From cyber space, with love

Last week, Eileen Gibb shared how she started an online pet business from a small farm in the Eastern Cape. This week's entrepreneur began her journey in a different setting.

In 2002, while working as a trader for an investment bank in London, Sanet Owen had no idea she would one day sell hand-crafted gift packages online.

But after 11 years of climbing the corporate ladder in the UK, where she and her husband had moved in 1998, Owen wanted out.

“I resigned in 2003 with the idea of doing something else, although I had no clue exactly what. All my friends were in banking and I was making a lot of money, but I didn't want to be stuck in the corporate environment looking out.”

It was while gift-hunting for her husband's grandmother that the seed was planted. Owen couldn't find anything suitable online and loathed physical malls, so the idea for a gift service was born.

“I came to SA in 2003 to source products and buy stock, which included things like local bath products, and lots of snacks and chocolates.”

Back in London, she began working on the Web site and five months later, in December 2003, Gift Lady.net opened for business.

“I didn't want to be stuck in the corporate environment looking out.”

Sanet Owen

Owen's mother, who was still living in SA, was a partner from the beginning - Owen would send her the orders, and she would wrap and package the gift hampers for local customers.

“It started with a couple of orders on one day, no orders on other days, and slowly built up. Our first Mother's Day was very busy - we couldn't keep up.

“What tended to happen was that big days like Mother's Day, Father's Day, Valentine's Day and Christmas were extremely busy, and that saved us and carried us through for the rest of the year.”

Owen admits she made some expensive mistakes in the beginning, such as advertising on TV, which was heavy on the pocket and low on returns. “Advertising is a process of trial and error -you learn what works best for you.”

Since Gift Lady's first busy Christmas in December 2004, the site grew quickly for about three years, although sales have tapered off recently as the economy slowed and competition grew fiercer.

Over the years, Owen was able to get more people on board, and five women now work at Gift Lady. It has also branched out to showcase specific brands and offer corporate gift services.

Owen used her intuition as a guide when it came to selecting gift options. ”I thought, if it were me, what would I want to send someone? I wanted to have different products and offer more variety than what was already available.

“People love food hampers, it's been like that since day one. It's difficult to buy a gift for someone overseas because you don't know what they already have, but you can always send some treats.”

Gift Lady has also received some unusual requests, and when people ask for something it doesn't stock, Owen tries her best to track it down. “We had one request for a single cupcake with a candle and for the courier to sing 'Happy Birthday'. It was a local order so we were able to do it. We got the same request the next year.”

The gifts are put together from scratch, rather than making use of pre-packaged hampers, which Owen believes gives them an individual touch in the one-size-fits-all gift business. “I'm very fussy when it comes to selling things - they must be perfect. If the box has a small dent in, then I don't send it. We buy nuts and biltong on a weekly basis to make sure it's as fresh as possible.”

Initially, most of the orders came from the UK, Australia and New Zealand, although SA sales have picked up in the past year, says Owen. She returned to SA in November 2009 and recently opened a small boutique store in her home town of Port Elizabeth.

“I hired the house in PE because we needed a big area with lots of space for busy times. I also wanted a showroom so people could come in and see the kind of gifts we sell.”

The store has a front area stocked with the kinds of “pretty things” Owen loves, which she can't always sell on the site. “Online, people want hampers, while for the shop there are more homey things like bread and cheese boards, salad servers and so on.”

While Gift Lady has survived more than seven years in the tough online world, the road hasn't been without its share of bumps. ”Fraudsters are getting cleverer and initially I lost a lot of money that way.

“Now I know what to look out for - certain cellphone numbers, messages and addresses, or if there are no names. The IP address can also be a sign; for example, if they say they're from the UK but the IP address is from Johannesburg.”

Owen says she decided to use UK payment platform Sage Pay because it was reasonable and very secure. “All customers' personal details are stored on Sage Pay's systems and we've never had a problem with payment information.”

She adds that it's essential to have telephone numbers on the site, so people can make personal contact, and trust you won't cheat them out of their money. Customers pay when they place their order, and the order is sent through the same day, with a confirmation notice and invoice if requested.

Another learning experience was having to rely on third-party florists and couriers, who Owen says can let you down and create situations beyond your control.

“It's quite a stressful job. You have to make sure other people's gifts arrive in perfect condition, and on time. Everyday we're on the phone calling couriers and chasing parcels.”

She's also learned to accept that the customer is always right, even when, well, they aren't. “Sometimes people are unreasonable, like during really busy times, I'll send the gift a day early but tell the courier to deliver it the next day, and they mix it up. In the beginning I used to argue, but now I just apologise and send them a gift free of charge, even if I feel it's completely unfair.”

While she's considered closing the business a few times, Owen says the thought of how much she's invested and the appreciative letters from around the world keep her going. “I wouldn't change it for anything. I'll never ever go back to the corporate world.

”Initially, I thought I'd be happy if we got 20 orders a day...I never thought I'd one day have a shop in PE. I can't see myself without Gift Lady; it's been a wonderful experience.”

While she's always had “a million things to improve”, Owen is now completely content with the site. “I want to tell everyone about it because I feel it's finally perfect, after seven years.

“In the beginning you think it's an easy thing to do, but it's not. There's so much to think of and organise.” However, Owen says it's been easier to start an online business than a physical one. “For example, you can have maybe three items in stock but advertise hundreds.”

While it's no job for sissies, Owen advises aspiring entrepreneurs to go for it. “If this is what you want to do, do it. But remember that it's hard work and you won't get rich overnight.

“The biggest thing is to advertise and make sure you do things properly - do your homework and look for the right medium. Also, get a good accounting system from day one.”