So you want to move your business online and allow your customers to make purchases from your website. Where do you begin? It’s not as difficult as you might think.
It all begins with a payment gateway – a company such as PayPal that processes online payments whether they are by credit card or e-check. I use the term ‘payment gateway’ and ‘merchant account’ interchangeably here since most of the larger companies provide both services, although you could have a merchant account with a different company (bank) than your payment gateway. Each gateway provides their own method of interacting with your website, so your web developer (the company building your online store) will have to know how to implement the proper code to tie them together. You start by setting up an account with a payment gateway and then getting the required login information to that account. This information is forwarded to your web developer who will then add the login information to the processing code so that payments made in your eStore will be properly forwarded to your account. Because you will be sharing valuable access information, it is important you work with a reputable web developer.
There is a long list of available gateways such as: PayPal, Authorize.net, Alert Pay, and Verisign Payflow. Each company provides differing features and they set their own fees such as credit card fees. A little research will go a long way in saving money.
Once your site is live and a payment is made, you will have access to that money through your payment gateway/merchant account.
Another thing to consider with an eCommerce website is shipping costs. You’ll want to determine real-time shipping costs so you can add that onto the order and get paid up front for it. To do this, you will need to set up accounts with any shippers you plan to use, such as UPS, FedEx, and the US Post Office. Along with the regular account, you will need to ask for a developer key (access id) to allow your website to interact with their online services. You will then pass this key along to your web developer for inclusion in the website code. Your developer should be skilled enough to implement real-time shipping quotes with this key.
There is another way to calculate shipping costs and that is to build a database of current shipping prices based on shippers’ rate charts. This is not as accurate as their real-time web services, but it also does not require a shipping account or developer key. To compensate for unforseen changes to the shipping charts, you can simply add a small mark-up to each shipping cost. Either method should be fine for most small businesses.
Once the order is placed, shipping charges are calculated, the payment is processed through your payment gateway, and you are notified of the sale, the only thing left for you to do is pack and ship the order to the customer. And just like that you have an fully-functional online store which will be easier and cheaper to operate than any brick and mortar store.
This simple method of offering products online is not restricted to retail sales. Let your imagination run wild. eCommerce can be used for business-to-business (B2B) sales, subscriptions, donations, etc. With a skilled web developer, almost anything is possible online.