Does setting up a virtual store using a free e-commerce system work?
A study recently released by the consultancy eMarketer predicts revenues of almost 60 billion reais in 2014 for Brazilian e-commerce. We are already more than 30 million repeat buyers in Brazilian online stores.
And if the forecast is for total growth, why can't micro and small companies participate in this moment of prosperity?
One of the reasons may be the cost. Setting up a successful online store in Brazil has a very high cost compared to setting up a physical store, but for some entrepreneurs this cost ends up making the e-commerce project unfeasible.
To overcome this obstacle, there are free online store options. But do free online stores really work?
I believe that a free online store project doesn't actually exist. And why do I think this way? Despite technology costs becoming increasingly affordable and getting cheaper, everything still has a price. Storage space, connection link, security maintenance and systems backup, technology updates, equipment becoming obsolete among other technical details that involve an e-commerce operation.
But what about the systems that offer the free virtual store, with hosting and everything else? Yes, this option exists and can be valid in many cases where the entrepreneur still does not have much knowledge of the market he is entering, the investment budget is low or non-existent and a free virtual store solution becomes a great option. Of course, the system will have several functional limitations, it will hardly be friendly to search engines like Google and Yahoo, it won't have a customized layout according to the company's visual identity and probably the store will be just one more in a sea already so saturated with fish. But it is still an initial option.
However, the cost of an e-commerce platform is just the beginning of the project. In addition to the online store system, we have to think about visual updates to publicize promotions and inform customers about new products in the online store.
And after the virtual store is live, we have banners that are constantly updated, is our price the best in the market? What is missing? Yes, dear friend, there are no customers. And where are they?
Currently more than 90% of internet users in Brazil use Google to carry out their searches and that is where the highest investments of a virtual store begin: publicity.
It's no use having the most beautiful layout, the best platform, the lowest prices and excellent conditions if no one knows about it. We need to publicize our virtual store on sites like Google through so-called sponsored links (Google Adwords) or through SEO techniques for organic results. We should also use comparator sites such as Buscapé and Kelkoo, make ads on social networks such as Facebook, in addition to gradually building up your customer list for relationship through E-mail Marketing.
The most important thing is undoubtedly to publicize the virtual store, make it easier for your customers to find your products wherever they are and this involves a good investment, whether it's money with sponsored links or Facebook Ads, hiring an agency to use organic optimization (SEO) or time optimization techniques where you can search for information yourself and work on the digital marketing of your e-commerce.
In the next posts we will address in more detail these important issues and often overlooked by virtual entrepreneurs.
What is your opinion about this? Leave your comment below.
