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When you think about buying something online, how do you decide whether to follow through with your purchase? If you’re like most shoppers, you might turn to on online reviews for guidance.

According to research from Nielsen, 73% of online respondents use reviews to make purchase decisions. “Perhaps nothing is more important than word-of-mouth testimonials from satisfied customers, whether in person or online via reviews and social media,” added Patrick Dodd, chief commercial offer at Nielsen.

If online reviews aren’t available, 92% of customers are impacted, according to a survey from marketing agency Fan & Fuel. That group expressed a lot of hesitation in what would happen next; Thirty-five percent said they were less likely to buy, 32% said they’d wait until they could do more research, 23% said their buying decision would be difficult, and 2% said that they simply wouldn’t buy the product/service.

E-commerce businesses need to understand how crucial online reviews are for sales. The following sections expand on how online reviews affect business directly and how to get customers to leave reviews.

Benefits of Online Reviews for E-commerce

It may seem natural that online reviews affect business and lead to more sales, but it’s worth exploring some of the primary and supplementary reasons. You’ll start to realize why reviews play such a crucial role in the e-commerce world.

• Unbiased Insight into Products: People want to know if products they’re considering fit their needs. In the Fan & Fuel survey, 37% of respondents said the main thing they look for in online reviews are details that help them understand if the product/service is right for them. That led all other reasons for reading reviews. There’s a certain level of trustworthiness for online reviews. In fact, based on a survey of U.S. mom internet users, people trust consumer reviews nearly 12 times more than descriptions provided by manufacturers.
• Build Trust: Another benefit to reviews is they can help portray the business in a positive light. People are accustomed to purchasing products from familiar sellers like Amazon. If they’re on a different site, they may be unsure. “Will the product arrive quickly?” “What if I need to return it?” In unfamiliar territory, consumers need to know that other shoppers have had positive experiences. As a result, they’ll read product reviews and online business reviews to make sure everything seems right. Online reviews form an important trust factor for customers.
• Increase Traffic Through Search Engine Optimization (SEO): If you own an e-commerce store or work for a company that sells products and services online, you need to focus on SEO. It increases traffic to the store by improving the visibility of it on search engines like Google. Compete for search keywords that are relevant to your store, and you’ll draw more traffic and sales to the business. How do online reviews relate to SEO? In his guide to SEO for e-commerce websites, expert marketer Neil Patel noted how customer reviews “positively impact your SEO because more reviews = more content, and frequent reviews = fresh content, which Google loves to see.”

How to Encourage Customers to Leave Reviews

Understanding just how much online reviews affect business is the easy part. Here are some tips and tricks on how to get customers to leave reviews.

• Use Email: Maybe you’ve received an email after purchasing something online, asking you if they can help you with anything. Those types of messages are the perfect opportunity to ask for a review. It’s timely, relevant, and gives you a way to offer customer support if needed. If not, customers might take a few minutes to respond to an appeal for a review. You can automate these emails and combine them with the next idea for getting customer reviews.
• Integrate Promotions: Offering a discount on a customer’s next purchase for leaving a review is an effective incentive. You can also consider giving access to a sneak peak of an upcoming product. Whatever the case is, try rewarding your loyal customers with something for writing a review. Some e-commerce platforms can create coupon codes when a review is completed. Otherwise, you can manually do it by having customers email you when they’re finished. Or simply put the coupon code in the email and go by the “honor system,” trusting they’ll leave a review if they use the promotional code.
• Make Everything Accessible: Test what people have to do to leave a review. An easy way to do it is by limiting it to registered users. Beware of making more than one or two fields required to submit the review.
• Ask for Review and Respond to Them on Social Media: Your audience might not be used to seeing a message on Facebook or Twitter about how they can get a discount for leaving a review. Mix things up a little bit. Use social media in addition to email to get reviews. You should also respond to reviews about your company. For instance, on Facebook, expressing appreciation or addressing issues on online business reviews can demonstrate how your company does customer service. Show your brand’s personality in how you thank customers and try to resolve negative experiences.

Reviews are just part of the equation for running a successful e-commerce business. For instance, there are other strategies you can implement to help persuade customers begin a shopping cart to complete their order. By curbing shopping cart abandonment, you’ll help your business or employer drastically increase sales.

Learn the skills to lead your business or help other companies navigate e-commerce with an online business degree or an online marketing degree. In a fully online format, you’ll gain the knowledge and skills needed to thrive in the business world.

Both of these programs from Concordia University, St. Paul feature small class sizes with a personal learning environment geared toward your success. Learn from knowledgeable faculty who have industry experience. Get started with CSP today.

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It’s easy to get tunnel vision in e-commerce. Selling a product or service is the ultimate goal for marketers and small business owners, but focusing on it too much can lead to missed opportunities.

Imagine your company attracts 10 people to its website or social media platform. A successful outcome for those users is not necessarily in sales. It could be much simpler. Some users may follow a social media page. Others may start doing research on whether your business is a legitimate option for their needs. The rest might be ready to make a purchase and are just looking for that final push to complete their shopping cart.

That’s why it’s important to understand the e-commerce sales funnel. It refers to the fact that different people who interact with your company are in different stages of potentially becoming your customer. And because of that, they have different needs. They respond to different tactics.

It’s not enough to create a powerful e-commerce landing page and hope it appeals to everyone. You’ll need to work in more aggressive marketing tactics when your audience is ready for them. Take a look at how the e-commerce sales funnel can inform your overall strategy.

Stages of the E-commerce Sales Funnel

Here’s a closer look at each step of the e-commerce sales funnel.

Awareness

The awareness stage is at the very top of the e-commerce sales funnel. People in this stage are interested in information about a particular topic or need to solve some sort of problem. As a result, they come across your website or social media presence. They’re becoming aware of how you can help.

