eCommerce Tips - Part 1

eCommerce Tips… 

1. Check with and get educated on credit card and purchase order processing early in the game.  Depending upon the size of your commerce business, past security issues, technology, etc. will determine how complicated your approval process will be.
2. Get a complete and full list of requirements prior to ever talking to a vendor.  
3. Run pro-forma financials on the eCommemrce business… determine the revenue/cost expectations and where that break even point will be.
4. Have a “mini” commerce system built by the software vendors to really understand how everything works.
5. Go to AND sit down with a current company using the software to actually see how it works… it will help you determine the complexity of the software.
6. Build your product catalog early!  And I’d recommend you put NUMEROUS catalog managers on the task… better yet, farm the work out to a low cost center where you can get a ton of people working on it at a lower cost.  Trust me on this one… it will take a hell of lot longer than you think.
7. Simplicity is always better.  You can add and potentially make the store more complex later, but come out with a simple “buy and sell store.”
8. Go out of the box — everyone says their business is “different.” But I’ve seen that not to be the case.  Remember, the more tweaks you add to the system the more risk you have of a break, higher costs, etc.
9. Don’t overbuy — buy with the opportunity to grow.  You probably don’t need the tricked out CMS, tons of licenses, etc.  Buy small with the opportunity to grow big.
10. And for God’s sake don’t get caught up in the whole “package” sort of deals.  Understand exactly what you need and buy that.
11. Under promise the system functionality and sales - no matter what!
12. It will take 18 months to start to really see sales take off.  This isn’t a “turn on the facet” type of sales.  Many will expect the sales to role in on day 1.  Be sure to communicate and set expectations.
13. Outsource web services — I like Amazon Web Services (AWS)… they’ll keep your servers and the security aligned.
14. Put together the first 2 quarters eCommerce marketing plans… products, pricing, copy, promotions, etc.  Execute them closely, track the results and make changes quickly to improve results.
15. Have a professional writer manage the copy… and get someone experienced in direct response copywriting.  Keep them on a long term contract to ensure the text is consistent across the site.
16. Negotiate the software contract aggressively.  The margins on software are huge, so step up your game.  Get procurement involved to handle the situation.
17. Develop the store outside your IT department.  Nothing against internal IT departments, but they probably don’t have the experience in developing the software and we all know priorities change like the wind.
18. Ensure  IT has full time support resources post initial development to manage the platform.
19. People are the most important part of the eCommerce environment.  You MUST get people who are experienced in eCommerce or .com management.  They need to have program management skills, financial knowledge, IT focus, business management, and marketing skills.  Yes, you’ll pay for the best… but it’s worth it.  You’ll also need lower skilled workers, but ensure they have the experience you require.
20. Resources — someone for search.catalog, management, marketing, IT, dev. security, processes, etc.

Stay tuned for more tips...

Scott