Report • 20.05.2020

Simple tips and tricks to start your online business

How to start an e-commerce business: Why you don’t always need a big online store

Creating your own online store is still the most popular way to sell products online. To start an e-commerce business, you first need a store setup and a fulfillment service provider who handles the warehousing, packaging, and shipment of merchandise. Needless to say, the software, commissioning, order processing interfaces and other aspects cost money. Small to midsize retailers often cannot afford the services of these experts. HOWEVER: You don’t always need a big online store.

Local initiatives, online platforms, or mini online stores - local retailers and service providers have many options to promote their products to end customers online.

Here are some pointers: 

  1. Not every solution is suited to every retailer. Depending on the industry (fashion, consumer electronics ...) and target audience (local, nationwide ...), retailers must review their respective options.  
  2. Even amid the Coronavirus crisis, consumers still have the same high quality expectations and are willing to spend extra money on great ideas, services, and products. That’s why you should consider the impact a move to an e-commerce platform could have for your business model. 
  3. Focus on one or two channels that reach your target customers. Provide interesting and value-added content to these channels to grab your customer’s attention.

Increase your online visibility

Before you start selling online, master the art of online visibility. What are your business hours? How can you be reached? Does your store offer delivery service or can consumers buy products online and then pick them up in store? Web search platforms have answers to these questions. Registering is typically free, and there is no commitment. Google My Business is a free and easy-to-use tool for businesses and organizations to manage their online presence.

There are also many urban initiatives that pursue a similar approach: they provide information about business hours, services, pickup and delivery service options and connect consumers with retailers. The benefit is that the local reach and a link to the region has already been established. These services are frequently offered by the respective town (via city management, business or urban development) or local retail initiatives.

Liebhabereien is an adult store that sells intimate lingerie and other products...
Liebhabereien is an adult store that sells intimate lingerie and other products related to adult erotic entertainment and is located in Hannover, Germany. In the time of Coronavirus, owner Gundula Schildhauer and her team came up with special promotional campaigns via Instagram and Facebook to remain accessible online for their clientele.
Source: Screenshot/ Liebhabereien

How to showcase your products online

Another aspect to consider when choosing a platform is to decide how to present your products online. Creating a social media presence on Facebook or Instagram increases your online visibility and gives you the chance to showcase your products online. That’s why you must provide incentives to buy! This can be done in the form of live fashion shows, book recommendations, or DIY instructions. Provide consultations using tools such as WhatsApp or Facetime. Encourage your followers to buy more by providing regular updates and relevant content that complements the product presentation. Just be creative! It’s the only way to encourage brand loyalty with followers.

Store owner Gundula often highlights complete themed looks in person via video....
Store owner Gundula often highlights complete themed looks in person via video.
Source: Screenshot/ Liebhabereien
Customers continue to enjoy personal advice about products: Upon request, the...
Customers continue to enjoy personal advice about products: Upon request, the store compiles a unique selection of products for customers based on their interests and requests, complete with photographs, ready to be showcased. Curated shopping at its best!
Source: Screenshot/ Liebhabereien

Legal protection in Germany

There are several legal components you should know and review before selling online to your customers:

Step 1: Does your online store have an imprint (called “Impressum”). Every German organization offering its services online must display an imprint on their website. If you already have one, check whether adjustments and modifications are necessary. Germany’s Impressum requires a legally mandated statement of ownership and authorship and also applies to Instagram, for example. That’s why you need to have the correct and proper information.

Step 2: Create terms and conditions (German: AGB) to protect your business!

General terms and conditions (AGB, Allgemeine Geschäftsbedingungen) are common in German business practice and outline a business’s general terms of contract. Though not actually a legal requirement, they are indirectly implied if you embark in a business-to-consumer (B2C) sales model. There are numerous statutory obligations to notify and inform in a timely manner. This should be implemented in the terms and conditions.

