BellSouth Business Know How

By Dick Anderson

E-Commerce: The Next Wave in 24-Hour Retailing

E-commerce: it's the hottest thing in retailing. From online Beanie Baby auctions at eBay to 24-hour catalog shopping at The Gap, electronic commerce is dramatically reshaping the way consumers buy goods and services. Experts say the volume of online shopping during the 1998 holiday season ranged from $3.5 billion to $13 billion.

The number of women shopping online tripled, while the typical online shopper spent an average of $629 on toys, clothing, CDs, videos, flowers, candy and cards. And forecasters predict even greater online sales in the years to come. Forrester Research Inc. predicts Internet sales will exceed $100 billion by the year 2003. The long-anticipated boom in online sales is underway.

While the hot stocks of startups like Amazon.com, eToys and CDNOW are grabbing headlines, it's not too late for established, traditional retailers to get on board. In fact, many brand-name retailers, such as The Home Depot, are moving to add electronic commerce capabilities to their sites on the World Wide Web.

As retailers transition from static, information-only Web sites into true e-commerce, there are several important things to consider that will ease the way into retailing's next frontier. Companies should take extra care as they choose their e-commerce and Web site vendor — because their online store will be representing the company to its valued consumers 24 hours a day, seven days a week, 365 days a year.

Here are some tips to help your company open its doors to the world of electronic commerce:

Look for a reliable, trustworthy and experienced vendor. The reputation of your company is no place to cut corners. It's just as important to "treat your customers right" online as it is if they were physically in your store — in fact, it may be more important that the customer's early visits to your Web site be a useful, enjoyable shopping experience. You don't want network bottlenecks and slow servers to discourage — or even irritate — your customer. Choose a host that provides a reliable, redundant T-3 network, offers 24x7 maintenance and ensures back-up servers and scalability.

Insist that your site use the latest in secure technology. As encryption and security algorithms improve, early fears about using credit card numbers on the Internet have begun to wane. But it's still important that your site provide a safe, secure electronic shopping environment. Internet Service Providers such as BellSouth use the latest, highest security techniques and software to develop and host cutting-edge e-commerce Web sites for small and large businesses. In fact, customers today are demanding the latest in security when it comes to the Internet and electronic commerce, with businesses being more likely to attract customers in their prime demographic audience if they can ensure the security and reliability of their network.

Consider a "managed" network service. Building a static Web site is relatively easy; most college students have learned enough in their HTML programming class to do it. But that's a far cry from a true electronic commerce site — one that provides a catalog of your products, checks inventory for availability, verifies a credit or debit card, creates a shipping order, completes the transaction and posts the results. To make it easier for companies to go online, BellSouth offers pre-packaged or "managed" E-Purchase or E-Sales services that can get your store up and on the Internet with a quality e-commerce site. Companies can either choose E-Sales to open a new consumer sales channel or E-Purchase to focus on business-to-business opportunities. E-Purchase creates a secure extranet for trading partners, allowing companies to expand their market worldwide for about the cost of a single salesperson.

Make shopping at your online store an easy, fun experience. Most people love to shop, but hate the crowds and hassle. That's why online shopping is so appealing — consumers can browse through your Web site at midnight in their pajamas if they wish. But you've got to pay just as much attention to details in your online store — from displays to merchandising —- as you would in your bricks-and-mortar locations. Is your Web site easy to navigate? Is it visually stimulating, even exciting, to explore? Does it make your customer want to come back time and time again? Keep in mind, your Internet strategy is only one piece of a comprehensive business marketing effort. Having a good foundational marketing plan with realistic goals dictates a business' decision on whether having a Web site directed to conducting electronic commerce is a good strategy. It's not for everyone and should complement an overall brand strategy.

Talk to fellow retailers about their online experiences. See what works for others and learn from their experiences — good or bad. You can learn a lot from the mistakes and experiences of early online pioneers.