E-commerce for the pool and spa industry: How specialty retailers can start an online store

by habiba_abudu | January 27, 2020 3:05 pm

By Crystal Lengua

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E-commerce refers to the process of buying and selling products or services over the internet. Although the concept of e-commerce does not necessarily work with every business model or product, it can generally be broken down into three categories: business-to-business (B2B); business-to-consumer (B2C); and business-to-government (B2G). For the sake of this article, and its purpose, the focus will be on B2B and B2C, and how they relate to the pool and spa industry.

Why e-commerce?

The obvious benefit to an e-commerce sales strategy is customer reach/business development. When selling online a retailer can target outside of their brick-and-mortar vicinity and ship to new consumer areas with ease. Another plus is the cost of overhead; it is minimized (especially when products are drop shipped from manufacturers/distributors) because the operating costs are much less than a retailer’s alternative shipping methods. Ideally, a B2C retailer will have a physical location/warehouse/plant and an e-commerce strategy to support it.

E-commerce for B2B

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Going back to the initial point of e-commerce not being for everyone and everything, there are items in the pool and spa industry that do not necessarily make the cut in regard to online selling. For instance, one-off shipping costs associated with size and weight (e.g. a heavy pool heater), product exclusivity, dangerous chemicals, etc.

An online ordering system does come in handy if a business offers a replenishment program for commonly used items such as filters, small point-of-sale (POS) items, accessories, and maintenance chemicals. These systems will not only save a company time and money by auto-shipping to B2B customers, but will also ensure the company is constantly in touch and following up.

E-commerce for business can be integrated with a customer relationship management (CRM) program, too. The ability to see the purchase history of customers allows a business to make suggestions or offer digital pricing incentives to entice customers to use a referral or rewards program. These types of strategies work well because reporting is easily accessed and downloaded digitally. The customer’s account can be easily retrieved and reviewed. In the pool industry, some of the bigger brands have created program initiatives to remove their products from online purchasing availability in hopes of supporting their brick-and-mortar builders and service companies, making certain products only available online, which allows for responsible pricing, purchasing, and professional installation.

E-commerce for B2C

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Setting up an online store to cater to the end-user is becoming more and more of a necessity as the popularity of online shopping is growing. According to a GE Capital Retail Bank report, 81 per cent of shoppers¹ looked online to browse multiple businesses before making their final purchase decision. Now, some of those online shoppers are merely online ‘browsers’ who will use a retailer’s generic website to gain information about products, but Shopify found that online storefronts represent more than 80 per cent of sales and over 62 million buyers have made a purchase from the same store twice.²

Having an online store is not only beneficial for sales and customer reach outside of a retailer’s physical location, it allows a pool and spa store to have a storefront that is not only open 24-7, but is also relatively easy to setup and manage. For smaller businesses, platforms such as Shopify, Wix, B-Commerce, or Square space can be used to manage an online storefront.

The flexibility of design, ability to upsell and cross sell items, as well as use Google analytics to gauge trending products and push them via e-mail marketing are all quick and effective sales and marketing strategies that are not costly and time-consuming. An e-commerce platform also creates the perception of a grand brand. The ability for customers to purchase products online elevates a pool and spa retailer’s professional image.

Further, having an online store that complements the brick-and-mortar location is a match made in heaven. It is proven online buyers are more likely to purchase from a retailer if they have the option to return the product in-store.³ As a result, a retailer is still driving foot traffic to their store through their site (even a return can be a positive interaction).

Six questions to ask when planning a B2C e-commerce strategy

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   Is e-commerce the right option for the business? To determine this, business owners must conduct some research. A SWOT (strengths, weaknesses, opportunities, and threats) analysis is a strategic planning technique used to help a business owner make their decision. It is one of the best tools to help one specify the objectives of the business venture or project and identify the internal and external factors that are favourable and unfavourable to achieving them. For instance, a business owner should look at their competition and see what they are missing. Performing this research can help one determine if there is a niche market they can cater to.