It’s true that some visitors may buy from you immediately, but that’s not often the case in this stage. More often, they’re looking to learn from you and, as a result of your targeted content, can begin developing an understanding of how your products and services can help them.

Educate your audience about your industry and what you have to offer, and work on building their trust. Content marketing is a powerful way to reach your audience through Google or social media, and it can draw as many people in as possible. Once they read or watch what you have to say, you’ll ideally become a company that they’ll want to interact with more.

• Who’s in This Stage? People new to your business who are looking for help.
• What Are Your Goals? Find as many leads as possible. Educate them and build their trust by providing value before you try to sell to them.
• What Are Your Tools? Utilize content marketing, social media, SEO, and public relations.

Interest

People in the interest stage are no longer new to your company. This segment of the e-commerce sales funnel is marked by people who are starting to consider you closely.

They’re doing more research. From comparison shopping to examining how different companies, products, and services compare, consumers are taking a deeper look at their options. Once again, don’t try to sell to them too aggressively. You can mention promotional offers, but you don’t want to chase them away by going over the top.

Focus on getting them to take that next step. It could be subscribing to a newsletter, following a social media platform, downloading a white paper. The key is that you want to connect with them in any way possible. You’re here to help them.

• Who’s in This Stage? People interested in what you have to offer.
• What Are Your Goals? Connecting with your leads and helping them.
• What Are Your Tools? Utilize newsletters, e-books, case studies, white papers, and other (free) valuable content. Engage them on social media.

Decision

People in this part of the sales funnel process are ready to buy, but they’re deciding whether you’re the right company for their needs.

This is the defining moment in the sales funnel. It’s where you need to put your best foot forward, and hopefully you’ll compel a large percentage of your audience to follow through. Persuasive copy and irresistible offers are definitely a major component, but it’s not all. Don’t overlook how prices, user experience, service, and selection can play into customers’ decisions.

After all, take a look at the top reasons for shopping cart abandonment. You’ll start to see how nearly every aspect of your e-commerce experience — from ease of use and website speed to free delivery options — impact whether customers will finalize their purchases.

• Who’s in This Stage? People ready to make a purchase, but not sure you’re the best option.
• What Are Your Goals? Convince and compel them to purchase from you.
• What Are Your Tools? Utilize persuasive copy, promotions, case studies, social proof, landing pages, emails, and personalized messages.

Action and Retention

The e-commerce sales funnel stages end with action and retention. Consumers purchase your product or service, but that’s not where the story ends.

The numbers demonstrate the value of customers who return to your website. Based on a survey from BIA/Kelsey and Manta, 61% of small businesses generate the majority of their annual revenue from repeat customers. Adobe found that 41% of total online revenue in the United States comes from returning or repeat customers, even though they represent only 8% of all visitors. Additionally, to match the revenue of a single repeat customer, 5 new shoppers would be required.

How do you make the most of customers who complete a purchase? Focus on ways to bring them back to your site. You can also investigate how they can advocate for your brand.

• Who’s in This Stage? People who have made a purchase on your website.
• What Are Your Goals? Convince them return and make another purchase. Turn them into brand advocates.
• What Are Your Tools? Utilize loyalty programs, testimonials and reviews, user-generated content, referral marketing programs, and customer retention messages.

Taking advantage of the e-commerce sales funnel is the beginning of an effective strategy for generating sales. You can learn the skills to lead your business or help other companies navigate e-commerce with an online business degree or an online marketing degree. In a fully online format, you’ll gain the knowledge and skills needed to thrive in the business world.

Both of these programs from Concordia University, St. Paul feature small class sizes with a personal learning environment geared toward your success. Learn from knowledgeable faculty who have industry experience. Get started with CSP today.

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If you own an e-commerce storefront or work for a company that sells products and services online, you’re probably familiar with a simple, frustrating fact: Shopping cart abandonment is common.

How frequent is it? For every ten shopping carts created, only about three will result in completed transactions. According to Baymard Institute, an independent web usability research institute, the average online shopping cart abandonment rate is 69.57%. That figure is based on 41 different studies.

Baymard Institute found an interesting reason for shopping cart abandonment when conducting its own study. Out of all U.S. online shoppers who abandoned a cart within the previous three months, the top reason, at 58% of respondents, was that they were just browsing or were otherwise not ready to purchase anything. The institute didn’t list it on their top reasons for abandonment, however. They considered it unresolvable.

The other reasons for shopping cart abandonment are easier to face head-on, and as a result, this article will concentrate on those factors. If you begin to consider the following reasons and implement strategies to overcome them, you’ll help your business or your employer drastically increase sales. You might just persuade even the most casual consumers who begin a shopping cart to complete their order.

7 Leading Reasons for Shopping Cart Abandonment

Here are the leading reasons for shopping cart abandonment and strategies on overcoming the factors. The list follows Baymard Institute’s study results, which gave respondents the option to choose more than one reason for abandoning their shopping carts. The reasons are in order from most frequently chosen reason to least, with the exception of “just browsing,” which was excluded.

1. Extra Costs Are Too High (shipping, taxes, fees) — 55%

It’s reasonable to imagine how consumers abandon shopping carts after seeing unexpected, pricey costs. Shipping, taxes, and fees can add to the total amount of an order well beyond the actual price of products.

A simple way to cater to customers is by providing all information upfront. If something like shipping incurs an extra charge, make that information easy to notice. Having a level of transparency early in the shopping process will help assure consumers they can trust the business or website. Also think about how, according to a report from the National Retail Federation (NRF), shoppers look at shipping costs before they even get to the checkout page. Sixty-five percent look up thresholds for free shipping before starting a cart.

