Setting Up E-commerce on Your Website

By: Sherry Holub
Submitted: 2007-01-17 14:59:06
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According to the U.S. Department of Commerce the estimated total of e-commerce sales for 2005 was $86.3 billion, which is an increase of 24.6 percent over 2004. Overall business successes can sometimes hinge on that business' ability to accept transactions over the internet. In addition, the internet can help turn a local company into an international company and open up new avenues of business.

However, creating an e-commerce website does not automatically mean website sales. In a future article I will focus more on the aspects of actually operating an e-commerce website, but for now, I will cover the basics that will answer most questions for businesses who are considering the move to selling online.

First Steps

Let's assume that your business already has a professionally designed website. We usually ask new clients with existing websites who would like to start selling on the internet a series of questions to help determine the best solution for selling online:

Who is your target audience?

It is important to know who your customers are when taking into consideration the design of your e-commerce website.

What type of web hosting do you currently have?

The type of hosting can determine what type of programming is used on your website. Also, if you do not have sufficient resources to have an e-commerce website, then it is important to know this in advance so that we may suggest a suitable host for a client's needs.

How many products are you going to be selling?

Sometimes a client may only have a handful of products, in which case, a shopping cart (either pre-developed or custom) is not necessarily the best solution.

What type of special features would you like your shopping cart to have (example: coupons, affiliate program, downloadable goods, etc.)?

This is quite possibly the most important question because the answers to our special e-commerce website pre-development survey are usually the basis for understanding the specifics of a client's needs and for determining the price and time necessary to complete the project.

Explaining E-commerce

The next step in the process usually involves explaining to the client exactly how e-commerce works on the web. Below is a brief explanation of the technology behind the process and what is necessary to sell items on the internet.

The Process

Once a customer visits an e-commerce websites, adds product to their cart, and then clicks to check out, it official begins the transaction of the sale. Programming in the shopping cart enables the credit card information to be sent to what is called a payment gateway. The payment gateway's sole purpose is to offer a secure way to pass this information through the merchant account and on to the credit card processing bank. The processing bank sends the information to the customer's credit card issuer and the transaction is either approved or declined. From there, the results of the transaction are relayed back to the payment gateway where they are stored and sent to both the customer and merchant for verification. At this stage, the shopping cart usually issues a receipt to the customer and a notification of the order to the business.

A Merchant Account

The first thing a business needs in order to accept credit cards online is a merchant account. The merchant account is usually a business back account that is either set up through a Merchant Service Provider (for example, http://www.cardservice.com) or through your regular bank. When a transaction is approved on your website, the merchant account provider will deposit the funds in an account such as your business checking account.

A Payment Gateway

A payment gateway is the online terminal for encrypting and sending transaction information back and forth between your website, the merchant account and to the processing bank. One of the most popular gateways is http://www.authorize.net Most merchant account providers can also sell you a payment gateway.

A Secure Certificate (SSL)

A secure certificate is a necessity when running online transactions as it provides your customers with a secure webpage in order to enter their personal and credit card information before it is sent through the gateway. How can you tell you are on a secure order page? Simply look for a small lock symbol at the top of your browser next to the website address and https:// before the web address.

Shopping Cart Systems

Through discussing all of the details of a proposed e-commerce business website, we can help our clients determine what the best shopping cart solution is; whether it is a pre-developed cart, or a new custom programmed cart. We go through an extensive interview process to make sure each e-commerce solutions is custom tailored to the client's needs.

In Conclusion

I hope this information will be helpful to businesses that are just starting out with e-commerce, but remember, these are only the first initial steps to setting up your website to sell online. In a future article I will cover what happens after your internet store is "live", how you will be able to perform updates to your store on your own, and some tips on how to market your site and products more effectively.

Sherry Holub received her degree in design from UCLA in 1995. She is now the Lead Designer and Creative Director at Southern California firm, JV Media Design. Sherry is also a member of the AIGA, the International Academy of the Visual Arts (IAVA), and Manchester Who's Who.

http://www.jvmediadesign.com

Article source: Expert Articles