Running an online retail store is harder then it looks

At first when you look at it it seems easy enough. But when you get right down to it there is a lot of work involved. When you get started you have to decide between building a site, renting a site or shopping cart by the month. Both require some time and work to find out what is best for you in the short term and long term. Once you have you decided and things are set up the real work starts.

Unless you have a limited product line there is going to be a lot of work put into getting product into your shopping cart. It is not just a matter of slapping a picture on and the products name and price. No each product is really a mini add and should be treated as such. What information you have in the description and title are what is going to be used by search engines to find your product. Then the description that shows up under your link is what people are going to use to decide to look at your product. The competition starts way before people see your product. You are competing with millions for each view. Please note that was view not buy. Just because you get someone to view your product does not mean they are going to buy from you.

The idea is to market your product online with a description and key words that will attract the people interested in your product. There is no point in using key words or descriptions that will bring lots of people to your site, but only a few of them are people interested in your product. You want to focus on your target market and attract them to your website or online store hoping that once they are there they will buy something. These means you have to think about what you put into the description and title of your products. What key words will your target market be using to find the product? Are they in your description or title? Once it come up in a search will your description stand out from all the others? Will it attract your target market to your site?

So now you put some time into reaching your target market and they click onto your product, what will get them to buy? There are a million and one other web site’s selling the same or similar items, why should they buy from you? What are they going to see first your product or home page? If they are searching for a product your link should open to the product. So how you have your shopping cart set up is going to give people their first impression of your company. How it looks is going to influence people to buy or not buy. Other things that will influence people to buy or not buy are your prices for the product, product image or picture, shipping costs, shipping options, return policies, where you are located, overall appearance of site; feed back from other customers, your home page, about us page and any other information you provide. How much information you provide or don’t provide will help people decide if they want to do business with you and not the other million sites.

At all points of contact with potential customers you need to be marketing your company, store and product. This is from the fist search people use to find you, to how easy it is to use the check out to buy and pay for your product and how the product was shipped. Even how the product was packaged can influence a repeat buy or not. Once you have a customer you need to do everything you can to keep them. Word of mouth is still the best marketing tool out there. Once you have a customer keep them happy and hope they tell everyone about you. But first you have to get that customer, and that is not always easy to do no matter how great your product, prices and company are. It is not just a matter of putting your product out and having it available to buy. You have to put a lot of time and some times money into marketing your product, store and company even after you start making sales. The marketing never ends because there are new online stores showing up and you have to compete with them and any local stores that can and will sell to your customers. In other words the work never ends if you want to keep brining in customers and making sales.

So if you are thinking about opening up an online store because it is easy money, think again. You only get out of it what you put into it. If you plan to put product out and sit back and wait for the sales to come in, save your money and find something else to do. There is no easy money to be found on the Internet anymore, it is a highly competitive market that is becoming more competitive everyday.

You always need updated anti-virus programs on your computer.

These days you cannot have a computer online and not have some type of anti-virus program. If you don’t have a firewall and a million and one safety features your system is going to get hit with something nasty. Even with a top of the line security system your computer can still be hit by something designed specifically to get past the anti-virus program. That is why the best ones update all time.

We got hit with one that was designed to get past Norton, it turns out we were the first to notice. We contacted Norton and they spent 4 hours on our computer, found and copied the virus and then used what they had to send out an update to block it and prevent others from getting hit. Then they told us it was going to take months of work to analyze the coding so they could come up with a way to destroy it. We were very lucky that we have our anti-virus program set up to automaticly run a diagnostic everyday at the same time. We got hit a few minutes before Norton ran its diagnostics. With in those few minutes it hit and damaged a lot of our core data. I am so glad we back up everything. It is scary how much time people put in to nasty programs designed to damage or destroy your data or even computer hard drive, or to steal your information so that they can drain your bank account and wreck havoc in other areas of your life.

