According to a previously written blog (Communicating with Customers is a Must for E-commerce Sites, January 2007) I cited a few statistics about the state of American e-commerce, including its amazing 25.2 percent growth but only making 2 percent of total GDP.  I expect e-commerce to grow as potential buyers get used to conducting business transactions online.  The gist of that article was that we—retailers and customers—have a responsibility to ourselves and our customers (current and potential) to take the necessary security measures to ensure that people’s privacy is protected. However, the aim of this particular piece is to expand on the idea of attracting potential customers to your web site and enticing them to buy from you.  Assuming that you have taken all necessary security measures and have disclosed policies and other relevant information, what then?

Beyond security is to look at the products or services that you offer.  Do you have competitors?  If you do, how many are there online?  Have you taken the time to visit those web sites to see what they offer?  An effective way to assess the quality of your products and/or services is to do a “best practices” assessment of your competitors and unrelated companies.  Best practices assessments are not complicated and can be done with very little money but it does require that you invest some quality time to visit web sites.  Compare your prices with those of your competitors: are they underselling you or are you competitively priced?  Read their return policies, privacy notices, sales, specials, and promotions and compare them with yours; are there areas where you can improve?  Visit unrelated web sites for “best practices” that you might be able to adapt for your own web site without infringing on copyrights, or “borrowing” images or text.  Rather you can look for models that might inspire you to create or adjust your current or unwritten policies to develop original work and thus making them your own.

Conduct a “best look” assessment of your web site comparing it with your competitors and non-competitors.  Does your web site look sophomoric, cartoonish, and unappealing?  Do you have pop-ups, flashy banners, and/or animated cartoons dancing across your front page?  Ask yourself if you want to portray the serious side of your business or the silly side.  If you choose the serious side then you are on the right track to attract visitors.  If you chose the silly side, then expect a lonely online existence.  I may be wrong but the biggest turn-off for me is to visit web sites that are so visually busy with flashing banners, Google AdSence banners, and other annoyances, that the last thing I want is to spend longer than a second at that site.  Again, look for models that you or your webmaster might use as guideposts for creating original content and consider cleaning up your web site from clutter and make it appealing.

The final issue is to develop an action plan.  Lofty goals are usually unrealistic.  For example, a lofty goal such as “I want to lose weight” is likely not to be realized.  However, if you develop goals that are short-term, realistic, and achievable, then success will follow.  Thus, if you propose to lose weight and develop a daily, weekly, and quarterly exercise and nutrition plan then you are likely to lose weight.  The same applies for developing business goals: make short term goals that are realistic and achievable and only then can you develop a “lofty, but achievable” goal.  For additional details about appealing to potential customers read my first article (To Template or Not to Template: It’s a Matter of Survival, October 2006).

According to a 2004 U.S. Census report about the state of e-commerce in America, retailer’s commercial activities grew by an amazing 25.2 percent, faster than any other economic sector and crushing even the most optimistic figures of economic growth when GDP peaked at 7.2 percent in October 2003 (CNN, 2003).  However, a more sobering finding is that despite its 25.2 percent growth, the share of total retail sales via e-commerce grew at a modest 2 percent ($71 billion), up from 1.7 percent ($53 billion) in 2003.  Notwithstanding these findings, there is money to be made in e-commerce (who wouldn’t want a piece of the $71 billion?) and no doubt that technological advances, internet connectivity, and increased comfort to buy online by consumers will contribute to the growth of e-commerce.  One way of contributing to the comfort level for consumers to purchase online is to ensure that your customers and potential customers feel reasonably safe to navigate, register, and use their credit cards to make purchases.  As a conscientious and lawful e-commerce merchant you have a responsibility to ensure that your customers’ privacy is protected.

Most e-commerce retailers have stepped up to combat online fraud.  According to an article by Merchant Fraud Squad in About.com (2002) 72 percent of polled merchants reported fraud rates of less than .5 percent of annual revenues, while less than 20 percent reported fraud rates higher than 1 percent.  These numbers are amazingly low despite the increased sophistication and aggressiveness of criminal elements that engage in spamming, phishing, and fraudulent credit card transactions.

If you are considering e-commerce or are in e-commerce, you might consider the following tips to help fight fraud and protect consumers:

1. Be clear about your privacy policy.

Review your privacy policy and if you don’t have one, write one!  Ask yourself the following questions: is my privacy policy as thorough and clear as possible?  Am I committing myself to protecting customer’s information against fraud, unsolicited emails, or the transfer or selling off of customers’ information to third parties?  Have I clearly stated how I will use customers’ information once I have it?

1. Don’t get annoying

Do you want to keep customers and attract new ones?  If you do, consider cleaning up your website by removing annoying pop-up windows, flashy ad banners, and visually painful cartoonish and sophomoric looking animations that make your website look less like legitimate e-commerce sites and more like a bad version of Cartoon Network.

1. Publish an “About Us” page.

Write a short bio about your company, how it got started, and what it stands for.  Write a mission statement which includes your business ethics (which can be tied to your privacy statement).  Include, for example, a subheading such as “Why buy from us” and give persuasive reasons why potential customers should buy from you.  You could include a short summary of warranty and return policy benefits, generous discount offers, security measures you have taken to protect customer’s privacy, and even naming the reputable companies you might be in business with to make your e-commerce possible.  Here’s an example:

Secure Transaction:
We utilize Secure Sockets Layer (SSL) encryption protocol. SSL protects customer information such as credit card numbers, names, and addresses during the exchange between your computer and our server…

Our secure payments are backed by:

·         PayQuake (FDIC insured), one of the premier online Merchant Account providers.

·         Authorize.Net, the leading secure payment management company.

·         Ipowerweb.com, one of the highest rated Internet Service Providers

·         Equifax Secure Inc. (a subsidiary of GeoTrust, Inc., a leader in trust solutions for the Internet security infrastructure).  Simply click on the lock symbol on your browser to view the certificate.

(Source: www.oceanusgifts.com/about.php)

1. Clearly publish your warranty and return policies

Ethical and honest e-commerce sites will clearly publish reasonable return and warranty policies.  Don’t be so restrictive that it becomes a disincentive for potential customers to buy products or services.  Be thorough and direct but not so wordy that people won’t read your policies.  Be mindful of the tone and language that you use to write your guidelines by not coming off as preachy, condescending, or patronizing.  Avoid CAPPING words (rubs off the wrong way and it usually gets interpreted as yelling).  Do not overuse exclamation marks (!) (in fact avoid exclamation marks altogether).

1. Invest in SSL certificates

Take reasonable steps to secure your site with SSL certificates.  There are reasonably priced certificates out there that will not break the bank.  Make sure that SSL certificates are up-to-date.

While these tips might not be all-inclusive, they provide starting points for developing policies and standards that clearly portray your intentions as a retailer.  Your potential for economic success will be improved with these tips because they will help to create a safe and pleasant online environment for your visitors.

References

About.com (2002).  E-merchants are successfully fighting fraud despite rising sophistication of fraudsters.  Retrieved on January 11, 2007 from: http://retailindustry.about.com/library/bl/02q2/bl_mfs061702.htm

CNN. (2003, October 30).  U.S. economic growth sizzles:  Third-quarter growth of 7.2 percent is strongest in nearly two decades; will job growth follow?  Retrieved on January 11, 2006 from:

http://money.cnn.com/2003/10/30/news/economy/gdp/index.htm

U.S. Census.  (2004).  E-Stats.  Retrieved on January 11, 2007 from:  http://www.census.gov/eos/www/papers/help 2004/2004reportfinal.pdf