Selling online

Selling your products via the Internet could boost your profits considerably by opening up your business to online customers all over the world. But how do you go about setting up an e-shop? Afsheen Latif finds out

"Every day you're not selling online, you're losing money," warns Janet Coombs, owner of Blue Ribbons sugarcraft centre in East Molesey, Surrey.

After having a basic version created in 1997, in February 2006, Coombs relaunched her firm's website, this time featuring an e-shop selling cake-making equipment. The new e-shop has boosted revenue considerably.

"As soon as the new website launched our turnover increased by 35 per cent and it has now risen a further five per cent," Coombs reveals. "Orders are now being shipped all over the world."

Before starting, be sure your business can cope with increased demand from online customer orders, as well as packaging and sending items to customers around the world. Also bear in mind that it can cost upwards of £3,000 and take a few months to get a website up and running (much will depend on the complexity of the design and function).

Carry out some Internet-based research to see how your competitors are selling online and to find ideas that you like. This will help when you are briefing a designer.

"Before relaunching my site I looked at other craft shop websites. I knew I could improve on what I saw," Coombs explains. "I wanted my site to be easy to use; with simple pictures, descriptions and clear categories and sub-categories."

To find a reputable web designer, seek recommendations from other businesses. If this isn't possible, search online and ask to see evidence of their success in meeting the needs of businesses similar to yours.

Failing to work with professionals does have consequences. "My very first website was created by a friend of a friend, who did it as a hobby," Coombs remembers. "It was very poor and I lost a lot of sales by not getting my site done properly from the start," she cautions.

Make sure you can update your site whenever you need to. Not having to go back to a designer to get them to make changes will save you money.

To process sales effectively and legally, you will need a secure online-payment facility for credit and debit cards. Most high-street banks can recommend providers; alternatively, ask your web designer to recommend one. Well-known providers include Paypal and Worldpay. Most take a percentage of the transaction (usually between two and five per cent), with some charging monthly fees, so shop around for the best deal.

So what are the pitfalls of selling online? "Having to manage a retail shop and an e-shop is demanding," says Coombs. "If you are not computer literate, a basic IT course is essential to help you manage your website," she recommends. However, maintaining some sites can be straightforward for those even with the most basic of knowledge.

The ability to sell goods online involves cost, of course, but Coombs finds this a price worth paying. "Be prepared to spend money launching an e-shop. It is an investment for the long-term. In my field, some businesses can't compete because they don't have a website. The shops that do have a website, are the ones that are growing," she concludes.