Product category:
Supply chain optimisation software
News Release from: Zendor | Subject: E-commerce services
Edited by the Manufacturingtalk Editorial
Team on 05 November 2004
Top Tips for Online Selling Business
Plan
Zendor provides the top ten tips for providing an online selling business plan
As consumers are becoming more confident in online shopping, the market is predicted to grow to as much as 17 million pounds by the end of the year (IMRG March 2004) For retailers, fundamental to the success of a transactional website is having a good, realistic business plan that also looks at how the new channel will fit with the rest of the retail business
This article was originally published on Manufacturingtalk on 24 Feb 2005 at 8.00am (UK)
Related stories
E-selling advice from Zendor
Selecting the right product range for an online proposition is a skill that many retailers have yet to fully master and understand.
Top Ten Tips For Online Retail Success
Zendor Provides Top Ten Tips For Online Retail Success
In such a potentially buoyant market, Zendor - the fulfilment and distance shopping expert - suggests that there has never been a better time for retailers to consider moving their proposition online.
Zendor offers advice for retailers looking to develop a sound business plan for online selling:.
* Understand the importance of the business plan - An "online" business plan is needed as stakeholders need to be assured of a return on their investments, and if done thoroughly and effectively, risk will be reduced.
Further reading
Zendor chosen by mail order retailer
Zendor, the Manchester-based fulfilment expert, has been appointed by mail-order retailer Joseph Turner to print its Autumn/Winter recruitment catalogue.
Money is Main Obstacle to Retailers Moving Online
Distance shopping expert Zendor has followed up its research into the online retail market with a further in-depth study of more than 50 top retailers.
Unlock the Potential of Your Customer Database
Zendor, the distance-shopping expert, provides a portfolio of services to retailers interested in moving into multi-channel retailing.
Ultimately, this business plan should be something that can be condensed into a profit and loss forecast over a defined period of time.
* Do research - It is essential to review the online market, the opportunities available to the retailer and the impact of the new channel on the retail business as a whole.
* Ask 'why am I doing this?' - It is important to understand the strategic fit of online selling with the rest of the business and to be clear about overall objectives - for one retailer the objective may be to simply generate online revenue, for another improved customer service, for another maintaining market share.
* Define 'success' - In order to define the success of the business and achievement of the objectives set, it must be decided what will constitute 'success' and how it will be measured, especially when bearing in mind the halo effect (when customers dip in and out of different retail channels).
* Address infrastructure requirements - Those considering distance selling need to look closely at infrastructure requirements, as a completely different set-up may be required to that of the existing retail business.
For example: Will product be warehoused separately? What IT systems will be needed? Who will deliver to customers and how will returns be handled? * Include marketing -The online market will add a whole new dimension to the marketing strategy.
Key details to be looked at include: how to market to online and multi-channel customers; what response rates should be expected; and how can a customer database be used to segment and target for a better return on investment.
* Understand ALL costs - Absolutely all costs involved on online selling must be fully understood by the retailer so that forecasts and profit estimates are realistic (for example, costs of returns).
* Decide whether to outsource - Depending on whether the retailer has any experience in distance shopping, the relevant expertise or infrastructure may not be available in-house.
If this is the case, the retailer may wish to outsource the business plan to a third party supplier with industry knowledge, who can demonstrate success and credibility with other retailers, and who is in the position to work alongside the retailer from developing the business plan through to implementation and beyond.
A realistic and comprehensive business plan is vital for the success of an online venture.
Many retailers do not think through the implications of setting up an online channel properly and this may lead to failure.
The plan needs to consider the entire distance selling process from overall objectives to research, infrastructure, marketing and ongoing measurement of success.
Zendor provides a range of e-commerce services.
For further information please contact Zendor direct on 0161 237 4900, email curious@zendor.com or visit www.zendor.com.
• Zendor: contact details and other news
• Email this article to a colleague
• Register for the free Manufacturingtalk email newsletter
• Manufacturingtalk Home Page
Search the Pro-Talk network of sites
