The pros and cons of selling online

Retailers have debated whether to sell products online for the last 13 years, ever since Amazon burst onto the scene in 1995. Today, children who grew up with the Internet are entering the working world and are utilizing their spending power and influence in record numbers.

People in their 30s and 40s, who started using e-mail in the 1990s for work, feel more comfortable shopping online than they ever have before.

Everyone knows that the Internet is much more than a passing fad, but does that mean you should take the leap and invest in an e-commerce component to your store? That depends.

1. Today, more than 50% of households have broadband access and the online shopping experience has become much more satisfactory. Pictures download quicker, information is instantly at their fingertips, and they can comparison shop between sites by toggling back and forth in their browser.
2. The smallest businesses can appear much bigger online. Unless you tell people you have a small store, or your site looks like an amateur created it, consumers will assume you are here to stay.
3. Smaller retailers can compete with the bigger companies online because you can target niche customers; ones that larger retailers don't do a good job of pursuing. Plus, your revenue goals don't have to be as high, so you have a good chance of staying in business online.
4. Many customers used to have phobias about using credit cards online, but today that danger is disappearing. Online payment enablers have strengthened their security measures to such a degree that being hacked is less common. The media doesn't even focus on it any more.
5. Other payment platforms have emerged that enable customers to withdraw from their checking account, or pay later, when they want to make a purchase. Online shopping was once reserved for those with credit cards, but that is no longer the case.
6. You are now a global business. While you're sleeping, a housewife in North Carolina is telling her friend in London where she bought a lamp. Her friend visits the Web site, sees three other lamps that she must have, and when you arrive at work in the morning, you've got an order waiting for you. Which leads to another pro:
7. Online, you're a 24-hour business. Your doors never close and you can still make an income without living at your store.

1. You fear that not being computer savvy will hurt your Web site. It is a legitimate fear, but there are people and companies that will walk you through each step so you can make good decisions together. It can hurt you if you have poor taste in Web design (black background with white type, anyone?) or you treat it as a neglected stepchild, a mere after thought to your overall business plan.
2. It does take time and energy to build a quality site. You need good pictures, consistent branding, planning and organization to bring a usable site to fruition. Just like building your store, there are construction hassles.
3. You don't have the resources to maintain it properly or the budget to handle the additional expense. These are very real concerns.
4. You are scared of diluting/tarnishing your brand by putting it online for anyone and everyone to buy.
5. You create a Web site that doesn't reach your intended audience or there's no traffic to support the expenditure of the site. Being able to drive traffic and promote it not only costs money, but it takes more of your valuable time and resources as well.
6. Logistically, you could be looking at entirely different inventory needs and you will have to be able to facilitate shipping in a timely manner.
7. Consumers can comparison shop online. If you don't have the best price, shipping costs or delivery time, you may lose the sale.

So, should you sell online? As a consumer who online almost weekly, I'd say yes because I'm out there shopping. As a consultant, I say it depends on whether you feel you can make the same commitment to your Web store as you do your brick-and-mortar store.

If the answer right now is no, start small. Build a great Web site that reflects your brand, update it often, send out e-mail coupons and start a dialogue with customers. Your Web site isn't just information on a page, it's a billboard in the center of your town. Once you've mastered this, then take it to the next level and turn your business into a 24/7 shop.