Question

Topic: E-Marketing

Got Any E-commerce Website Pointers?

Posted by SRyan ;] on 1704 Points
Hi, folks!

A buddy has decided to try his hand at opening an online store so he can sell more tankless water heaters, and he's asked me to help.

I am looking at the storefront solutions at nerddesigngroup.com and I like what I see. But before I commit him to anything, I thought I'd check in with my KHE friends to see if any of you have ever used a service like that to launch an e-commerce site. Have you? And did you love it?

While you're here, let me know if you have any burning advice I should heed before I get too far down the road. I've built and launched simple websites before, but not a flippin' store! I don't want to do this for a living, I just want to get my friend started.

Thanks, everyone!
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RESPONSES

  • Posted by SRyan ;] on Author
    Thanks, Gary! They're going to have multiple models from different manufacturers for sale. And they're going to sell their own installation kits, too.

    Checking out ZenCart now...
  • Posted by SRyan ;] on Author
    Um, I've seen sitesell.com before and it's always felt a little hokey to me. Thanks for making the suggestion, though!

    ~ S
  • Posted by SRyan ;] on Author
    GMTA, Gary! (Great Minds Think Alike.)

    The plumber referral thing is exactly what they plan to do... it takes a well-trained, experienced guy to install a tankless heater successfully. Most plumbers get it wrong simply because they are used to the traditional tank heaters. We're even thinking about a certification process -- "Plumbers approved by the Tankless Guys."

    But that's WAY down the road.
  • Posted by SRyan ;] on Author
    Love it! Extra points for you, Gary... ;]
  • Posted by AdsValueBob on Member
    If you really want to help your buddy out, you should suggest he (you both) take a step back and review why you think HE can sell tankless water heaters on the web and is he ready to support the effort correctly or just take what he gets?

    If your buddy is a plumber working in the field all day and trying to increase his business with a higher profit product but not web savvy, his may be a misguided and expensive effort. If he has a store and is venturing into his first web site, then do it right - hire a professional.

    To do a ecommerce site and marketing effort, is he ready to:

    1. Build and write the content of the site with sales in mind - solve the client's problem and direct them to a solution and make the offer to buy?

    2. SEO the site to attract organic traffic?

    3. List the site on industry related web sites, pay for industry adverting where his prospects are located?

    4. At least do a PPC campaign to get site traffic? Quality advertising by any method costs.

    5. How is he going to handle customer support, shipping, phone orders, etc.

    6. Do all the costs of the web site and support create a positive cash flow or could the same result be accomplished by some other method that requires less management and cost? I read "plumber referrals" but I don't understand who is getting referred? I don't suspect a homeowner is going to buy a TWH on your site, then call a plumber to install it. I would think plumbers are going to get their TWH from a supply house and not off the web - but I have been wrong before.

    I've seen people jump at selling on the web with some packaged ecommerce site to later find out they poorly analyzed their situation and poorly planned the execution and wasted a bunch of time and money. Businesses don't plan to fail, they fail to plan.

    Call if you wish further information.

    Sincerely,
    Bob
  • Posted by SRyan ;] on Author
    Thanks for that input, Bob. My friend has, in fact, considered all of those points you listed. I went over the same items with him. We've done well with his local "non-e-commerce" website already, and we're venturing into this new, separate site because we know from a manufacturer's insider that there is, in fact, another business selling hundreds of these heaters a month online.

    People are buying these online and at home improvement stores. It's possible to install one yourself, but best by a qualified plumber, obviously.

    We'll start with something simple and grow it from there. Can't be an Amazon overnight, you know?
  • Posted by Jay Hamilton-Roth on Accepted
    Whatever solution you choose, make sure you've got good web metrics (just like you use for the first site). If you do PPC, make sure you've got the landing pages targeted right for the keywords, and split test to optimize conversions (whether you do this in-house or have nerd Design Group do it for you) and keep an eye on you PPC spending ROI.

    The biggest cost of a website isn't its creation - it's in maintenance. When you have a new product, image, or copy you want on the site - do you pay? How much? How much is the hosting fee? What's their uptime? How often will you get reports on traffic/conversion?

    The samples of websites that nerd Design Group have, are basically simple consumer goods. Tankless water heaters aren't a buy it and plug-it-in affair nor an inexpensive purchase. Issues such as reliability, warranties/guarantees, pay-back, and city inspections all come into play (especially for the home-owner).
  • Posted by clt on Member
    Hi SRyan,

    Have you considered having the purchase go through PayPal? (www.paypal.com) Might be an easier way to get started and test out the idea. With PayPal, you don't even need a cart function.