Alternatively, consider free shipping. On orders less than $50, 75% of consumers in the NRF study expected delivery to be free, which is up from 68% in the previous year’s report. In a survey from e-commerce fulfillment services provider Dotcom Distribution, 91% of the 1,400 consumers questioned said that free shipping would make them more likely to become a repeat customer.

Look into adding to the price of items to provide customers with free shipping and related perks.

2. Required to Create an Account — 34%

Consumers who are required to create an account may shy away from completing the purchase. It takes time to create “yet another” account, and for some people, they don’t want their personal and sensitive information saved on another website.

It’s true there are benefits on both ends when checkout requires customers to create an account to complete a purchase. Customers benefit from not having to re-enter information in the future, and they get customized offers and recommendations. Businesses benefit from customized offers and recommendations too, along with other marketing opportunities. Plus, accounts make returns, exchanges, and refunds easier.

If the storefront has a strong base of repeat customers, you can consider requiring accounts — but appealing to customers’ desire to have a guest account is generally a good idea. It can especially help to reverse the trend of abandoned carts on mobile when checkout speed is at a premium. Mobile solutions provider Moovweb analyzed 1.8 million smartphone sessions and found that guest checkout increases mobile conversion rates. The share of revenue from mobile shoppers who chose guest checkout was 13% higher than users who were logged in.

3. Checkout Process Too Long/Complicated — 26%

This reason goes hand-in-hand with required account creation. Shoppers want to finish the checkout process as quickly as possible, and if it’s too long — due to having to create an account or otherwise — then they may leave.

An article from Baymard Institute noted that the average checkout flow had 14.88 field forms, which is twice as many as necessary. For most checkouts, websites can reduce form elements 20-60%.

4. Couldn’t See/Calculate Total Cost Upfront — 21%

Some shoppers go through the motions of creating their order because they want to see what the cost will be. To them, it’s a mystery; they don’t have the information they need from the outset.

So, provide the information upfront. If shipping is free and there are no hidden costs, integrate that onto the website’s front page and in marketing. Help customers understand what they’ll pay as quickly as possible to eliminate any questions they may have about an order’s cost.

5. Didn’t Trust Site with Credit Card Info — 17%

One of the most problematic reasons for shopping cart abandonment revolves around security concerns. It’s particularly concerning because it can undermine the root of an e-commerce business

There are many factors that can contribute to this lack of trust. If a site is outdated, has missing images, or other design flaws, it can put the whole website and business under question. Assessing how the website looks and feels compared to competitors can reveal any opportunities to improve on that front. A more direct reason may be missing SSL certificates, which indicates that the website is safe. Make sure that’s present and consider implementing a security seal on the site. Baymard Institute performed a survey and found that Norton, McAfee, TRUSTe, and BBB Accredited seals were the most trustworthy security seals.

6. Website Had Errors/Crashed — 17%

This reason complements the previous entry on the list. Any errors or lack of performance for e-commerce websites can cast doubt in consumers’ minds. That even extends to an issue like site speed. According to Google, 53% of mobile site visits exit a page that takes longer than three seconds to load.

7. Delivery Was Too Slow — 16%

If shipping is too slow — yes, even if it’s free — the sale may not happen.

In the NRF report, 39% of consumers said that they expected two-day shipping to be free, and 29% backed out of a purchase because two-day shipping wasn’t free. Unfortunately for some businesses, that may be the new standard. Amazon popularized “free” two-day shipping for paid Prime customers, making fast shipping an expectation for many shoppers. In May 2019, Walmart announced it would offer free two-day shipping, matching Amazon in, as Bloomberg dubbed it, the e-commerce “arms race.”

It’s clear that businesses need to stay current with online consumers’ expectations and best practices for e-commerce websites. Otherwise, abandoned carts and decreased sales can result. You can learn the skills to lead your business or help other companies navigate e-commerce with an online business degree or an online marketing degree. In a fully online format, you’ll gain the knowledge and skills needed to thrive in the business world.

Both of these programs from Concordia, St. Paul feature small class sizes with a personal learning environment geared toward your success. Learn from knowledgeable faculty who have industry experience. Get started with CSP today.

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The interview for an HR position is more critical than you may think. After all, it determines if you’ll become part of the department responsible for screening and hiring. The interview is not just about your qualifications for the role. How well you understand conducting interviews, developing talent, and meeting employees’ needs are also factors. In an interview with so much to consider, what kinds of questions should you expect?

Top HR Interview Questions and Answers

Quiz yourself with the following questions to test how you might answer interview questions for a wide variety of HR careers. Once you’ve thought about or have had a chance to write down your answer, check our answers to see how you might be able to improve your responses.

1. What do you enjoy doing the most in HR?

Connect your skills to your passion. If you worked as an HR generalist and are now interviewing for a specialist role, you could express how working with employees on training programs helped you uncover something you’d like to focus on. In the new role, you can use those skills and your passion for working closely with people to help enhance an organization’s workforce.

Describe what motivates you to work or want to work in this field. Implement how your experience and education can help you add value to the company.

2. What was HR’s most significant contribution in your recent position?

Arrive at your interview with results from your last position. Can you link a reduction in voluntary turnover to a new benefits package or retention initiative? Did a new software program enhance efficiency for the department? Bring specific figures that demonstrate cause-and-effect relationships. If you don’t have stats available, discuss past initiatives and positive anecdotal feedback you may have heard.

HR is about driving business results. Demonstrate how you’ve played a role in that goal to help your interviewers understand the value you can bring to the organization.

