The Basics Of Internet Commerce - How to sell your products online?
E-commerce is gaining pace! Research firm eMarketer predicts that 2003 will see online sales reaching US $58.2 billion excluding travel. According to Forrester Research, another reputable research company, business to consumer e-commerce will hit US $230 billion by the year 2008. While offline retail sales are staggering and will continue to do so in near term, online retail sales will show a hefty 19 percent consecutive year over year growth! And by the same year, two third of all US households will buy some kind of products and services online. In 2003 alone 97 million consumers will make some kind of purchases through the Internet.
If you are selling products and services offline, you should seriously consider hopping on to the e-commerce bandwagon, or risk loosing significant portion of your business to your more proactive competitors!
Is it difficult to start selling products or services online?
May be, in the beginning of Internet era, this was a daunting task, but today, with proper planning it is fairly easy.
- Choose the products or services that are viable to sell over the Internet
- Build an online presence
- Create an online product catalog
- Choose payment methods
- Promote
Select products or services to sell
Although, some products are easier to sell online, contrary to popular believe, most of the products and services are, actually, marketable on the Internet. At present, books, electronics, information and travel related products are selling better online. But, that does not mean that there is no room for other products or services. As a matter of fact, you can sell just about anything over the Internet! It depends more on the market segment you choose, and how good you are in marketing. As you know, traditional items that you can get in nearest grocery store were not doing very well on the Internet. However, that is going to change very soon! According to Forrester Research many of today's slow categories are poised to significant growth as oppose to early online sales leaders like travel and electronics, which will experience market maturity and slower growth. Prediction is:
Food and beverage category will grow at a rate of 49 percent, reaching $18.2 billion by 2007. The home products category will grow by 4 percent over five years, from $7.3 billion in 2002 to $42.0 billion in 2007. Flowers, cards, and gifts will grow by 41 percent, from $951 million in 2002 to $5.3 billion in 2007.
That's not all! By the year 2008, today's best selling product:books will have a mere 3 percent share of total business to consumer online sales.
So, if your products and services can generate offline sales there should not be any problem in selling these items online.
Build online presence
You can choose to build an e-commerce website either yourself by hiring required experts, i.e. web programmers or by appointing a website developing company to do the job for you. In both of the cases, you have to be prepared to spend a significant amount of money. E-commerce site is a very broad terminology! Depending on you demand, it can cost you from a modest US $800 to any where over a million US dollar! That's not all! You have to be prepared to spare considerable time on it, as well. Writing the technical scope, choosing the appropriate design for your site and creating proper content for your site will take a lot of your time. And there is no guarantee that you will do everything right!
That's why, if you are new to e-commerce and do not want to spend a fortune in your first endeavor, you should think about making your online presence by choosing one of the available, on the Internet, Web Store services. There are enormous advantages of using these services:
- You can build one for a fraction of the cost, needed to create an e-commerce website.
- You can choose the design of your web store from numerous available templates.
- Simple editor allows you creating your web store all by yourself.
- You can be up and running within days.
- You can choose a merchant account from the one offered by the service provider.
There are many Web Store service providers on the Internet like Yahoo! Store, Bigstep, Rusbiz, etc. Compare and choose the one, which best suits your requirement. As an added advantage, some of the Web Store service providers will integrate your store with a shopping mall or e-marketplace free of charge. This will instantly expose your web store to a large targeted prospective customer audience.
Create an online catalog
If you sell only one or couple of products and do not add products or services often, you don't require an online catalog. However, if you have a product line of over 10 products and you constantly add or change products, you should consider a web store with the facility of an online product catalog. This feature of a web store service allows rapid developing and maintaining of you electronic catalog without spending large sums on creating one by yourself.
Look for a web store service provider who offers wizard or form base product adding method to the electronic catalog and use some kind of standard product classification codes. At later stage, if you choose to sell products through e-marketplaces, this will allow you to integrate your products to e-marketplaces and make sales offers with ease.
Choose a payment method
If you are planning to sell ebooks, reports, whitepapers etc. I would suggest you to consider using clickbank's marketplace. That way, you don't have to worry about getting a credit card merchant account.
