Web Stores Require Niche Products, Healthy Budget

Many would-be entrepreneurs see the idea of a Web store as an inexpensive alternative to bricks and mortar. And this is true, to an extent.

A Web store can mitigate, or even eliminate the need for a sales floor, inventory space and other basics of a physical location. But one shouldn’t assume this means there won’t be significant costs, said Kenny Tomlin, CEO and owner of Rockfish Interactive in Bentonville.

“Don’t think of Internet as a cheap place to do business,” he said. “It can be a big investment in time and money.”

Tomlin advised anyone considering a move to e-commerce to make sure they’re selling a specific, niche product. An online bookstore, for example, might not be a good bet.

For someone who will be selling only a handful of items a day, template-based Web stores offered by sites like Amazon can work, and can get off the ground for $5,000 to $8,000, Tomlin said.

But for a store that sells dozens or hundreds of items daily, Rockfish can set up a Web store that is structurally prepared to deal with high volume orders, inventory tracking and customer service.

The price for Rockfish to set up a Web store can start in the $20,000 range and go up to more than $100,000.

“You don’t need a million-dollar budget, but you’ll have a hard time without a decent budget,” he said.

Searches Drive Internet Business

Try navigating the vastness of the Internet without using Yahoo!, Ask, Google or another search engine. Unless you know the exact address of your destination, it’s easy to get lost. These sites are the maps users consult to find the right pages with the right content.

Getting on the map is the goal of most any business, large or small. That’s why the sites are nearly always being tweaked, their algorithms altered to ensure that relevant results pop up at the top, while bogus stock tips and offers for Viagra are filtered out.

A big factor for what comes up in a search is which keywords a user enters. Some Web design firms can help clients stay on top.

“We feel we’re leading the pack in search engine optimization,” said Ron Bird, marketing director for Rogers-based Design Works.

Many have asked Bird over the years how much it would cost to get their business to the top of the search engine results. He replies that it’s better to get a business to the top for a narrow, specific search rather than a broad one.

For example, someone searching for antiques in this the Springdale area is more likely to enter “antiques Northwest Arkansas” than just “antiques.”

Keeping a business at the top of the results pages can be a lot of work, depending on the number of competitors it has, Bird said.

A small business specializing in something fairly unique, like bonsai trees, could spend around $500, plus another $150 or so for two to three hours per quarter of maintenance, he said.

But for a more common outfit, say, a real estate firm, the amount of time and work – and consequently the price – goes up dramatically. Bird’s firm has clients who spend thousands on setup and hundreds each month for maintenance.

MySpace Promotes Business Affordably

Social networking sites such as Facebook and MySpace are an easy and inexpensive way to gain Web presence and connect with customers.

Several area businesses have accounts on MySpace, including Powerhouse Seafood & Grill, Ozark Natural Foods, Hog Heaven, Lindsey & Associates Inc., Griffin Company Realtors and others.

The Northwest Arkansas Young Professionals, a 501(c)(6) corporation that promotes networking events has a MySpace account with 386 “friends.”

The group has probably picked up 50 to 75 new members through its MySpace account, which “was a way to tap into an existing social network,” said Josh Mostyn, executive director of NWAYP. “We probably picked up most of our friends by adding other businesses as our MySpace friends.”