Not every one understands that you have to upgrade your security every year and that you need have whatever system you are using to update as often as possible. I know people who thought that they only had to buy the program once and never update it. Yes they lost their computer and had no idea why. Also don’t go with a system just because it is what you know. Computer technology changes fast and what is available to protect your computer has changed as well. Take the time to check out the top 10 anti-virus programs before you buy any anti-virus program.

We just made a change to Bitdefender from Norton and are very happy. However both of these can be found as #1 on any number of top ten anti-virus lists. You need to take the time to figure out what anti-virus program will be best for your budget.

Gas prices are changing how we do business

The price of gas is changing how people buy. The higher the price of gas, the more expensive everything else is. This is reducing people’s disposable income dramatically. People are less likely to give into impulse buys; they want to feel they are getting great value for their money. They are less likely to buy something just because it is there and it catches their attention.

People are buying less luxury items, such as jewelry and purchasing necessities instead. Buying over the Internet is also down as the cost of shipping is up. Why buy something that has to be shipped when you can find a similar product at a local shopping mall and don’t have to pay for shipping. Just because an item seems to be a deal online does not mean it is once you include shipping and handling charges.

So how we market product has to change. You have to concentrate on the perceived value of the item, or that it is cheaper to buy from you then the local store even with shipping charges. Some places are even covering the cost of shipping. With fewer dollars available the competition for those dollars is becoming even more intense. I am quite sure that some small businesses and some big ones are not going to be able to survive for very long unless things change.

So the real question is how do we stay in business with a reduction in sales? For us it will be by cutting costs wherever we can. We are offering several different shipping options so people can get the one that fits their budget. We are reducing the amount of packaging that goes with products to reduce shipping cost. We are not purchasing any manufactured products for our inventory. Other then what we already had to put onto the website we are only adding our own handcrafted pieces to the website inventory. That is about all we can do. We don’t have staff to let go, other then ourselves. But until we make more sales we are not paying ourselves. It is going to be hard and our ability to stay in business will depend on how long this goes on for. We will be fine for at least a year. Hopefully things will be better by then.

What you need to know before contracting a web designer or developer

We learned a lot over the last few years about the do’s and don’t when dealing with a web designer. We had some real problems. I would like to keep others from having the same or similar problems. The first thing you need to understand is that there is a big difference between a web designer and a web developer. A web designer will make pages for a web site and are wonderful if you have an information site. Web developers create the coding and programs that web designers use to create the web sites. Web design is the icing on the cake; the web developer made the cake the icing goes on.

If you are doing anything that is more then just an information site I recommend going with a web developer or learn to do it yourself. If you have just an information site that does not require the integration of other programs like a shopping cart then a web designer is the right person to go to. However, if you have the time and inclination you can also pick up a great book called “Beginning HTML with CSS and XHTML modern guide and reference” by David Schultz and Craig Cook. My husband used it to create our new web site.

There are some wonderful web developers who can integrate existing programs and software into the pages they create for you. The main purpose of a web designer is to design the look of your website and that the programs being used on your site function well together. The more complex the site is the more knowledge and experience will be needed. You need to understand what you want and need your web site to do before you design how it looks.

This means that you need to find out if pre-existing programs will work for you and will work together with any other programs you want. If they do then great find a web designer, buy the programs and let the designer make your site look and work how you want it to. If there needs to be a lot of tinkering with the programs you are interested to make them work the way you want and together then you need to make sure your web designer can do the work, or find a web developer who can make them work or create a new program that will do what you want. Do not assume that a designer can do it; their job is to design the look of the site, not create programs.

That is the biggest thing most people do not know, a designer creates the look, a developer creates the programs and can create the look you want. We made that mistake thinking that a designer was a developer. We needed a developer as our site was more complex then what our designer could do and he used up our service contract with our shopping cart program provider to get them to do the installations of their programs. We know this from the from our shopping cart provider after we forced our designer to transfer our shopping cart licence to us. We now have to buy a new service contract if we need their help with the shopping cart program. This would not have been the case if we had hired a web developer. Know what you need for your website and hire the right person for the job.

