Credit Crunch Britons Switch to Online Trading to Beat Recession Blues

LONDON - Moneybookers Offers its Top Ten Tips for Starting up Successfully Online

In the face of rising taxes, pay freezes and unemployment, many Britons are taking matters into their own hands to stave off the credit crunch. As the recession has bitten, online payments expert Moneybookers says it has seen a big increase in the number of people setting up their own internet businesses as a way to provide an extra source of income.

The number of start ups integrating the Moneybookers payments module began to rise dramatically during the latter months of 2008 as the realities of redundancy figures and pay freezes kicked in.

Growth in registrations compared to January 2008 was 250% in September as the reverberations following the collapse of Lehman Brothers were felt across the world. Numbers continued to rise, peaking at 512% growth in December compared to January. Moneybookers is still seeing a sustained increase in start up businesses as more and more people turn to online trading to supplement - or replace - their existing income.

“A growing number of people are realising that setting up in business online could be a clever way to beat the recession,” said Martin Ott, co-CEO of Moneybookers. “The flexibility of lifestyle an internet business gives you means it’s ideal to fit around your current job to help supplement your income in cash-strapped times or even take over from a job you’ve recently lost. We’ve been seeing everything from tee-shirt retailers to online plumbing merchants set up shop on the internet. The online world is one area that is proving relatively resilient in the face of a global downturn.”

Responding to this growing interest in setting up an online business, Moneybookers has put together its top ten tips based on its market-leading experience of working with internet companies:

1) Think about using Open Source shop software from providers such as osCommerce or Magento

These shop systems provide you with software to build your online shop for free and have a helpful community which you can fall back on in case of problems. You can also download the Moneybookers payments system from here. Once activated it offers you a comprehensive spectrum of payment methods accepted worldwide, proven to improve your conversion rates.

2) Make sure your domain name can be found easily

Many internet businesses have failed because potential customers could never find the right website address. The address is also one of the major factors for Search Engine Optimisation. Make sure yours is memorable and reflects the name of the company, and that you keep the registration renewal up-to-date. Think of some of the best known companies’ names like directferries.com - you can’t forget their web address.

3) Identify your USPs - and use them for Search Engine Optimisation

As for every successful business, think about what will make your online store stand out and be different - product range, price, target market, etc. You can then use this to create your keywords and website description, so Google will acknowledge it and display your site on the top search results for these USPs.

4) Don’t economise on your website design

If you are using an open source shop system they will offer you certain proven layouts and designs which are often ready-optimised in terms of usability. If you are building your own shop, think about spending some money on getting your website designed professionally. Having a structured, professional website will attract people to your store and give them the confidence to shop there. A good designer will also make sure that your site is compatible with all browser types so all potential customers will be able to access it.

5) Make sure your customers can navigate around your site easily and are able to checkout quickly and securely

It’s important to have as good a conversion rate as possible, right from the product search stage up until final payment. Difficulties in navigation and usability or slow systems encourage shoppers to abandon a transaction, as do insecure-looking payment mechanisms. Ensure that the “checkout” is easily visible so your customers know where to go, or implement an “eWallet” where your customers can pay easily with their user name and password without always having to enter their credit card details. As always, make sure you test this on all browser configurations.

6) Make sure your payment module matches the customer base you want to target

While credit cards seem the most obvious choice of payment to offer, they may not be the most wide-reaching, especially if you’re targeting the European market where credit card penetration is low and payment methods such as ELV are much more common. Using a system like Moneybookers means you automatically have access to a global payments network of more than 60 payment options accepted in over 200 countries. By using this you will immediately offer the payment option (www.moneybookers.com/process-payments/) your customers want in the relevant country - and you’ll make sure that they can pay for your products.

7) Maximise traffic to your site

Consider looking at free tools like Google AdWords, Website Optimizer or Google Analytics to increase the number of people visiting your site and understand their needs. Some agencies will also help you with search engine optimisation, which will give you a more prominent position in Google when people search for the things you’re selling. This can be the most important factor in website success but is quite often overlooked. Moneybookers also offers you free marketing to their seven million customer base, which can be an important step to founding a loyal customer base.

Avoid chargebacks and secure yourself against fraud

While taking all benefits of an online store into account, you should plan and prepare yourself against the risks, too. In the UK alone the volume of fraud rose to GBP609.9m in 20081, mostly due to more and better organized fraud and data theft, combined with a rising volume of phishing emails and techniques. Systems like Moneybookers operate a no-chargeback policy, which insures you against all chargebacks and supports you with extensive risk and anti-fraud management.

9) Have a contact number for anyone wanting to make enquiries - and keep in touch with your customers

Being available for customers to make enquiries provides an important human touch and increases consumer confidence in your enterprise. Make sure you answer all calls and respond promptly to all enquiries. Also keep up your customers’ interest and keep them loyal by sending out newsletters and special promotions on a regular basis.

10) Know your competition

Make sure you know what your potential competitors are doing so you don’t lose out on business to them by being undercut or left behind with promotions. For instance, you can set up Google Alerts for their brands, so you will always receive regular updates about your competitor’s activities. Also make sure you sign up for their newsletters and regularly check on their blogs, for example by subscribing to their RSS feeds.

(1) SC Magazine UK online, report by National Fraud Strategy: www.scmagazineuk.com/As-online-fraud-figures-rise-by-more-than-100-per-cent-is-there-any-way-for-the-public-to-win-the-battle-against-scammers/article/129154/

About Moneybookers:

Moneybookers is one of Europe’s largest online payments systems and among the world’s leading eWallet providers, with over seven million account holders. The simple eWallet enables any customer to conveniently and securely pay online without revealing personal financial data, as well as to send and receive money transfers cost-effectively by simply using an email address. Moneybookers’ worldwide payment network offers businesses access to over 60 payment options in over 200 countries with just one integration. Already more than 35,000 merchants use Moneybookers’ payments service, including global partners such as eBay, Skype and Thomas Cook.

Moneybookers was founded in 2001 in London and is regulated by the Financial Services Authority of the United Kingdom.

For more information on setting up online, the Moneybookers customer service team is always available to answer your enquiries: e: merchantservices@moneybookers.com.

For more information on Moneybookers, please contact: James Gordon-MacIntosh, Dan Bradley or Michelle James at Fishburn Hedges t: +44(0)20-7839-4321, e: moneybookers@fishburn-hedges.co.uk.

For more information, see: www.moneybookers.com.

Source: Moneybookers

For more information on setting up online, the Moneybookers customer service team is always available to answer your enquiries: e: merchantservices at moneybookers.com; For more information on Moneybookers, please contact: James Gordon-MacIntosh, Dan Bradley or Michelle James at Fishburn Hedges t: +44(0)20-7839-4321, e: moneybookers at fishburn-hedges.co.uk