The Lowdown On ECommerce: Making All The Pieces Fit Together

The Lowdown on Ecommerce

Ecommerce is truly the most confusing aspect of purchasing web design services. This is unfortunate since most (if not all) businesses online would like to provide their customers and potential customers with easy access their products or services. In order to help make sure you get what you need to to set up an ecommerce web site, let's look at the necessary elements of selling online.

A Web Hosting Provider

The most important things to look for in a web hosting provider with respect to ecommerce are Secure Sockets Layer (SSL) support, shopping cart software, payment gateway services and merchant account services. They are the pieces to the puzzle and you will not be able to sell online without all four of them. If you are working with a web developer who is not providing you with hosting, have them check out the features of the hosting plans you are looking at as well to make sure they will meet your needs.

Secure Sockets Layer (SSL) Support

SSL is the internet protocol used to send information between a site visitor and a web server securely. If there is no SSL support, there is a risk that a user's credit card information will be intercepted during the transaction. This process involves purchasing an SSL certificate. Many hosting companies offer use of what is called a "shared SSL certificate." This simply means that instead of having your own, you will use one belonging to the hosting company and will store any secure pages on a directory of their server instead of your own web space. For people just starting out, this can be a very good solution and is often relatively inexpensive.

Another option is to buy your own SSL certificate. This is more costly, but also more professional. The visible difference to visitors of your site is that the checkout process will show your web site URL in the browser instead of that of your hosting provider.

For the lowest startup costs, check out PayPal's merchant services. If you have a PayPal account, you can setup a basic shopping cart that will allow credit card transactions through PayPal. The downside is that your buyer will be taken to the PayPal site to enter in their credit card information, as opposed to the other two methods which can be integrated into your own site very easily. The major upside is that it is free with your PayPal account, excluding the fee per transaction.

Shopping Cart Software

If you are not going to go with the PayPal solution, you need to ensure that your hosting provider includes shopping cart software. As the name implies, shopping cart software allows a web site visitor to browse around your virtual store and place items in their cart. It also handles the final checkout process in conjunction with a payment gateway, which will be discussed below. There are many great shopping cart packages available, but they can be difficult to install and maintain on your own. Make sure your hosting provider offers good technical support before signing on, as their help will be invaluable when it comes to customizing the shopping cart software and integrating it with the rest of your web site. Some examples of good shopping cart software are Miva Merchant and OSCommerce.

Payment Gateway

When a customer enters their information into your shopping cart, it connects to a payment gateway or payment processor to verify that the credit card is valid and has the funds necessary to make the purchase. If this does not come with your hosting package, the most important thing to verify is that your shopping cart software supports the payment gateway provider you choose. Your web host should be able to provide you with the information you need to choose. If you already have a merchant account, you need to also ensure that your payment gateway and your merchant account can properly interact with each other. Many payment gateways provide merchant accounts as part of their service, but if you already have one you need to make sure they will be compatible.

Merchant Account

A merchant account is a type of bank account that must be setup with a payment processor in order to accept credit cards. Many web hosting providers have partnerships with merchant account providers and provide discounts on acquiring merchant accounts. This is an important factor to look for, since many merchant account providers have high application fees and start up costs. If you currently run a business that already accepts credit cards over the phone or in person through a card swipe terminal, then you already have a merchant account and your cheapest option might be to consult with the current provider of your account to see what they have to offer in terms of processing transactions over the internet. These are known as "card not present merchant accounts" since the buyer is not present with their physical card when making the transaction. Keep in mind that although a merchant account is a type of bank account, you will need to provide information about your regular checking account so that your merchant account provider can deposit into it when a sale is made.

Conclusion

The process in any ecommerce transaction involves a few steps. The customer browses and selects the products they want, typically utilizing shopping cart software. When they checkout, they enter their credit card number which is sent over the internet using the SSL protocol. When the hosting server receives this information, it connects to a payment gateway to approve the sale. The payment gateway verifies the credit card and deducts the funds for the sale. The payment gateway then communicates with your merchant account provider, transferring the funds. Lastly, the merchant account provider deposits the funds in a place that is accessible to you, such as a regular checking or savings account.

When selecting a web hosting provider and a web developer, make sure that all of these elements will work together. Request support from any third parties involved in the project to ensure that compatibility will not become an issue. If possible, find a package deal where all of this comes together, as it could save you a lot of time and money in the long run.

About The Author

Max Glantzman is the head designer and developer at JuiceBox Design, located at http://www.juiceboxweb.com/. Check out JuiceBox's Web Design Advice Forum to get advice from the pros before making web development or hosting purchases.

____________________

Advertisement: Honest Riches - Click Here!

