Thu 26 Jun 2008
E-commerce 101
Posted by Megan Dorn under Small Business, Starting Up
E-commerce is really just a fancy way to say online shopping, a practice that my credit card has become quite accustom to in recent years. In fact I just bought a new area rug the other day, and the process was a piece of cake. I clicked on what I wanted, entered my credit card and shipping information, and that was pretty much the gist of it. But from the seller’s perspective, things can get a little sticky, particularly during the set-up stage.
So if you’re looking to start selling products online, then you’re in luck. I’ve compiled a bare-bones, four-step protocol that you MUST follow to even think about entering into the world of e-commerce.
Step 1: Set Up an Internet Merchant Account
An Internet merchant account gives you the ability to process your customers’ credit card transactions. All you have to do is go to your bank and apply for an Internet Merchant Bank Account. You can also go through an independent transaction services provider. The details vary between institutions, so make sure you discuss them with the provider you choose. On the whole it’s not an incredibly difficult procedure.
I should also note this process can take up to a month to go through, so plan accordingly.
Step 2: Get a Digital Certificate
Another name for a digital certificate is an SSL Server Certificate, which basically allows you to securely take credit card orders so that hackers can’t snag your customers’ information.
Getting a certificate is pretty easy. If you’re a smaller company, you can probably pay your Web hosting company a small fee to use theirs. Or if you’re a larger company, you can buy your own for about $250 minimum for one year from companies like Thawte or Verisign.
Step 3: Find a Good Web Hosting Company
If your business is already on the Web then you’re going to want to make sure that your Web hosting company has good tech support (specifically where e-commerce is concerned) and is knowledgeable about the process of e-commerce.
If your business isn’t on the Web yet and you’re searching for a Web hosting company, then, in addition to the earlier points, make sure you really take the time to find a compatible and reputable company. This is an important component of e-commerce and deserves some shopping around.
Step 4: Obtain Shopping Cart Software
Basically shopping cart software ties everything together and makes the whole process run smoothly. Oftentimes transaction services providers will add shopping cart software to their package of services. This can be convenient, but it can also be expensive. So be cautious.
These steps are obviously just the bare-necessities, so it’s probably a good idea to consult your Web hosting company with additional questions and concerns.
3 Responses to “ E-commerce 101 ”
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June 27th, 2008 at 8:36 am[…] Megan Dorn created an interesting post today on E-commerce 101Here’s a short outlineE-commerce is really just a fancy way to say online shopping, a practice that my credit card has become quite accustom to in recent years. In fact I just bought a new area rug the other day, and the process was a piece of cake. … […]


July 2nd, 2008 at 3:30 pm
I couldn’t agree less Megan.
In fact, each step in moving online has become easier and smoother to integrate. Through my eight years of experience in the industry, I have never seen such momentum to move online. Every day I get inquiries from smaller and smaller businesses that are willing and able move their business online. Two weeks ago we launched the site for one of my clients with just 15 T-shirts to sell. Her tab: $1500! She had estimated to break even by the end of August, but seems like that might happen sooner.
With a language like PHP, and the vast number of opensource products that work well only with PHP, I have been able to provide very competitive pricing to my clients for moving their business completely online. Most of my client are able to get their eCommerce sites done at 30% less than what they could a year back. Most of the cost savings come from free licenses, lesser effort, highly reusable software, lower transaction fees, flexible transaction models from PayPal, Google Checkout, Authorize, et al.
July 3rd, 2008 at 6:26 am
I’m not entirely sure what you are disagreeing with because I agree with what you’re saying. Newer and better technologies are certainly making the transition to e-commerce much easier. I was more or less giving a run-down of the most basic steps needed to start selling products on the Internet for those people who are not incredibly Web savvy and know very little about e-commerce.