Around 90 percent of all sales transaction occur online are by credit card payments. To accept credit card payment over the Internet, you must first have a merchant account. A merchant account allows a vendor to process credit card transactions. If you built a web store online with one of the web store service providers, you will see that they offer gateways to one or several merchant account providers and have partnership with them. In general, you get a better deal with them. However, as charges vary significantly from one merchant account provider to another, make sure you shop around before committing yourself to one.
Promote you site
To sell your products through your site, you must draw traffic. There are number of ways of promoting your site on the Internet. This includes:
- Search engine submissions
- Adding your site to different online directories
- Opt-in email campaign
- Link exchange
- Banner and link ads
In you effort to promote your site, you should combine as many offline and online promotional methods you can come up with. The more traffic you can generate the better chance you have of selling more products from your Web Store. 6 Steps To Create An E-Commerce Website
Small business owners can have a big presence on the web, whatever product or service you are offering, the internet levels the playing field and lets you compete with the bigger businesses, reaching customers all around the world who can buy from you 24 hours a day.
In the competitive world of the internet, being successful requires careful planning and taking the right steps.
This article will help you to take the right steps to launching a successful ecommerce website and will provide you with links to the proven service providers.
STEP ONE - FIND THE RIGHT ONLINE IDENTITY
The right domain name, or URL, can make the difference between a memorable e-commerce identity and getting lost in the online crowd.
One of the newest search engine trends concerning domain names are keyword based domain names, or domain names that contain the main keyword or keyword phrase that a site is being optimized for.
Traditionally this entails placing a hyphen between each word in the domain. This is done because most search engines read hyphens as a space, thus allowing the domain to contribute to increased positioning for that keyword. Examples: If the main keyword for your web site was "fitness videos," and keyword domain name would be (www.fitness-videos.com).
Currently around 20,000 new domains are registered every day, so it's a good idea to register yours right away, to see if your domain is available go to (http://domains.brandblast.com)
STEP TWO - FIND THE RIGHT ONLINE HOME
For brick-and-mortar stores, is everything. Your Web business needs the right home, too. Purchase and set up your own Web server, or find a home for your site with a reputable Web host.
Finding the best hosting service for your Web site can be really difficult if you don't know what to look for. These tips will help you weed out the impostors and choose a web hosting service that will meet your business Web site needs now and in the future.
. Be cautious of free web hosting services. Not all offer server side support which is needed if you require guest books, polls, counters, etc.
. Free or very inexpensive web hosting can result in experiencing frequent "down-times" (inability to access your web site) or poor technical support.
. When shopping for a web hosting service, ensure that there is a technical support phone number which is either local or toll-free. Long distance calls may be costly and e-mail only support may in some cases, cause confusion and not resolve the issue promptly.
. Shop around. Price differences are common in the web hosting service industry and some are needlessly high.
. Ask yourself the following:
. Can this web hosting company accommodate potential future needs?
. Will I have to look for a new host in the event I want to add e-commerce or wireless capabilities?
I . f I need a database, can the web hosting service accommodate it?
. How much does the hosting service company charge in the event that I need extra web space, e-mail, or bandwidth?
. If the web host service offers different packages, what do I have to do to upgrade my existing package and do I have to pay an extra setup fee?
. How fast will my account be activated?
. Does this web hosting service company claim to have few down-times? Be cautious of companies that claims to have 0% down-time.
. How much data transfer am I allowed? Each person that visits your web site will use a portion of bandwidth to access each page. (Example: It takes more bandwidth to download a photograph in one second than it takes to download a page of text in one second.)
If you're expecting a very large volume of visitors, please account for this and enquire about how much bandwidth you're allotted and how much the web hosting service charges for extra bandwidth.
Search for a host that will work with your current and future needs, for new site owners or site owners unhappy with their current host, I suggest Brandblast's reliable and reasonably priced services, find them at (http://brandblast.com)
For more information on website hosting view "Website Hosting 101 - Learning The Basics" available at (http://brandblast.com/webmaster-resources/free-ezine-articles/website-hosting-hosting-basics.html)
STEP THREE - BUILD AN ATTRACTIVE STOREFRONT
With the right tools, a Web site is easier than ever-but following some basic guidelines will help make your site easy and fun for customers to navigate. And that means more sales for you.
