Starting an e-commerce site doesn’t have to be hard. Just follow these steps from an expert in building an online presence to see your sales soar.
By Kavita Sabharwal

Two decades ago, most people could not have foreseen that it would be possible to buy and sell products and services online. With the invention of the first web server in 1990 and Amazon’s launch in 1995, the shopping landscape was permanently altered.

Online sales account for a small yet hearty portion of total overall sales. In 2013, Canadian spending reached over $480 billion on goods and services, yet online spending only accounted for 5.2 per cent of that, according to a BMO Capital Markets report. However, e-commerce is steadily growing at approximately 17 per cent per year, and is expected to reach 7.4 per cent of total retail sales by 2017, according to eMarketer.

This is compared to online sales in the U.S., which reached 5.8 per cent in 2013, and the United Kingdom, with online sales accounting for 11.6 per cent of total retail sales. Although Canadians are lagging behind on the e-commerce trend, the climbing sales indicate that Canada is catching up to the e-commerce trend at a rapid pace.

Steps to success

According to Moody Hashem, a consultant at the digital marketing firm Rytalo, proper planning is essential to having a successful online store that can make a real positive impact on your business numbers. Here are a few key steps that any retailer should follow in order to grow its online presence.

1.  Identify your value propositions and target audience.

Hashem says the first step in deciding to move a store online is identifying your target markets and target audiences, and building your strategy around those customers to figure out your growth opportunities.

“Look at all the marketing elements: messaging, landing pages, the look and feel of the website, all the different ways to position yourself for your target audience,” advises Hashem. “Most importantly, make sure your content is clear and fulfills your audience’s needs, because the behaviour of consumers in-store is totally different from when they’re shopping online. The idea is to make sure that they’re putting the content in the proper format to fit the visitors of the website.”

Hashem also advises thinking about your target audience’s problems or issues they need to solve, and how your products and services can help solve those issues. Why should customers use your product over all others? This question is important, as is differentiating your store from all the other options available.

Finally, figure out what additional information and content would be required to drive visitors’ interest and get them to become leads (potential customers), and make the decision to complete the transaction.

To do this, Hashem recommends identifying who will be visiting your site and segmenting them into groups. “For each group, we need to develop a persona to understand their characteristics, preferences, challenges and needs, and then identify clear benefits that will meet each persona’s unique needs,” he says.

Hashem identifies persona-based content and calls for action for these personas. “The developed content should be mapped to the information required to drive consumers and move them forward along the path from being a visitor into leads who are interested in making a purchase decision, and finally, becoming customers,” he says.

2.  Build your customers’ trust and identify calls for action.

The problem with online retailing is that in person, it’s easier to build loyalty, since the sales associate spends time with the customer and helps them choose products, which doesn’t exist in the online world.

“The main objective of online retailing is to build confidence and trust and move visitors gradually from one stage to the next until you can close the sale,” says Hashem. “We want to develop the relationship to convert them from a potential customer into a loyal customer with repeated orders.”

That involves planning certain aspects of your web presence before going live, such as the content, the value proposition, whether your site will feature customer reviews to show depth and trust of the products and the clear call for action. The design of the landing page and the website should be easily and clearly promoting the values of the company, according to Hashem.

A customer’s call for action may include learning more information about the subject, downloading a whitepaper or e-book to get exclusive information, reading or viewing other consumers’ experiences with these product or services, signing up for a newsletter to stay informed, calling the brick-and-mortar store or company; posting a comment on a blog post or liking a Facebook page or making a purchase.

3.  Configure your site and operate efficiently.

Depending on your personal preference for how sophisticated you wish your e-commerce site to be and the customization that is required, this aspect of launching an e-commerce site could take up to three months alone. This stage includes choosing a technology platform and host and the development phase including designing the page. “The performance of the site and mobile-optimized sites are crucial,” says Hashem.

He says the most important part of this step is ensuring the site runs quickly and easily, as visitors will not tolerate slowness. “That needs to be taken into consideration when choosing the e-commerce platform. Also, choosing the host and the servers, the point is to make sure the whole operation and performance of the website performs smoothly,” he says.

Once you have the products, details, pricing information and inventory, it is crucial to figure out how to integrate this with the brick-and-mortar location’s existing operations without overlapping.

“In the end, to minimize overhead and logistics, that’s very important, otherwise it will become a very high-cost operation,” warns Hashem. His advice is to learn how to streamline the operation, including using one combined inventory system for both the physical and online stores.

