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Add To Cart Offering online shopping opens your business to a national customer base – but not without challenges. By Emily Bertram
Starin is now firmly in the e-commerce space with Baby’s on Broadway, and she’s learned a thing or two along the way. She outlined several issues to consider when operating a successful e-commerce business. Have inventory readily available.
Thanks to large online retailers, quick turnaround of online orders is expected. “Customers expect that if it can be added to their cart and paid for, it will ship immediately,” Starin said. Implementing an effective inventory management system is key in making sure that you have enough inventory to fulfill orders. Be transparent with your customers about what is in stock, and give realistic shipping timelines.
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hen Adelle Starin entered the retail world 10 years ago, operating an e-commerce business was not part of her dream. “My goal as a retail store owner has always been to bring people in the doors of the store so I can work with them, hands-on, to help them choose the products that work best for them, their budgets, and their lifestyles,” Starin said. Starin owns Baby’s on Broadway, a specialty children’s boutique with physical locations in St. Cloud and Little Falls, and a large online presence. At the time Starin started her business, building and managing websites required more technical
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knowledge, and e-commerce was difficult to operate. Today, that’s not the case. “The reality is, we are in a digital world,” Starin said. “And in a digital world, a website is mandatory for people to even know you exist.” Today, there are many userfriendly platforms to help set up a successful e-commerce website. Plus, it’s become easier to integrate websites with actual transactions. “This year we are excited to be rolling out a custom revamp of our site,” Starin said. “After 10 years of our online point of sale not speaking to our in-store point of sale system, they will finally communicate.”
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Manufacturer relationships are important.
Part of ensuring you have inventory is maintaining a good relationship with the manufacturers you work with. “If you have a good relationship with, and understanding of, the manufacturers that you are working with, including their price structure and how they operate internally, this helps maintain the synergy needed for a good ongoing relationship,” Starin said. Keep communication open and work with manufacturers that you trust so you can avoid misunderstandings and provide your customer with a good experience.
Costs are high.
These days, everyone expects free (or almost free) shipping, according to Starin. “The reality is that shipping puts an extreme dent in your margin,” Starin said. “Not only must you now cover shipping costs, but the processing fees are higher online, the fraud rate is much higher, and you will need to spend more money on digital marketing – such as your placement on Google – to be found.” Starin says that it’s vital to understand these costs in order to be profitable, and that they should be factored into your e-commerce business plan. Despite its challenges, there are a lot of advantages to operating an e-commerce business. Taking your store online lets you to be open 24/7, provides you with more options for personalization and customer insights, and allows for creativity in customer service. For Baby’s on Broadway, it has been a good way to reach customers from areas outside of its locations in St. Cloud and Little Falls. “We have loyal customers from across the nation,” Starin said. “We couldn’t be happier to connect with people who we otherwise wouldn’t have had the chance to work with.” Emily Bertram is the director of marketing and communications at the St. Cloud Area Chamber of Commerce and editor of Business Central Magazine.