Author Katrina Shanks, CEO Financial Advice NZ. Article originally published in stuff.co.nz.

OPINION: As New Zealand edges into a recession it’s clear businesses are going to have to be on high alert for at least the remainder of the year as the consumer spending slowdown threatens bottom lines.

Two recent surveys give an idea of just how much pressure is out there.

The New Zealand Institute of Economic Research’s latest survey of business opinion shows lower demand for goods and services is now the major concern of businesses, rather than labour shortages.

It found high inflation and rising interest rates would take their toll over the coming year, with around half of mortgages due for repricing, meaning higher repayments and so less discretionary spending.

This followed a survey by software company MYOB showing more than a third of small- and medium-size businesses said they would struggle to stay afloat for six months before having to use their personal finances or get additional finance.

To blame? Overheads such as rent, fuel and power increasing by more than $1500 a month for most businesses in the past year, with only a tiny 13 per cent saying their costs had held steady.

This rings louds bells for many, As MYOB said, “Tough trading conditions and falling consumer confidence have also seen local SMEs struggle to achieve revenue growth over the last year, and profitability … has become particularly constrained.”

I wrote here last week about the need for businesses facing difficult times and worried about comfortable survival – or just survival – to consider changing what they do or the way they do things to find ways to engage their customers and keep their business ticking along.

Options included adding new products, changing marketing or pricing strategy, dropping non-performing inventory, or branching out into a different but related field.

Or maybe something as radical as changing the service that got you this far – going from a bricks and mortar business to having a bigger online presence.

It’s something that can be a big move, particularly for a business with a shop-front history, but it may be the only viable option.

If it sounds radical, it doesn’t have to be, because there are more and more businesses converting.

As of this year there are a whopping 13,043 online shopping businesses in New Zealand – an 8 per cent jump over last year and continuing an average increase of 8 per cent each year since 2018.

The market itself is estimated to be worth a massive $8 billion.

What’s more, global business researchers IBISWorld forecast the online shopping industry to continue growing over the next five years as it becomes more normalised, with many New Zealanders are already using the internet to buy goods. They predicts revenues will grow strongly in that time.

It’s easy to see why. The European University Institute says around 88 per cent of New Zealanders aged between 16 and 64 searched for a product or service online in 2021. You can only imagine what it might be now. It projects that by 2026, 83 per cent of New Zealanders will be shopping online.

If you’re looking at such a move but have qualms about what you may be getting into, it’s good to know you’re not alone.

It’s almost a reason to move online, irrespective of the current trading conditions.

Moving into a market that is ready-made for you is perhaps not the jump into the unknown it would have been a few short years ago.

So, if this is the situation facing you, how do you go about it?

Research

First, make sure your products or services are suitable for online sale. Basically, that they’re the type that customers can get a feel for from two or three photographs and are easily delivered by post or courier.

Then find a platform.

The first thing to realise is you don’t need to be a technology guru to run an online store.

There are a lot of off-the-shelf solutions available from which some people would be able to put together an online store, though you are likely best advised to spend a little bit of money and have a developer adapt one for you.

Look at what others are using or talk to people in the industry or even a fellow retailer about their experiences.

You want an attractive design that will attract the customers you’re after; is easy for them to navigate; has good security and a simple payment system that offers credit, debit, and bank transfer options; contains clear information on shipping and returns; has clear contact information; can give customers regular updates on shipping progress.

Preparation

Your success will depend on how well you plan.

First, decide which of your products you want to start with. Perhaps it could be a new line at a special price, something which is always popular on a new site.

Make sure you have concise, accurate and informative product descriptions.

Choose keywords that will show up quickly in a website search engine. And use as many pictures for each as you think customers need, maybe two or three depending on the complexity of the product.

Shipping costs and delivery options can often be the difference between you and your competitors, so put time into this. It’s a great advantage if you can offer free shipping, even if it is just for orders over a certain value, to a certain region, or for a specified time, such as a public holiday or a long weekend.

Then press the button and good luck.

An easy and cheap way to market your site is to point customers visiting your physical store to check out the online options or hand out brochures for the next time they’re shopping.

In all of this it’s important to realise e-commerce is nothing to be afraid of.

In fact, it could be you’ll find it makes your work and life easier and improves your profits. With smart planning, maybe you’ll wonder why you didn’t do it earlier.

Remember: you’re still the same smart business person you always were. It’s the way you’re selling your products that has changed.