The power of the Internet!
Before you tap into its fortune you better seriously consider producing an e commerce business plan presentation!
I have personally been making money on the Internet for over five years!
Trust me when I tell you that it is a very competitive business that requires some pre-planning in order to get the best results as quickly as possible!
Like any business whether on the Internet, or in a fixed building, you must have one very important thing!
Without figuring out how who and how you're going to drive customers to your e commerce website business you won't last long at all. The competition for Internet traffic is enormous and you better have that spelled out in your e commerce business plan presentation prior to investing one dime into your business.
Let me just tap into the surface of driving traffic to your website.
You can buy traffic and this is referred to as Pay Per Click (PPC)! In other words, for every person that comes to your website you will have to pay a fee. This fee is required whether the customer buys anything or not! The fee is based on what is referred to as keywords. The more popular the keyword the more expensive it is. It can be as little as a few cents per visit to several dollars. Based on the normal averages on the Internet you may get as much as 2% of your visitors making a purchase. That of course is if you have a good product and a well written sales page!
As you produce your e commerce business plan you need to build these types of expenses into your variable costs.
It is important to understand that the Internet world is much different than the real world in that a visitor can pop onto your website and off of it in a matter of seconds. On the other hand, if someone goes to the trouble of coming to your business that is located in a building. they will most likely spend a little bit of time looking to see what you have to offer. In most cases you will have some interaction with the person and may be able to direct them into purchasing something.
The Internet is all based on the experience the person has from the moment they arrive at your site to the moment (generally one to two seconds) they make a decision to look and see what you have to offer.
You may have the best product in the world at the best price and it won't matter if· you haven't made an impact on them within that first few seconds!
The PPC method of receiving Internet traffic is one of the most expensive but quick ways of driving traffic to your e commerce website.
If you do not have any experience with building a website it may be a good idea to build into your e commerce business plan the cost of a professional building your website. If done correctly it will help you drive free traffic to your site as well as help with converting those that do arrive at your site into sales.
So, let's do some quick and simple math to give you an idea of how this might work so that you can build it into your e commerce business plan presentation.
If you use the PPC (Remember Pay Per Click) to drive traffic to your website at a cost of $.25 cents per visitor and you are lucking enough to convert 2% of those visitors, into sales how much could you profit from that approach if you made a profit of $15 for every sale.
If you had a hundred visitors at $.25 cents per visitor that would come to $25. If 2% of those visitors made a purchase, which is 2, at $15 per sale that comes to $30 profit. You made $5! This is just an industry standard. You may be lucky and receive more conversions, or not, and receive less!
See how it works.
Now I know that there are a lot of unknowns in this but it will begin to make sense once you do your research.
Some of the unknowns would be to understand who your competition is. Every business plan, including an e commerce business plan, must identify who their competition is and describe how or what is different about your product or service. It may be as simple as price! It may be that your product offers an added advantage. It may be that they are the exact same product but you are making a different sales pitch! Something must be different or why compete?
Before we go any further, I must say that I feel that Business Plan Pro is one of the best business plan software programs on the market today. Just to let you know it is not just me that feels this way since it has been the best-selling business plan software program for more than ten years. It is the one that I personally use. Check them out!
Let's get back to your e commerce business plan presentation.
There are ways to drive traffic to your website through a method that is referred to as Search Engine Optimization, or SEO!
Please don't fall into the trap of buying into the countless people on the Internet that want to sell you software that will magically drive traffic to your website.
It does not exist!
There is no magic pill!
There are no shortcuts!
The bottom line is the only way to speed this process up is to understand completely how the Search Engine Optimization approach works.
I will try in a very short fashion to give you a snap shot of it, but much more discussion, is necessary to understand it completely. But it is the true and only way to drive free traffic to your website. I personally receive over 2000 and growing free visitors per day using this approach!
Google, Bing, and Yahoo are in business to provide people on the Internet with the information they are looking for. Nothing more and nothing less. The better they are at providing those people with the information they are looking for quickly the more often that person will return to them to search again. Currently Google is the leader in that process.
So, let's say that your e commerce product is information and a product for killing bed bugs.
In the eyes of Google your keyword is "Bed Bugs!" However, Bed Bugs is most likely a very' competitive keyword and most likely more expensive when it comes to PPC.
So, SEO is a way to peel the keyword down to a less competitive keyword but would still make sense if a visitor arrives at your site. Although I am not certain but I am guessing that if you chose to use a keyword like "Best Ways to Kill Bed Bugs" it would be far less expensive and might work just as well. In addition, if someone was searching for what a bed bug looked like and typed in Bed Bugs, they may arrive at your site without any intention of purchasing anything. On the other hand, if they arrive at your site by typing in best ways to kill bed bugs there is certainly a better chance of them purchasing a product to kill them!
All these factors need to be included in your e commerce business plan presentation so that at the end of the day you will be able to make a sound decision on whether the investment is worth it or not. If it is worth it, you have a plan to make it successful. That is what it is all about! Success!
Thank you and may God bless you!