Top 10 Questions About Ecommerce

Pretty much a whole industry has been built around advice on the dangers and pitfalls of selling on the net, and how to do ecommerce the right way. The questions below have evolved from the most frequently asked on our helpline by small and medium businesses setting up a trading site.

 

1) How can you take credit cards payments across the net?

There are three ways that merchants can take credit cards across the net. The first is by capturing card details securely, transmitting them to the desktop PC and then processing them through a normal PDQ facility. This option is only suitable if the ecommerce software has the appropriate security and is bank-approved. It costs the least and minimises change and hassle for an existing business.

The second option is to process card payments in real time on the internet. Service providers include NetBanx, Secure Trading, WorldPay, Secpay and Datacash. You will need a merchant account and will generally have to wait for the money, but the PSPs charge you to process everything on your behalf. This can be suitable for medium and high volume sites.

Finally, some of the above service partners provide a ‘bureau’ type service. If you are unable to acquire your own merchant account, they will transact the funds on your behalf — a useful service for some, but not cheap.

 

2) How should merchants promote their ecommerce sites?

There are lots of ways this can be done, but for any business there are two no-brainers. The first is to promote the site to all existing customers - if they don’t know that you sell online, they will go elsewhere. If they use your site and like it, they will probably tell their friends. So "Order online at" and your web address should be on every piece of literature and advertising that a company produces.

The second is to register with search engines. It may take a little time, but it's often free and can produce good results. Just remember that your site will register more effectively if the pages are generated in HTML, rather than being dynamically generated from a database. In our customer's experience this can affect traffic to your site by around 50%.

 

3) What are the key things to turn browsers into buyers?

In short, remove the reasons why people might not buy. Make your ecommerce site oriented towards sales rather than marketing. When prospects are at the site, the marketing process is complete. So, show them the products immediately – don’t hide them behind acres of marketing copy. Provide full terms and conditions – it seems more professional plus protects you. Give your contact details, including a telephone number. Explain your guarantee and returns policy. A rock solid guarantee goes a long way to persuading people to buy. Finally, explain your security, encryption and privacy policies.

 

4) What one thing can impress buyers?

Make the site fast. Use graphics effectively, not for the sake of it. Make the checkout process as easy as possible. Again, ensure that the site is not dynamically database driven unless this is absolutely essential – nothing is faster than doling out straight HTML.

 

5) How much will ecommerce software cost?

The answer varies according to the sophistication and volume of the site. However, professional ecommerce software is available for under £1,000, even under £500, and you can rent Web space capable of running such software for under £200 per annum.

 

6) Can I compete with the big boys?

The beauty of the internet means small businesses can compete effectively - no-one knows how small or big you are from a URL. Ensure your site is professional, attractive, fast and easy to use. Make sure too, that you can fulfil the orders very promptly - people expect delivery within a day or two. If you can’t achieve this, make sure you communicate with the customer – email is quick and low cost.

 

7) What security risk does ecommerce involve ?

Less than people think. In fact, the security risks run by web merchants are similar to those of mail-order companies. It is sensible for merchants to put anti-fraud policies in place such as phoning to confirm orders that are a particularly high value or that come from parts of the world more prone to fraud.

 

8) Should I manage my store through a browser interface?

At the moment, the most hyped topic around is that of the Application Service Provider or ASP. The theory is that everything can be done through a browser interface. Browsers are great, but don’t believe all that you hear. If you have to use your ecommerce site a lot – like processing orders, changing products and prices and so on, you will find it slicker and quicker via a local PC, and you won’t be reliant on your internet connection.

 

9) Should vendors maintain their own sites?

Some companies supplying ecommerce solutions keep all site maintenance under their direct control. This means that if you want to change a price, you have to go through the supplier. While this provides the service provider with a revenue stream, it can infuriate you, the vendor. The best way is to have a way of directly updating your site.

 

10) Is ecommerce profitable?

Absolutely yes! Selling online can be done on a small (under £1000) or large budget equally successfully and we have users to prove it. As with all business expansion do your research, get advice from trusted sources, decide what you can afford to spend to test the waters and then jump!