3. What’s the biggest problem plaguing HR and organizations today?

In a way, this question is unfortunate, because there are several answers. Capitalize on it by revealing your knowledge about an issue like employee burnout. For this example, you could bring up how a recent study found that 97 percent of HR leaders were planning to increase their investment in recruiting technology within the next four years, but budget was often cited as a deterrent to programs that would help retain current workers. HR leaders are investing in new talent instead of existing employees.

Other examples include costly employee turnover statistics and the need for better training programs. Find a topic or two that relates to HR and, if possible, your prospective role. Remember that you can work in this answer for other questions, such as why you’re passionate about HR.

4. Why do you want to work here?

Any interviewee needs to do his or her homework on a company, but you should take this a step further. Get acquainted with the organization, their mission, and other basics. Then check the company’s blog, social media platforms, and perform online searches for press releases and articles to get a sense of what the organization is doing for its employees and the community.

You shouldn’t want to work there simply because you like the job title, pay, or you’ve heard good things about the organization overall. It should be about how you, professionally and personally, connect with the company. You want to be a part of what they’re doing and their growth. Spend some time researching the organization, thinking about the fit, and developing a genuine connection to what they’re doing.

5. Describe a time when an employee came to you with a complaint.

How you respond to these types of questions will showcase your interpersonal and problem-solving skills. It’s not just about what you’re saying, though; it’s also about how you express your approach to the problem, to the employee’s concerns, and about the passion you exude for helping people. All of those things will be on display as you answer this question.

Your interviewer is looking for someone who is skilled and who genuinely cares. Describe the steps you took to advocate for the employee and to resolve the problem as efficiently as possible. You should also touch on how you enjoyed being there for that employee. There is a customer service side to HR; being empathetic and compassionate about your work is critical.

6. How have you responded to unethical situations?

If the question doesn’t apply to your professional experience, then maybe you know someone who has dealt with this situation. You could also discuss a scenario in the news or something you’ve studied. At any rate, you can still speak with confidence about the event, what steps were taken, and how you would have responded.

Outline any real or hypothetical situation to demonstrate the actions you took or would have taken. Commenting on your thought process can be helpful. For instance, you could talk about what you would have done if things got worse and your overall thought process, which would help demonstrate your ability to anticipate events.

7. What questions would you ask me if you were the interviewer?

If the role you’re pursuing involves interviewing candidates, your interviewer could ask what you might do if you were in his or her shoes. Try to ask a question that would allow your hypothetical candidate to solve a need at the company. If it’s a data-driven company, for instance, the question could surround the candidate’s past experience and future plans to measure success. Or you could ask a question about how the interviewee would help improve employee engagement or another hot-button topic in HR.

8. What are you doing to improve your skills?

Your job might deal a lot with developing employee training plans and perhaps programs that pay for their education. At the very least, you could become part of a department that values enhancing employees’ skills. Those values apply to you, too. Discuss conferences you’ve attended, books and blogs you read, and anything else you’re doing. If you’re furthering your education with a master’s in human resource management, that type of credential could truly make you stand out from the competition.

Don’t ignore the value of education. The Bureau of Labor Statistics reports that candidates with a bachelor’s degree and professional certification should have the best job prospects for becoming HR specialists. The same applies for potential HR managers who have a master’s degree in human resource management.

Get the education you need to pursue entry-level and advanced roles in HR. Enhance your career and ability to impact organizations with Concordia, St. Paul’s online Bachelor of Science in Human Resource Management and online Master of Arts in Human Resource Management. Enjoy small class sizes with a personal learning environment geared toward your success, and learn from knowledgeable faculty who have industry experience.

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Starting a wholesale business requires savvy negotiation skills, operational know-how and salesmanship. For the right multi-skilled entrepreneur, it can be a profitable option for a startup business. Wholesaling is the “sale and distribution of goods to specific customer types such as those most commonly referred to as resellers,” according to Investopedia. Wholesale businesses acquire large quantities of merchandise in order to repackage and resell them to distributors. Because wholesale businesses purchase products in bulk, the price is often much lower than in a retail environment.

Depending on the type of wholesale business you want to launch, you might specialize in one product or category. Conversely, you might choose to sell a wide variety of goods. Some wholesalers work in a particular industry, such as office or teaching supplies, while others might sell to a wider range of distributors. “Wholesalers are often not involved in the actual production of goods, instead focusing on tasks more associated with distribution,” Investopedia adds.

What Does It Mean to Sell Wholesale?

In general, retail businesses sell products directly to customers. Selling wholesale, on the other hand, is a business-to-business (or B2B) process in which wholesalers sell their products in large quantities to a retailer who then sells directly to consumers, according to Quickbooks. Many entrepreneurs choose to pursue a wholesale business because it can open up multiple revenue streams. In addition, selling wholesale means that you have fewer expenses up front and the sales process is much simpler than in a retail context. It’s important to note that you should have an understanding of how to mass produce products and go to market quickly in order to succeed in the wholesale industry.

Considerations

Wholesaling requires a varied skill set, making a business degree an ideal starting point. For example, you’ll need solid negotiation skills in order to purchase at a low price from manufacturers, and trend-spotting intuition to know when you’re making the right purchases to meet demand. You’ll also need sales skills to resell your products and an understanding of logistics and operations management to oversee and track your inventory. A keen understanding of the B2B marketplace is especially important.

When determining your business’s required resources, keep in mind that wholesalers who focus solely on distribution may not need a dedicated storage space. However, a warehouse storage space is typically required for a wholesale business to grow and thrive. The number of employees you need is determined by the scale of your business, as well as where you are in the launch process.

