Marketing Your E-commerce Business Through Social Media Networks

A popular way to generate traffic to your e-commerce business is through social media networks. You can market your e-commerce website through places such as Digg.com, Twitter.com, Facebook and MySpace. The goal with social network marketing is twofold:

1. You are trying to enhance your site’s community by establishing outposts on social networking sites so people who share your interests, or are interested in your products and services, find you and your site.
2. Getting involved in social networking multiplies the number of places that your site and your products can be found by search engines, which is critically important to the success of your e-commerce business.

How To Leverage Social Media Networks To Our Advantage?

Simply, we are trying to spread the word about your e-commerce business. You can take your product reviews or blog posts and spread them as far as possible online enlisting the help of these sites. It’s important to make sure the content you’re promoting is interesting and helpful to the audience you’re trying to reach. Remember, people like to do business with their friends if they’ve never met you offline. By being reasonable and participating in social networking, you’ll expand your credibility and potential customer base in many important and helpful ways.

It’s also important to recognize that these social media outlets were designed to serve as conversation platforms, and not as overt marketing channels. Sending messages that are overly promotional or commercial is often compared to shouting at a party where everyone else is chatting quietly, and the backlash can overwhelm the benefits of participation. As an ecommerce business owner I recommend taking a couple of weeks to monitor the various sites to get a sense of the patterns and informal rules before posting anything.

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Moving Your Business Online

Most owners who start selling online usually have an existing bricks and mortar business. The reasons why a business owner may go online could be to expand their customer base, increase sales revenue, or just to have an online presence and I am sure there are many other reasons as well. I am starting to see a stronger trend from brick and mortar businesses to move online and use online e-commerce systems to run their business instead. Also, for new business owners coming online for the first time I see them starting a blog as a low cost and easy to set up alternative. Let’s have a look at some of the statistics. According to the 2008 Australian Commonwealth Bank Investment Trends Business Owners Survey, they found 42% of business owners had a website, but only 18% of them allowed consumers to buy online. I was quite interested to read this because it shows there are still more opportunities for business owners to capture their share of the online market.

Why Do Business Online?

There are many benefits in doing business online and I have outlined five most compelling reasons:

1. Make money 24 hours, 7 days a week. Imagine waking up and turning on your computer to see that you have made hundreds of sales overnight! In today’s time poor consumer market, we see people shopping online at any time of the day, so having a 24 hour, 7 day a week shop can capture sales you didn’t even know about.
2. It is easy for consumers to shop online and no more waiting in lines. One of the secrets to shopping online is no more waiting in lines to get what you want. Make it easier for consumers to buy from you and they won’t even need to leave their home.
3. Reduces your overheads. The cost of running an Internet business is quite minimal and once your systems are in place your customers become your most profitable asset. With no customer service staff and no overtime to pay, your Internet business can be very lucrative. I am an example of this, as my dragonboat business is an automated system with only one staff to run it.
4. Allows you to focus on a niche market. Some of the most successful small businesses carve out a niche market where they don’t have to compete on price alone. This allows them to expand their customer base globally and dominate their niche market.
5. Streamlines your systems and improves your cashflow. It is very easy to automate your systems with an Internet business as technology is so advanced that it can do virtually anything. It allows you to feed information into your back-end systems and allows you to control where money goes. Additionally cashflow will be improved with faster electronic transactions without having to wait to go to a bank to deposit the money.

Getting Started With Your Online Business

Once you have decided that your business is suitable for capturing online sales, you will want to begin planning how to put it together. There are many parts to an Internet business and more in depth knowledge to acquire, though here is a summary of the components you will need:

The Front End:
Another article I wrote discusses about the front end in more detail showing you how to capture leads: Converting Traffic Into Sales Part 1: Generating Leads. This will help you understand more about the processes involved.

