The highs and lows of selling online

Do you have a product you want to sell but don’t have the capital to put up a store? An easy way to make a sale (and test the market) is to go online and put up a virtual store.

That’s right, make cyberspace your mall and set up shop by putting up your own website with your own customized web address or join the many young entrepreneurs doing business via social networking sites like Multiply and photo sharing sites like Picture Trail.

Kaye Catral makes diaper cakes—fancy “cakes” made of diapers, towels and baby essentials that would make good baby shower gifts. She also does towel cakes that are gift items too. At first, Kaye said she was planning to put up a real store, but the overhead alone will make her products expensive. “I decided that putting up an online store site would be a better alternative to a small, starting business like NappyCakes,” says Kaye. Kaye started her Picturetrail site in 2004.

About 60 to 70 percent of NappyCakes’ sales come from online orders. The rest come from referrals or from those who contacted Kaye as a result of her TV and print media exposure.

Claudine de Jesus-Ruiz is a full-time mom who gave up her banking career when she gave birth to her son, Redd, three years ago. A unique hand-made necklace featured in a local magazine caught her eye two years ago, and she ordered it online from the seller, who had a Multiply account. Happy with the experience, she made 4 to 5 more online purchases before realizing she can do this business herself. The result is Eye Candy Jewelry & Accessories.

Ninety percent of Eye Candy’s sales are generated online. The rest are purchases made by family, friends and neighbors.

The highs of online selling
For Claudine, the main attraction of online selling is the thought of having a business right in her own home without sacrificing her “mommy duties.” She is also thrilled when people buy the stuff she puts up for sale. Claudine gets her jewelry and accessories from a friend who supplies them from abroad, and from her sister-in-law who executes Claudine’s designs.

Profit, of course, is a major motivation. “Otherwise, there is no point in putting up a business, even if it’s just a small online one,” says Claudine.

For Kaye, being online makes it easier for her to reach out to her market. “Networking sites like Multiply allow you to send automatic updates directly to your contacts.” And since friends of friends can check out your site from your own friends’ pages, you get more exposure. “I get about an average of 100 to 150 hits a day from non-contacts,” says Kaye.

“One positive experience that online selling has brought me is the realization that I have an ‘inner entrepreneur’ in me,” says Claudine. Because of the market, Claudine has to constantly think of new items that will catch the attention of her clients.

The experience has also allowed her to have a network not only in Metro Manila but also in Visayas and Mindanao. Some of her clients have even become her good friends.

The downside of online selling
Both Kaye and Claudine say the only downside to online selling is the presence of bogus buyers. They reserve an item, promise to pay, then leave online sellers hanging when payments are followed up. “These bogus buyers completely waste the time and effort of online sellers. When another client asks for that same item they have reserved you cannot sell it,” says Claudine.

“That is part of the business,” says Kaye. “You just have to be on guard when dealing with people you don’t get to meet face to face.”

To address this problem, Claudine imposed a limited reservation period of 3 to 5 days. “When the previous client fails to buy the item, I give it to the one next in line or to the one who will pay first.”

Starting an online business
Just like in putting up a brick-and-mortar business, do some market research before putting up an online business. Claudine searched various Multiply online sites to find out what items are in demand, and what kinds of people shop online. “This is important in order to know the kind of products to sell and the pricing too, because it can get competitive,” says Claudine.

To differentiate her business from other online sellers with the same products, Claudine identified her banner product, something identifiable with Eye Candy. She found it in colorful hand-made crystals, glass and bead accessories.

Then comes the building of the website. Decide on the design, upload photos, and make an easy “how to order” form.

Here are more tips from Claudine and Kaye:

1. Invite contacts. If you’re on a social networking site, add friends and family to your contact list and invite them to visit your store. Claudine’s husband, Alfred, does his share of spreading the word out by giving out Claudine’s business cards to friends and acquaintances.

2. Network. Kaye joined e-groups and parenting forums to promote her product and online site.

3. Submit your website address to search engines. Kaye submitted her info to Yahoo and Google so if someone searches the Web for nappy cakes or diaper cakes, her site will come up.

4. Put your address on your products. In this way, “when a recipient gets a product from NappyCakes, they know where to find me,” says Kaye.

5. Blog about your stuff. This is a “must” for online sellers, says Claudine, so people will know what products you have.

6. Join bazaars. It’s not all virtual selling for online sellers. Some clients want to see the goods physically before buying. Claudine joins bazaars during summer and Christmas time and makes sure her booth is attractive.

Online selling is a great venture for start-up businesses and for those with full-time jobs who just want to earn something extra on the side.

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