Speak to any entrepreneur and he/she will tell you that you will make mistakes, but the key is to learn from those mistakes.  This is absolutely true of e-tailers as well. So, we decided to ask our panel one question:

Q: If you were starting all over, what one thing would you not do as you started your online store?

Craig Wolfe, President, Celebriducks

I’d definitely put more attention into getting the exact look of the site I want from day one. Because we kept evolving, it was more like adding on additions to a house and never really getting the final look and feel we should have started with from day one.  So eventually, we know we are due for makeover even though people enjoy the site.  We can do better now!

Betty Miller, Manager, Magic Senses

I would probably not look at my business as a hobby, like I did in the first couple of years… but as a luxury brand that’s growing as we speak!

Lisa Sorrentino, Head Boob, X-Chrom

Underestimate the number of competitive threats that can quickly flood the online environment.

Eileen Parker, Cozy Calm

Underestimate the number of competitive threats that I tried to make my product offerings too broad.  Online, people are looking for something specific that they can’t get in a brick and mortar store—or not at the right price.  I would not have made the same market assumptions as my competitors can quickly flood the online environment.

Deb Babcock, Blue Sky Pottery

The one thing I would have done is been more careful when I listed my shop name. This site does not let me change the name from when I first signed up using my email address. Therefore, now I have to spend a little more effort with my avatar and other tools to make sure people know that a shop called, ‘dbabcock’ is really a pottery shop named Blue Sky Pottery, run by an artist named Deb Babcock.

Kevin Ward, Global Crafts & Gifts With Humanity

I would probably not use an open source shopping cart - while the open source nature of a cart such as oscommerce has enabled us to tailor the system with modules to our needs in a way most bespoke carts can not be adapted, the reality is that developing and maintaining the cart in-house does create sustainability issues. We would also look outside of our own brand and seek partnerships with other shopping channels much earlier.

Sandy Raddue, Striking Graphics & Embroidery, Inc.

I wouldn’t throw the site out for general consumption, with a huge publicity and advertising push, without a LOT of usability analysis. Our launch didn’t go well - not because we offered the wrong stuff - we just offered it in the wrong way. It was very difficult for our customers to input their CUSTOM orders.

Teresa Fritchi, Managing Director/Chief Creative Officer, Thistle & Broom, Limited

Probably not mix our efforts with educating people down to the tiniest nuance about Scotland and the importance of what’s behind this products – I would just sell great stuff from Scotland.

Ana Maria Echeverri, Owner/President, FunIQToys Inc

I would have learned more about SEO before I set up the store.   I first created my store, then learned about SEO, so now I have to re-create my pages for optimization purposes.

Ben Robinson, Bike Trailer Shop

Everything has been a great learning experience and nothing has really been a total disaster.  I really can’t think of anything I would not do, but I can think of many things that I would do earlier and more efficiently (getting serious about our blogging efforts for example).

Speak to any retailer, and she will tell you that her success is nearly all dependent on her marketing effectiveness.  So we decided to ask our panel one question:

Q: What marketing efforts have you found to be the most effective for generating sales? What has produced the lowest ROI?

Craig Wolfe, President, Celebriducks

Oh PR by far….our PR efforts have transformed the company as you could probably tell from our press kit letter.  That and doing custom jobs for professional sports teams and fortune 500 companies around the country.  It keeps feeding into the PR.

The smallest return on our investment has been in paid advertising in traditional gift magazines.  They are usually looking for what they are already familiar with!  They don’t set trends, they follow it…and here we like to think that we are creating them.

Betty Miller, Manager, Magic Senses

Let’s see… I would have to say mailing lists, coupons and “word of mouth” have been the most effective so far. Another great marketing strategy that we use on a daily basis is gaining customer confidence through excellent customer service.  When it comes to the lowest ROI, I would probably have to say giveaways.  That’s probably the most rewarding to us.

Lisa Sorrentino, Head Boob, X-Chrom

As a specialty online retailer, highly targeted online marketing has been most successful, namely in the form of email marketing.
The mass marketing efforts have been least successful in terms of ROI.

Eileen Parker, Cozy Calm

Specialize and target.  Then, go after those specific people online through social networking, blog reviews, and social media releases.  Crossover the online promotion with off-line publicity in narrowly targeted publications.  The lowest ROI is in being yet another fish in the pond and shot-gunning your efforts.  Differentiate your product from the online Wal-Marts.

Deb Babcock, Blue Sky Pottery

What seems to work best for generating sales in my shop is to constantly have new products for people to see when they stop by. I try to introduce several new items each day. I also have an ON SALE THIS WEEK section to encourage people to stop in often. Other things that have helped are hosting my own BOGO (Buy One, Get One Free) sale once a year and occasional discounts. I get the word out about them by participating in the forums, Twitter, group emails to past customers, and selected advertising. My lowest return-on-investment seems to be direct mail postcards that I used to send out to my customer base.

