[OnpointAirsoft]

The internet allows us to set up shop for relatively low money but most successful online retailers either have an accompanying brick & mortar storefront or a customer service line.

So what do you guys think about online only businesses that try to compete with major players in the industry? I'm talking about businesses that communicate through email only. What are the pros and cons and in this environment do you think it is the best time to try and enter the market with a business model that cuts overhead expenses to the bone (no storefront, no employees to answer phones, etc). Basically with this model the majority of costs are in the inventory itself.

[KPatel]

It's difficult to build any credibility without concrete evidence of it. If there is a store that is accompanied with an URL, then it is more likely that people will have the confidence to go out and buy something off the web. However, with the explosion of "social media", it is possible to conduct business solely through the internet. This provides you with the whole of the social internet world at your feet. If you have one customer online, and they like your product, theoretically he/she will tell his/her friends who will come to you and so on.

I'm not a fan of it, to be honest. It seems to be some sort of excuse not to get out there and do business in person. But if it works for you, good for you.

[kimbeckers]

Many large players operate without a phone number on their site and the only contact info is an email address, just look at Amazon.com. But you are going to have to do something in order to build creditability. People are not going to buy from you if they do not trust you. I also think that it depends on the niche you are in. If you are selling a $7 ebook chances are people are not going to care too much about no phone contact but if they are purchasing a flat screen TV for $1000 + chances are you are going to lose sales because people are not sure that you are legit.

Personally when I ran my ecommerce site (a lingerie site) I got an 800 number the number itself was about $15/month and in my 2 years of operating the business I think I received about 10 phone calls to the 800 number. The volume of my sales was about $5000/month. When I first started the site I only email contact info and no phone number, sales were about $1000/month and increased to the $5000 after the 800 number was added. Was it a coincidence? I don't know, did people call the number, not really but it gives them a sense of security having it on the site.

[jg42122]

I like having a phone# but I dont think it is necessary.I give my # to my members but only after they sign up.

[discountedclothing]

Each business should have a valid contact number for a very simple purpose of communication to their customers. Although, IM or live chats were available still customers would like to verify the existence of the business.

[jammy11]

Originally Posted by OnpointAirsoft

The internet allows us to set up shop for relatively low money but most successful online retailers either have an accompanying brick & mortar storefront or a customer service line.

So what do you guys think about online only businesses that try to compete with major players in the industry? I'm talking about businesses that communicate through email only. What are the pros and cons and in this environment do you think it is the best time to try and enter the market with a business model that cuts overhead expenses to the bone (no storefront, no employees to answer phones, etc). Basically with this model the majority of costs are in the inventory itself.

hi
i think the online shop should always communicate through e mails only but providing no phone no. on the web site might be of some risk..... as people might think about quality of stuff especially if its clothing line ....

bye

kittenslingerie.com

[1entrepreneur]

Internet sites are cheap to set up, but providing phone support can be very time consuming and costly.

[Brainy]

Originally Posted by OnpointAirsoft

The internet allows us to set up shop for relatively low money but most successful online retailers either have an accompanying brick & mortar storefront or a customer service line.

So what do you guys think about online only businesses that try to compete with major players in the industry? I'm talking about businesses that communicate through email only. What are the pros and cons and in this environment do you think it is the best time to try and enter the market with a business model that cuts overhead expenses to the bone (no storefront, no employees to answer phones, etc). Basically with this model the majority of costs are in the inventory itself.

Recently (with last month) read a "Success Blue Print" from an Internet Marketing Professional (young person) that had done "marketing tests" with print ads (like postcards and magazine ads) and when he did not have a toll free 800# his lead generation was dismal.

I think people enjoy seeing that "instant gratification" of being able to pick up the phone and immediately talk to a real person...

I am also sure there are many variables, as in anything...

"Entrepreneur America" by Rob Ryan (excellent Book)

Brainy

[EvilEye]

I avoid doing business with a company that does not have a phone, unless absolutely necessary.