making money from product sales

It's perhaps the first rule of retail: A store should seem alive, inviting, and, of course, legitimate that is, if you expect people to shop there. But so many merchants abandon the basics when they go online. "A lot of people, when building e-commerce stores, just totally forget to treat it like a store," says Lance McDaniel, VP of Creative at SBI and Company.

Hilary Billings is one of the few who stuck with what she knew. Previously a vice president at Pottery Barn, Billings joined RedEnvelope in 1998 as chairman and chief marketing officer. "One of the reasons I came to the web is that I found the web shopping experience to really be lacking as a consumer," she said.

"There was an enormous amount of energy and money and time going into the development of features that I felt were ahead of the customer," Billings explained. "Whereas some of the basics just having an easy-to-navigate website and images that were beautiful and easy-to-see were missing."

Over the last five years, Billings built RedEnvelope into one of the web's most compelling stores; its secret lies in a simple interface and striking images.

"I've always been a deep believer in the fact that people want a functional shopping experience," Billings said. "But that alone is not enough. It also has to be an enjoyable shopping experience. So everything we've done is to try within the constraints of a website, of which there are many to make it as pleasurable and enjoyable as possible."

What are you selling?

• A few unique products

• Gifts or luxury items

• Considered purchases

• Big-ticket items

what customers want

• An easy way to find products they want.

• Competitive prices.

• Help making decisions especially if it's a considered purchase. Photos, descriptions, and product reviews help.

• Security for users when submitting their email address and credit card number.

• Responsive customer service to give customers the sense that someone's minding the store.

unique products Whether you're selling the perfect mousetrap or hand-woven carpets, the trick is finding the people who want them or rather, helping them find you.

gifts or luxury items When you're selling things that aren't a necessity, it helps to make shopping fun. For inspiration, look at RedEnvelope, which focuses on stylish gift-giving. The site's creative categories let you choose gifts by the recipient, occasion, or lifestyle (the spa seeker, the gadget guru). And their signature packaging leaves an impression.

considered purchases Considered purchases are those higher-ticket items like computers and consumer electronics that people research before they buy. The key here is offering context: The more you can help customers research their decisions, the more likely they are to buy from you (so long as your prices are competitive).

big-ticket items Big-ticket purchases include cars and homes; they can be researched online, but are purchased in person. The key here is to move customers toward closing the deal: Encourage them to phone or email you, provide a dealer locator, suggest appointment times anything you can do to both build trust and move the relationship forward.