Build it and they will come! Well, maybe not; at least, not in the Internet world. Once you’ve built your e-commerce site, you need to be sure that you can get found online, and this starts with the major search engines like Google®.
As a small business owner, taking the leap from a brick-and-mortar store to a fully functioning online e-commerce site can be exciting and daunting at the same time. While it seems like a monumental task, there has never been a better time to get your business online. Studies show that online shopping is increasing as gas prices and economic concerns continue to worry consumers.
Creating a Web site for the purpose of selling products or services online entails a large amount of research and planning. E-commerce encompasses many aspects of an online store including setting up product pages and lists of inventory, managing orders from customers, delivering ordered products, as well as customer support. Simply looking for a provider based on a list of features is not the best way to get started. You need to step back and take a look your needs as a small business owner and make a decision based on your business model and where you want to go with your online store.
Choosing the right set-up for your business now will keep you from having to make complex and costly changes down the road. Let’s start by understanding the types of providers you can choose from:
Licensed vs. Hosted Solution: Which is right for your business? You need to know your options when selecting an e-commerce provider. You can select a licensed option where you purchase the software and then host the information on your own server. Or, you can choose a hosted-provider solution where you design and set-up your store on a shared server and the provider manages the software and any technical needs.
When you purchase licensed e-commerce software, you own the software code and can modify and change it accordingly. If there’s a new feature your customers desire, you can add it, which makes this option more flexible than a hosted solution. The obvious disadvantage is you must maintain it yourself. Maintaining an e-commerce site using licensed software often requires a technology team to ensure the system runs smoothly and if there is a software problem—with security or features—it’s up to you, the business owner, to fix it.
With a hosted e-commerce site, the company that you purchase from maintains the servers and the software for you. The benefits of a hosted solution include set-up and maintenance of your shopping cart, security for your checkout process, 24/7 monitoring of your site, no investment in infrastructure, technical support, and free software upgrades. The hosting company handles any security, bug fixes, and emergency situations that might occur, so you don’t have to worry.
The downside of purchasing a hosted solution is it’s not as flexible as its licensed counterpart because you must rely on the company you purchased from for modifications and maintenance. As the business owner, you can’t change anything specific to fit the needs of your evolving online business or fix any small problems that might arise.
A good analogy to compare the two is buying vs. renting a home: You may pay more for the down payment at first, but the house is yours to change and fix, like a licensed solution. But buyers beware; when the faucets break or painting needs to be done, it’s up to you to do it. Renting or paying per month for a hosted solution allows you to stay focused on your business, knowing that those types of issues will be handled, with no additional cost or time to you.
Bottom line? For the entrepreneur just starting out with its e-commerce site, hosting may be the best option. For the more established business with an in-house IT department, licensed may be the best option.
In addition to choosing the right type of provider, there are some other options you need to consider when choosing an e-commerce provider.
Your e-commerce site needs a merchant account. In order to sell online, you need to give your customers multiple payment options. Most customers are accustomed to using credit card for online transactions. In order to accept credit card payments, you need to apply for a merchant account. You need to apply for the merchant account and there are many vendors available. They will ask for information from you like your federal tax ID number (if registered as a business), driver’s license number, business bank account, a documented refund policy, and an estimate of your credit card sales volume. You will also need a “payment gateway” to connect your e-commerce Web site to the credit card companies and to your merchant account.
A secure checkout is vital to the reputation of your company. Make your checkout secure by adding an SSL Certificate (Secure Socket Layer); it will show your customers that you are serious about their security and it is safe to do business with you. If consumers have a negative experience buying products online from your e-commerce site, it can ruin your business reputation and your bottom line.
Make sure your provider is PCI Compliant. E-commerce sites should be Payment Card Industry (PCI) compliant. In 2006, major credit card issuers created a set of standards to ensure security and to protect personal information for processed payment card transactions. Members of the payment card industry include merchants, credit card companies and other financial institutions and each must comply with the standards in order to accept credit cards. Failure to be compliant can result in fines and cause unnecessary stress on your small business. Make sure your provider is PCI Compliant.
Get the support you need. Choose a reputable and reliable hosting provider.. Read reviews from others with experience with the company, along with third party reviews. Call the support line at hours convenient for you, and hours you would probably be working on your site. Call in the middle of the night (to prepare for those unavoidable emergencies that will crop up). Make sure it’s a real person that answers the phone. Getting poor service from your hosting provider makes it difficult for you to provide an exceptional experience for your customers. Therefore, do your homework and choose carefully.
Understanding how to choose the right solution for your business will start your e-commerce site out on the right path. Knowing what options you have and what necessary steps are involved will save you time and headache over the long run. Remember, don’t let a laundry list of features drive your decision, but rather let the needs of your company determine your choice for an e-commerce solution.
For more information on starting to sell online, check out Network Solutions Free Solution Guide 8 Steps to Start Selling Online.
For more information on security and SSL Certifications, Check out Network Solutions Free Solution Guide SSL Certificates: A Simple Solution to Web Site Security.