11/ 07/ 2002
by Bud Rosenthal
Forrester Research predicts that nearly two-thirds of all U.S. households will shop online by 2007, nearly double the amount currently. The holiday shopping season is just around the corner, so for those small businesses hoping to get in front of the crowds, now is the time to set up an online business. Gartner Group reports that in the fourth quarter of 2001, Internet retail sales reached $25.3 billion worldwide, exceeding the previous year by 39 percent.
The Internet levels the playing field for small businesses who want to reach a large audience economically and efficiently, and the holiday shopping season is a great time to reach customers who are looking for that unique or hard-to-find gift. The Internet incorporates solutions that allow businesses to get online, sell online and develop effective online marketing and promotional strategies to reach new customers and grow sales.
Here are a few tips for small businesses considering getting online:
- Consider setting up an online storefront. Several online commerce solutions enable small businesses to create their own online storefront--some for as little as $50 per month.
- Use online tools to promote your business, such as online directories and search engines. Including your online store or Web site in Internet search engines and directories is a simple and cost-efficient way to reach potential customers. Some search engines and directories offer pay-for-placement, so you can elevate your business' listing to reach new audiences of potential customers.
- Take advantage of online yellow pages. Businesses can let customers know how to find them on the Internet and off by including their business listing in online yellow pages.
- To get even more mileage from your listing, many yellow page directories offer "featured placement" for a small fee--where you can receive more prominent placement as well as include more information about your business, such as hours of operation, payment methods and a link to your business' Web site or online store.
- Look for a solution that provides everything from domain registration to hosting to inventory tracking and promotional tools. This one-stop shopping approach will save time and money in the long run. Also, be sure to look for a solution with a wide distribution to an audience of online shoppers.
- Consistent communication with customers is the key to building a profitable, long-term relationship. Whether you send monthly newsletters to your existing customers or use banner advertising to promote your brand, building awareness and invoking action is critical to success.
Bud Rosenthal is vice president and general manager of Yahoo! Small Business Services
