Here’s what you should know if you are moving your brick-and-mortar to the Web or building a Web-only business.

American Pearl had been a successful jewelry store in New York City’s diamond district for almost 50 years when Eddie Bakhash took over the company from his father, Charlie, in 1997. One of Eddie’s first moves was to take the brick-and-mortar company online. Since then, he says, sales have grown yearly at a rate of 20%. Last year they surged to almost $20 million—with 20% in person and 80% online.

Bakhash attributes some of his company’s success to having a well-known and respected store, and good word of mouth. But, he says, the key was constructing a site that builds trust with the consumer, while educating them about the product or service offered. “We tell the truth, showcase the product, and recreate the world that the product comes from through a variety of rich media,” says Bakhash.

Retailers like Bakhash are aware that doing business online boosts sales. A 2006 Forrester Research study of 174 retailers found that online retail sales rose last year by 25%, to $176.4 billion, and are expected to rise 20% in 2006, to $211.4 billion. By 2010, sales should reach $329 billion.