Myths and truths about sales on the internet
The increase in Internet Sales awakens the interest of the companies but also leads to many questions. That is why Refrigeration Club went to talk to a specialist to clarify the main queries of someone thinking of opening a virtual store. What are the myths and truths about this modality of business on the Internet also known as electronic commerce or e-commerce? What are the main marketing strategies for sales on the Internet (Web marketing) and how can you put your company in first place in the largest search system today on the Internet (Google Adwords)? Roberto Lion Motta is a consultant of e-commerce, web marketing and Google Adwords, with more than thirteen years’ experiences and success in the area.
Refrigeration Club: Do people buy more on the Internet?
Roberto Lion Motta: The traditional retail trade is still the largest sales channel of companies, but the Internet has maintained higher growth, approximately 25% per year. Anyway, this sales channel cannot be ignored by any retailer, due to its opportunity of sales leverage and increased market share.
Refrigeration Club: Is it totally safe to sell on the Internet?
Roberto Lion Motta: No. It is safer that companies analyze credit in transactions, to avoid problems. There are systems which analyze credit automatically at the moment of the transaction. This is a mandatory stage in e-commerce due to the possibility of an entity buying in the name of a third person, with stolen or cloned cards.
Refrigeration Club: Is the start investment very high?
Roberto Lion Motta: It depends upon the segment of performance and the commercial strategy which the company intends to adopt. Virtual stores which need to maintain an allocated and exclusive physical inventory will have greater investment due to the inventory turnover. While companies which adopt “door to door” strategies (sales at home from door to door) or use the inventory of the parent company which is also used for other business channels, will have a lower start investment.
Refrigeration Club: Do I need a department to take care of this area?
Roberto Lion Motta: To reduce the start investment, the company can begin with a hybrid department in the commercial department, with the support of the marketing department. But it will need to hire entities to take care of this business channel and specialists in Web marketing to assist at the start of the operation, such as hiring a consultant until the operation gains sales volume. As of the moment that the sales volume is reasonable and begins to match the operation, it is the moment to create its own department with specialized entities in e-commerce, Web marketing, SEO (Search Engine Optimization, positioning in organic search), and SEM (Search Engine Marketing, links sponsored in Google), commercial management, etc.
Refrigeration Club: How many people do I need in the department to take care of this area?
Roberto Lion Motta: From one to five people, depending upon the segment of performance, start structure to be adopted and the expectation of the volume of visits and sales to be generated in the first months of performance. After this and the growth, the trend is for the structure of entities to increase. If it is a consolidated company of medium to large size and great demand on the Internet for its products, it will be necessary to create a department of e-commerce.
Refrigeration Club: Is the return on that investment guaranteed?
Roberto Lion Motta: Yes, if a correct market analysis is done before the operation being started, comparing the competitors and their performance strategies. Correct planning of Web marketing/e-commerce and commercial/services, aiming to make the best use of the operation and sales channel is of paramount importance.
Refrigeration Club: Does it take a long time to be profitable?
Roberto Lion Motta: The profitability is directly related to the capital invested at the start of the operation. Companies which are purely online, usually take a year of operation to begin to amortize the start investment.
Clube da Refrigeração: Is it simple to start an e-commerce?
Roberto Lion Motta: There are specifications and particularities of each business which shall be replicated in the Web environment. Professionals with experience in the sector will certainly aid at the start, accelerating the process of maturation and profitability of business.
Clube da Refrigeração: Can I create an e-commerce alone guided by sites which make this tool?
Roberto Lion Motta: Yes, it is a good option if there is not an appropriate amount to start the operation with an appropriate tool. There are several options in the market, certain of them able to have limitations in terms of tools or suitable support. This shall be a decisive factor in the choice of the tool, which shall be done with care and by a specialist in the subject. Sometimes the wrong choice can restrict the growth of the operation and create a scenario difficult to reverse, due to the contract which was made with the supplier. The detailed analysis of the suppliers is essential, and it is worth spending a little more at the start to have flexibility in the tool, removing the dependence on the supplier.
How can I really advance my Internet sales?
Commercial management of e-commerce;
Planning of webmarketing (tools + strategies);
Sponsored links, Google Adwords;
SEO – positioning in organic search;
Finally, check out here online systems that can help you in running your business.
Door to door: Sales at home, from door to door.
E-commerce: Electronic commerce, virtual store.
Google Adwords: Ads in Google.
Inventory turnover: Stock rotation.
Search Engine Marketing: Marketing of Optimization in Searchers to intensify the visibility of the company site.
Search Engine Optimization: Optimization for search tools. Process of choosing keywords to improve the classification of the site in the results of searching on the Internet.
Web marketing: marketing for Internet.