Creating an online shop with Magento
The required steps and decisions when planning and creating an online shop can be divided into five main topics:
- Feature Set: Which features are required in the online shop?
- Design: What should the online shop look like?
- Hosting: Where will the online shop be hosted?
- Marketing: How can customers be attracted and preserved?
- Maintenance: Who will maintain the online shop once it has been developed?
Feature set of the online shop
The feature set includes functionality relevant for the visitors of the online shop such as a wish list or the payment methods, but also the functionality relevant to the shop administrators, such as order processing or dunning.
The list of features that can be implemented in a Magento online shop is almost limitless. Because it is published under an open source license, Magento's features can be extended freely by any developer. This means that there are no limits when extending Magento's feature set. Because of this unlimited flexibility it is strongly advised to define the required features before even starting with the development of the shop. Useful tools for this definition are the process- and competitor analysis.
Defining the required functions with a process- and competitor analysis
A process analysis looks at all the processes that have already been implemented by the shop owner. Based on these already existing processes a list of features for the online shop can be determined. Examples for such already existing processes would be an existing accounting software or requirements imposed by an external logistics partner. A process analysis also helps identifying the so called «Core Processes». These are the processes that are crucial for a business' success and should thus be considered strongly when creating the feature list of the online shop.
A competitor analysis allows a shop owner which features the competition's online shops offer. Every online shop should offer at least the same feature set as its competitors' online shops. Otherwise, the customers might perceive the new online shop as inferior to the existing online shops since it offers less functionality. An exception to this rule is if an online shop offers other strong unique selling points (USP), for example as lower prices or free shipping. If the benefit from these points is big enough, the customers might look past other missing functions.
The process- and competitor analysis can help identify various required functions for the online shop. Another source for the feature list is of course the shop owner's personal requirements for the online shop.
What does Magento offer by default, what has to be extended?
If a list of required features has been created the next step is to figure out which functions Magento by default and which features have to be implemented specifically for the current project. Luckily the default feature set offered by Magento is quite extensive. This means that a proper setup of Magento can cover most of the required functions without any additional modifications. For most smaller projects, the base features offered by Magento are enough to start with.
If your list of required features includes a feature that is not offered by Magento by default, there are two options:
- Programming a Magento custom extension from scratch
- Buying a pre-made Magento extension by a third-party developer
Because Magento's modular architecture and its open source licensing it is possible to extend Magento with a custom made extension. We have developed various such extensions for customer projects which are available on GitHub or Magento Connnect.
There are many pre-made Magento extensions availabe on the «Magento Connect» marketplace.
Various marketplaces offer finished Magento extensions from third-party developers. These extensions can be installed in a Magento online shop in a few minutes. Some of these extensions are free and some have to be purchased. Among these extensions there are many which offer almost any feature which could be requested by a shop owner. Installing such a pre-made extension is often a lot cheaper than programming a custom made extension from scratch. The only downside is that the extension developed by a third party developer might not fully meet a shop owner's requirements. Thorough testing is thus recommended before installing an extension into an online shop to make sure there are no unexpected side effects.
Some often requested features implemented via third party extensions are:
- Integration of an external credit card payment processor such as Saferpay or Postfinance
- Integration of a dunning module for orders payable by invoice
- Automated payment processing for customer payments
- Creation of VESR invoices (orange payment slip, used mostly in Switzerland)
Design of the online shop
Another important topic during the creation of the online shop is the design of the shop. The fundamental question here is: Is there already a design which has to be implemented into the online shop or does a completely new design have to be created first?
Often times when a new online shop is created an existing design has to be implemented. Many companies have developed a unified Corporate Identity which also has to be considered for the design of the online shop. Or there is another resource that the online shop's design has to be based on, for example an existing website or other already designed materials.
If an existing design has to be implemented, the first step is creating a screen design based on this existing design. A screen design includes a design for every view (or «screen») that the shop consists of. The expenditure for this task is based on the scope of the design that has to be implemented.
Using a purchased design versus creating a new design from scratch
If no previous design or design guideline exists for the online shop then there are two options: Buying a pre-made design from a template marketplace or creating a design from scratch.
There are various marketplaces with lots of pre-made design templates for Magento.
The first option, buying a pre-made design from a design marketplace, is definitely cheaper. There are various marketplaces that offer finished designs that can be bought online and installed directly into a Magento onlineshop. The prices for these designs typically range from 50$ to 200$. Not much considering that creating a new design from scratch can take up to a few weeks.
Considering the enormous workload required when creating a new design from scratch, we often recommend to our clients to start out with a design purchased from a template marketplace. This allows the customer to launch their online shop while keeping the costs down. Should the online shop turn out to be a huge success, a custom design can still be implemented later on.
«Responsive Design»: Design that works on any device
«Responsive Design» is a recent trend that has been getting very popular. It includes various technical developments which can be used to ensure that a design displays well on all display devices. This means that «Responsive Design» can be viewed on a desktop computer just as well as on a mobile device such as a tablet or smartphone.
An example for «Responsive Design» used for a customer project.
«Responsive Design» has been picking up a lot of popularity lately due to the fact that more and more people use mobile devices to browser the web. An online shop owner should therefor ensure that these visitors can view an online shop just as well as a visitor browsing from a desktop computer. Especially in an online shop it is important that everything works just as well on a mobile device. For example, if the checkout process doesn't work or is very cumbersome, there is a risk that the customer will make his purchase at another online shop where checking out from a mobile device is easier.