• Setting up a website. This is the easy part, and also the presence of your business online. First step is to register a domain name, chose a hosting company and build your website.
• The shopping cart. Once your website is setup you can either have an integrated shopping cart with your website or add a shopping cart software. Both with do the same job, the difference is to do with how much you can afford to spend on the website. I’ll explain what is included in a good shopping cart:
  • Marketing tools and information including cross selling tools
  • Order management tools
  • Pricing rules allowing you to offer bulk discounts, special time sensitive pricing promotions and so forth
  • Stock management tools

The Back End:

• Payment gateway. This is important for you and the consumer to have. It is a secure connection between your website and the bank or merchant provider that will send private transactional details. A consumer will feel safe when they are purchasing from your website and provide security from fraud.
• Merchant provider. This is the financial institution that will validate credit card details and make the payment into your bank account. It can be either your banking institution or an online provider such as Paypal or eWay. Shop around to see what is suitable for your business that will provide you with the best package possible.
• Accounting system. More and more e-commerce systems have an accounting package module built in and also give you the option to export data into a well-known accounting system such as Quickbooks or MYOB. No matter what accounting software you use, make sure you have this in place as it will save you time and money over the long term.

There are more components that can be added to both the front and back end of an Internet business. I have provided a basic skeleton to get started for any business owner wishing to set up their business online. If you want to find out more about how to create a successful and profitable back end system to add onto these basic components, be sure to read:
Converting Traffic Into Sales Part 2: Profiting From The Back-End

Tyrone Shum
Helping Business Owners Move Online

Converting Traffic Into Sales Part 1: Generating Leads

In Spreading The Word: Turbocharge Your Traffic, I discussed about the different ways of driving more traffic to your Internet business using social networks such as Twitter, Facebook and MySpace. Once you have an increased amount of traffic to your website, what do you do next? In today’s post I will be talking about how to convert this traffic into leads which will be part one of a three part series of Converting Traffic Into Sales.

For reference, I will be using the term “sales funnel” instead of “converting traffic into sales” for simplicity.

To understand how the sales funnel works we look will look at it from a systematic process, starting at where your prospects come from, to how we will pro-actively guide them through the sales process and become a long-term client. Before any of this can happen, we need to look at how to capture these prospects into a database using some creative flair.

Generating Leads From Traffic
Generating Leads is the most challenging, though fun aspect of the sales funnel. It requires constant testing and monitoring using endless proven methods, which are only limited by your resources and imagination. Where we capture all of this information is from the front-end, or the face of your business on the Internet. As soon as a prospect is interested in a product or service you may offer, we want to qualify and encourage them to opt-in on your website. When this occurs, it starts the first step of the sales funnel and begins to transform an everyday web surfer into a lead showing their interest in receiving more information.

There are many ways for a person to opt-in on your website and it’s crucial to have these mechanisms set up to begin generating leads. Here are some examples of how other Internet businesses capture leads:

• Subscribing to a blog via RSS subscription
• Signing up for a Free Report such as my Internet Business Blueprint located in the column on the right
• Registering for a free online service, for example MySpace, Facebook, LinkedIn, Flickr.
• Ticking a box to receive further information when purchasing an product or service from another site. For example, telephone companies such as Telstra always has a little tick box allowing you to opt-in to receive further marketing material whenever you complete a transaction with them.

When a potential prospect opts-in to your website, then they are agreeing to receive information from you. This is called permission marketing and it was first coined by Seth Godin. If you haven’t read his book Permission Marketing, you can get grab a copy of it on his website or buy it at any book store.

Now I must point out, some Internet marketers have been very successful in selling their products straight off the front-end and have made a lot of money doing so. Though you have to see what type of authority they have in the market and the systems they have in place to do this. I can assure you it has taken them many years and lots of resources to set this up and it’s not an overnight get rich story. Rich Schefren is a classic example of this and has extremely refined front-end and back-end systems that help him continue to generate profits even if his not working. My point here is, not to start selling any products to your new leads but to offer them value through content and building strong rapport with them first. The front-end is a mechanism to generate and qualify leads for your Internet business and is probably the least profitable.

In the next Converting Traffic Into Sales article I’ll go into more detail about how the back-end process works together with front-end and you will realise that the front-end are mostly ways to generate leads and are not necessarily profit centers. You will also learn why the back-end process will be the most important aspect for the long term growth of your Internet business and how it will outlast your competition.

Continue to Converting Traffic Into Sales Part 2: Profiting From The Back-End

Tyrone Shum
Lead Generator