The Five Steps of E-Commerce

You set up a retail business, you advertise in your local newspaper, you get customers coming into your store, and you receive payment at the cash register. Create an online store, and...how do you get customers? How do you receive payment?

The concept is the same, but the steps are different.

Step 1: Create your website

If you don't have web design skills, you can hire a qualified web designer to create a website for you, or you can use an online site builder. Think of it as hiring an architect and an interior decorator compared to setting up shop in an existing store.

Using a web designer

With the services of a web designer, you can have a unique website template and website customized to your specific needs. A web development team can also add features such as Flash headers or any programming needed for your site. If your company image is critical, a custom-designed site that conveys the right professional image is a must.

Using an online site builder

An online site builder is the budget way to go. With site builder programs such as Site Studio, your website can be online within minutes. A step-by-step menu allows you to choose a layout and colors, and then add a site description, a logo, and content. Your template may not be unique, but your content will.

Step 2: Set up an e-commerce store

Your customers will browse at your website, select some items, and then pay for them. When you set up an e-commerce shopping cart, you're providing a way for your customers to bring their purchases to the cash register. The program you choose will allow you to enter your products in the database and allow shoppers to choose products when they click on "Add to cart" or something similar.

Two well-known shopping carts, osCommerce and Miva Merchant, both allow you to do these tasks:

? Add, edit, and delete product categories and other information
? Set tax rates and charge tax
? Receive payment via numerous online and offline payment processing methods
? Bill customers
? And much more

osCommerce

osCommerce is an open source program. Store owners can set up their online stores using osCommerce with no costs involved. For small stores, it has all the features you need for an online store. Drawbacks of osCommerce are that customization is not easy, and online stores using osCommerce tend to look similar.

Miva Merchant

While Miva Merchant carries a price tag of $995, some web hosts offer Miva Merchant licenses with their hosting plans. If you choose Miva as your shopping cart, be sure to host your site with a host that provides Miva support. Its learning curve is steep, and it requires the support of people who know how to work with it.

With the price and the steep learning curve, you get more features, and you can customize the program more. Add-in modules can be bought that perform a number of tasks. In addition, a strong support community is available in the Miva user group forums.

Step 3: Get a merchant account and payment gateway

When customers arrive at the checkout counter, you need a way for their payments to be transferred from their credit card accounts to your bank account. The method you choose may depend on your sales volume.

For high-volume sales, an e-commerce merchant account plus a payment gateway will meet your needs. A merchant account provider authorizes the transfer of payments to your account, and a payment gateway transfers the information from your customers' financial institutions to yours.

Most merchant accounts have setup fees, transaction fees, monthly fees, and statement fees. The transaction fees are less than what you'd pay using a third party credit card processor such as PayPal. With all the fees, however, the overall cost is typically lower only if your monthly sales volume is over about a thousand dollars.

For medium and low volume sales, PayQuake and PayPal are viable options.

PayQuake

PayQuake offers three merchant account types to choose from. Although they all require payment gateways, the two smaller plans have no monthly minimums. You can upgrade to a higher or lower plan if your needs change.

PayPal

PayPal has become a household name. Customers can send payment through PayPal via credit card or via money that they transfer into their PayPal account. While the fees per transaction are higher than with merchant accounts, there are no setup or monthly fees, and you don't need a payment gateway. You pay only when you have financial transactions.

Step 4: Create a secure payment environment

A Secure Sockets Layer (SSL) certificate enables you to receive credit card information securely from your customers. When a payment page is using SSL data to encrypt data, a small image of a lock appears at the bottom right of the screen.

Some web hosts offer SSL certificates as part of their hosting packages. If your web host package doesn't include SSL certificates, you can purchase one separately.

With PayPal, no SSL certificate is required.

Step 5: Generate traffic

Your products are on display in your newly designed store, your shopping cart is set up and ready to use, and you have everything in place to be able to receive payments securely. Now all you need are customers.

This is where marketing comes in.