Benefits of Selling Wholesale

According to Entrepreneur Resources, wholesale businesses “are the backbone of almost every industry out there.” That’s why there are significant benefits to choosing to become a wholesaler. The following are just a few of them:

Scalability: Wholesale businesses have low barriers to entry, meaning you can get started without investing too much money. Because you need less funding, it’s easier to get your business off the ground quickly. And because wholesale goods are usually much more affordable than those sold at retail prices, your business can purchase a large amount of products without breaking the bank. “When you average out these costs, you can expect savings of up to 50 percent than if you had bought from a third party,” Entrepreneur Resources explains. That’s why wholesale businesses are so scalable, meaning you can expand your business with ease once you launch successfully on a smaller scale.

Diversification: In many cases, wholesalers choose to start with a small number of product types and broaden their ranges later, primarily for the reasons covered above. Once you have a clearer understanding of the market and the demands of your business processes, it’s easy to move into other markets and industries. For example, if your business initially focuses on food processing, you might choose to sell snack food items or condiments later without experiencing a huge spike in costs.

Potential: One of the most attractive benefits to wholesaling for entrepreneurs is the potential for profit. “If you can strike up a relationship with a new supplier who is creating high-quality goods and offering you a great price, the results can be exceptional,” Entrepreneur Resources explains. Once you have a deep understanding of your industry, success is within reach.

Starting Your Business: How to Sell Wholesale

Launching a wholesale business can be a profitable choice for the ambitious entrepreneur. Now that you understand the benefits of wholesaling, the following basic steps can help you get started.

1. Determine if you want to start your own business from scratch or purchase an existing business. There are benefits to both, but this will partly be determined by your niche and target customer.

2. Define your niche and customer. This is one of the most important steps in launching any business — and wholesaling is no different.

3. Locate suppliers. Identify the right vendors for your industry and begin building strong working relationships.

4. Determine basic operating costs, such as administrative needs, warehouse/storage facilities and shipping services. Be sure to take employee salaries and benefits into account.

5. Determine hardware and software needs for inventory and shipping management. Having the right tools available can streamline your launch experience.

6. Based on your niche and customer base, determine your level of required inventory. You may want to start small, because you can always scale up.

7. Estimate total financial needs for start up based on your basic operating costs and starting inventory required. This is only an estimate; it will take a several months to determine how much it actually costs to run your business.

8. Determine product markup. This will help you plan for profitability: The standard markup is 400 percent from manufacturer price to retail.

9. Acquire financing and launch. Be sure to stay within your business plan, especially during the early stages of your business’s opening.

If you are interested in topics like these that are relevant to business professionals and entrepreneurs, consider Concordia University, St. Paul’s online Bachelor in Business Administration degrees. It provides students with a strong foundation of business skills. For professionals who are ready for advanced business education, Concordia offers a fully online MBA. Through mentorship and advanced coursework in core business topics, this program provides students with the skills to advance their careers while becoming experts in their chosen industries. And many of Concordia’s programs are available both online and on campus.

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The meaning of the term “DBA,” or “Doing Business As,” refers to a company’s operating name rather than its legal name. In many states, businesses are required to submit DBA filings in order to protect consumers. However, there are many other reasons to considering using a DBA. If you are launching a sole proprietorship or partnership, you have the option of choosing a DBA for your business.

What Is the Meaning of DBA?

“If you want to operate your business under a name other than your own (for instance, Carol Axelrod doing business as ‘Darling Donut Shoppe’), you may be required by the county, city or state to register your fictitious name,” according to Entrepreneur. It’s important to note that your DBA can’t include words like “corporation,” “Inc.,” or “Corp.” unless it is registered as a corporation with the Secretary of State, Entrepreneur explains.

In general, using a DBA lets you do business as a specific name at minimal cost, without having to form a completely new company. Doing so also allows you to accept payments from customers, open a business checking account, advertise and carry out all of the other functions of a business.

When and Why to Use a DBA

Though most types of businesses can file a DBA, not all businesses need to do so. The practice is most common for small companies like sole proprietors, because a DBA allows individuals to separate their businesses from their personal identities and legal names. However, sole proprietors aren’t the only business owners who file DBAs, according to Fundera.

“Corporations (both S corporations and C corporations), general partnerships, and limited liability companies (LLCs) technically don’t need to file for a DBA name — they’ve already registered a business name. But any business formed under one of these entities might also register a DBA name, allowing them to do business under a different name than what’s found on their original incorporation documents,” the same article continues. This is especially useful when a business wants to open a new product line or launch an internal business unit without forming a whole new company.

Here are some other reasons a business might want to utilize a DBA:

• The bank requires a DBA to open business bank accounts. This is usually the case for sole proprietors or partners.
• A company is expanding into a new area or sector. A more descriptive, specific name could be beneficial here.
• A company operates another business or website. A DBA allows you to create collateral tailored to a more specific audience.

How to File a DBA

The procedure for filing a DBA varies from state to state, so it’s a good idea to check out a resource like the U.S. Small Business Administration’s reference guide for specific steps. In general, you’ll need to visit state or local government offices and pay a registration fee to the clerk. The cost of filing a DBA can range from $10 to $100. According to Entrepreneur, local banks may require proof of your DBA certification before you can open a business account. Ensure that you fulfill any and all “public notice” requirements as well, which officially announce your new name to the community.

Here are some other tips to consider:

• Ensure your business name is available and won’t violate any established trademarks.
• Pay all applicable fees up front.
• Familiarize yourself with state and local regulations to ensure there are no violations (for example, some states require businesses to publish their intended DBA in a newspaper ahead of time).
  

If you are interested in topics like these that are relevant to entrepreneurs and other business leaders, consider Concordia University, St. Paul’s MBA program. Through mentorship and advanced coursework in core business topics, this program provides students with the skills to advance their careers while becoming experts in their chosen industries. This program is available both online and on campus.

