How to set up an ecommerce site
Do you want to know what the sale of your products online consists of? This article will explain the basic elements that go into running an eCommerce site.
The e-commerce opportunities on the Internet are amazing. E-commerce transactions in the US are expected to reach $198 billion in 2006, according to shop.org. According to eMarketer, Canadian consumers spent $3.8 billion online in 2004 and that number is expected to rise to $5.7 billion in 2006.
There are four main costs to setting up an eCommerce store:
- Hosting costs/shopping cart software Hosting costs for an ecommerce shopping cart solution range from free to $79.95 per month or more. Before purchasing a shopping cart system, there are many things to consider. When choosing shopping cart software, you should consider the number of credit card processors and shipping services it supports. Credit card processors and shipping services can change, so the software will need to be easy to update and well supported to keep up with changes in the market. You’ll also need to consider how easy it is to set up and add products and how easy it is for the customer to use. Shop at some of the sample stores in the shopping cart before making a decision. It’s also important to determine if you can handle the tax system where you’re selling and if it supports your chosen shipping method, whether it’s by weight, fixed amount, or both. You should also consider the company that will host your site and/or shopping cart. If your shopping cart is going to be hosted by the same company that hosts your site, you need to make sure that it is fully compliant. You’ll also need to make sure your order forms and shopping cart are secure. Ask your web host if your hosting package includes the use of their secure server (SSL) or if it will cost extra. Most commercial shopping carts are hosted separately from your site, and SSL is included in the monthly fees you’ll pay for the software. Some popular shopping carts are: o X-Cart.com – A popular commercial shopping cart. oh oscommerce.org – This is an open source based online store (so it’s free!) but it’s not easy for a ‘newbie’ to set up. You will also need to find a host that supports it. oh zencart.com– Another free open source program that is maintained through the efforts of volunteers. It is based on oscommerce and is a bit easier to set up. However, like any open source program, it doesn’t have support staff to help you if you’re stuck. To solve any problem, you must rely on the forums and other users to help you. oh cartville.com oh paypal.com – Paypal offers a free shopping cart, but it does not work with many tax systems, such as Canada.
- development costs
- Cost of a merchant account The next cost is to set up a method to receive credit card payments online. Setting up a Paypal account is the least expensive option (2.9% + $0.30 USD per transaction at the time of writing). Your own merchant account costs are higher: there are usually setup fees ($500 or more), transaction fees (up to 3% per transaction), and a monthly flat fee as well. If you already have a merchant account set up offline, an eCommerce account will be significantly cheaper.
- Promotional Costs You should also budget for advertising and search engine marketing to drive consumers to your site. After all, what’s the point of having a store if no one comes to buy?
Whether you hire someone to develop and customize your store or do it yourself, there are costs involved. You’ll need to customize color, logo, shipping, taxes, and addresses, just to name a few. You will also need to set up your products and product options.
This article is not complete, but it does cover the basics of selling online. An eCommerce site is an inexpensive way to sell your products to your customers. Compare the costs to setting up a physical store – the cost of selling online is really profitable. Objective Watch out! Even though opportunities abound in today’s market, if you try to run an eCommerce website on the cheap, you will ultimately limit your potential. Good luck with your store!