By: Trixie Dela Cruz

In an increasingly digital-age it’s very rare for those with a physical product or high street presence, to not take advantage of the many channels there are to sell online. Selling a product online allows you to reach a wider audience and new customer pockets, with 41% of the world’s global internet users purchasing products online in 2014. But if it’s an area you’ve never explored, it can be overwhelming.
What are the advantages of selling online?
An online shopping facility allows customers to order and pay for your goods and services over the Internet. Advantages of online shopping include:
-Access to global markets 24 hours a day.
-Reduced overheads – the expenses of a shop are eliminated.
-Access to new customers.
-The ability to compete with larger businesses on an equal footing.
-Gives customers access to products and services not available in their area.
-Offers convenience and privacy for your customers.
-Appealing to a wide and varied base of customers. For example, online shopping allows disabled or housebound people easy shopping.
What are the disadvantages of selling online?
The main disadvantage of online shopping is
The safety and security issues. Recent media coverage has highlighted the threat of commercial websites being infiltrated by computer hackers, or credit card numbers being stolen online. Although consumers have become more relaxed about giving out their credit card details over the Internet, worries about online security issues are still seen as a major obstacle to the wider take-up of online shopping.
Other disadvantages include:
-Slow Internet speeds can make websites slow for users.
-Difficulties in delivering goods to worldwide customers.
-The customer does not receive their goods immediately.
What costs should I consider when I am preparing to sell online?
In general, the costs associated with online shopping are low, although this does depend upon the complexity of your business. Basic considerations may include:
-An online shop will need ‘shopping basket’ software to allow your customers to buy online. Using an ‘out-of-the-box’ solution can be a cheaper and less problematic option. -Alternatively, you will need to consider employing a consultant to design software to meet your particular needs.
-An online shop will require facilities for processing payments. You will have to set up a merchant account with a bank to accept credit card payments. A charge will be made for using the bank’s credit card merchant facility, which may either be a percentage of transaction values or a fixed fee.
-You must take into account the costs of registering the website with a domain name and a search engine.
-You may need to seek the help of a legal professional when setting up an online shop. Online trading is different to ‘normal’ trading, so existing contracts and terms and conditions may need to be adapted accordingly.