When hiring someone to create a web site do your homework

In the last two years we have dealt with three different web site designers, and learned a lot what not to do, and how to do things on our own. We are upset about the time and money we lost dealing with the different people but at the same time we are grateful things happened the way they did. We now have a wonderful website that James designed and created on his own. He decided that instead of paying more and more money to get people to work on our site that he would just learn how to do it. Now he has 100% control of the website and what is on it. I was forced to learn how to market a website with both hands tied behind my back. Now that we have a properly functioning website I can use the tools and skills I had to use before, but ever so much more effectively. We learned and changed because of our experiences, but I don't want anyone else to have to go through what we did.

With anything you need to do your research. Put the time into finding the right person or company that fits your budget and creative ideas. Never forget that it is your website and needs to reflect who you are or your companies image. Don't just go with the first person or company that fits your budget. You are hiring someone to do a job for you. Treat this as you would if you were hiring on staff, contact references and find out what other people have to say. Don't just look at what is posted on the persons website as reviews, actually call them and talk to past clients. You’re the boss, not the other way around.

Look on the Internet for other sources of information. If there is something negative about a designer or company it is probably out on the net, it is just a matter of finding it. See how many websites have links back to the designer. Try to find a couple that indicate that they were created or designed by this person or company that is not being used as a reference. Contact them and find out their opinion. Sure it is going to take time and work, but it can save you a lot of time, money and effort on your part.

When you have decided on a designer make sure you get a clear contract that stipulates exactly what you want the website to do and look, when you need the site up and that everything needs to be purchased in your name or your companies name so that you own the website, not the designer. You may also wish to include the term functional website in the contract, small thing that can make a big difference. This helps both of you to know what is expected and when. This way if something was not done you can refer to the contract and have the work done. If you find that the web site is not doing something you want it to do now the web designer can refer to the contract to show you it was not included in it and you can either re-negotiate the contract or do another one just for that part.

It is important to make sure that you keep on top of the project, not just assume things are being done when and how you want. Our first designer took 3 months and no website. He had all sorts of reasons for why there was nothing to see, but we knew there was something wrong. Our dead line came and went and still no website. We put some pressure on and finally was told our website was done, take a look. Then came the sucker punch, before he would give us our site we had to pay 3 times what we agreedapone. Why because it took him longer then expected and he wanted to be paid by the hour, not the job. So after three months we had no website, but a nice lawyer.

The second designer agreed to do the work in a timely manner and within our budget. He came back to us after three weeks and let us know that a retail website of our site was beyond his experience. He was fine doing information sites. We accepted that and appreciated his honesty, but were also glad we had a contract.

Always make sure that you change your passwords once the work is done and if you need more work you create temporary passwords for the designer. Also make sure hosting companies, licences and software are all purchased in your name, or companies name or signed over to you once the work is done. The third designer was hired because he could get the site up and running in two weeks and we were 4 months behind schedule. We did our research, and got a very clear contract. He did give us a site with in the two weeks that appeared to be functional. We had some problems and concerns but that was explained away as issues or restrictions caused by the shopping cart. There were things that did not do what we wanted and some of his explanations did not make sense to me, but he would not talk to me and explained everything away to James as a problem with the shopping cart that could not be fixed. Eventually the only solution he would suggest was to buy a new shopping cart and pay him to do all the work again.

Every couple weeks something would go wrong and it was $50.00 to fix it, or there was an upgrade that would make things easer with the shopping cart but again $50.00 for the designer to install it. I kept asking for contact information for our hosting company and shopping cart company. He would not release the information, so every time something went wrong or we had a question we had to go through him, and yes it cost money. We started to question things, had some independent web designers look over the coding only to be told that there was malicious coding causing the problems, not our shopping cart. We tried to contact the hosting company and shopping cart company only to find everything was purchased in his name and there was no record of us purchasing anything. We demanded the license be transferred to us, why had it not been transferred when the job was done. We had to threaten legal action to get the licence in our name. At that point he severed business ties with us.

