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EcommerceBytes-NewsFlash, Number 2323 - July 05, 2010 - ISSN 1539-5065     Previous | | Next
Ecommerce Business Stays Afloat Despite Gulf Oil Spill
By Greg Holden
EcommerceBytes.com
July 05, 2010




In times like these, when jobs are hard to come by and the economy is struggling to get back on track, it's good to be reminded that you can still change your life, or at least your working and living circumstances, thanks to the Internet. My own life has certainly been transformed by the Web. I've made a career writing computer books, and as I write this, I am about to travel cross-country to join my fiancee (a woman I met online) and drive back to Chicago so we can start our lives together.

But don't take it from me. I found a more recent example in the oceanside town of New Port Richey, Florida. That's where Paul Wills runs a Web-based business called BoatersOnTop. Paul and his wife Crystal are trying to change their lives by starting up their own online business. They've got a good start. But now their hopes are being seriously threatened - not by big competitors, not by the weather, not by the economy, but by British Petroleum (BP).

The oil spill that is fouling the Gulf of Mexico has begun to affect Florida, and Paul Wills is steamed. You can read how he feels in a column he posted on his website. He explains that his dream of opening a brick-and-mortar storefront as an extension of his Web-based storefront has to be deferred. He's worried that boaters simply won't be going anywhere near the Gulf until things are cleaned up - and even then, things may never be the same.

"Who needs boat parts to keep boats going to enjoy a contaminated coastline?" he writes. He points out that the reason he and his family live where they do is primarily to be near the water, and to enjoy the ocean. He worries that the oil spill will not only affect tourism but population growth in the area.

For now, he says, business on the Web is good enough to keep going. "We have begun getting orders and I'm discovering the Internet search engine relationship," he comments. "It seems this is a whole different approach than just opening a storefront, and we are brainstorming ideas all the time."

Boating and fishing have always been Wills's passion. "I seem to have pulled my wife into it," he jokes. He and Crystal are a blended family - three kids are his, three hers. Being a boater of limited means, he saw a need for a boating site that would help do-it-yourselfers on a budget work on their own boats and save money buying parts.

"It's difficult for ordinary folks to venture out on the water as the expense is so great," he explains. "The cost of equipment and boats is far beyond even a middle-class person and even harder to maintain. We found ourselves living in the corporate world (manufacturing for me, employment management for her) and wishing that things weren't so expensive."

They decided to fill the gap between the boaters and the wannabes by offering parts and other boating-related items that average people can afford. "We do feel that the market demands less cost for items that were once highly priced to serve a select group. We love boating and would like others to enjoy it as well."

The BoatersOnTop site was created using Zencart, one of the shopping cart sites that AuctionBytes has been profiling in recent weeks. Wills says virtually everything he has learned about creating websites has come from the Zencart community forums. Like many online business owners, he tries to leverage the low overhead of running a business on the Web by undercutting the competition.

"We're able to price things cheaper on almost every item," he says. Most of the products offered on BoatersOnTop are engine parts. Some of the electrical components and ignition parts are listed at 30 percent lower than parts being sold at local brick-and-mortar stores in Florida. "Looking at one part at random, I found that searching for it on Google we are anywhere from $3 to $90 cheaper than the competition."

Although profit margins are low, Wills hopes to make that up by selling in quantity. And he builds loyalty by going the extra mile: "I even had a customer who was having such a hard time (with repair) that I threw in a part for free for his fuel tank. You see, sometimes it's not just price that keeps customers even on the Internet. This guy didn't have much, and now he is able to take his family out on his boat, which runs well now. The part only cost me $6 but really didn't cost me much and I'm sure it will pay off in the long run."

Like many online businesses, BoatersOnTop is a family affair. Crystal helps with advice, and Paul's twin 16-year-old daughters use Microsoft Office to move sales items into the proper categories. They hope to keep everyone busy with packing and shipping a flood of orders, and eventually, Paul and Crystal want to quit their day jobs and run BoatersOnTop full-time. That depends, in part, on the condition of the Gulf and the progress on cleaning up the oil spill, of course.

In the meantime, Paul is enjoying meeting customers, hearing about their repair problems, and trying to give advice. "I'm a firm believer in people and the people with my business deserve more than just an email sometimes. Things are tough and many are attempting repairs and they have never done it before. I love talking with my customers and I love problem solving. I have never tried anything like this before, but it seems like it was made for me - I get to help people and at the same time do what I love to do. What I can say is I'm in my groove here. Who can say that?"

Has the Internet changed your life? Do you have an interesting human interest story about your online business? Let me know at greg@gregholden.com.
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About the Author
Greg Holden is AuctionBytes Contributing Editor. He is a journalist and the author of many books, including "Starting an Online Business For Dummies," "Go Google: 20 Ways to Reach More Customers and Build Revenue with Google Business Tools," and several books about eBay, including "How to Do Everything with Your eBay Business," second edition, and "Secrets of the eBay Millionaires," both published by Osborne-McGraw Hill. Find out more on Greg's website, which includes his blog, a list of his books, and his fiction and biographical writing.

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