  • Posted by SRyan ;] on Author
    Good points, Jay. I did ask about site optimization, and it's not built into the Nerd's offering. However, it seems to have a decent content mgmt interface, so maintaining the product database shouldn't be a problem.

    I also wondered why the heck someone would buy a TWH online, but it's definitely happening out there.

    Camille, I think PayPal is cool, but we'll probably hook into a merchant account like Authorize.net. These are big-ticket items, and I presume a lot of buyers will be wanting to use plastic for their purchase!

    Keep it coming, everyone!
  • Posted by darcy.moen on Accepted
    Ecommerce is much more than a web site that sells stuff and takes money.

    One must consider the customer and their shopping habit. Is your target audience accustomed to shopping and purchasing online? If not, you have an uphill battle as you have to TRAIN your customers to use an online shopping cart BEFORE they even get to the fun part of reacing for their wallet.

    The shopping cart system itself should be VERY EASY to use. OScommerce is one nice shopping cart, Paypal buy it now button is another, Zen Cart is pretty good, as is Magento and Virtuemart. Then there are the paid for closed source systems like Xcart and Interspire's shopping cart. The bar was set very high by Amazon when they created one click checkout, but then they patented the process cutting the rest of us out of the simpliest shopping cart experience. So, think: Less steps to checkout, the better.

    Easy shopping and quick checkout is critical because if there are too many steps, or you ask too many questions of your customer while taking their order, you run a high risk of shopping cart abandonment (customers simply leave the web site regardless what they've put in the cart).

    So, keep the amount of information you collect from customers to a minimum. Of course, you MUST collect contact information, ship to information, and the all important 'How will you be paying for this today', but don't be adding in a 'quality assurance' survey or collect intimate details of your customer's entire family and family history. Sime contact deatils, ship to, and payment info is good. If you need more than that, collect it later (or better yet, not at all).

    Now, the basics.

    You should have a security certificate installed. Sharing confidential information like Credit Card numbers is sensative, so get a security certificate and get it installed on your server. Most online payment gateways DEMAND this, so just get the wallet out and do it.

    You should have a decent privacy policy, and a basic refund policy in place too. Write it up, post it, and live by it.

    Have your contact us details out in the open so folks can call you, fax you, and email you is they have questions or concerns. Shopping on the web can be scary for some insecure folks, having a lifeline to a live operator is comforting and helps secure insecure sales.

    Payment: take all the forms of payment you can afford to take. Visa and Mastercard are a given, but adding American Express is a nice plus for some (AMEX customers are very dedicated to shopping and spending) Discover card rounds out the collection, but I've found few use it. Paypal is also a valid choice, but PAYPAL as a sole means of payment alone is consider by many as a badge of AMATUER or PART TIME venture web site. Paypal is gaining acceptance, but keep in mind, if its not welcomed with open arms on Rodeo Drive, its likely to be smirked at on your web site.

    Hacker tested: Some companies are making claims that being Hacker Safe or flying a badge that your site is tested on a regular basis and leads to increases in sales is still a wee bit skeptical in my mind. I've done sites with, and sites without. Perhaps the sales dollars are too low to really sow a difference, but it hasn't made my clients millionaires, just cost them monthly money.

    Payment gateways should be seperate from your retail sales just in case. You don't want to be using your bricks and mortar merchant numbers with your online merchant account because if you lose the online account, you lose your retail stores. Sign up for an online merchant account. Yes, its more money, and more than doubles your costs, but it cheap insurance if anything goes wrong online, your retail stores remain unaffected.

    I'm a big Authorize.net fan. I also resell for them (disclosure). They have a great payment gateway, very flexible, and work with the widest range of shopping carts out there. Fees are fair, and affordable.

    Shipping: If you can, hook up with multiple shipping companies. I've merged shopping carts with two different shipping companies like FEDEX and UPS with realtime pricing (thanks for the great API guys). This allows customers to select fast or slow shipping that fits their patience and budget (faster costs more, slower is cheaper - you pick). For the super frugal, its nice to have a postal shipping selection too, and perhaps a fourth choice like 'Pick up' from your warehouse.

    Domain name is a big part of the ecommerce battle. The rest is meta tags, key words, having your store and shop's URL's search engine friendly. If your store can be spidered, its likely to be listed in search engines. Use google site maps if you can.

    Also, never underestimate the power of buying google adwords, facebook marketing, Myspace, and paid search placement. Those few dollars spent can drive big returns to your web site to buy.

