Here Are Your Articles for Monday, June 15, 2020
Is this email not displaying correctly?
View it in your browser .
Home About Us Industries We Serve Contact Us
Share Save

Is This the Right Time to Build an E-Commerce Business?

 

No one knows when the COVID-19 pandemic will end or what its true results will be. What is clear, however, is that the nature of commercial business has changed. According to Amperity’s COVID-19 Retail Monitor, as of March 2020, overall retail demand was down 86 percent and online revenue was down 64 percent.

These figures are disheartening, but there is a bright spot: mobile orders were down only 18 percent. A recent McKinsey survey showed that online shopping in China increased 15 to 20 percent, and it increased 81 percent in Italy.

With challenges come opportunity. This may be the right time for you to launch an online business. To evaluate whether this is a good option for your business, evaluate the facts:

  • Create a business model. Does your business lend itself to selling something online? This is different than having an online presence during this crisis through which you provide information or entertainment, for example. That is a different marketing function, although it can be expanded to launch your new business on social media.
  • Be practical. To sell an actual product online you need to consider practical things like production and shipping capability, defining a workable timeframe and determining whether you have the staff to make it work.
  • Allocate resources. Can you allocate enough of your budget to sustain what is essentially a start-up business for at least six months? You will need at least three months to ramp up the business and another three (or more) to test whether the business has legs.
  • Evaluate technology. Assess and test your technology and software capabilities in such areas as remote team communications, file sharing and storage, customer payment options, cybersecurity and IT support.
  • Select staff. Once you have those details in place, you need to assign the right people to oversee implementation of each part of the project, including deciding which product or products to focus on and sourcing enough raw materials to produce more than you think you’ll need in case the product is in demand.
  • Build teams. Have teams in place to create e-commerce websites (including mobile, because that is one area that has seen a smaller decline) and a robust social media presence.
  • Develop plans. Design your marketing program well before the product launch so you can build customer interest.
  • Meet expectations. Plan your rollout in a way that will allow you to fulfill your brand promise from the very beginning.
  • Measure results. Determine your key performance indicators (KPIs) and measure them frequently. At the start of the project, KPIs should be measured daily so you can respond quickly to unanticipated developments.

Launching an online business during this critical time is challenging, but it may be the right thing to do to keep your business viable into the future. For more guidance on creating an online presence, contact us today.

 
Share Save

Your Comments

Kim & Lee
Kim & Lee, LLP
info@kimleecpas.com
2305 W. 190th St. Suite 100
Torrance, CA 90504
Saved Articles
Comments and Feedback
Refer A Friend
Your Privacy
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Powered by
Copyright © IndustryNewsletters All rights reserved.

This email was sent to: ajj@kimleecpas.com

Mailing address: 2305 W. 190th Street, Torrance, CA 90504