What we found, he had charged us for installations and used up our service points with the shopping cart company to do a lot of the work, so we actually paid for it twice. There was what is called malicious coding causing our website to not function properly, our products would not index on the Internet and we were limited to the smallest pictures for our product. The shopping cart company discovered this, and they insisted that it was deliberate coding designed to prevent the shopping cart from working properly. This could not have been done by accident. Then Canada Post previewed the non-functional shipping calculator and discovered something called a siphoning code. It was designed to invoice a customer extra for shipping on their invoice, show the correct shipping on our copy and then deposited the difference into his paypall account. I guess he did not expect us to test it when we got it, we just thought there was a problem with the Canada post calculator and did not use it. There were quite a few other coding issues discovered and we were looking at legal action when suddenly our hosting company shut us down and we lost the site.

It seems he had kept the hosting company contract in his name so he cancelled it without warning and we lost the entire site. Or at least he thought we did. What he did not know is that James was already in the process of designing a new site. It was a work in process still and we did not have the shopping cart up and going but it was there. It took 4 days to have the shopping cart installed and be a working site. We also had backed up the old site the day before. All we lost was some time, though we have to re-enter our entire product manfully due to an incompatibility between the old shopping cart and the new one.

Over all we learned a lot, are able to do things ourselves now and have a much better website that is just going to keep on improving and growing.

I went for a internet marketing conference, not a sales meeting

Today I spent almost three hours of what I consider my valuable time at what was supposed to be a conference on Internet marketing for retail websites. What I was actually at was a presentation focused on telling me I could make lots of money on the internet, but I need to use this companies store front that is included in their hosting package. Come on people, I could not believe what I was put through. The worst part was that if I wanted to get the actual course for marketing it was included in the package as part of a full day of how to be successful using their store front and hosting company, but I had to pay the one time fee of $25.00 right then and there (which is $199.00 any other time, don’t you know!)

They tried to pressure me by telling me that I must not being doing everything I need to do in marketing my web store Medieval Magic, because if I were I would be rolling in money and would not be there. Um, actually I was expecting to have spent my time learning about other methods of online marketing and had hoped to find some new ways or better ways. I am always looking for a way to positively market our product and web site. Only a fool thinks that they know everything and does not understand that there are new programs and methods developed all the time. I am not a fool and did not like being treated as one.

What I did find shocking is the number of people signing up and handing their $25 for their new website. They don’t even have an idea of what they want to sell or who their market is, but they have a web site. Next week they are going to this full day course on how to be successful with their stores. These are set up to hold them by the hand and show them what to do step by step, including giving them a list of drop shippers and some one-on-one time with someone who is going to help them do it all.

The basic idea is that they are getting an out of the box web site, a list of drop shippers and instructions on how to market the web site. As this wonderful company pointed out, if these people are not making money they will not keep their website up and they will not get their $24.99 a month. They want people to succeed. They also want people to have multiple web sites as diverse income streams. All good ideas, except I feel it has more to do with the $24.99 they get each month for each site you have. The more sites you have reaching out to different markets, or using different branding strategies the more money they make off of you.

I may or may not be going as a guest with one of the people who signed up. It depends on them right now. For me it is just to make sure they don’t get pulled into the, "oh by the way to be successful you need to add these add-on’s to the original shopping cart." The company has already indicated that you need $5,000 of add-ons but they are selling them for $3,000 but they are willing to give you a deal on the day of your training. The sad part is that up until I heard about the add-ons I was actually comparing their price and service favorably to other companies I did research on when we were looking for a new shopping cart. I don’t like any company that said here is a web site and hosting fee, oh but your going to need to buy all this other stuff to succeed. I don’t think they are going to have much to add to my online marketing strategies, or at least not ones I am willing to use. It will be interesting to see what they have to say if I end up going, but I would not be upset if I don’t go.

Benefits and risks or running an online business

So you see all these work at home, start your own online business ads. You think, "Hey there must be some thing to this. I would like to stay at home and make lots of money just like all these ads say I can." Before you leap you need to find out what are the benefits and risks of running an online business.