Some of these legally required terms include:

  • Informing consumers of the Right of Withdrawal (make sure that consumers are informed about their right to dissolve a contract pursuant to the applicable general terms and condition clauses!)
  • Return and refund terms and charges
  • Description of the legal relationship between the parties entering the legally binding agreement
  • What is your ex gratia and return policy?
  • What are your payment terms and conditions?
  • What are your terms and conditions of delivery?

Make sure the general terms and conditions are clearly specified and use legible type and font size!

Step 3: Inform your customers about your compliance with the General Data Protection Regulation (GDPR), demonstrating that you protect their personal data and privacy.

You should include the following information in this section:

  • Specifying the purpose and legal framework in relation to personal data processing and      handling of log files and user profiles during website visits.
  • Access to information. Right for individuals to have data corrected and erased.
  • Contact details of the data protection officer
  • Specifying the data collected for the purpose of order fulfillment
  • Referencing storage limitation of personal data
The store also uses live stream as a marketing tool to virtually engage and...
The store also uses live stream as a marketing tool to virtually engage and sell products to men and women. The product list including prices are summarized in a post the next day. Orders can be placed via direct message, email or phone.
Source: Screenshot/ Liebhabereien

Order management

Now you are ready to go: Simple online communication tools that most customers already have access to facilitate order processing. Whether you pick email, social media, messenger apps such as WhatsApp or the phone - it is key that you focus on one or two channels so you can keep track of your workflow.

You should track and record orders, unless this is done by an ERP system. This ensures order management and enables you to reorder items at the right time.

Customers can order by using direct message, via phone or email. The store...
Customers can order by using direct message, via phone or email. The store continues to deliver personal consultations by phone – during the temporary store shutdown and also now.
Source: Screenshots/ Liebhabereien

Payment processing

Obviously, you should make sure that you receive payment for your merchandise. PayPal is a great yet simple tool for this. Once you receive an order, you can send your customer a PayPal link or create and send an invoice using the buyer’s preferred communication channel. The delivery process starts immediately after payment receipt.

Liebhabereien also creates real customer loyalty with its own podcast. Topics...
Liebhabereien also creates real customer loyalty with its own podcast. Topics include the perfect fit and address social issues such as sexuality, feminism, and diversity.
Source: Screenshot/ Liebhabereien

Providing shipping, delivery service or Click & Collect

Do you work with a parcel service? Or maybe you have your own delivery service with a pre-arranged delivery location (think "contactless delivery")? Or your customers order online and pick up the items in your store? How you get the merchandise to your customers is up to you. “Capabilities” are evidently a key issue in this context. Maybe consider surprising your customers with beautiful packaging or inexpensive giveaways to increase customer loyalty.

Author: Melanie Günther

related articles:

popular articles:

Thumbnail-Photo: Touchless Feedback
16.03.2021   #customer satisfaction #customer relationship management

Touchless Feedback

The Wall Street Journal published an article about Instant Feedback ‘Smiley’ Buttons

The Wall Street Journal, after interviewing our co-founder and Executive VP of Strategic Alliances, Ville Levaniemi, published an article titled “Instant Feedback ‘Smiley’ Buttons Go Touchless in Pandemic”. The article ...

Thumbnail-Photo: More than 400 Danish Coop Stores Now with Electronic Shelf Labels...
29.01.2021   #electronic shelf labels (ESL) #price labelling

More than 400 Danish Coop Stores Now with Electronic Shelf Labels

Back in 2010, the first Coop store implemented electronic shelf labels from the IT company, Delfi Technologies.

Store no. 400 became Irma at Islands Brygge in Copenhagen, which has undergone a major renovation project, where investments have been made into several initiatives to improve the shopping experience – this includes electronic shelf ...

Thumbnail-Photo: Checkout-free hotel convenience store in Yokohama, Japan...
17.02.2021   #self-checkout systems #self service

Checkout-free hotel convenience store in Yokohama, Japan

Using biometric authentication technology

Zippin announced the launch of its latest retail format: a hotel convenience store. Zippin's partner, Fujitsu, the leading systems integrator in Japan, has worked with Koyo Group to implement the world's first checkout-free store within a ...