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A positive reputation is critical for any business to succeed. While traditional public relations firms can provide helpful services to aid with general image management, oftentimes a brand or company needs to focus on managing its reputation in modern media.

Transparency matters to today’s consumers, which means brands commonly encounter public customer reviews and feedback. This means it’s vital to address any negative content quickly, and that’s where a reputation manager comes in. As social media and search results have become a vital part of business success, more and more companies are turning to reputation management experts to maintain a strong online presence.

What Is Reputation Management?

Reputation managers blend public relations expertise with strong tech skills to monitor businesses’ brand activity and provide a quick response to negative reviews and other feedback. As one expert told Entrepreneur, “an Online Reputation Manager works to safeguard a brand’s reputation across the internet by controlling information that people can view, whether good or bad. It starts with responding to comments from dissatisfied users, ensuring that their problems are addressed at the earliest and trying to take down any information that is adversely biased towards a brand or a person.”

To do this, reputation managers complete extensive SEO and keyword research to identify areas for improvement. They then create strategies to target specific channels and “suppress the influence of negative content on the brand’s reputation,” another expert told Entrepreneur. Once a strategy is in place, the reputation manager creates positive content and optimizes for the best results.

Reputation Management: How to Get Results

With a qualified reputation manager on board, your business can maintain an active and effective online presence. Here are just some of the ways a reputation manager can have a positive impact:

• Identifying negative reviews, ratings or search results and addressing them
• Understanding patterns and formulating plans to counteract the most prominent or influential negative activity
• Publishing positive content to mitigate any negative connotations discovered during research
• Closely monitoring a wide variety of elements that influence business reputation, including social media, review sites, search results, press releases, advertisements and more
• Maintaining a healthy reputation through vigilant monitoring and planning positive content for both traditional and online outlets
• Creating a culture of transparency for your business

Hiring a Reputation Manager

If your organization could benefit from the expertise of a reputation manager, the hiring process should contain a few key steps. First, you’ll need to decide if you want to hire someone to work in house for your online and print reputation management needs. Depending on the size of your business, as well as factors such as industry and online presence, it may be beneficial to work with a company that specializes in reputation management rather than hire a full-time employee.

Reputation Management Vendors

This strategy is more cost effective because you build a vendor/client relationship rather than paying someone a full-time salary plus benefits. Also, you can be sure the people you are working with have years of relevant experience and the know-how to accomplish your goals. In addition, reputation management companies have access to specialized tools and resources to monitor your brand’s online presence, and acquiring those tools in house can be expensive. But you should keep in mind that you may not receive the personalized support you’re looking for if you choose to work with an outside vendor, as you’ll be one of many clients, OnlineReputation explains.

Reputation Management Consultants

Another option is to hire someone on a consulting basis to work with your existing staff. With this approach, your organization benefits from the expertise of a trained professional while using fewer resources and developing the skills of internal employees. A consultant can teach your staff to utilize best practices in reputation management, as well as customer service and basic marketing principles as needed. This strategy is ideal if you aren’t sure what your needs are when it comes to reputation management, as a consultant can identify your brand’s strengths and weaknesses and recommend a course of action.

In-House Reputation Management Specialists

If you do decide to hire a full-time reputation manager, there are certain skill sets to look for, as well as past work experience. As reputation management is a relatively new field, some candidates may not have specialized experience in this area — but that doesn’t mean they should be discounted. For a good starting point, OnlineReputation recommends looking for work history in community management, social media, brand management, digital marketing and public relations.

When interviewing job candidates, you’ll need to determine whether their experience aligns with your business’s reputation management needs. Find out if they have created customer-facing content and brand messaging and whether they have business-to-consumer experience in social media. Many ideal candidates also have expertise in analytics and SEO. A data-focused work history is also ideal, as reputation managers must comb through a large amount of information before developing a strategy. Perhaps most important is the ability to understand a brand’s voice and implement a content plan that reflects your brand identity and your business goals. If an in-house specialist is part of your reputation management plan, PayScale reports that you can expect to provide a salary of around $63,000.

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Many business professionals will experience a merger during the course of their careers. In fact, mergers and acquisitions are common business practices, particularly in industries like health care, technology, finance and retail. With the rapid pace of innovation in the modern business world, it’s important to understand why — and how — mergers and acquisitions happen.

Why Companies Merge

In many cases, synergy is the cause. This term refers to the practice of combining business activities to increase performance while decreasing costs. When two businesses have complementary strengths and weaknesses, Investopedia notes that merging makes strategic sense.

In other cases, mergers occur as a means of diversifying or sharpening the focus of a business. “A company that merges to diversify may acquire another company in a seemingly unrelated industry in order to reduce the impact of a particular industry’s performance on its profitability. Companies seeking to sharpen focus often merge with companies that have deeper market penetration in a key area of operations,” Investopedia explains.

Mergers can also help companies grow market share by purchasing a competitor’s business. This practice is referred to as a horizontal merger, while vertical mergers are focused on the supply chain. “If a company buys out one of its suppliers, it is able to save on the margins that the supplier was previously adding to its costs,” according to Investopedia. Especially in the case of buying out a distributor, this type of merger can have a significant positive impact on production costs.

Of course, one of the most common reasons for pursuing a merger is eliminating competition from other businesses. When a company acquires a competitor through an acquisition deal, it can gain a much larger market share in one fell swoop. However, this practice can be costly, so it is important for businesses to be sure of the benefits before choosing to begin a merger and acquisition deal. Investopedia notes that “a large premium is usually required to convince the target company’s shareholders to accept the offer” rather than sell their shares.

Top Mergers

The following are among the biggest mergers of all time.

