Broaden your potential online

SMEs should strengthen their e-commerce capabilities during recession, argues Craig Sullivan

Sullivan: Resellers should reassess e-commerce strategies

In a decade, e-commerce has changed the face of retail, helping companies expand into new markets, engage more efficiently with customers, reduce costs and drive revenue growth.

Are there any lessons here for IT resellers? Like retailers, many IT channel players sell online.

If managed correctly, e-commerce can open up new opportunities for growth. It is a question of taking a strategic view to ensure maximum value.

The internet enables businesses to increase revenue, expand customer reach, drive loyalty and improve margins. Web 2.0 can help mature and improve the opportunity further.

Barriers to entry are lowering as on-demand e-commerce makes participation easier and cheaper.

Merely being online and enabling broader exposure to customers removes geographical barriers and expands business opportunities, especially if you sell in multiple languages and currencies.

E-commerce can also make it easier for customers to do business with you at all hours.

The cost of investment in e-commerce is less than that involved in opening a real-world outlet, especially if an on-demand model is used. E-commerce on demand means businesses do not need to buy as much computer equipment or bandwidth and can use fewer staff.

The right set-up, with self-service features, means customers can search your inventory, place orders based on real time availability, and monitor existing orders.

However, telephone support helplines may still be needed.

E-commerce can provide support for personalised and targeted marketing campaigns, sophisticated merchandising techniques, and for data collection and analysis to fuel continuous improvement.

However, one oft-cited disadvantage for the reseller is that vendors that sold via the channel traditionally can now sell directly to customers.

If e-commerce is done well, the seller can change products, pricing and promotions online, and communicate this to customers quickly.

By automating the order process, businesses can streamline activities to reduce the number of staff needed. This can enable companies to redeploy staff to growth rather than routine operations.

You can also reach potential customers more quickly, as they can simply look online rather than having to visit an actual outlet.

To do this, you must invest in reaching your target audience. When searching for goods and services, many people start by using a search engine.

Placing intelligent advertisements based on defined keywords on search engines such as Google will attract customers actively searching for your products.

The days of simple online catalogues and shopping carts are long gone. Web 2.0 technologies include tools such as basic photo and video sharing as well as blogs, podcasts, wikis and other social media.

Such tools, that enable user-generated content, can help you scatter your marketing messages quickly and widely.

Even if you’re not doing any of these things, you can be sure your competitors are.

Craig Sullivan is vice-president of international products at NetSuite