    Consider affiliate marketing too if you can. Share the sale with folks who drive traffic your way. It helps, sometimes a Lot!

    Get professional pictures done of your products. Make sure they are large enough so shoppers can see detail. Write as much as you can about te priduct. Include the most minute detail in your descriptions. The more info you can share, te less support questions you'll get (and you never know which words Search Engines pick up on sending traffic your way).

    Then, work it, work it work it. We;ve been working with clients helping them build better and more profitable web sites. You migt want to consider checking out multiple websites and multiple shopping carts and testing how one performs against another. For example, my client Steve runs Virtuemart to sell lessons in his online training and testing website at www.testmycsr.com But, at his other website where he sells books and dry cleaning related products (www.clothingdoctor.com) he is using the Interspire shopping cart. Both perform well, but for some reason the Interspire cart sells more product.

    If you wish to follow a web site converting from online catelogue to full blown ecommerce, keep your eyes on www.nailtrixx.net as this one will be going live soon. Its already keyword rich and very well SEO placed. Can't wait to see how it reacts to full ecommerce.

    And, here is an example of a web site going from a domain name that hampers search and sales (https://www.necklacenecessities.com) with a shopping cart that customers report as cumbersome (GoDaddy cart) to manuever to a better domain name, with better search and keywords and a better shopping cart solution (https://www.necklace-extender.com). Compare and see what you think between two very similar sites.

    Hope this helps you.

    Darcy Moen
    Customer Loyalty Network



  • Posted by SRyan ;] on Author
    Jiminy Cricket, Darcy! Thanks a TON.

    I won't comment on all the points you raised, just sayin' I appreciate you taking the time to offer so much input here. Hope you're doing well!

    Shelley
  • Posted by darcy.moen on Member
    Hey Shelley, doing just fine. Been in a protracted battle with our local government and an association of electronics manufacturers over ewaste recycling. Seems that they don't like free enterprise operations like my www.secondtimeofficeequipment.com around. Can't wait to start blogging about it, there gonna be some very red faced brand names and perhaps some warmed buns in gov't over it.

    I checked out nerddesigngroup.com and see that they create nice 'skins' that slip over OScommerce and a few of the common Content Management Systems, pretty much like the types you can buy from TemplateMonster and a few other places.

    Skins, or templates, or themes, whatever you want to call them, are very much pretty pictures and design layouts that make your web site look attractive and pretty. Making a web site look clean, uncluttered and attractive is not as easy as one might think. It takes a certain amount of graphic design skill to lay out a nice looking template.

    As for the rest of the offerings, I see SEO and SEM listed, as well as PPC and CPC. Over all, there is a lot of offerings from these guys. What are the rates like? Better question: are the rates worth it? (What's your ROI?)

    My business partner Kelly and I do pretty much the same thing. Kelly is a very talented designer, and he has an intuitive grasp of brand like no-one else I've seen. He builds amazing templates. Then Kelly and I work with clients on the other needs like SEO and SEM.

    Shelley, I guess you are really looking for the answer, does this stuff work from these guys (or even from Kelly and I)? Well, yes, and no.

    Yes, it does work, when there is a web site that is under performing due to bad design, crappy search positioning, and they have a hot product that folks want to buy. Refining a web site to make it easier to sell more does work.

    No, it does not work if you have a product no one wants to buy. You can have the best web site, with the best SEO, the best positioning, the easiest shopping cart, but if no one wants to buy snotty Kleenex of the movie stars, your stuffed from the get go.

    I've been approached by many folks who want to have a web site that sells like hell (sorry heck). I've optimized sites so they are very high in search, solid sites that work, but still, some people just won't buy much online because they would rather walk into a store and make their purchase.

    Case in point is my client who runs a safety supply business locally here in Regina (https://www.firstaidsafetysupply.com) She has an excellent business, excellent service, but folks have resisted buying online (orders have been thin and very sporadic).

    Anyhow, if you feel good about nerddesigngroup.com, go with them. Or, if you are uncomfortable, shop it around and seek out folks who live and breathe online every day (hint hint hint, think Kelly and me). Okay, yeah, I'm being blatant...call me for free consultation (not like I haven't wrote a book about it here).

    Oh, one more thing, do think about Facebook and Myspace. I've been experimenting in those communities, and its been looking very promising.


    Darcy



  • Posted by babbsela on Accepted
    You mentioned using Authorize.net as your merchant account, so I want to clear up a misconception in that statement. Authorize.net is a payment gateway (and the best, in my opinion). It transfers the data securely from the website to the merchant account provider, and then back from the merchant account provider to the website. Your friend will also need to get a merchant account for his online processing. If he already accepts credit cards, he can talk to his current merchant account provider about getting an new account for use with his site.