Advertisement: Lost AdWords - Click Here!

Advertisement: Get $1 Million A Month In Google Pay-Per-Click Ads Free! - Click Here!

Advertisement: Who Loves Money? - Click Here!

Advertisement: SEO Elite, the GrandDaddy of SEO Software - Click Here!

---

Products for a Successful Web Business

There are F words in business. We have seen many small businesses on the internet flourish and fulfil their dream, but sadly we have seen some flounder... Read More

Do Your Online Brokerage Business With Zero Down

If you have little or no capital but you want to do big international business; if your small business is not doing so well; or your capital... Read More

Online Shopping: Legal Challenges for Taxing Authorities

E-commerce offers customers the chance to eliminate many stages in the sales/distribution chain. The mark-ups that occur between manufacturers, wholesalers, distributors, retailers and consumers can add the... Read More

E-commerce Software That Will Safeguard Your Business against Fraud

Fraud is a huge issue when it comes to the Internet, and if you operate an e-commerce website then it should be one of your main concerns.... Read More

E-commerce: Is It Right for You?

The birth of the Internet and the mass availability of personal Computers in the late 80's changed peoples life forever, Everyone now has had the potential to... Read More

A Beginners Guide To Setting Up A Successful Online Store

A beginner's guide to setting up a successful online store Online selling is by no means a simple task. To sell products online not only requires making... Read More

Set Yourself Apart From The Ordinary

I have written at length about the need to anticipate your visitors' needs. I have talked about how the first screen of the homepage needs to connect... Read More

Tell Them Whats in The Can!

What does 'the can' mean? Well, its literal meaning relates to canned goods on supermarket shelves. If your can is up there among thousands of others, the... Read More

Government Buying and Selling on the Internet

Global Insight, a leading economic and financial forecasting company, (formerly DRI-WEFA), states that all levels of government (federal, state, and local) should see steady increases in the... Read More

Is Your Website Credit Card Friendly?

In my last column I discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit cards can... Read More

Selling Globally Through a B2B Exchange

Participation in B2B Exchanges is increasingly becoming one of the fastest growing marketing methods for businesses looking for augmenting their client base beyond their local markets. Any... Read More

Simple Steps to Start a Profitable Member Only, Subscription Web Site

Having a successful member only, paid membership site is one of the best ways to make money online. A successful membership site can give you the steady... Read More

Creating The Perfect Ecommerce Website

If you're thinking of jumping on the bandwagon and going into business with your own ecommerce website, you'd do well to look at a few examples before... Read More

How To Accept Credit Cards Online

Anyone with an online business, whether for auctions, services, or virtually any type of product, has asked the same question at some time during their quest to... Read More

Succeed With Your Own Home Based Business

An internet business is by far the best way to support yourself if you just cannot stand working for others for less money than you need to... Read More

Effective Management Of Your Customer Services

With a third party merchant account you will have a dedicated 24/7 support team to handle your credit card payment on your behalf as part of your... Read More

Using Credit Cards Securely Online

Nowadays, shopping online is a very common thing. Making your purchases without leaving your house is an attractive option for many of us. Purchasing items over the... Read More

Web Users Crave Familiarity

The sad truth is, general Web users would love it if all our sites looked like Amazon.com.They'd immediately be familiar with the interface, they would know how... Read More

10 Reasons To Survey Your Visitors, Subscribers And Customers

1. To find out what type of content visitors want to see on your web site. This should increase repeat visits to your site.2. To find out... Read More

Doing Business Online ? Private B2B Exchanges

Business processes are the building blocks of an enterprise. If one of these processes fails to live up to its expectation, business starts to flounder. How to... Read More

Your Site is all Direct Marketing

This may not be a popular view, but I think writing a web site is very similar to writing a piece of direct mail. I'm not talking... Read More

Is ECommerce Right for Our Business?

If your business features products or services for sale, undoubtedly the topic of eCommerce has come up. What is eCommerce? Literally defined as "the conduct of financial... Read More

Online Shoppers Say They?ll Buy from Small and Large E-Businesses Alike

As the holiday shopping season begins in earnest, consumers say they're just as willing to buy from small online retailers as they are from large, national e-commerce... Read More

Gooooooooooogle It!

....there's much more to Google than you thought:With the wealth of information currently available on the Internet, for many web-users, Google has long been the search-engine of... Read More

Shopping Online: What You Should Know

For some people, shopping online is as normal as driving a car. It's become part of the norm. For others, the prospect of making internet purchases is... Read More

Intranet Project Names - Some Ideas

"What's in a name? That which we call a rose By any other word would smell as sweet."In this famous quote from Act II of Romeo and... Read More