By now, almost everyone has purchased either a product or service online or knows somebody who has. But if you are interested in selling online, you may not know what is involved in an e-commerce transaction and what services it requires. You can divide e-commerce into four simple parts, each to do a specific task.
Merchant Account
This is the first requirement towards e-commerce. Quite simply, a merchant account is a merchant identification number and a means to deposit funds into your bank account. This is accomplished using either software for your computer or a little terminal box (similar to the kind found in retail stores, where you can swipe your credit card).
Shopping Cart
An online shopping cart is very similar to the shopping carts you find at your neighborhood grocery store. As you browse the aisles of the store, you place the items you wish to buy into your cart, and then purchase them all at the same time. The shopping cart system needed for e-commerce works the same way: you browse the online “store,” pick out the products you want, and purchase them together when you are ready. The advantage of the online system is flexibility – if you need a product in another size or color, for instance, you can simply change the selection before you submit your order. There is no need for a sales clerk to go running to check in the back for more merchandise – it’s all at your fingertips!
Real-Time Processing
Real-Time Processing means less work for you and your employees by not requiring them to process the orders received through your Web site. All orders placed are automatically processed and payment information is recorded. All that is left for your company is to fulfill the orders and ship the products.
Web Hosting
The last item you will need to be able to sell your products online is a place to set up shop. By this I mean a place to host your Web site. Web site hosts simply store all of the pages in your site, allowing anyone to access your store. The important thing to remember when choosing a host is compatibility. Your host needs to be compatible with your merchant account, your shopping cart system, and your real-time processing. For this reason, it’s usually a good idea to find a company that offers all of these services under its umbrella. This way, you know for certain that your systems are going to work together properly and that your customers will have a smooth e-commerce transaction each and every time.
E-commerce, broken down, is extremely simple. The merchant account allows you to take credit cards, the shopping cart enables your customers to order your products quickly and easily, real-time processing allows orders to automatically be placed in your merchant account, and your web hosting company shows your website to the entire world. Once you have these items in place, you will see how e-commerce can work for you.
*Originally published at LangDesign.com
Rebecca Lang is founder of Lang Design, Inc. an Internet web design and development with an emphasis on marketing website business. Serving businesses nationwide, we are located in Wilmington, Delaware, just south of the Philadelphia Metro area.
