When e-commerce was young, the channel was viewed as an alternative to in-person shopping. But, over the years, as shoppers got more comfortable researching purchases and browsing options online, e-commerce became part of an integrated shopping experience. Today’s consumers expect to be able to move seamlessly from online to in-person and back again – often as part of a single shopping experience.
The shift in customer behaviors is prompting traditional brick-and-mortar retailers to take another look at adding an e-commerce channel.
Online shopping is here to stay.
Consumers who shop online regularly:
But e-commerce isn’t replacing brick-and-mortar retail.
When they have a choice, 46% of shoppers opt for in-person shopping.
(Source: State of Consumer Behavior Report)
Having an omnichannel experience pays off for retailers.
Customers who engage with a retailer through physical, online, and mobile channels have a 30% higher lifetime value compared to single-channel shoppers.
(Source: CX Network)
When adding an e-commerce channel, retailers can choose from three main paths: building from scratch, building out using an e-commerce platform, or selling via an existing e-commerce marketplace. Use the following guide to explore the different options and determine the right one for your business.
The first option that comes to mind for many retailers is to build their e-commerce website from the ground up, especially if the store already has an informational website.
Building your own website doesn’t mean you have to know how to create HTML code. But it does mean you need to select a Content Management System (CMS) – such as WordPress, Squarespace, or Wix – which provides a simplified interface that enables you to create your website. CMS platforms provide an array of page design templates along with some basic e-commerce functionality. However, you’ll typically need to add e-commerce “plug-ins” to help you create the online shopping experience you want without requiring custom coding.
Pro Tip: When selecting a Content Management System, evaluate the “out-of-the-box” e-commerce functionality and the plug-ins that are available. And make sure the platform optimizes your pages for mobile devices – almost half (45%) of e-commerce sales in 2020 came through mobile devices.
You own the site’s URL (web address), content, and data.
There’s a wide range of customizable design options. These options offer greater “drag and drop” ease.
DIY can be cost-effective. For example, WordPress is free. Costs are associated with features and website hosting.
Adding supporting content to the site is easy.
There’s a learning curve. Often, the best use of time when building an e-commerce site from scratch is to hire a professional website developer.
Plug-ins are required for an optimal e-commerce experience, such as shopping cart functionality and browsing ease.
When using WordPress, you will need separate website hosting services.
If building an online shopping site from the ground up isn’t your thing, consider using an e-commerce-focused website builder. These types of platforms – such as Shopify – give non-techy people a user-friendly way to offer an online shopping option. Because they specialize in online shopping, e-commerce website builder platforms have a full range of shopping capabilities and design templates built in. Users pay a monthly fee to the e-commerce website builder platform to host and maintain their site.
Pro Tip: Choose an e-commerce website builder option to get your site up and running quickly. Plus, many point-of-sale (POS) systems offer integrations with Shopify, which makes connecting your front-end online store to your back-end inventory management, sales reporting, and customer data seamless.
E-commerce builder platforms are user-friendly with step-by-step design options that make it easy to create, customize, and maintain your site.
Specialized e-commerce functionality is built-in, such as product listings, shopping carts, and mobile optimization.
Dedicated hosting is provided, with the ability to use your own URL or one provided through the platform.
You have options to integrate the management of listings on marketplaces like Amazon or make your Instagram posts “shoppable.”
While you own your site, you will have to rebuild your content and data if you decide to change platforms down the road.
There’s a lot of flexibility built-in, but specialized customization may require coding if you need functionality that’s way outside the norm.
Typically, e-commerce website builders offer fewer options for creating supporting content, such as blogs.
Today, retailers have many options for selling online, including participating in a range of e-commerce marketplaces – such as eBay, Etsy, and Amazon. These types of established online marketplaces draw large numbers of customers by offering a convenient one-stop destination for browsing products from multiple sellers. While the built-in customer traffic can be an advantage, the format can make it difficult for retailers to gain visibility. Often, retailers opt to participate in third-party e-commerce marketplaces in addition to having their own dedicated e-commerce site.
Pro Tip: When evaluating third-party e-commerce marketplaces, consider how well they fit your product offering, along with other factors like set-up requirements, fees, and shipping options. For example, here’s a high-level look at a few of the top e-commerce marketplaces.
Getting started is easy. The marketplace handles the infrastructure, design, and sales transactions.
Your products are exposed to a broader audience of potential customers who regularly shop via the e-commerce marketplace.
You can opt to sell through e-commerce marketplaces as well as your own website.
It may be difficult for your products and brand to gain visibility in the crowded, multi-seller marketplace.
Your products will compete with other sellers within the marketplace, often at low prices.
Seller fees charged by the e-commerce marketplaces can add up, taking a chunk out of your profits.
The range of e-commerce options available gives you the flexibility to find the right one to match your online retail objectives in both the short and long term. Whether you’re launching an e-commerce channel for the first time or enhancing your existing capabilities, factor in whether you’ll be able to integrate the e-commerce platform with your POS system. Integrating with your POS system provides the ability to connect e-commerce sales to your inventory management automatically – saving you from having to manage and reconcile separate spreadsheets tracking your online and offline sales.
POSIM is a point-of-sale and inventory management system designed to help you expand and enhance your omnichannel retail strategies. Along with POS solutions for your brick-and-mortar locations, POSIM provides smart options for taking your store online and building an e-commerce platform. Contact us for a demo to see what POSIM can do for your business.
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