E-Commerce Strategy for a Seasonal Clothing Store

Introduction

A clothing store on the Jersey Shore boardwalk is considering expanding into e-commerce. There are several logical reasons for this move. First, the Jersey Shore is a seasonal marketplace, with the vast majority of sales occurring between Memorial Day and Labor Day. To offset the impact of that seasonality, it is critical to sell year-round online, where the store can reach a much larger audience and trade on the brand established with summer visitors. The current website generates some traffic but lacks e-commerce capabilities, representing a significant missed opportunity. This paper outlines the strategy for building the online side of the business.

Domain Name Valuation

The store has been offered $1,000 for its existing online domain name. Currently, the site promotes the physical store but has no e-commerce capabilities. The decision whether to sell should be based on a rational examination of costs and benefits, taking a number of factors into account (Kyrnin, 2015).

The existing URL is based on the store's name — the name that customers already recognize. Although little effort has been put into promoting the website so far, it already receives traffic, particularly during the summer months when visitors have been through the physical store. That traffic is worth approximately $1,000 per year, meaning a fair valuation of the domain is higher than the flat $1,000 offer. Furthermore, if investment is made to develop the site into a full e-commerce operation, the domain will become considerably more valuable. The decision, therefore, is to retain the URL. It represents the store's brand, and there is no compelling reason — financial or ethical — to sell it for less than its true potential worth.

E-Commerce Capabilities

To bring the site to its fullest potential, it must incorporate current e-commerce software (Barron, 2015). Essential features include catalog software, shopping cart capabilities, and secure transaction processing. These represent the baseline functionality that customers expect from any e-commerce site.

Catalog software is valuable because it enables customers to browse the store's merchandise. It provides a dedicated area of the website where shoppers can view different products. Ideally, this software should be integrated with the store's inventory management system so that customers can see exactly what is available at any given time.

Shopping cart capabilities are essential for any e-commerce site. They allow customers to browse and add items to a virtual cart. This information is stored so that even when a user exits the site, the cart contents are preserved for their next visit. The virtual shopping cart therefore serves a dual purpose: it improves the customer's browsing experience while also encouraging higher purchase totals, since shoppers can accumulate items over multiple sessions before checking out. This illustrates a broader truth about e-commerce — enhancements to the customer experience almost always benefit the business as well.

The third critical element is the checkout process. Without it, the site cannot generate revenue. Beyond simply processing payments, a well-designed checkout must accept a wide range of payment options and maintain a high level of security. Offering multiple payment methods — debit cards, credit cards, PayPal, and similar services — reduces barriers to purchase. The harder it is for a customer to pay, the less likely they are to complete a transaction.

Security is equally important. Customers will avoid sites they do not trust (Griffith, 2011). Using a reputable third-party payment processor is typically the best approach, as these services offer the most current security standards. Building customer trust is a foundational element of any business, and online retailers must work especially hard to earn it given the inherent uncertainties of transacting over the internet.

Conclusion

Building an online business shares some similarities with building a brick-and-mortar business, but there are important differences as well. In this case, the core customer base remains the same — the objective is simply to sell year-round to the same people who visit the store during the summer. The strategy, therefore, is to target this market through social media engagement and pay-per-click advertising to drive traffic to the website. The site itself will incorporate all essential e-commerce features to ensure a smooth and trustworthy shopping experience. By executing this plan, the store can transform an excellent seasonal retail operation into a thriving, year-round e-commerce business that delivers value to customers and sustainable revenue to the business owners.

References

Barron, B. (2015). 8 must haves when adding e-commerce to your WordPress site. WPMUDEV.org. Retrieved May 14, 2015, from http://premium.wpmudev.org/blog/wordpress-ecommerce-must-haves/

Google. (2015). Search engine optimization starter guide. Google.com. Retrieved May 14, 2015, from

Griffith, E. (2011). 11 tips for safe online shopping. PC Magazine. Retrieved May 14, 2015, from http://www.pcmag.com/article2/0,2817,2373130,00.asp

Kyrnin, J. (2015). How to value a domain name. About.com. Retrieved May 14, 2015, from

Portent. (2015). Pay per click management explained. Portent. Retrieved May 14, 2015, from http://www.portent.com/services/ppc/pay-per-click-explained