Any small retailer running a Web site is familiar with the basics of Web hosting services. There are literally thousands of service providers on the market offering a convenient "parking spot" to run a Web site for as little as $10 to $15 a month. While this may fit the bill for retailers who are simply interested in keeping their name, address and contact details on the Web, there are affordable options for those who want a little more.
Just ask self-taught Webmaster Steve Saldebus. The Owner and Founder of modrobes, a trendy and successful fashion store based in Toronto, says his Web site has gone through a number of permutations since its launch in 1997.Consequently, he has learned a great deal about cost-savings along the way.
In the beginning, Saldebus opted for a service that provided a package deal of design, posting material, and hosting at a relatively inexpensive rate. But when he was considering selling product online, he quickly found out it could be a cost-prohibitive venture for an operation of his size. "When I looked into it, it was about $20,000 to $25,000 to set up plus a per-transaction fee."
The solution to his challenge came as the result of a chance encounter with a representative from Radical Planet, an online outsourcing service that sells selected apparel labels online on a retailer's behalf. "They simply buy product from us and sell it on their site, so when a customer on the modrobes site clicks on an item to make a purchase, the link automatically transfers them to the Radical Planet site. The cost to me was nothing."
Saldebus estimates that by outsourcing online sales functions and factoring in updates (which he does in-house), his total Web hosting fees are approximately $43 a month. "When you realize that our Web sales are relatively small — about two to three per cent of total sales — you have to look at what you're spending," he says. "We only invest in what adds value for us."
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