Vodafone and Mannesmann

This merger, which took place in 2000, was worth over $180 billion and is the largest merger and acquisition deal in history. In it, U.K.-based Vodafone acquired German company Mannesmann. As a result, Vodafone became the largest mobile operator in the world while setting the stage for future deals in the telecom industry. Many Germans were against this deal because they wanted German businesses to remain key players in the global marketplace.

The deal was significant because it signaled the telecom boom as mobile phones began increasing in popularity. However, it was not ultimately successful. “After Mannesmann rejected Vodafone’s first offer, Vodafone had to nearly double its offer…Unfortunately, the combination didn’t work out the way Vodafone hoped, and as a result, it had to write off tens of billions of dollars in the following years because of it,” Business Insider explains.

America Online and Time Warner

This merger is the second largest in history, and it took place during the same year as the Mannesmann acquisition. In 2000, America Online (more widely known as AOL) acquired Time Warner for $164 billion. At the time, most Americans used their landline phone service to access the internet through provider AOL, making the company one of the biggest technology organizations in America. Though expensive, this deal lasted only nine years. In 2009, Time Warner became an independent company as AOL continued to lose value in the post-dial-up age.

Pfizer and Warner-Lambert

Also in 2000, pharmaceutical company Pfizer acquired Warner-Lambert for $90 billion. This merger is considered by some experts to be “one of the most hostile in history” because Warner-Lambert was originally to be purchased by consumer goods company American Home Products. However, American Home Products “walked away from the deal with $1.8 billion worth of break-up fees, one of the largest ever payouts for a failed deal,” according to Yahoo Finance.

When Pfizer acquired Warner-Lambert, the result was the second largest drug company in the world. The main reason for the acquisition was ownership of top-selling cholesterol medication Lipitor: “Pfizer had commercial rights to Lipitor, but Pfizer was splitting profits on it with Warner-Lambert, and in 1999, Warner-Lambert sued Pfizer to end their licensing pact,” Business Insider explains. By acquiring Warner-Lambert, Pfizer removed any risk associated with the lawsuit and gained sole control of Lipitor’s skyrocketing profits, which grew to more than $13 billion annually.

AT&T and BellSouth

In 2006, AT&T announced its plans to acquire BellSouth. This deal would ultimately cement AT&T’s place as a major player in the wireless industry. In purchasing BellSouth for $86 billion, AT&T was able to expand coverage into rural areas of the United States, giving AT&T an advantage as the mobile phone market expanded. “The firm used its new position to create bundled services that included mobile services along with television and internet connections in an effort to gain new subscribers and dissuade customers from switching to new providers,” Yahoo Finance explains.

Exxon and Mobil

This merger took place in 1999 and created a “superpower” in the energy industry. Oil prices were consistently low, and energy companies were taking a hit as a result. This led Exxon and Mobil to merge in a deal that Yahoo Finance calls “one of the most successful in M&A history.” The U.S. government approved the deal after assurances that the two merging companies would sell over 2,400 gas stations across the country. “Exxon defended the deal, the largest in a string of consolidation moves in the industry, citing price pressure on crude oil, the need for greater efficiency and new competitive threats overseas,” CNN Money explains.

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With department store giants such as Sears and J.C. Penney closing flagship stores at a rapid pace, the retail sales decline has been making headlines, especially over the last two years. Due to years of building new retail spaces only to be eclipsed by the rise of online shopping, traditional retail is in trouble. According to eMarketer, U.S. department stores sales “have been on a steady decline over the past decade, shrinking from $87.46 billion in 2005 to $60.65 billion in 2015.”

And this trend is expected to continue. As Mark Cohen, director of retail studies at Columbia Business School, told The Wall Street Journal, “There is no reason to believe that this will abate at any point in the foreseeable future.” In fact, as of April 6, the same article notes that retail store closings are expected for 2,880 locations, including large national brands such as Payless ShoeSource. “That is more than twice as many closings as announced during the same period last year,” the article continues, citing Credit Suisse. This means that there will be more retail stores closing in 2017 than during the 2008 recession.

When it comes to brick-and-mortar stores, consumers are more interested in fast-fashion and discount chains, making it difficult for other retailers to stay competitive in terms of price. As more companies turn to e-commerce in order to boost sales, they can expect smaller profits. Because of shipping and technology costs, online retail is more expensive for businesses. Retailers don’t have much of a choice, however, according to the WSJ: “Retail margins on average fell to 9% last year from 10.5% in 2012, according to consulting firm AlixPartners LP. Over that period, e-commerce sales increased to 15.5% of total sales.” For most companies, that means accepting smaller profits and shifting focus toward online sales.

Major Reasons for the Retail Sales Decline

Several factors combined have caused retail sales to decline in the past few years. The first is that consumers have become more aware of their own agency and options. Customers take a new approach to making purchases, one that emphasizes price comparison and the ability to purchase through different platforms. They might combine online shopping with a visit to a specific retailer or third-party seller in the same trip in order to find the best deal.

Perhaps most obviously, an increase in online shopping has directly led to a decline in retail sales. In fact, Amazon alone accounted for 53 percent of all U.S. e-commerce growth in 2016. Of course, most retailers offer online shopping in addition to brick-and-mortar locations, but the overall rise of online shopping has been detrimental to in-store sales. Many customers choose to shop online because of convenience, and that’s something retailers just can’t compete with.

To stay competitive, companies also have to offer steep discounts and near constant promotions, and their brands have suffered as a result. Deep discounts devalue the brand because it’s no longer aspirational to consumers. In addition, once retailers begin offering frequent sales, customers come to expect a discount rather than paying full price. Finally, as millennials make up more and more of the buying public, retailers have to adapt to a new type of customer. Millennials want to feel entertained and engaged when they shop, so retailers are faced with overhauling their layout and buyer approaches to create a more boutique experience.