If you're planning on designing your own website, the best place to start learning is WebMonkey, you can view an easy to understand article on website design by going to (http://hotwired.lycos.com/webmonkey/html/97/05/index2a.html?tw=design)
If you are going to hire a professional website designer, it is important to choose a responsive, responsible, and experienced web designer for your projects. We suggest that you use the following as a guideline when choosing a web designer:
. Look at the web designer's portfolio. See if you like the work they have done. Our website provides the portfolio of our member designers for your review. To choose the right designer from our web site, consider the look and "feel" of the websites they have built.
. Look at their qualifications and skills. It is important that the web designer has both the right technical and creative skills for your project. If you are considering a web developing company, make sure the company has both the technical expertise and artistic talent. You should also contact them directly and inquire about their qualifications.
. It is important to work with a responsive web designer. You should expect to be contacted within a few days of your initial inquiry with them.
. Some of you may prefer to work with web designers who are close-by. I recommend you consider quality as well as proximity. It would be better for you to work with a qualified person or company instead of someone who is simply close-by.
The great thing about professional website designers is that most of them allow you to request a free quotes, get your first free quote at (http://brandblast.com/website-design/website-design-proposal-request.html)
STEP FOUR - MAKE IT EASY FOR CUSTOMERS TO PAY YOU
Have you purchased a product online by sending the company a check by mail? Neither will your customers, if you want to sell products and services online, you will need to be able to accept credit cards. For this to happen you will need the following;
. Internet Merchant Account: A special account with an Acquiring Bank that allows the merchant to accept credit cards over the Internet. The merchant typically pays a processing fee for each transaction processed, also known as the discount rate. A merchant applies for an Internet Merchant Account in a process similar to applying for a commercial loan. The fees charged by the Acquiring Bank will vary.
For a merchant account with low rates and instant approval go to (www.e-onlinedata.com/brandblast)
. Payment Gateway: A service that provides connectivity among merchants, customers, and financial networks to process authorizations and payments. The service is usually operated by a third-party provider such as VeriSign.
How Payment Authorization and Settlement Works
Payment processing can be divided into to major phases or steps: authorization and settlement. During the authorization phase, verification is made that the credit card is active and the customer has sufficient credit available to make the purchase. The steps in the authorization process are:
. Customer decides to make a purchase on the Merchant's Web site, proceeds to check-out and inputs credit card information.
. The Merchant's Web site receives customer information and sends transaction information to the Payment Gateway.
. The Payment Gateway routes information to the Processor.
. The Processor sends information to the Issuing Bank of the Customer's credit card.
. The Issuing Bank sends transaction result (authorization or decline) to the Processor.
. The Processor routes transaction result to the Payment Gateway.
. The Payment Gateway passes result information to the Merchant.
. The Merchant accepts or rejects transaction and ships goods if necessary. Because this is a "Card Not Present" transaction, the Merchant should take additional precautions to ensure that the card has not been stolen and that the customer is the actual owner of the card.
The second phase is the settlement process during which money is transferred from the customer's account to the merchant's account. During this process the following takes place:
. Merchant requests the Payment Gateway to settle a transaction
. The Payment Gateway sends all transactions to be settled to the Processor.
. The Processor sends settlement payment details to Customer's credit card Issuing Bank; at the same time the Processor sends payment details to Merchant's Acquiring Bank.
. The Issuing Bank includes the Merchant's charge on the Customer's credit card statement while the Acquiring Bank credit's the Merchant's account
When taking your customer's sensitive information over the web you will have to provide a secure method for transferring their data, you can do this by using a secure certificate.
How Authenticated SSL Certificates Work
An authenticated SSL certificate allows the receiver of a digital message to be confident of both the identity of the sender and the integrity of the message. Fundamental to the process of issuing high-assurance SSL certificates to an organization for use on its Web site are three basic, and very important, authentication and verification steps:
. Confirmation that the organization named in the certificate has the right to use the domain name included in the certificate
. Confirmation that the organization named in the certificate is a legal entity
. Confirmation that the individual who requested the SSL certificate on behalf of the organization was authorized to do so
So how do you implement a payment gateway to process payments on your secure e-commerce site? Building your own dedicated pipeline to connect all the players isn't a practical option, so outsourcing to a professional may be an option, Brandblast's business development specialists can help you with all your ecommerce related needs and can be reached for questions at 866-206-9898
STEP FIVE - LET THE WORLD KNOW ABOUT YOUR SITE
We're almost done, now that you're site is ready for the public, how are you going to let people know about your great products and services?