Engaging in ongoing analytics is important when running an online store, in order to stay on top of what interests consumers, and what doesn’t. Use these analytics to optimize the design of your site, as well as its processes and any other functions. Also consider sending out an e-newsletter that sends out information to consumers to encourage them to visit your site and make a purchase decision.

4.  Promote your new storefront.

Hashem warns that although having an online store can provide a big boost in sales if done properly, since the online business is so competitive, it requires commitment and the resources and budget to advertise it properly. This includes engaging all the advertising channels possible, such as sponsored placements on Google, Bing, Facebook and Twitter.

“That’s all ongoing marketing. Also something I consider very crucial is measuring and getting an analysis of what you have and how you can enhance every step of the business,” he says. “Campaigns will generate traffic. You guarantee great conversion rates to convert traffic into sales.”

Hashem recommends using analytics to see how each step is performing and work out ways to enhance that performance. “Ongoing management and measurements help you understand the effectiveness of each advertising message and learn your own formula for each channel,” he says. He suggests testing it out by using a small amount of money in one channel and seeing how much business you get used on that small budget, allowing you to plan your budgets based on your sales objectives.

He also champions direct email marketing. “If you have a user coming onto the website, trying to purchase products, and they don’t complete their transaction, the idea is to make an email to get them back to their abandoned cart,” he says.

Hashem estimates that the number of consumers that do not make a purchase after visiting an online store is between 95 and 98 per cent. “That’s a very high bounce rate. At physical stores, people visit one or two before making a decision. Online, people shop around at eight or 10 different stores before they make a decision,” he says. “The whole objective of the website, which needs to be clearly planned, is how to put out the right elements and right information to make sure when the visitor comes to the website, you are able to capture them to become a potential lead until they eventually make a purchase. That’s the most important part.”

In terms of the trends of webrooming and showrooming, Hashem says these are now part of our reality. “That’s why it’s crucial for retailers to put the information out there to differentiate themselves and try to give their products and services value above all others,” he says. “If you put something in a store without any value, that wouldn’t give you any advantage. Most likely, you will attract people looking for special pricing and if they don’t see it, they will move on.”

Hashem suggests sending an e-mail offering them help from an online customer service representative, sending them reviews of the product they were looking at to help encourage a purchase or sending a discount incentive if they return to complete the purchase.

Confirmation e-mails are also a great way to say thank you to customers who have made a purchase. “Offer them other deals for an upselling opportunity. Send them an e-mail inviting them to write a review or rating and share their experience,” he suggests.

Hashem’s next marketing phase is to plan growth strategies to other niche markets and target audiences to expand your online business.

5.  Making the transition

Hashem says that after a period of three months of planning and three months of marketing through various channels, to plan for about six months to one year to see a return on your investment. He also suggests using that time to help the company grow by increasing your advertising budget to see rising sales.

For the natural health market, there are not any particular web services that may only be useful in this industry, however, given the competitive nature of the industry and the sheer number of products available, providing detailed product information and customer reviews are a good way to build trust from new consumers.

“Product reviews, testimonials and one-on-one customer service chats with an expert all engage the user and helps them make a decision,” says Hashem.

He also recommends analytics to help a retailer understand what they’re doing right and what areas need work to appeal to new clients. “That, to me, is very crucial,” he says.

Most important to Hashem is providing the customer a reason for a customer to become loyal to your store and keep coming back. “Whether the customer will make their purchase in-store or online, the whole idea is to provide them with that value and they will come back and purchase from you again.”

By Allison Tannis

It’s nothing to sneeze at. Despite mistakenly being considered minor and seasonal by many, the allergy category has steady sales in health retail. In Canada, sales of antihistamines/allergy remedies increased by three per cent to reach $222 million in 2013, according to Euromonitor International. Great potential exists by broadening the view of this category.

Sales Predictions
What is in store for 2015? Market analysts at Euromonitor International predict a two per cent increase in sales for the cough, cold and allergy categories for the next few years. However, the market demand for allergy products is affected by environmental factors such as pollen count. This makes it difficult to accurately predict category sales.

The Allergy Forecast
Dust and pet dander allergies are a consistent problem for many; in fact 10 million Americans are allergic to pet dander. However, for those who suffer from pollen allergies, can the pollen season’s severity be predicted? According to research by Utrecht University and Leiden University, higher temperatures in the spring, and the early onset of summer, increases pollen numbers for the following year.