    The credit card companies have been working on a standard for credit card data security that they expect everyone to follow who process credit cards. This new standard covers how you handle credit cards in your shop, as well as how your website handles credit card data online. The new standard is called the Payment Card Industry Data Security Standard (PCI DSS).

    PCI Compliance provides a comprehensive set of requirements for security management, policies, procedures, network architecture, software design and other critical protective measures. Even though the PCI Council manages the underlying security standards, compliance is set independently by the individual credit card companies. Each has its own set of penalties that can range from $8 per compromised account to more than $138,000 per incident, with additional penalties ranging from restrictions to outright loss of use.

    What this means is that your friend needs to verify that all aspects of the solution he selects are PCI Compliant; web host, the shopping card, the administration of the website, and the payment gateway.

    You can read more about PCI Compliance here:
    https://www.pcicomplianceguide.org/aboutpcicompliance.php
    https://www.pcicomplianceguide.org
  • Posted by MarketGoGo on Accepted
    WOW! What a lot of responses. This is great "e-commerce 101" stuff, and could be compiled into a great article. I'd recommend:

    - Upsell & Cross-sell. Make it easy "buy more" without having to leave the shopping process. It should be a simple check-box to add items in or upgrade to the next item.

    - Upsell. When a customer has selected an item, show them the "next better" item once with an "upgrade now", and a clear description of the benefits of the upsell.

    - Cross-sell. When a customer has selected an item, show them things that other customers have purchased along with the item they already have in their basket.

    All that said, I have no idea what the cross-sell and upsell is for hot-water heaters... maybe it is a set of towels!
  • Posted by Chris Blackman on Accepted
    Hi Shelley

    Other cross-sell and upsell items might include low-flow shower heads that save water while giving the same effect as higher-flow devices. Those are all the rage here in drought-ravaged Australia - and wherever we live we should all be careful not to over-use natural resources.

    Shower timers are another idea. Especially as with tankless units you never actually run out of hot water. One manufacturer here uses the tagline "endless hot water".

    Another phrase that comes to mind: "The economy may be tanking, but your hot water service doesn't need to".

    Cheers

    Chris
  • Posted by SRyan ;] on Author
    Barbara, you're right, I called Authnet the wrong thing. My bad! We'll definitely have a separate account to process and track the online sales.

    David, those are excellent suggestions. I doubt we'll start with that much of a sophisticated shopping experience, but I think it's a smart longer term goal. I love those kinds of features on Amazon...

    Darcy, what else can I say? You ROCK. :)
  • Posted by darcy.moen on Member
    I stand corrected on the Authnet issue. Sorry, my bad. Being located in Canada, I'm used to Authnet assisting in finding a CC company (they refer you to some of the folks they work with). Now that I'm a corporation on both sides of the border, I'd better cozy up with a bank, a CC co, and authnet and make it one stop shopping for ecommerce enabled web sites.

    Hey, been out in the wondeful wide world of ecommerce for a while now. Maybe I should write up my experiences into a small book. Oh man! I haven't finished the last one I promised on data mining! Anyhow, Kelly and I enjoy working hand in hand with clients. We all get a thrill hearing a client report their first sale, and then watching them grow and grow. We feel the pain when stuff isn't working because we've been there ourselves too and have been known to work many extra hours off the billable clock for clients to make it work. Hey, I'd rather have a roughup veteran walking/working beside me than roses and sunshine blown up my butt, wouldn't you? So, I calls them as I see um, like it or not. Maybe I need to set up a Facebook page for folks to be come fans (or not), but I am on Linkedin dot com, look for me.

    Hope this helps you in the long run.

    Darcy
  • Posted by Harry Hallman on Accepted
    I would try Monster Commerce (Now Network Solutions). It is a good system that allows customization and all the things you need or want in a cart. The cost is reasonable, about $99 for the pro package.

    They also help you through the process.

    https://ecommerce.networksolutions.com
  • Posted by SRyan ;] on Author
    Thanks, Harry! I'll take a look...
  • Posted by SRyan ;] on Author
    Thanks, Jo, and to everyone who added their thoughts here. We'll probably go forward with the Nerds, since that seems like the most "turnkey" option for us. And because they seem to be nice guys.

    There's a lot of work ahead! Wish me luck...
  • Posted by SRyan ;] on Author
    Chris, not sure how I missed your post earlier! Thanks for the other cross-selling ideas...

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