Partner Article

Getting started in e-business: part 1

In part one of this series, Neil Graham, CEO looks at setting up an online business.

Why consider an internet business?

Setting up your business to sell online or adding it as an additional payment channel to your existing business opens up new possibilities and revenue streams for a business, and if planned and researched properly this can be done with minimal effort and expense.

There has been tremendous growth in e-commerce year on year with a recent IMRG report showing that e-retail sales grew 14% in 2012. This is also supported by the estimation that internet retail sales will grow from £28.3bn in 2011 to a staggering £33bn by 2015.

E-commerce is a channel businesses really can’t afford to ignore. In order to take full advantage of this channel, your business will need to be able to accept payments from customers direct from your website.

Internet business - the benefits and risks

Benefits

Access to an increased potential customer base - you’re open for business 24/7! Many retailers start their online business from their own homes, reducing overhead costs faced by traditional offline businesses (rent, insurance, office equipment and so on). Minimal set-up costs and hassle for an online business compared to setting up a physical premises.

Increased payment options and channels for your customers, helping accelerate your business’ cash flow.

Risks

Increased competition with many businesses now having an e-commerce presence - building a website isn’t enough, it requires regular updates to keep customers up to date. Getting your website up in Google rankings can prove expensive and time-consuming. Ensuring you are up to date with all the e-commerce and credit card regulations so as to avoid fraud or fines.

This was posted in Bdaily's Members' News section by CashFlows .