According to Environment Canada, with the exception of Vancouver Island, this country experienced spring temperatures that were below average last year. As for the arrival of summer, parts of central Canada claim summer never arrived, while the east and west coasts enjoyed slightly above seasonal temperatures. If the University researchers were correct, the allergy pollen forecast for 2015 would be high for the west coast of Canada, and lower in central Canada.

Accurate pollen forecasts will become available from weather organizations in early spring, and can help retailers plan for the upcoming allergy season in terms of inventory and variety of products.
Reducing the symptoms of allergies

Relief from allergy symptoms goes beyond relieving stuffy noses and watery eyes, according to Toronto-based naturopathic doctor Tara Campbell.

“Toxicity causes a build up in the body that manifests as allergies…liver support, along with adrenal support helps to strengthen the whole system. A robust immune system will decrease allergy symptoms,” she says.

The strategy for a successful allergy category for Jason Gloster, owner of The Horn of Plenty, is to “provide a long term solution based on a balanced immune system, alkaline body and protected body systems…reinforcing a clean diet, lots of water and eliminating inflammatory foods while encouraging raw foods and whole foods.” He notes that retailers may want to consider including whole food and raw food products in allergy displays. By thinking outside of the typical allergy symptoms, retailers can expand their allergy category, better meet consumers’ needs and increase sales.

What to include in your allergy section

• According to Jane Greenley, Holistic Dispensary Manager at the Big Carrot, a strong allergy section would consist of about 60 per cent homeopathic products, 20 per cent herbal medicines and 20 per cent vitamins. For a more specific breakdown, consider stocking 10 per cent vitamin C, five per cent zinc, five per cent selenium, five per cent vitamin A, 10 per cent quercetin, five per cent turmeric, five per cent bromelain, 10 per cent omega-3s, 15 per cent probiotics, five per cent Echinacea, 10 per cent astragalus and 15 per cent nettle.

Vitamins A, C and E, selenium, magnesium and zinc are all well known among the average consumer for their immune system supporting abilities, especially by well-known supplement companies such as Sisu and Webber Naturals, among other brands. Some consumers seek out such immune boosting nutrients as individual supplements, while others find comfort in products specifically labeled for allergy relief or immune enhancement. Hot allergy products include quercetin, n-acetyl cysteine (NAC), plant sterols, essential fatty acids, turmeric, vitamin C and calcium, according to Gloster. At the Big Carrot, activated quercetin is attracting a lot of consumer interest, according to Greenley.

Probiotics also support immune function and prevent allergy symptoms. Sales of probiotic products in North America are expected to reach US$3.5 billion between 2010 and 2015. From chewable supplements to powders and fermented beverages such as kombucha or kefir, there are a number of probiotic products that can meet the needs of a wide diversity of consumers.

Turmeric was recently listed among the top three selling single herbs in the United States health food channel. Turmeric modulates the immune system, potentially alleviating some allergy symptoms. Some popular allergy combination supplements available include turmeric, as well as quercetin, CoQ10. Herbal medicines such as butterbur and Echinacea have a long history of offering allergy symptom relief. Echinacea sales have been growing at an annual rate of about seven per cent, according to 2010 Nielsen data.

Homeopathic product sales increased by one per cent in 2014, according to natural products distributor Purity Life. The report also noted that homeopathic products marketed to help allergy or respiratory ailments experienced a decrease in sales of 19 per cent. This decline was attributed to the exit of Ridgecrest Herbals from the Canadian market. The category leader is reported as North American Herb and Spice Oreganol 140mg, 60 count gel caps.

Omega-3 fatty acid products are known by educated consumers for their ability to beneficially impact the immune system. When creating or realigning an allergy section, retailers could broaden their product diversity by including omega-3 fatty acid capsules, liquid omega products, flax or chia seeds, or hemp products, such as the wide variety of both marine- and plant-based omega-3 options offered by Webber Naturals, as well as other brands.

Attracting the attention of new categories of consumers may help offset declining sales of omega-3 products. The Global Organization of EPA and DHA (GOED) estimates the 2013 sales of omega-3s fell to those experienced in 2011, and have continued to decline each month by 10 to 12 per cent. This decline is attributed to negative media coverage, most notoriously the study published in the Journal of the National Cancer Institute suggesting omega-3s increased prostate cancer risk.