Hosting of an online shop
A hosting partner has to be found before an online shop can go online. This hosting partner provides a server where the online shop can be installed. Especially for an e-commerce business a reliable hosting solution is crucial. A temporary failure of the hosting solution leads to lost revenue. For this reason it is not recommended to try and save money by selecting a cheap hosting solution. Instead, a capable hosting partner should be chosen based on factors such as reliability and speed, and the price should only be a secondary decision criteria.
The developers of Magento recommend some hosting partners on the Magento website. Unfortunately none of these hosting partners offer servers based in Switzerland.
When selecting a hosting partner it is important to ensure that the hosting partner has previous experience with Magento. A seasoned hosting partner can optimize a server for Magento and offer tips and guidelines for configuring Magento to work as best as possible on the provided server. Additionally a competent hosting partner can offer quick solutions for Magento specific problems with the hosting environment.
Another important decision criteria when selecting a hosting partner is the caching system used by the hosting environment. A caching system offers a caching layer between the Magento application itself and the online shop's visitors. It caches some of the most recently viewed pages and helps reducing the load on the server. This means that even more requests can be handled at the same time without the online shop becoming slow to respond. Especially when working with a complex solution such as Magento it is highly recommended to make use of such a caching solution.
We work with various hosting providers and can help you selecting the hosting provider that best fits your requirements. When selecting a hosting provider, the following points are especially important:
- Target market of the online shop (which country or countries are the products delivered to?)
- Estimated number of visitors in the online shop
- Technical experience of the online shop owner
- Budget of the online shop owner
Marketing an online shop
Once the development of an online shop is finished, the next task for an online shop owner is attracting customers to the online shop, and keeping existing customers once they've made their first purchase. Techniques used for such marketing activities range from more traditional marketing channels to the most modern digital marketing. Especially in the e-commerce business it is highly recommended to make use of the most recently developed digital marketing channels such as Social Media or Pay-Per-Click advertising.
Viral Marketing
«Viral Marketing» is a recent trend that has been gaining a lot of popularity alongside the widely used Social Media platforms. «Viral Marketing» doesn't use paid channels or advertising media but instead uses real people to spread its advertising message. A classical example for such viral marketing would be a product recommendation made on a Social Media website. More traditional mouth-to-mouth propaganda could also be considered viral marketing. A shop owner should position their shop to enable the customers to easily spread such marketing messages from within the shop.
Example from a customer project: Sharing a product directly from within the online shop.
Marketing via Social Media
Another recent marketing method is a strong profile on Social Media websites. Especially if a shop's target audience is young, such a presence can work wonders to establish a brand or online shop in the minds of its target audience. Social Media enables a shop owner direct access to their target audience and enables unfiltered communication. By using the network effect and cleverly placing marketing messages on Social Media platforms, a message can be spread broadly without investing too much time or money into its delivery.
Traditional marketing channels
Traditional marketing methods only start to make sense if the online shop owner has a sizable budget for marketing their shop. Our recommendation is to first gather experience using Social Media and digital marketing channels and refining the marketing message and only after some time and experience venture into the more expensive traditional marketing channels. Before investing a lot of money in TV or print adds it is recommended to test a marketing message using comparatively cheaper digital marketing channels. But once a solid marketing presence has been established, combining traditional marketing methods with their modern counterparts can help spreading a marketing message further.
Affiliate marketing: Customers recruit customers
Affiliate marketing is a marketing method that is widely used in the e-commerce world. It enables a shop's existing customers to recruit customers themselves and get a reward for each newly recruited customer. An online shop's existing customers are the best advertising medium a shop owner could ask for, as they have already been convinced of the online shop's quality. Affiliate marketing enables these loyal customers to spread their confidence among their peer groups and recruit new customers for the online shop. To encourage such sharing activities, affiliate marketing often works with rewards so that a customer recruiting a new customer will receive a reward for each newly recruited customer.
Don't neglect your existing customers in your marketing activities
Marketing should never be focused solely on attracting new customers. Instead it should also cater towards an online shop's existing customers. It is considerably easier to lead an existing customer to create another order than it is to recruit a new customer to make their first order. A medium that is often used when marketing towards an online shop's existing customers is a newsletter. An online shop owner should ensure that there is a newsletter system integrated into their online shop system. Magento offers such a newsletter system by default. A newsletter can promote special sales or additions to a shop's product range. Such campaigns often lead to a significant response rate among existing customers.
From a customer project: A newsletter is primarily used to bind existing customers to an online shop.
A successful marketing strategy and a personal marketing mix
It is quite difficult to identify which marketing methods are best suited for an online shop. A marketing mix combines many of these methods and ensures that they all complement each other. We can show you which marketing methods would work best for your online shop and create a personal marketing mix for your marketing efforts.
Maintenance of an online shop
The main work for an online shop owner starts only when an online shop has been developed and launched successfully. Daily maintenance and customer related tasks take a lot of time. The shop owner should also constantly refine their product range and find out which products work well and which don't.
Technical optimization and further development
There is also a lot of work to do on the technical side of an online shop. Many customization requests are only discovered a few weeks after the online shop has been launched. The shop owner then discovers a need for additional features or changes to the online shop. Considering that customer requirements can also change over time, a shop owner should always ensure that their online shop is updated according to these requirements. From an application security viewpoint it also makes sense to keep an online shop system such as Magento on the most recently released software version.
Magento is constantly being developed. It is highly recommended to always work with the latest Magento release.
Search Engine Optimization: Good ranking on Google & Co.
Another important area in the maintenance of an online shop is Search Engine Optimization (SEO). A majority of online shop visitors finds the online shop via search engines. It is thus recommended for an online shop owner to ensure a prominent placement in these search engines' search results. Reaching and maintaining these ranking positions is an ongoing process that takes a lot of time.