The Web is the first inexpensive sales channel direct to consumers. Three years ago, if you wanted to sell direct to consumers, you either built retail stores, did catalog mailings, or hired telemarketers. In each case the entry fee was hundreds of thousands, if not millions, of dollars.

On the Web, anyone can sell to consumers worldwide for as little as a hundred dollars a month. That doesn't mean they'll automatically succeed -- far from it. Just as in the physical world of selling,it takes a lot of work to build a successful store online.

How can your company take advantage of this opening? Here are the most important secrets the winners have discovered so far:

1. Look professional: The Internet is like a big city, no one knows you, so they judge you by your clothes. The Web lets you sell to consumers halfway around the world, but chances are that consumers halfway around the world have never heard of you. All you have to win them over is your site.

This doesn't mean that you should build a fancy site, full of big graphics and bouncing Java applets. Such sites are slow and confusing. Instead, keep it clean and simple. For example, Dean & DeLuca's, Web site has the same spartan look as the gourmet grocer's physical stores.

2. Focus on sales, not hits: Many believe sales increase with hits -- as the number of hits rises, the number of customers rises because the percent of visitors who convert to buyers is constant. But that's not true. It would be if online impulse purchases weren't so rare.

At least 70% of online purchases are made by people who already were looking to buy, according to an analysis of the search keywords used by visitors who come from search engines. To increase your sales you need to put yourself in front of that 70%, because that's where the money is.

How do you do that? Look at where your existing sales are coming from, and focus your marketing efforts there. The latest generation of online store software provides tracking tools that can tell you which sites are sending you visitors who actually spend money.

So, if you find that you get a lot of sales from people searching for a certain phrase in a certain search engine, buy ads tied to that phrase.

3. Lower your prices: This is one of the reasons online book merchant Amazon is so successful. The company sells most books at a discount -- bestsellers are 40% off.

Consumers expect lower prices online. They have every right to, since the cost of sales is lower online. A catalog mailing might cost $10 for each buying customer (50 cents times 20 catalogs per order). Even an unsuccessful online store does better than that.

Split the savings with your customers. If you don't, your competitors will, and on the Web, customers can get to your competitor's Web site with one click.

4. Take your online store seriously: One thing that distinguishes winners like Amazon and CDNOW is their large inventories. They show they are serious about selling online.

Many established companies have Web sites that send the opposite message. Several catalog companies have set up test sites with 20 or 30 items, to see if they get any orders. This doesn't work online any better than it does with physical stores. If a national chain set up a test store near your house with only 20 or 30 of their regular items, would you even bother going?

If you take a wait and see attitude toward the Internet, on-line shoppers will take the same attitude toward you. To get the ball rolling, you need to show commitment. Fortunately, current online store software makes it easy to build a site with hundreds of items. Frederick's of Hollywood's online store has most of the items from the lingerie retailer's print catalog, and it was built by one person in a few days.

If you remember just these four points, your company will be way ahead of its competitors. But what about the long term prospects? Who will ultimately win on the Web?

To succeed on the Web, a store has to be THE place to buy whatever it is selling. There will be thousands of niches, some big and some small, each dominated by a handful of sites.

For example, there will be a few big sites selling top-40 CDs, and it will be nearly impossible for a newcomer to compete with them.

The good news for small companies is there are small, specialized niches like Model T parts, Czech books, and  rare teas.

The best way to dominate a niche is to be the manufacturer. For example, Harbor Sweets' Web site is going to be the place to buy Harbor Sweets online,
because they make them.

Ultimately, manufacturers may be the biggest winners online, particularly small manufacturers who have until now been at the mercy of the channel. The success of factory outlets shows consumers like to buy direct from manufacturers. With the low cost of selling online, even small manufacturers can take advantage of this trend.