Apples to Potatoes: The Hypoallergenic Diet

Certain foods can cause the body to respond as if it is having an allergic reaction. Commonly known allergenic foods include corn, soy, wheat, nuts, gluten and fish. Some bodies respond to the ingestion of these foods with an immune-related response that can include mucus production, headaches, fatigue and bloating. Apples, hazelnuts, stone fruits, celery, carrots and potatoes are also potential foods that can stimulate an allergic reaction. These foods share the same protein found in pollen. Bodies that react in the spring to clouds of yellow pollen find eating these foods can also trigger allergic symptoms.
Allergy Sales Beyond Food and Supplements

Expand your allergy category thinking. Consumers with allergies may also be looking for items that reduce their exposure to allergens, such as air purifiers, water filtration systems, pet wipes or pet allergen shampoos, hypoallergenic soaps, beauty products, detergents or bedding. Customers with stuffed-up noses want humidifiers and eco-friendly/recycled facial tissue. Mostly, consumers with allergies are looking for products that offer symptom relief: xylitol nasal sprays, neti pots, natural teardrops or lozenges. Expanding the diversity of products in your allergy section may help to better meet varying consumer needs. In many cases, this does not require increasing inventory, but simply savvy remerchandising, such as including allergy remedies beside eco-friendly facial tissue or air purifiers.

Tips for Seasonal Merchandizing

Order items before the season starts to ensure you have plenty of stock the moment the first patient walks in feeling ill. Current product displays may not be enough; change your displays or highlight seasonal items with big displays. If your dispensary is hard to find, pull seasonal items to the front of the store.

By pulling seasonal items to the front of the store, moving stock around, creating interesting and dynamic displays, you can enhance the in-store experience for customers and encourage them to visit your retail location more often. Consider arranging your seasonal merchandize in multiple locations, particularly in high traffic areas and window displays, as customers can miss items on their first walk through. Not sure where to start? Whether you are a small or large retailer, take advantage of merchandizing knowledge of your vendors. Lastly, if you plan on selling a new product, Greenley recommends including supporting material.

• Christine at the Big Carrot Dispensary notes that around allergy season, the company’s print and online advertising is focused on allergy-related products. She also statesthat the company features additional products that they can’t usually fit in the dispensary due to space limitations inaspecial display catered to allergy relief.
  • “We group together herbal remedies, homeopathic remedies and nasal sprays. A number of our customers do look for specific types of therapies to help with their conditions, so this can make it easier for them to narrow down their selection,” she says.

The Allergy Consumer

About one in five people suffer from allergies in the United States, according to the Centers for Disease Control. The allergy category attracts consumers of all ages with the purchases of children’s products increasing over past years. Consumers are looking for products to help manage a range of symptoms, from severe reactions to simple fatigue.

Placing a product on the shelf is only part of being a health food retailer. Success lies in helping consumers understand what those products do and how to use them. Teaching consumers about allergies and ways they can reduce their symptoms increases the quality of your customer’s experience in your store. It starts with providing staff with resources so they are able to educate consumers. For moments when staff is not available, create handouts and place them in an accessible place for customers. Also, consider the booming number of online consumers, and increasing use of social media among Canadians – two in three Canadians use social media and experts expect those numbers to grow. Offer informative pieces on your store’s social media outlets or website.

Going forward, cough, cold and allergy remedies are expected to increase in Canada by a compound annual growth rate of two per cent to reach $878 million in 2018, according to Euromonitor International. Don’t sneeze at it – great potential lies within your allergy category.

Nutrients for immune system function and your immune category

• Vitamin C – antihistamine effect
• Zinc – supports lymph tissue and T-cell populations
• Selenium – required for antibody formation
  • Contraindications: if you have a history of non-melanoma skin cancer.
• Vitamin A – needed for thymus and spleen health, which are locations for white and red blood cell formation
• Quercetin – may inhibit immune cells from releasing histamine
• Turmeric – anti-inflammatory and modulates the immune system
  • Contraindications: have gallstones or bile duct obstruction, stomach ulcers or excess stomach acid.
• Bromelain – modulates T-cell and B-cell immune responses
  • Contraindications: gastrointestinal lesion/ulcer, taking anticoagulant/blood thinner, anti-inflammatory or antibiotic.
• Omega 3 fatty acids – increase prostaglandin levels, which help control allergic manifestations by blocking mast cells.
• Probiotics – modulate immune response, improve intestinal barrier
• Echinacea – traditionally used to support the immune system
  • Contraindications: taking immunosuppressants, have an autoimmune disorder or have a progressive systemic disease.
• Astragalus – traditionally used to support the immune system
  • Contraindication: have an auto-immune disorder.
• Nettle – anti-inflammatory, antihistamine

Note: According to Health Canada’s Monographs for Natural Health Products, for contraindications listed above, and in some cases if pregnant or breastfeeding, prior to use consult a health care practitioner.