This document outlines 4 steps for starting to sell online: 1) Define your goals such as increasing revenue or customer engagement. 2) Decide how to sell online, such as using large marketplaces like Amazon, niche marketplaces like Etsy, or a custom website. 3) Establish policies and processes for products, fulfillment, customer service, and returns. 4) Create a budget that accounts for start-up costs, storage and maintenance, marketing/advertising, and time costs. Selling through both in-store and online channels can increase a customer's lifetime value by 30% compared to a single channel.

1. E-COMMERCE
4 STEPS TO START SELLING ONLINE

2. E-commerce now accounts
for 7.4% of total retail sales,
which is a 14% increase from
2014 to 2015.
-- U.S. Census Bureau

3. More e-commerce
traffic comes through
mobile devices than
PCs.
-Shopify

4. Those who shop via
mobile spend 66%
more than shoppers
who buy only in
store.
-SmartInsights

5. WHAT’S HAPPENING
IN E-COMMERCE

6. THREE MAIN MODELS

7. Brick & Mortar/Online
Retailer sells both through a brick-and-mortar storefront and online channel
Things to consider:
● Only sell most popular items online (or heavily stocked products)
● Sell a custom/specialty line of products online to reach larger customer base
● Vendor drop shipping
● Storage costs of additional inventory
● Shipping methods and costs

8. Pick-Up or Digital Only
Retailer sells through a storefront and online channel, but doesn’t ship
Things to consider:
● Provides customers online shopping opportunity without a lot of the planning/execution
● No need to worry about shipping or returns
● Increases customer lifetime value by 30% (according to Google)
● Sell gift cards or classes online that can be printed

9. Online Only
Retailer sells items only online and ships
Things to consider:
● No storefront needed - low overhead costs
● Still need to consider storage costs or third-party fulfillment
● Need to compete more on originality than price

10. DEFINE
YOUR GOALS
1

11. Define your goals
Drive foot traffic
Expand product selection
Leverage cross-channel selling
Increase customer engagement
Increase revenue through a new source or further grow
income by improving your existing online store

12. DECIDE
HOW TO SELL
2

13. ▪ Large marketplaces
▪ Niche marketplaces
▪ Off-the-shelf tools
▪ Custom website
▪ Social media
Decide how
to sell online

14. Each e-commerce option has some pros
Large
Marketplace
(Amazon)
Niche
Marketplace
(Etsy)
Off-the-shelf
(Shopify)
Custom
Site
(Consultant)
Social Media
(Facebook)
Pros Millions of
eyeballs and
strong
searchability
Specialty focus
can reduce
need to
compete on
price
Plenty of
flexibility and
customization
Lots of built-in
functionality
and
integrations
with other
valuable tools
Total control
of your entire
site and its
functionality
Can be built
to integrate
with your POS
Reach
customers
where
they’re
spending
time

15. As well as some cons
Large
Marketplace
(Amazon)
Niche
Marketplace
(Etsy)
Off-the-shelf
(Shopify)
Custom
Site
(Consultant)
Social Media
(Facebook,
Pinterest)
Cons Competing with
hundreds or
thousands
means lowest
price usually
wins
Not connected
to your POS
A niche site
may not exist
for your vertical
Not connected
to your POS
Not connected
to your POS -
extra to
connect it
Can be very
expensive
Additional
costs for any
updates
Tied to that
consultant
Can’t sell
directly
through most
platforms
Still young
and
unproven

16. ESTABLISH
3
POLICIES & PROCESSES

17. Establish policies and process before you start
▪ What product will you sell?
○ Same as in-store, completely different from in-store, or a
combination?

18. Establish policies and process before you start
▪ Where are you storing these products and fulfilling from?
○ Who will ship the orders (you, the manufacturer, or a 3rd party)?
○ Will you stock the items in your store and fulfill the orders
yourself? Who specifically will handle this task?
○ How will you keep track of inventory?

19. Establish policies and process before you start
▪ Service and returns
○ Who will handle customer service calls, emails, and online chat
(especially after hours)?
○ What is your return and exchange policy?
○ Can online customers return to store?
○ What will you do for the customer if the order is damaged in
transit?

20. 4
CREATE
YOUR BUDGET

21. Create your budget to sell online
Storage &
Maintenance
Marketing/
Advertising
TimeStart-Up
True Investment $

22. Start-Up
▪ Start-up costs vary based upon selected method
○ E-commerce platform
○ Images, product info

23. Storage & Maintenance
▪ Variety of costs fall into this category
○ Payment processing fees can be 1-3%
○ Image storage or SKU limits
○ Warehouse costs
○ Fulfillment costs
○ Shipping (materials, postage)

24. Marketing/Advertising
▪ Promotional activities
▪ Advertising
▪ SEO

25. Time (Opportunity Cost)
▪ Time commitment per month to keep the products and
catalog updated
○ Will you have to hire someone?
○ What work will this replace for you or existing
employee?

26. Shoppers who buy from a
business both in-store and
online have a 30% higher
lifetime value than those
who shop using only one
channel.
-- Google

27. 4 STEPS
DEFINE YOUR GOALS
DECIDE HOW TO SELL
ESTABLISH POLICIES & PROCEDURES
CREATE YOUR BUDGET
1
2
3
4

29. Questions?
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