2. Hire a professional designer or use a do-it-yourself (DIY) platform? This is determined by the company’s budget, the internal technological/internet knowledge and capabilities, and the staff’s ability to manage the website. Drag-and-drop platforms, such as Shopify, help to simplify this process—especially if one has a base knowledge of design and can navigate all of the business’s social media accounts.
3. What about a merchant account/payment gateway? This author recommends PayPal because it is a trustworthy, recognized payment option. PayPal states on its website, “Consumers are 54 per cent more willing to buy when a business accepts PayPal, especially in unfamiliar situations.”⁴
4. How will the business’s products be shipped? Shipping plays an important role in the buyers purchasing decision. From a strategy standpoint, the cost of shipping should be worked into the unit price so the shipping can be ‘free’ or, even better, have a free shipping reward when ‘X amount’ of dollars are spent to initiate a full cart. That said, the business should have a shipping account (with UPS, FedEx, or another common carrier) to ensure a preferred rate with a reliable turnaround.
5. Are products being shipped with the proper tax amounts? Provinces, states, and different tax codes may apply; therefore, it is important to make sure goods are being charged and shipped accordingly to avoid being audited. The codes are simple to setup but, again, research is important to ensure the correct percentages/amounts are being entered.
6. What products will be offered online? Not everything a business sells in-store needs to be available via e-commerce. Start small with light items that are not expensive to ship, such as fun toys and accessories for pools and/or spas. It is a marathon, not a race. Build the business slowly; once one has a full grasp on the procedures, protocols, and systems, they can then hit the ground running.

Once the decision has been made to move forward with the company’s website, use the rule ‘less is more’ when it is being designed. It is important not to overload the consumer with fancy text, dark screens, and too many images. Keeping it clean and simple will create a relaxing space for customers. The site should have bright images, proper descriptions, and pricing, as well as list any modifications or additional options a product may offer. For example, if the product was ‘spa bombs,’ a retailer should list the following on their e-commerce site:

• The different scents that are available.
• Purchase options such as a ‘buy-four-get-one-free’ sales strategy.
• Other products that accompany or enhance the customer’s spa bathing experience.

Amazon does a great job of this with its suggestions based
on searches. Also, retailers should be sure they follow the manufacturer’s minimum advertised price (MAP) for the products being listed. If a manufacturer performs a web audit, a retailer could get into trouble if they are caught selling products below the approved price.

How to promote a B2C online store

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Today, most businesses have a website, but at the time it was created online shopping was not on the radar. That said, to transform an existing website into an e-commerce site it will likely need to be completely redesigned by a professional. Another option is to simply add a ‘Shop’ button that links to an external shopping site. The author recommends this option—especially for small businesses—as it allows retailers to get their e-commerce program started by having their content site and their online store. The following tips can be used by pool and spa retailers to promote their online store:

1. Similar to a typical website, integrate search engine optimization (SEO). This includes picture descriptions, descriptive text with keywords, a proper site structure, adding breadcrumbs, optimize for voice, site speed, etc. Further, the e-commerce site should be submitted to the search engines so they recognize it. All of these factors and more ensure user-friendly search results. It is important to be patient as SEO takes time.
2. Play on holidays with a content calendar and create landing pages and specials to promote them. Christmas, Valentine’s Day, Mother’s and Father’s Day, the first day of summer—are popular in the pool and spa industry—but even ‘fun days’ like National Doughnut Day is something that can be used to draw attention to the page. For instance, a retailer can give away a free doughnut pool float to a lucky winner who visits the site. The holidays are a fantastic reason to push content and sales and staying on top of it with a quarterly content calendar can keep a business scheduled and ahead of the game.
3. Retailers can also link their online shopping page off of their distributor’s ad and/or supplier’s website. Referral traffic is another way to promote the store. Further, if a consumer goes to the supplier and is interested in making a purchase, be sure the store is on the list of available retailers where consumers can be directed to purchase their product. Communication that the store is live is another important step to gaining recognition and referrals.
4. Retailers can promote their new online store through e-mail marketing and mailing programs using their existing customer base, along with in-store signage and social media.
5. Paid advertising is another way to promote the site, and the digital world makes this a one-click advertising dream. For example, Google AdWords (if it is in the retailer’s budget) and social media boosts are a great way to reach a targeted audience and provide shareable content. Digital e-mail blasts through industry magazines and banner ads on websites like Kijiji also work to drive traffic to a retailer’s online store.