There are a lot of benefits for running an online business.

You are your own boss. This way you control what you do, how you do it, and when. So if you are a stay at home parent, you can work around your kids. If this is a second source of income, then you can work around your regular job. I like being able to spend time with my kids and work when they are asleep.

There are a lot of different types of online businesses you can get into. It is easy to diversify by having several different online businesses at the same time. It is quite possible to have multiple streams of income with the same business.

The potential income is often only limited by the time and money you choose to invest. Once you have your online business set up most of your time and money is going to be spent on getting people to find your site, also known as online marketing. This will be done through a high rank on search engines, links, ads, word of mouth and any other way you can think of. How well you did your work setting up your site will determine if they buy from you, or sign up or click what every ad system your using. When your site is successful you may be busy shipping, restocking and putting new product on the site. However, no matter what you will always need to invest in bringing new, and old customers back to your site. You never stop your online marketing.

There are online businesses that are almost self-sustaining with only a little work or money from you. You set up the site, maintain it, and keep it online, and away you go. A lot of this type of business is in partnership with drop-shippers, some who will even set up the site and maintain it for you. There are always already established online businesses up for sale. You just have to get people to go to it. The real work of anyone with an online business is getting people to come to their site.

There are a lot of risks to running an online business.

Getting scammed is a big risk for those who do not do their research or go for the get rich quick schemes. There are a lot of online businesses out there that only make the seller rich.

Not cost effective. You invest your money and time and make a little money but nothing like you expect. The competition online is great. It is not like you are the only supplier of product "widget" in a small town. Your competition can already be well-established selling "Widgets", "Wedgets" and any other type of "ets". It’s an uphill battle getting people to find you and then buy from you instead of company ABC or XYZ. You could have the greatest product, best price and service but if people don’t know you are out there, they are not going to be looking for you. How much do you have to spend in time and money to become established and get the sales you need to break even? Is it cost effective in the long run, or throwing good money after bad. You can be doing every thing right and still not succeed.

It always cost more then expected, in money and time. You may find yourself spending all your time on click exchanges trying to build up hits in the hopes of making some money.

Your email and web site becomes a prime target for spammers. You end up with 100’s of spam emails a day if not more. Most of them seem to want to sell you an online business or get you to pay them to do online marketing for you.

Having to spend lots of money to keep your computer system upto speed with the needs of the anti virus programs. The anti virus programs out there are not going to be compatible with older systems soon. Can you afford to upgrade your computer system to the newest technology so your system can support the newest anti virus programs? Can you leave your computer system vulnerable with out the most up to date anti virus programs?

I have an online business; it is an extension of our already existing business. Online businesses are completely different then off line businesses. I like what I do, but it has been hard and I had to learn a lot, and am still learning. We have a retail site and we don’t use drop-shippers so we have been able to avoid a lot of the pitfalls of running a retail site. But the amount of established competition can be very daunting at times. And new sites show up every day. I some times have to question our expectations for our web site and the time lines we have set for it to be cost effective. I think it is going to take more time and money then we first thought simply because marketing online is very different then marketing offline. An online business can be great and successful, but only if you go into with your eyes open. As with any and all business ventures do your research.

Tips for a successful internet business

Like with any business you need to do your homework. Do not waste your time on the get rich quick types of Internet businesses. Even if the costs less then $10.00 to get started. If it seems to good or easy then it is. There are a lot of scams out there, do not be one of the people taken by them. Taking surveys from home is not going to bring in the money, just suck up your time. You get paid pennies for reading emails or surfing/clicking web sites. It all takes time and work. However you can make money as an affiliate getting people to sign up to do surveys, read emails, or surfing/clicking for money. Do the research on any type of business before you go ahead.

A business plan works just as well for an online Internet business a for a non-Internet business. You need to know what you want to do, and how to do it. You need to know what Internet business’s are out there.