? Submit your site to search engines.
? Advertise your site.
? Keep your company name in front of your customers with a regular email newsletter.
? Add more content to your website to keep it fresh.
? Monitor your website traffic to see where it's coming from and how you can increase traffic for key content areas.

For related information, see these pages:

? Do-It-Yourself Search Engine Optimization
http://articles.websitesource.com/seo_do_it_yourself_8_16_2005.shtml
? Promote your Domain
http://www.websitesource.com/domains/domain_promotion.shtml

Lois S. is a Technical Executive Writer for http://www.websitesource.com and http://www.lowpricedomains.com with experience in the website hosting industry.

---

E-marketplaces from Sellers Perspective

What is an E-marketplace anyway?E-marketplace is a business to business... Read More

How To Start An Internet Business ? Site Layout

The fourth step of how to start an Internet business... Read More

Does Your Shopping Cart Have a Squeaky Wheel?

Have you ever gone grocery shopping just before a holiday?... Read More

Turn Your Rusty Junk Into eBay Gold

Often times people to stop to realize the income potential... Read More

Excuse Me, Are You Wasting Traffic?

The largest cost and concern of an internet business is... Read More

Choosing An Internet Merchant Account

Surf to Google and perform a search on "Internet Merchant... Read More

The Lowdown On ECommerce: Making All The Pieces Fit Together

The Lowdown on EcommerceEcommerce is truly the most confusing aspect... Read More

Accepting Credit Card Payments Online

Being able to accept credit cards and other online payments... Read More

Online Florists - Send Flowers Online When Youre In a Hurry

You did it again, didn't you? Forgot until the last... Read More

Drop-Shipping ? A Great Way of Making Money Online

Using the Internet to sell products and services to ever... Read More

Increasing E-Commerce Website Sales: A Guide for the Online Newbie

Because of this encouraging surge in activity, many individuals are... Read More

Is Your Website Credit Card Friendly?

In my last column I discussed the process of credit... Read More

Building eCommerce Websites That Work - Part 1

You want to succeed at eCommerce? Welcome to a very... Read More

Tell Them Whats in The Can!

What does 'the can' mean? Well, its literal meaning relates... Read More

Selling Globally Through a B2B Exchange

Participation in B2B Exchanges is increasingly becoming one of the... Read More

Top Ten Qualities to Look for in an Online Pharmacy

As you may have noted, there are thousands or even... Read More

Dont Get Ripped Off Getting A Merchant Account

Far too many people get ripped off when setting up... Read More

10 Compelling Benefits of Having A 3rd Party Merchant Account

If you have been wrestling with the idea of applying... 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... Read More

Business Online ? Blind Hunt

Do you sell something online? Do you have a business... Read More

Merchant Accounts: What They Can Do For You

Congratulations! You created an impulse in a customer to buy... Read More

Keep Your Customers Happy by Organizing Your Payment Options

Anyone using a slow, or an awkward payment processor had... Read More

Shop: Is Shopping Online Secure?

Is shopping online becoming popular and safe enough for you... Read More

Electronic Commerce Tax Jurisdiction and Principles of Permanent Establishment

The principle of "permanent establishment" is very important for avoidance... Read More

Working With Drop Shippers

Drop Shippers, the manufacturers or distributors who are willing to... Read More

Grow Your Business Using B2B Emarketplace ? Part II

Selecting the right emarketplaceAlthough, IT spending has been staying flat... Read More

Six Components Of A Good E-Commerce Site

Businesses, which are still sitting on sidelines and not doing... Read More

Distinguishing Features of E-Commerce

E-commerce offers customers the chance to eliminate many stages in... Read More

What You Must Know About Selling Online to Europe

The European market is a multi-billion $ sector which you... Read More

Eleven Things You Must Know About A Drop Shipping Directory And Its Company

1. Balance - You want to find a directory rich... Read More

Set Yourself Apart From The Ordinary

I have written at length about the need to anticipate... Read More

What Does It Take to Make Money Online?

What a loaded question! Let's narrow that down a bit... Read More

Accept Credit Cards Online Without A Merchant Account

It is often assumed if you want to accept credit... Read More