Options and steps required to build a successful e-store.

Thanks to the spread of broadband and wireless services at home, online business are growing rapidly, urged on by confidence in online brands such as eBay and Amazon.

The global ACNielsen Online Consumer Opinion Survey conducted last October found the vast majority of Australian internet users (87 percent) made a purchase over the internet. "Our ongoing e-commerce research clearly demonstrates an upward trend in Australian and global online shopping," says Richard Sandlant, ACNielsen's director of customised research.

So, how can your business tap into this growing market? While businesses may already
have websites to promote their business and provide additional information, it may be worth considering actually selling online as well.

However, before embarking on developing your e-store, ask yourself the following questions:

1. Is my product really going to sell; is it applicable; are people going to buy it on the internet? Anna Carosa started her accessory business, msAnna, just over two years ago. After successfully selling via mail-order catalogue she decided to launch online a year later. Selling mainly handbags and jewellery, she knew these were viable products to sell online. "I find with handbags, it's more of a visual thing," she says. "People know roughly what their style and taste is so most can buy jewellery and fashion accessories online relatively easily."

2. How do you want to brand and structure the shop; do you want it to be a link off your main business website or a separate entity?

3. How am I going to do it? Analyse your current financial position—resources, costs, and so on—then ask yourself, can I afford this additional distribution channel? You'll need to consider the extra resources needed to fulfil online sales and maintain the website, as well as set-up charges, ongoing maintenance and trouble-shooting costs.

4. Will you build and maintain the site in-house, outsource the job or use a combination of both? Deciding which way to go will depend on your time and resources, and how much risk you're willing to take.

If you're planning to sell online, the best research starting point would be to shop online yourself. Have a look at how other e-stores function and you'll get an understanding of what consumers expect in terms of usability and security.

A crucial first step is registering a domain. If you don't already have a corporate website or you want the e-store to be a stand-alone entity, you'll need to register the relevant domain names. While Carosa chooses to promote her website www.msanna.com she has also purchased www.msanna.com.au which diverts to the '.com' site. "We do want to become global in terms of being able to export our products and the '.com' was the best avenue to do that," she says. "I'd recommend businesses register '.com', '.com.au', '.net' and '.net.au' wherever they can, to make sure no-one else registers those names as well."

Then decide on your website hosting solution. While it's possible for individuals with an always-on broadband connection to host their own website, this can be quite technical, complex and risky for those unsure of what they're doing. Shared hosting is the most popular and affordable option for SMEs and involves having your website hosted on another company's server (a web hosting company) for a monthly fee of around $30 to $40.

You should then choose an online shop application. Many hosting companies such as auStores.com.au offer complete end-to-end e-commerce solutions, or you can purchase shopping cart software to load onto your site. It's important your e-store application can integrate with your accounting system. This will streamline inventory management and invoicing functions from the e-store right through to the back-office.