As great as e-commerce sounds, it does not come without its considerations and areas of concern. The biggest is website security and privacy. That said, retailers should ensure they are using a reputable host along with a secure server (e.g. https://). Online shopping carts do not deal with the entire transaction, they pass the purchasing information to a payment gateway; therefore, it is important to ensure the provider being used is not only trustworthy, but also dependable to protect the customer’s information from the risk of being exposed or hacked. Further, a retailer planning to sell online will need a digital certificate for SSL (Secure Sockets Layer) to work. An SSL is a protocol to secure and protect transactions.

Retailers can use the following tips to minimize security and privacy risks:

• Keep software updated and scan for spyware and viruses regularly;
• Back up all data frequently;
• Use proper design precautions such as disabling the ‘back’ button when making purchases so the transaction is not reset (DIY platforms will have this built in as a standard);
• Avoid storing customer credit card information;
• Be aware of fraud prevention tools such as Address Verification Service (AVS) and credit card code verification;
• Carry first- and third-party liability insurance specific to internet sales; and
• Be suspicious of large orders and P.O. Box deliveries—especially if the customer requests a rush delivery.

Building an e-commerce business is as exciting as it is challenging. Retailers will quickly learn what works and what does not in regard to their business model. In fact, some may even decide that it is not for them. For those retailers who do move forward with an e-commerce strategy, two things are important: research and methodical planning. One of the best ways a retailer can plan their approach to implementing an e-commerce strategy is to try shopping online. In doing so, one should take notes of the features they like and dislike so the positive aspects of their experience can be integrated into their store’s e-commerce plans.

Notes:

¹ See “25 Stats on Consumer Shopping Trends for 2019” published online by V12 on February 27, 2019. For more information, visit https://v12data.com/blog/consumer-shopping-trends-stats/. (Accessed Oct. 21, 2019)

² See “Shopify’s State of Commerce Report” published by Shopify in June 2019. For more information, visit https://www.presse-citron.net/wordpress_prod/wp-content/uploads/2019/06/Shopifycommercereport.pdf. (Accessed Oct. 21, 2019)

³ See “E-commerce Product Return Rate—Statistics and Trends” by Khalid Saleh and published by Invesp. For more information, visit https://www.invespcro.com/blog/ecommerce-product-return-rate-statistics/. (Accessed on Oct. 21, 2019)

⁴ See “People are 54% More Willing to Buy When a Business Accepts PayPal” by Bill Ready and published by PayPal Stories on Oct., 16, 2018. For more information, visit www.paypal.com/stories/us/people-
are-54-more-willing-to-buy-when-a-business-accepts-paypal. (Accessed on Oct. 21, 2019)

[7]Crystal Lengua is the sales and marketing manager at SMP Ultralift and sits on the Pool and Hot Tub Council of Canada’s (PHTCC’s) national board of directors, as well as on the PHTCC’s Toronto chapter board of directors. A graduate of marketing, public relations and corporate communications, professional sales, social media marketing, and event management, she has positioned herself as a leader in digital and traditional marketing methods. Featured in Mississauga Life magazine in 2014 as a leading female entrepreneur, she is also a keynote speaker, blogger, and social media maven. Lengua is a member of Pool & Spa Marketing’s Editorial Advisory Committee. She can be reached via e-mail at c.lengua@smpmetal.com.

Source URL: https://www.poolspamarketing.com/trade/features/e-commerce-for-the-pool-and-spa-industry-how-specialty-retailers-can-start-an-online-store/

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