Here are a few time proven ways to get that potential buyer to become your new client.
. Pay-per-click search engines
These CAN get you visitors and sales. But remember this:
(a) Target your keywords carefully;
(b) Make your headline as specific as possible. For example, $19.95 e-book shows how to..." etc, will ward off non-buyers, attract buyers - and thus minimize your costs.
. Your own affiliate program
Should you have one? Definitely. But first you need to:
(a) have a proven sales letter;
(b) set strict guidelines for your associates;
(c) be sure you can handle up to 100 orders in a short time;
(d) automate tracking of orders and commissions. This will save you BIG headaches.
. Joint ventures
Here is a winner. Why not find other sites and ezines that serve your target market? You have the product. They have the list. Offer to split with them 50/50 if they send a letter of endorsement to their customer list.
. Ezine ads
Also, ezine ads are still very effective, because you reach a targeted audience. An ad at the top of an ezine might cost up to $275, but can produce a response rate of 3 to 5%.
. Writing ezine articles
Did you know that the most published articles are "tips" to help readers? Also in high demand are "How to" articles of 300 to 500 words.
Are you feeling STUCK? Feel like you can't write? Just try a simple conversational style. Small words! It works!
Tell your own experience. Maybe you've learned how to deal with spam... or how to choose a web host... or to build a better site. Share your tips!
. News releases
Traditional business practices such as press releases are a good way to get the word out there about your new business, word it properly and it should increase awareness about your new service and product.
Any one of these methods could catapult you to success! So go for it!
There are many ways to market a website and trends are always changing, joining a webmaster forum may be a great way for you learn from other webmaster about what works and what doesn't, places like (www.sitepointforums.com/) , (www.webmaster-forums.net), and (www.techie-forums.com) are great places to get help and help other webmasters become successful.
Running an ecommerce can be an satisfying experience and can be achieved by following my advice, if you have any questions about your ecommerce venture feel free to email me at adebarros@brandblast.com.
Keywords: e-commerce, ecommerce, build website, online business, web based business, search engine.
The Ultimate Online Store Builders
Online store builder software creates ecommerce stores with features such as web space, shopping cart, credit card processing, inventory control, customer database, site visitor analysis, digital product delivery, newsletter manager, email autoresponders, ad tracking, and an affiliate program marketing system.
Here is some popular online store builder software programs and services, with more coming soon.
| Screenshot |
Description |
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Site Build It!, by Ken Evoy, is a full-featured, point and click system that helps you develop, build, host, promote content sites for info-products and services, as well as promote other people's products and services via affiliate links. |
| Format |
Free Trial |
Cost |
| Downloadable software |
N/A |
$300 |
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| Screenshot |
Description |
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InstanteStore is a customizable, online store builder that includes web space, an integrated shopping cart, inventory control, affiliate program manager, advertisement tracking, credit card processing, customer database, site visitor analysis, newsletter broadcasting, and downloadable product delivery. |
| Format |
Free Trial |
Cost |
| Web-based application |
Yes |
$49.97/month |
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| Screenshot |
Description |
 |
StoreFront is an online store creation solution that creates remotely-hosted onlines stores and advanced FrontPage/Dreamweaver designed online stores, with order processing, product management, marketing features, and merchant management. |
| Format |
Free Trial |
Cost |
| Web-based application / Downloadable software |
N/A |
$99+39/month-$1,379 |
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| Screenshot |
Description |
 |
eComm Store is a complete online store solution that creates an ecommerce web site from your product database, or turns an existing web site into an ecommerce store. |
| Format |
Free Trial |
Cost |
| Downloadable software |
Yes |
$39.95/$395/$1,995 |
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| Screenshot |
Description |
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Website Wizard is a point and click system for building content sites and online stores and comes with shopping cart, credit card processing, ad tracker, and affiliate program. |
| Format |
Free Trial |
Cost |
| Online subscription service |
Yes |
$29.95/46.95/month or $259/397/year |
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