Myths of e-commerce - facts and misconceptions

Every business wants to sell on the web, e-commerce has caused a major disruption to the traditional practices. Today business can easily deliver service to its customers, market and advertise their products. But what are the facts and misconceptions about selling on the web? Although many entrepreneurs have made their fortunes through e commerce, setting up shop on the web is no guarantee to success. Scores of entrepreneurs have plunged unprepared into the world of e-commerce only to discover that there is more to it than merely setting up a web site and waiting for the orders to start pouring in. Before starting to sell on the web you need to research and understand the facts and misconceptions about e-commerce.

Myth 1. If I launch a site, customers will Flock to it : some entrepreneurs think that once they set up their website, their expenses end there . not true! Without promotional support, no website will draw enough traffic to support the business. With more than 1 billion web pages in existence and the number growing daily, getting a site noticed in the crowd has become increasingly difficult. Even listing a site with popular web search engines cannot guarantee that customers surfing the web will find your company's site. Just like traditional retail stores seeking to attract customers, virtual companies have discovered that drawing sufficient traffic to a website requires promotion and a lot more. The key to promoting a website is networking, building relationship with other companies, customers, trade associations, online directories and other websites your customer's visit.

Myth 2. Making money on the web is Easy : Promoters who hawk " get-rich-kick" schemes on the web lure many entrepreneurs with the promise that making money on the web is easy. It isn't. One recent study by Activemedia found that fewer than 50 percent of commercial web sites are profitable. Making money on the web is possible, but it takes time and requires an investment up front. As hundreds of new sites spring up every day, getting your company's site noticed requires more effort and marketing muscle than ever before. One study by the Boston consulting group, a management consulting firm and shop.org, an internet retaining trade association, found that web retailers invented 65 percent of their revenue in marketing and advertising, compared to their offline counterparts, who invested just 4 percent.

Myth 3. I don't need strategy to sell on the web : Building a successful e-business is no different than building a successful brick-and-mortar business and that requires a well thought out strategy. Building a strategy means that an entrepreneur must first develop clear definition of the company's target audience and a thorough understanding of those customers needs, wants and likes. To be successful, a website must be be appealing to the customers with good features like graphics, and UI. For your website to become a foundation for your successful e-business, you must create it your target audience in mind.

Myth 4. Customer service is not so important : Many web sites treat customers service as an afterthought, and it shows. Sites that are difficult to navigate, slow to load or confusing will turn customers away quickly, never to return. The fact is that customer service is just as important on the web as it is in the traditional stores. There is plenty room for improvement in customers service on the web. Research by BizRate.com found that 75 percent of web shoppers who fill their online shopping cart become frustrated and leave the site before checking out. The most common reason for leaving site without purchasing include the following: site too slow 41% , unprofessionalism 20%, hard to find 14%, no return policy posted 12%, .

The world is evolving and it has become imperative for business owners to take e-commerce as a serious policy both in the short and long term. Managers need to research ,plan and properly strategize for web selling in order of it to increase its market share