Thumbnail-Photo: BAUHAUS introduces new click and collect technology...
10.03.2021   #electronic shelf labels (ESL) #price labelling

BAUHAUS introduces new click and collect technology

New solution helps store associates pick items for Click & Collect orders

With help from electronic shelf labels and handheld terminals, it has become much faster and easier for BAUHAUS to navigate through the store to find the right items. A new solution that also saves a lot of time on replenishment.With a product range ...

Thumbnail-Photo: Robotic canteen set to change the global food and hospitality industry...
10.12.2020   #food retail #food technology

Robotic canteen set to change the global food and hospitality industry

Karakuri showcasing its pre-production machine

Karakuri, a food robotics company, lifts the lid to unveil the world’s first automated canteen to make meals, the DK-One. Karakuri’s robotic system will revolutionise how and what we eat in restaurants, canteens, buffets, hotels and ...

Thumbnail-Photo: How do technologies find their way into retail?...
17.03.2021   #brick and mortar retail #self-checkout systems

How do technologies find their way into retail?

Rolf Schumann, CDO of the Schwarz Group, provides answers at the "Retail Innovation Days"

Tech is cool! Gimmicks, gadgets, gizmos – they impress and inspire quickly. However, it often takes much longer than technology experts and developers initially predict before the technologies actually arrive in everyday life and are used by ...

Thumbnail-Photo: Tackling sustainability challenges in the food packaging industry...
04.02.2021   #sustainability #food retail

Tackling sustainability challenges in the food packaging industry

Tetra Pak calls for collaborative innovation

Tetra Pak has introduced a new collaborative innovation model with leading paperboard producers, a move aimed at tackling the food packaging industry's sustainability challenges. The traditional operating model of a linear supply chain has ...

Thumbnail-Photo: Danish supermarket chain implements ESL in all stores...
10.02.2021   #electronic shelf labels (ESL) #price labelling

Danish supermarket chain implements ESL in all stores

The chain is investing in modernization and more digital initiatives

The privately owned, Danish supermarket chain Løvbjerg is doing well, and has experienced a great development in 2020 with a 18% growth. The chain is therefore also investing in modernization and more digital initiatives. Most recently, ...

Thumbnail-Photo: A completely new experience at ICA Kvantum with Breece...
15.12.2020   #electronic shelf labels (ESL) #price labelling

A completely new experience at ICA Kvantum with Breece

ICA Kvantum in Lerum has invested in new technology: A cloud-based electronic shelf label

ICA Kvantum Lerum has for a long time been looking for a supplier of electronic shelf labels (ESL), so the staff no longer have to spend time and resources on changing paper shelf labels. It was important that it should be a ...

Thumbnail-Photo: First Amazon grocery store opening in Britain...
15.03.2021   #brick and mortar retail #food retail

First Amazon grocery store opening in Britain

Young shoppers interested in skipping checkout lines with cashier-less tech

With the first Amazon grocery store opening in Britain, latest research from Mintel reveals that three quarters (76%) of Brits say they would shop at one.When asked what would encourage them to shop at a physical Amazon grocery store, almost two ...

Supplier

CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
Axis Communications GmbH
Axis Communications GmbH
Adalperostraße 86
85737 Ismaning
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
GMO Registry, Inc.
GMO Registry, Inc.
Cerulean Tower, 26-1 / Sakuragaoka-cho, Shibuya-ku,
150-8512 Tokyo
SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
HappyOrNot
HappyOrNot
Innere Kanalstraße 15
40476 Düsseldorf
Citizen Systems Europe GmbH
Citizen Systems Europe GmbH
Otto-Hirsch-Brücken 17
70329 Stuttgart
EuroShop
EuroShop
Stockumer Kirchstraße 61
40474 Düsseldorf