1) The most common one is a retail site of your own. This can be costly to start, as you have to make it yourself or pay some else to make it for you. Then you will have to pay for your domains name every year and monthly hosting fees. However, you have control over content and revenue streams. You can sell product directly, sell dropship items, get money for being an affiliate with retail stores, or get paid for putting other peoples ads on your site, or have something like Google ads where you get paid each time some one clicks the ads.

2) You can also have a web site that sells a service like hits to websites, or connect advertisers to people with sites to put ads on or people to take their surveys or read their email ads. Or be an affiliate broker, getting sites that are looking for affiliates connected with people who want to be affiliates and you take a % of all sales through all the affiliates. You can sell a “How to run a successful Internet business” package for $7.00 or $9.00 a pop. You get them to register for $7.00 and then they get a letter that explains how to be successful making money on the Internet. You might even send them a monthly newsletter with tips for a successful Internet business so they feel they got their moneys worth.

3) A free web site that is really just an affiliate program where they provide you with your own storefront, but you sell someone else’s products that they dropship.

4) A free web site that is actually free. With most free web sites you are limited on your options of what you can do. The company giving you the website is usually getting advertising revenue from companies like Google ads. You may end up having to pay a hosting fee, and they give you the template for your website to work with. Just remember even free comes with a cost these days.

5) A free selling site like Kijiji, livedeal, or Blujay where you advertise products for free. There are usually some limitations to what or how many ads you can have. Though for a monthly fee on livedeal you can have a storefront that you can sell your items. Blujay does not charge you for your storefront. There are 1000’s of these types of sites out there you just have to find the right one for you. There are often limitations with these sites, such as not being able to do link exchanges.

6) There are the auction sites out there, most well known is eBay. You pay a fee to list your item, more fees for any extra features, and a fee if you sell it. You can have a storefront, for a monthly fee, as well as still having to pay all the other fees. Keep in mind that you have to pay a fee when you use an online payment system like Paypal. This all cuts into your profit, but for the most part people can find you and buy from you. So it is all a cost of business. You do not have to pay as much start up money as you would to have your own retail site, and the auction site does the marketing and advertising for you. If you do start selling on an auctions site just figure out what the real cost is so you don’t end up spending more money selling an item then you receive. i.e. all the $1.00 or less items on eBay. Look at the cost of the item, fee to list, end of auction fee, and Paypal fees. It actually cost you more then you made to sell the item. You can be very successful with this if you do your homework on what to sell and at what price to start your auction at.

7) Blogs. You can make some money from having your own blog. You can put advertisements from places like Google ads, or any of the other advertising companies out there. You get money whenever some one clicks onto one of the ads. You can also have affiliate links on your blog. If some one clicks on the link and then buys something or registers you get some money. If you are interested in being an affiliate, www.medievalmagic.ca has a good affiliate plan with contests for the top affiliates. However, you cannot just sign up and expect money to roll in. You have to use the promotional tools they provide, and promote the link or banner to the site, or the actual product links. You can always find sites that will match you with other affiliate programs as well.

8) Splash pages or sites that are just links to retail sites. This is for when you are an affiliate, you get a % of sales when some one uses your link to go to the store and buy something or registers for something.

9) Sign up to read emails, take surveys or click/surf for money. There are 1000’s of people waiting to sign you up so they can get their $5.00.

10) Write on blog sites that share the earnings from people clicking on the ads, like Google ads. There are a lot out there that claim to do this. You have to figure out what ones actually do. Helium not only gives you part of the revenue from the ads, they help sell your articles to publishers. You can make money several ways on Helium, compete to sell articles on the marketplace, compete to place or win in the many writing contests every week, and in the shared ad revenue.

You need to figure out what of all these options work for you. Then you have to realise no matter what option or path you take you only get out of it what you put into it. You still have to know if there is a market for what you are selling. Then you have to market and promote your website, blog, splash page so people can find it and buy, click or register. If you are doing surveys, read emails, click or surf or write for money, you still have to actually spend the time and do it. If you do not do the work, you don’t make any money. No matter what, time, energy and knowledge are required for any one to succeed on line or off line.