Results of Decline

As a result of the overall decline in retail sales, both shopping malls and department stores are experiencing high rates of closure. According to Business Insider, around 15 percent of U.S. malls will either fail or convert to non-retail space by 2024. Together, J.C. Penney, Macy’s and Sears have closed hundreds of stores since 2010 and laid off employees; Sears even closed its flagship store in Chicago, the same article explains. As these once-ubiquitous department stores close more doors, malls are choosing to replace them with movie theaters and restaurants rather than more retail spaces.

Department stores are often referred to as “anchors” because, at one time, they were the main reason consumers came to shopping malls. With that no longer being the case, malls are decreasing the number of anchors they need to stay afloat. “You’re seeing centers that used to have four anchoring department stores get away with just one,” an expert told TIME Money. In addition, many department store brands are shuttering altogether. Less than two decades ago, there were about 20 department store brands in American malls. Today, TIME Money reports, there are only eight.

Shoppers just aren’t as interested in the all-purpose shopping experience as they used to be. “For the most part, department stores have been painted as boring, overpriced, middle-of-the-road, and inconvenient compared to the other options out there … Nowadays, having Macy’s or Sears as an anchor is arguably a bad thing; it’s keeping the mall stuck in the past, preventing it from being where shoppers want to go,” TIME Money says.

Future Predictions for Retail

While the situation appears stark, there is a future for retail if companies are willing to adapt. It’s time to modernize in order to compete with the convenience of online shopping and changing consumer tastes. The “stores of the future” will need to create engaging shopping experiences that make coming to a brick-and-mortar store worthwhile. Forbes recommends incorporating elements like “active participation, the co-creation that makes memories, and loyal customers.”

One of the ways to achieve this is through omnichannel retailing. This strategy means that retailers “will be able to interact with customers through countless channels—websites, physical stores, kiosks, direct mail and catalogs, call centers, social media, mobile devices, gaming consoles, televisions, networked appliances, home services, and more,” according to the Harvard Business Review.

If incorporating all those channels into a cohesive strategy sounds daunting, think of it in terms of what customers want. Omnichannel retailing combines the benefits of shopping online, such as a wide selection and customer reviews, with the advantages retailers bring to the table, like personal service. It’s all about reaching consumers wherever they are. Because different types of customers value different things, integration is the smartest way for retailers to innovate and bring shopping into the modern era.

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Drop shipping is a retail business model; however, it differs from traditional models in that the owner only purchases product from a vendor when an order has been placed by a customer. This eliminates the need to own or store inventory and opens up a wide range of opportunities for entrepreneurs. Drop shipping refers to a process in which products ship directly from supplier to customer, rather than shipping to the business itself first, thus streamlining the process.

The core benefit of drop shipping is that it saves on resources and time. When you don’t have to pack and ship your own products, you can devote resources to other core business processes. Working with drop shipping partners “is not only a product acquisition model, but also includes product fulfillment,” according to Shopify.

How Does Drop Shipping Work?

The drop shipping model is relatively simple. It consists of the following steps:

1. A customer places an order with an online business.
2. The business receives the order and forwards it to the drop shipping partner.
3. The drop shipper packs and sends the products in the order directly to the customer on behalf of the business.
4. The customer receives the products ordered.

Pros and Cons of Drop Shipping

Aside from the central benefit of eliminating costs associated with storing, packing and shipping products, here are some of the key benefits of drop shipping:

Lower capital requirement: Due to the nature of the business model, utilizing drop shipping helps cut typical business spending. It’s a cheap way to start a business because it keeps startup costs low. It also does away with inventory management practices, typically one of the most prohibitive costs for new businesses.

Wider product selection: Because it gives you access to new products, niche items and best-sellers, Volusion says that drop shipping “can effectively increase the variety of products your online business sells.” E-commerce incubator A Better Lemonade Stand also points out that it’s easy to diversify inventory by merely adding new items to your store.

Reduced risk: Without drop shipping, businesses take on a great deal of risk when purchasing inventory due to the potential for excess inventory or under-ordering, Volusion notes. Drop shipping frees you from purchasing items you may not be able to sell.

Flexibility: Dropping shipping allows you complete location independence. This means that you can operate anywhere that has an internet connection instead of worrying about storage space.

Scalability: You can easily scale your business up and down because you don’t have to manually fulfill each order. Selling 10 or 10,000 units requires roughly the same amount of work.

There are also complexities and potential drawbacks associated with drop shipping. Here are some of the disadvantages to the model:

High competition: More people tend to choose drop shipping because of the benefits listed above. This increases competition, meaning that businesses should have a selling point that differentiates them from the competition.

Low margins: Slim margins mean that businesses have to be able to move a lot of product in order to make enough profit. In addition, it can be difficult to execute paid marketing campaigns to attract new customers.

Limited brand control: Because it utilizes third-party shippers, drop shipping limits businesses’ ability to control branding and customer experience.

Despite these disadvantages, drop shipping is the right choice for many entrepreneurs. For example, entrepreneurs who are looking to test new products before investing a large amount of time and money into them will benefit from the flexibility of the drop shipping model. Entrepreneurs who are just starting out in e-commerce may find drop shipping to be a great business model because it is relatively low-touch and gives them a chance to gain valuable experience, A Better Lemonade Stand notes. However, it is important to note that, as is the case with all business decisions, you should think critically and understand your specific requirements before choosing drop shipping to build a successful online business.

If you are interested in topics like these that are relevant to entrepreneurs and other business professionals, consider Concordia University, St. Paul’s online MBA program. Through mentorship and advanced coursework in core business topics, this program provides students with skills to advance their careers while becoming experts in their chosen industry. An online MBA in Health Care Management is also available.