Kevin Ward, Global Crafts & Gifts With Humanity

Without doubt our own newsletters are the most effective and cost effective tool we have. Using Constant Contact has transformed our ability to communicate and manage our mailing lists.  Utilizing an affiliate network, Share a Sale, earlier this year is starting to show results, and from a ROI point of view we have control over the level of payouts. Well targeted vertical marketing sites have also proven good value, in our sector the site Pristine Planet has proven effective and a fairly low ROI. Google Adwords remain a constant favorite with an ROI far lower than regular shopping channels. In the end the success or failure comes from word of mouth and repeat custom, which can only be achieved through great customer service and quality products.

Sandy Raddue, Striking Graphics & Embroidery, Inc.

Search engine optimization has been the greatest bang for the buck. We’ve used a lot of advanced techniques, which have helped our customers find us without paying the search engines any money.
We also ship one or more coupons with every order, and distribute about 15,000 cards/coupons throughout the bowling centers across the country yearly.
Press releases have also worked well. We’ve done several in print magazines, a couple of joint releases, and (only) one targeted press release. We really need to do more. If I write them myself, they are an astonishingly good value!
The lowest ROI has been magazine advertising. The overall “alley cred” is upped by this advertising, but we haven’t seen a return close to our investment.

Teresa Fritchi, Managing Director/Chief Creative Officer, Thistle & Broom, Limited

When we do small ‘gallery exhibits’ featuring a selection of the products along with computers with the website navigable Thistle & Broom generally does five digit sales in less than four hours.

Traditional advertising efforts always tank.

Ana Maria Echeverri, Owner/President, FunIQToys Inc

The most effective for me have been Google Adwords and Shopzilla.  The lowest ROI has been local print advertising.

Ben Robinson, Bike Trailer Shop

Our organic search engine rankings are by far our most effective marketing effort.  We have done a few banner ads from time to time that have produced pretty dismal ROI.

According to an article by Computer World, online retail sales in the U.S. are expected to grow about $20 billion to $30 billion each year for the next five years, reaching somewhere between $215 billion and $335 billion by 2012.

With this kind of growth, we decided to do a three part series on e-tailers this week– their successes, failures, and lessons learned.

Featured in the series are the following people, their companies, and descriptions of their businesses:

Craig Wolfe, President, Celebriducks

We make the first ever celebrity rubber ducks of the greatest icons of film, music, history, and athletics and pioneered a whole new collectible.
We were voted one of the top 100 gifts by Entertainment Weekly, featured on the Tonight show twice, CBS evening magazine and in hundreds of magazines and newspapers around the world.
They are really fun, unique, and different, and the kind of gift you can get for the person who has everything!

Betty Miller, Manager, Magic Senses

Unique soap for unique people. Moisturizes the skin that you love. Proudly handmade in USA.
Imagine your loved one saying: “WOW! It’s gorgeous! I’ve never seen such a beautiful soap before! It’s almost too pretty to use! Thank you!”. I’m excited to introduce the Designer Glycerin Soap Collections from MagicSenses.com! Each bar has its own personality. The eye appeal and beautiful scent make it an excellent choice for special gifts! We create, you wow!

Lisa Sorrentino, Head Boob, X-Chrom

X-chrom.com offers the best quality sports bras and the largest selection you can find in one place so that every body can find the right sports bra.
Because every style is sized differently, X-chrom.com offers a free fitting service so that we can recommend the right size in the style of your choice prior to making a purchase.

Eileen Parker, Cozy Calm

Our weighted blankets will put you to sleep.  The weight on the body actually induces serotonin and dopamine in the brain (the calming chemicals) and in turn produces melatonin (the sleep chemical).

Deb Babcock, Blue Sky Pottery

What I sell online is beautiful, handmade pottery that I like to think of as functional art. Every piece is beautiful to look at, but even better, it’s designed for daily use. When you buy my pottery, you’re getting something that is handmade in the United States. Something that is eco-friendly in that it will last for eons and is made from materials found naturally in our earth. And finally, because it is handmade, it will have a softer, more ‘touchable’ feel when you pick it up and use it. For instance, my coffee cups have a soft crease in the side of each one that I purposely put there so that when you wrap your hands around it, your fingers have a natural resting place.  Other items are similarly designed with touches that reflect how you will be using the piece.

Kevin Ward, Global Crafts & Gifts With Humanity

Fair Trade products give twice, once to the recipient who gets a great and unique handmade gift made by artisans in the developing world and again to the artisans who through their work are lifting themselves out of poverty. Whether it’s the exotic nature of the products that entice you or a conscious consumer choice  Gifts With Humanity has that special gift you need and will treasure.

Sandy Raddue, Striking Graphics & Embroidery, Inc.

We supply custom bowling shirts for the enthusiast, party crowd, AND the serious competitor. Our satisfaction guarantee is just that - your satisfaction is guaranteed.
Third, we KNOW what bowlers want because we are bowlers.

Teresa Fritchi, Managing Director/Chief Creative Officer, Thistle & Broom, Limited

Thistle & Broom provides a converging paradigm of bespoke luxury and Fair Trade products, culturally significant to, and sourced exclusively from within Scotland’s geo-political borders. The range includes bench crafted bridle leather dog collars and leashes to Edinburgh hallmarked 18ct gold jewellery all structured in pricing so that 66% of the retail price goes directly into the artisan/craftsperson actually creating the object of desire. For those individuals who desire to ensure the continuity of traditional skills, or own something not commonly available – anywhere else - there can be no finer purchase made.

