Is Your Business Ready for the Digital E-Commerce Revolution?
THUNDER BAY – Business Solutions – E-commerce is revolutionizing the way Canadians do business, but Canadian entrepreneurs are missing out. Just 10% of small businesses were selling online last year, Statistics Canada says. Meanwhile, Canadian consumers spent an estimated $21 billion on online purchases last year, up nearly 30% in just two years, according to research firm eMarketer.
“The world is moving toward this type of commerce,” says Anita Bezeau, Assistant Vice President, Information and Communication Technology Solutions at the Business Development Bank of Canada (BDC). “Canadians are online, but Canadian businesses aren’t there. The result is Canadian consumers are buying online from the U.S. and other countries.”
E-Commerce – Get your feet wet
The good news: It’s never been easier or cheaper to get started in e-commerce. No longer do businesses need to invest huge sums in an e-commerce website. You can create a sales-ready site with no programming knowledge using free services such as OpenCart and PrestaShop, or inexpensive providers such as Shopify and eBay Stores.
These sites come with an online shopping cart, product catalogues and the ability to pay via credit cards or other methods, such as PayPal. Also included are options for customer reviews and feedback, and data on your sales to help you track performance. “If you know how to use e- mail, you can build an e-commerce site in 15 minutes,” says Harley Finkelstein, Chief Platform Officer at Shopify, a leading e-commerce website provider.
E-commerce can level the playing field for small businesses, including those in small towns, Finkelstein notes. Online sales allow you to punch far above your weight in attracting customers. With a well-designed website, a small business can reach as many people online as a much larger company. Plus, your site can be seen worldwide 24 hours a day, and internet marketing tends to be cheaper than traditional methods.
“The Internet has democratized entrepreneurship,” Finkelstein adds. “Thanks to the Internet, I think the future of commerce belongs to small businesses.” Another advantage: E-commerce lets businesses test products and marketing approaches at little cost, while getting quick feedback from potential customers.
The online advantage
Unlike a bricks-and-mortar store, where you might be stuck with the same product display for months because of the investment, an e-commerce site can be changed for free in minutes to include new products or a different look, Finkelstein says. You can then quickly check your web traffic data to see how clients are responding to your changes.
E-commerce allows the kind of trial and error that entrepreneurs often need to do before succeeding, Finkelstein says. “One of the advantages of online sales is you can pivot quickly.” Bezeau agrees: “The cost of entry is very low. The Internet allows you to try and fail and learn.”
Selling over the Internet helps streamline order processing, reducing costs and errors, Bezeau adds. And it offers businesses a “huge competitive edge” because of the convenience of online ordering, she says. “The more convenience you create for clients, the more they’ll stick with your business.”
3 Tips for E-commerce Success
1) Start small. Don’t get bogged down trying to create a huge, high-end website featuring hundreds of products. Start with a free or low-cost e-commerce site, and test three or four products to gauge customer interest while working out the kinks in your ordering and fulfilment process.
2) Test and learn. Don’t expect to succeed with your first efforts. “It’s really about learning,” BDC’s Anita Bezeau says. “Technology allows us to do and test quickly and economically.”
3) Be attractive. In your online store, feature attractive product images, clear descriptions and an easily navigable layout, so visitors can quickly find what they’re looking for and make a purchase. Also, engage visitors with fun and educational extras: how-to tips for products, interesting videos and background information on the story of your company.
The Business Development Bank of Canada is passionate about one thing: entrepreneurs. Helping them is our raison d’être. BDC listens and knows how to meet their needs. We have business relationships with 29,000 entrepreneurs across Canada. We understand the challenges they face every day, and we use our human and financial capital to provide the means to reach their aspirations. At BDC, we do everything to help entrepreneurs grow their business. BDC offers financing, venture capital and consulting services. BDC focuses on small and medium-sized enterprises (SMEs).
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