients. Plan to promote your online store inside your actual store, if you have one. (Flowcode is a great option for using QR codes which are really picking up in popularity right now!)

While traditional marketing efforts will be helpful, don’t forget the power of your own website, too! In a recent Statista survey, direct to site, email, and SEO were found to be leading traffic drivers for online shopping. (Notice the absence of social media here - most social media platforms give very little organic exposure to any posts driving traffic away from their own sites). If you have a relatively new store and your advertising budget is not very high, you should consider incorporating a blog into your site so Google will have a reason to send people to your new online store. Consider writing blog posts about how to use your product, doing comparison posts about why your product is better than a competitor, or featuring user-generated content about how your customers are using the products or services.

There are plenty of reasons to consider adding an online store in 2021. Just be sure to consider these three areas before you launch and go in prepared to put in the work before seeing the return on investment. If you have questions about running an online store or a tip others should consider, leave a comment below!

Until next time,

Andrea

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