Ana Maria Echeverri, Owner/President, FunIQToys Inc

I commercialize Educational Toys to help children discover and develop their multiple talents.  Why buy from me?
-    We make emphasis in providing information not just about the toy, but on how the toy supports development of different talents in kids
-    We also provide resources and information on how to help children reach their full potential as individuals.
-    Great customer service.  All products are kept in inventory and shipped within 24 hours.

Ben Robinson, Bike Trailer Shop

We sell bicycle trailers, bags, racks, and panniers, as well as, parts and accessories for all of them.  Our online positioning allows us to sell at a very competitive rate (with free shipping on larger purchases), but more than that, you should buy from us because we are the world’s experts on the products we sell.  From selecting the product that will best fit your purpose and lifestyle, to knowing the ins and outs of installation for all types and sizes of bikes, to advice on repairs and maintenance.  You would be hard pressed to find another store that sells bike trailer replacement parts, let alone one that could help you use them.

In the next few day, we will be publishing their answers to specific questions.

Passion for fashion - that is the theme of our start-up profile this week.  We are putting this week’s Start-Up profile focus on Saifra Zia and Nyla Noor, Inc.:

I am a born and bred New Yorker in the process of launching a new socially conscious luxury handbag line. After 10 long years in the banking industry I lost my job to the economic downturn in November 2008. Ironically I felt free of being a boring black suit.

Subsequently I took a step back to weigh the stability of bi-weekly paychecks and healthcare benefits with tiresome long office hours and dwindling friendships and family time. I realized that everything I had learned up until then had been a the perfect setup for doing exactly what I wanted to do - start my own company and finally have control over my life. I felt like a kid again: fearless and giddy. I started talking to people , getting out there and doing what I always loved doing- networking. Through networking I found out about a Entrepreneurship class called Fasttrac sponsored by the city of NY and Mayor Bloomberg. Three weeks later I presented my first business plan to a class of 29 people.

Don’t get me wrong there are times I think ‘what am I doing?’ and then I think…. as a former top investment bank analyst, I do know what I am doing. And if I don’t I know, I will research it and I will be able to figure it out. I have become a better version of my former self; helpful, resourceful and eager to learn.

Today my sister, Romaana, and I are six months into a life long dream come true. Our company Nyla Noor Inc. (whose name is derived from our future daughters’ namesakes) is an up and coming socially conscious luxury handbag line based in New York City.  Drawing inspiration from some of our favorite things: art, travel and architecture, our designs encompass a edgy sophistication for the cosmopolitan socially conscious woman.

Questions and Answers:

Q: Have you ever started a business from scratch before?
A: No, I never started my own business from scratch before. However my sister Romaana, who is also my business partner, started her own car washing business when she was 12 yrs old. She and a friend went house to house in the neighborhood marketing and advertising. My parents are entrepreneurs so I have assisted with starting many businesses while growing up.

Q: When you first loss your professional job, was creating a new business the first thing you thought to do?
A: Yes and no. I wanted to start the business but leaving a stable paycheck, healthcare and other perks is a scary thing to do. For the first few months I kept going back to banking as a back up option, but as I move along further in my business venture that option has faded more and more. At this point I don’t think I could ever go back. I think it was certainly the first thing I thought to do but I just didn’t know how I was going to do it. A lot of it was faith.

Q: What is the largest challenge you have had as you started a new business?
A: Balancing work and life. There is so much to do and since you are your own boss and the creator of your destiny, time is of the essence. It sounds almost cliche but it’s so true. I try to stay as efficient as possible but sometimes I need to shut off the laptop and take some time for myself.

Q: What is the largest lifestyle change have you had to do undergo as you moved to being an entrepreneur?
A: We moved our home/office. It was a tough thing to do emotionally because we had lived in our prior place for 6-7 years. There was a familiarity. Ironically because the economy is in a downturn rental rates have dropped. We saw an opportunity and moved into a bigger place that better suits our needs. Additionally another lifestyle change has been an adjustment to not having a steady paycheck and a disposable income. We eat in more, watch out for sales and cut coupons. As an entrepreneur you must learn to be more resourceful, so being resourceful in life has helped prepare me to be more resourceful with the business.

Q: Do you ever see yourself going back to the corporate world?
A: No. I see myself creating a better corporate world of my own.

Q: When will you consider yourself a success as a start-up?
A: I already believe I’m a success.  I think deciding to be an entrepreneur was a huge step. Right now I’m taking it day by day. I make small goals and when I reach them, I’m grateful and happy.
However, there are a few milestones that I look forward to: 1. Once the income from Nyla Noor surpasses our old salaries as part of the corporate world 2. Once Nyla Noor handbags are sold nation wide (We plan to have a soft launch online at www.nylanoor.com this Fall 09.) 3. Once a Nyla Noor bag is featured on a TV show such as Gossip Girl.