When I was cold-calling for Red Sheriff I would often get asked, “are you for real or just another disappearing dot.com”? Fair enough, I guess. Red Sheriff is Internet related and was relatively new to New Zealand.  At least I got the chance, one-on-one, to convince a would-be customer of Red Sheriff’s international credentials. But what if you are an on-line business? Your website alone has to give cold-calling visitors the confidence to buy from you.

So, how do you create the optimum mix of on-line credibility and product that wins active customers? Around the world, researchers (Red Sheriff included) agree on some of the more common barriers to purchasing on-line:

1. Concerns about credit card security. 
2. Worries about the privacy of the information supplied.
3. The need to touch, see or feel a product before buying.
4. Delivery and fulfilment chains. 
5. Ease of returning purchases. Just how trustworthy is the company you are dealing with?

How to overcome some of these barriers is a no-brainer – e.g. displaying your credit card security measures – but other aspects are more subtle.  For example, how to build trust in the limited environment that is the common website.  Under-utilised actions include displaying information on the physical locations of your company, its phone and fax numbers, history, affiliate partners, even photographs of everyday staff members. As in the offline world, customer services remain a key site component and your CRM should automatically include facilities such as purchase confirmation; order tracking; email contact; 24/7 help desk; endorsements from satisfied customers; simple returns policies; customer newsletters and faq’s. 

But this alone is not going to win sales.  As we all know, some beautifully designed and managed online operations have failed, both here and overseas, even though they have followed the recommendations above, and then some.  Remember, your business model and market metrics may all seem fine, but don’t forget the overall concept – what are you selling and what’s typically involved in such sales?  A good guide is the mail-order catalogue sector.  What has worked well there for decades will in most cases translate well to the web – one of New Zealand’s biggest mail-order success stories, LV Martin, does many of the things listed above very well.  Check out one of their catalogues and you’ll see nothing but credibility, security, community, trust and solid product descriptions.  You know exactly what you’re in for.  Postie Plus and Ezibuy are also good examples.

So run your products through these five key attributes identified by Red Sheriff and see how they stack up in the online suitability stakes, remembering that your online merchandise or services must perform well in all  these areas:

1. Rarity
Selling rare items can be easier using the internet, which can greatly expand your potential market size.  If you are selling common commodities then advantages such as convenience or price must be compelling.

2. Pleasure value
Products that bring a high-pleasure value are more likely to be successful on-line.  It’s still “an effort” in many regards to buy online.  The products which people actively seek out and shop for will meet this barrier head-on.

3. Need for sensory evaluation
Products that require limited sensory evaluation do well i.e. a $20 t-shirt versus a used car.  Clever site design and structure can usually provide enough information without hitting overload.

4. Symbolic significance
How important is the purchase is to your customers’ lives?  A piece of costume jewellery has lower emotional investment than a wedding ring, for example.  Guess which would sell better via the net?

5. Functional risk
What is the risk that the product won’t satisfy?  A first-class returns policy can overcome a buyer’s concerns.  But saying you’ll replace or refund a purchase is not enough though.  The return process must be as easy as the purchase process.

So it’s not rocket science to identify why some products do well on-line and some don’t.  But what will differentiate two online purveyors of the same stock? Trust, credibility, and transparency.  If your online sales plan covers off all the issues discussed above, you’re on the right track. I leave you with two good examples of local companies which have got it all together - www.ezibuy.co.nz,  and www.iqtoys.co.nz  - go and have a look for yourself.