Ecommerce Tips: How to Achieve What Most Internet Stores Lack

A retail store in a physical location is automatically empowered with advantages that internet shops have to work very hard to achieve. These include limited competition, a sense of community, and purchase security. Below are the descriptions of the advantages inherent by having a physical retail location, why most internet stores lack these advantages and tips on how to overcome these limitations.

Limited Competition

Physical retail store:
A retail store always exists in small vicinity and there can only be so many stores that sell the same type of thing in any given area. If you’re the closet one to a potential customer you automatically have limited competition in the retail marketplace because of geographic location.

Problem for E-commerce Web Sites:
It’s extremely easy for an internet shopper to do a few clicks and have instant access to a plethora of sites trying to sell the exact same products and services you are. Most wholesale distributors even have direct to the public sales or black/grey market distribution through markets like eBay so customers may even be able to buy from your supplier online.

Solution:
In order for online stores to achieve limited competition, they can cater to a niche marketplace, market online to a specific geographic location (like local employment or classified websites) or have value added services that are only available through them. Another solution is to put a completely unique spin on the marketing angle so you are the only one marketing your website in a particular way. A good example of this is seen in my article “web pages that suck.”

Community

Advantage for Physical Retail Store:
Customers feel good about supporting their local community and putting money directly into the micro economy in which they live and work. It’s not uncommon for them to be ok paying a higher markup if it supports their “home town”.

Problem for most E-commerce Web Sites:
An internet store is faceless and location less by default. There is no obvious reason to pick one website or another and a complete detachment to where the money spent is going.

Solution:
By providing and presenting personal and historical information about the company and or individuals involved you can help bridge this gap. You allow your customers a chance to identify with you on a personal or community level. Maybe you have the same ethnicity, went to the same college, or know people who were affected by Katrina. The more interpersonal information that’s presented tastefully, the higher chance an Internet store will benefit from their customers .

Purchase Security

Advantage for Physical Retail Store:
A physical store usually ensues at least a slight sense of stability and security. The customer expects you to be there the next day and probably has no qualms about coming back to ask questions or even for a return if the product turns out to be dysfunctional.

Problem for Most E-commerce Web Sites:
Because of how unregulated and chaotic the internet is, customers may have a heightened sense of insecurity. They may not know if your website is going to be there in the next week, month, or year. The possibility of having to return something can also cause problems considering there is no physical location to do so. In addition fears of hacking and identity theft are widely held.

Solution:
By having a well posted return policy, large or in-depth support or FAQ section, a professional upscale or expensive looking design, and/or a testimonials section you can address the security anxiety inherent to some degree in a faceless, transaction. If you have a physical location, be sure to include that and make sure the phone number is easy to find. Adequate encryption for sensitive information is a must and if possible the encryption certificate or even the hosting account should be tied to a known authority like yahoo or Verisign with the logo displayed proudly. If your company has been around for some time, be sure to post that in an area that most customers will see. The longer track record a company has the more purchase security a customer will feel.