RECENTLY, I was invited to speak to a group of small business owners and aspiring entrepreneurs at a webinar hosted by the University of the Philippines Institute for Small-Scale Industries. The focus of my talk was on navigating the digital transformation that many small businesses are currently facing. With the rise of e-commerce, many companies are grappling with the challenges of declining foot traffic, increased competition, and the technical hurdles of setting up an online presence. These challenges present an opportunity for businesses to pivot and thrive in the new digital landscape.
I recently visited the National Trade Fair as part of the Kapatid Mentor Me Program mentors team who went around the exhibit catching up with KMME alumni and DTI-supported entrepreneurs joining the event. During discussions, a lot of the exhibitors haven’t reached the sales revenue they used to have before the pandemic. Many small retail businesses have thrived for years, relying on their local community and loyal customer base. However, with the shift in consumer behavior toward online shopping, many of these businesses have seen a significant decline in foot traffic and sales. This challenge is often exacerbated by increased competition from larger, well-established online retailers.
To address this challenge, an important first step is to embrace e-commerce as a necessary part of your business strategy. Setting up an online store allows you to reach a broader audience beyond your local community, tapping into the growing number of consumers who prefer to shop online. For many small businesses, the thought of setting up an online store raises concerns about costs and technical challenges. Many business owners worry about the expenses involved in creating and maintaining a website and the complexities of managing online orders and payments. This transition doesn’t have to be overwhelming or expensive. You can quickly establish an online presence with minimal technical expertise by choosing a budget-friendly e-commerce platform like Shopify or WooCommerce or joining marketplaces like Lazada or Shopee.
These platforms offer user-friendly interfaces and pre-designed templates, making it easy to create a professional-looking website. It’s essential to highlight what makes your business unique. Whether it’s the quality of your products, your commitment to sustainability, or your local roots, make sure these attributes are front and center on your website.
This differentiation helps you stand out in a crowded market and attracts customers who value what you offer. Ensure that your website is optimized for search engines by using relevant keywords in your product titles, descriptions and blog posts. This will help your site rank higher in search results, making it easier for potential customers to find you. To keep costs down, use free or low-cost templates to design your website, and take advantage of online tutorials and support forums to guide you through the setup process.
If you feel unsure, consider hiring a freelancer for a few hours to assist with the initial setup. This small investment can save you time and ensure that your online store is functional and user-friendly from the start. To address logistics challenges, start by focusing on local deliveries, where you have more control and can ensure a smooth process. Use local delivery services like GrabExpress or Lalamove, which are reliable and well-regarded in urban areas across the Philippines.
As your business grows, you can partner with third-party logistics providers like J&T Express or Ninjavan to handle shipping to customers in other regions. These partnerships allow you to scale your operations without the need for in-house logistics expertise. Building trust with your customers is equally important. Implement secure payment options like Maya, GCash, or iPay88, which are trusted by Filipino consumers. Make sure your website is SSL-certified and display trust badges prominently to reassure customers that their transactions are safe. Be transparent about your policies — communicate your return, refund and shipping policies, and ensure they’re easily accessible on your website. Providing excellent customer service, such as responsive support via live chat or email, further enhances trust and encourages repeat business.
Even with a well-designed website and streamlined logistics, driving traffic to your online store and converting visitors into customers can be challenging. Many small businesses struggle to attract customers online, particularly in a crowded digital marketplace. Start by leveraging social media platforms like Facebook, Instagram, and TikTok to promote your online store.
These platforms are widely used in the Philippines and offer cost-effective advertising options. By creating engaging content that showcases your products, shares customer testimonials, and tells the story behind your brand, you can connect with your audience on a deeper level. Running targeted ads on these platforms, with a daily budget as low as P100, can help you reach potential customers who are most likely to be interested in your products. Finally, build an email list and use email marketing to stay in touch with your customers.
Regularly send out newsletters, promotions and personalized product recommendations to keep your audience engaged and encourage repeat purchases. Transitioning to e-commerce can seem daunting, but with the right strategies and support, it’s an opportunity for your business to not only survive but thrive in the digital age. By addressing the challenges of declining foot traffic, managing costs, navigating logistics, and driving online sales, you can position your business for long-term success.
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