Setting up shop online
Mie-Yun Lee, Editorial Director, BuyerZone.com
May 1, 2003
For the easiest way to expand your potential customer base, sell your products online.
Online shopping carts have now enabled small businesses on a budget and with limited
technical expertise to sell alongside the big guys with the deep pockets.
There are two ways to establish an online store: use an existing cookie-cutter storefront
template or develop your own. Template-based stores, like Yahoo! Store, are turnkey systems
with standard shopping cart software and tools. This is the most inexpensive way to start
selling online. However, because these stores must work for the masses, they have a plain
vanilla design and are limited in functionality. Typically they also have far more restrictions
on what you can do with your site - like preventing you from linking to another site
that sells your products, for example. You also are limited in visual format unless you
want to hire your own Web designer.
Because of their lack of flexibility, these prepackaged online store setups are ideal
if your business has very straightforward retail needs. Also, if you are not sure whether
selling online will be effective, you can test the waters more easily with template stores
since they require no long-term commitment. Should your store not prove feasible, you
are only out the monthly fees, not a custom-designed storefront.
You can also build your own Web store. You are better off hiring an e-commerce development
firm that specializes in shopping cart software to do this for you. Custom development
allows a lot more flexibility in setup and design. They also support more sophisticated
functions like integrating a store into your existing Web site, creating a look and feel
that is markedly different from your competitors, offering extensive reporting, or working
in tandem with online auctions.
If possible, get current or potential customers to offer feedback or provide insight
on what information or assurances they need most to feel comfortable buying at your online
store, and make sure the shopping cart service you choose can offer it. Examples might
be the ability to search your catalog, foreign currency conversion, or shipment tracking.
You do not want to discover too late in the game that the solution you use does not offer
what your customers need.
Custom-developed online stores can cost as little as $1000 to set up, plus ongoing
monthly fees for use of software and shopping-related tools, often no more than $50 per
month. Monthly costs for reliable template-based shopping cart services start at about
$50 and usually include per-transaction fees, a set fee per item you sell, and hosting
fees because your store "lives" on their site. And of course, every online store needs
a credit card merchant account to accept payments online.
But remember that while anyone can be an online retailer, not everyone can be successful
at it. Whatever type of online store you choose, remember that the Internet does not
operate in an "if you build it, they will come" mentality. Unless you have marketing
and advertising plans to clearly target your customers, adding online shopping to your
site will be a waste of time and money.