Ecommerce, by T0PS30

Johan Terpstra, known to many as T0PS3O, moderator at Digital Point, is the Head of IT for JustBuyOnline Ltd, a UK based professional e-commerce business.
Below are his answers to questions we put to him on June 11th, 2005.
Johan, could you please give us a brief history of your ecommerce site, www.justbuyonline.co.uk
The Just Buy Online site is our company's corporate site. It links through to our current online shops. We've been involved in e-commerce for about 20 months now and it's time the corparate site gets an update to reflect the current status of the company.
JustBuyOnline.co.uk acts as a portal to 4 other sites, www.buy-a-mattress.co.uk, www.justnaturalstuff.co.uk, www.actiongear.co.uk and www.theaquariumshop.co.uk. Does this mean you only actively promote the one site?
(Now 5 actually, just launched a new shop!)
No, not at all. We have approximately 1400 products for sale right now across the 5 shops and we promote pretty much each and every page. Both in terms of SEO as well as SEM.
The corporate, non-ecommerce enabled site is actually the only that isn't heavily promoted (yet) apart from a few ranking experiments such as KW misspellings.
You fulfill some orders yourselves, but the bulk of them are handled by utilising dropshipping. What are the key advantages and disadvantages of using this system?
That's correct. Key advantage is we don't have to stock the (bulky) items. The importer/supplier already has good warehouse facilities so why should we move the stock and store it ourselves if we don't have to? It also means 'we' can have more stock so actually at any point in time, virtually our entire range is in stock.
Disadvantages are few. Generally, buying stock yourself is cheaper per unit than dropshipping individual items, though we skip on the cost of warehousing so it probably cancels each other out.
As head of IT, what is your main (online) method of promoting your business?
We get the majority of our traffic from search engines. SEO is our main way of getting quality traffic at low cost. Partly thanks to DigitalPoint we enjoy excellent rankings.
Besides SEO we spend enough of AdWords to get the Christmas present sent DHL straight from California. We also run PPC campaigns through Overture.
We're also present on the free shopping comparison engines like Froogle.
Since almost all online sales start with a search, search engine traffic will remain our focus.
We have done TV shows and radio interviews as well and are always interested in other efficient means of marketing. Online advertising remains my personal favourite though due to its instant nature and trackability of ROI.
In a time of stagnation in the UK retail market, how do you view the future of your ecommerce sites?
High street retail may be slow right now but e-tailing is growing steadily and the peak isn't even in sight yet. In April, conventional retailing fell 1.3% year-on-year whilst online sales soared with 30% growth acceleration. Online sales is now 7% of total retail sales and I am convinced this will grow considerably especially over the next 2 years. We're getting to the stage where 100% of the nation can get affordable broadband so even more people will start buying from feature rich online catalogues.
So based on these industry facts, I am sure there's no reason to take things slowly.
When running an online business, such as yours, what are the main hurdles to growth?
Staffing is relatively expensive here in the UK / London area so that's a bit of a cash flow balance. Ideally you'll want to earn first, then spend it. That can be tricky and slow things down at times. Technically there are no limitations as far as I'm aware. There are limits to how much traffic you can possibly get for certain niches so to breach such a traffic plateau we might have to look into alternative traffic sources.
In any type of market there is nearly always competition. As the company's SEO and Marketing expert, how do you ensure that you rise above your competitors?
By understanding what is required to rank well. For TheAquariumShop.co.uk for instance, because of our efforts and the fact it's a nice, themed niche, we can brag about owning over 120 top 10 rankings on Google UK of which over 40 #1's. How I got them, I'll leave as a question for you and my competition.
For the type of business you run, what area of SEO do you consider to be the most important to get right?
There are tons of these spammy 'lets-list-search-results' type of sites out there or review sites etc. that we have to compete with in the rankings. So one of my areas of focus is to make sure we create the impression we actually sell the item they are looking for. In terms of SEO this means the correct use of titles and meta description, because the snippets that show in the SE's are really important to get the attention of those looking to buy.
In your opinion, what are the key attributes required to gain success in ecommerce?
First you need something to sell. A product that isn't already slashed to death. Then you need a functional website that can be easily found. The buying process should be effortless. Pre/After sales enquiries and customer services should not be thought of lightly. It's annoying having millions of people selling on eBay for peanuts, but at least we can outperform bedroom auctioneers with quality assistance.
A mix of those and some secret ingredient should get you going.
Finally, many of the products you sell are available offline, ie fish tanks from www.theaquariumshop.co.uk . Why should a potential customer choose to buy such an item online from your company instead?
Because we deliver them. We often tell them we're sorry they can't come and look at them but refer the customer to a local stockist, even whilst we know it's basically a competitor. Not many people have a car that suits picking up a 5 foot fish tank for instance so they go ask the question in their LFS (local fish store) then go home and order from us. They get to choose a day that suits them and we deliver the aquarium on a pallet right to their door. It works out fantastic and our customers love that service.
A lot of aquarists also own multiple tanks and most of the brands we do are well known so there's little for them to find out about. They know what to expect when ordering their second tanks. We deliver from Penzance to Inverness as fast as next working day and I can assure you we're the only ones right now that can offer that.
See just what Johan has achieved by visiting JustBuyOnline now.