What is an eCommerce Website?
E-commerce can refer to the “brick and motor” extension of an already successful and established business. It can also describe the efforts of start up, web-only companies. Finally, it can be used both to describe businesses which sell directly to customers (B2C) and companies which do business exclusively with other businesses (B2B).

What should you expect from an Internet store advertising web site? At the very least, you’ll need a homepage -- this is the first webpage that loads after the URL has been called. This page generally describes the nature of the business, provides ordering information, and potentially offers content reviews and feedback forms.

In addition, your web site should feature a shopping cart. This is a virtual module, which allows customers to store order choices, enter shipping and billing information, and pay for merchandize or services via credit card, PayPal, money order, or some other means.

Ideally, your Internet store advertising web site should also offer plenty of space for customers to write in reviews, questions and discussions. Turn your web site into an open forum for your customers to discuss, praise, and -- yes -- even criticize your products. The web lets you tap into the pulse of your consumer groups better than other solicitation media, and you can use the constructive hints provided by visitors to renovate policies, re-strategize, and create new niches of opportunity. Of course, if a comment gets out of hand, you can always censor it -- after all, it’s your site.

General considerations are:

1. Is it easy to use? This is the most important question. You have to understand how to set it up and shoppers have to be able to use it easily. Some surveys have shown that up to half of all online shoppers abandon their shopping carts before completing their purchase. If your shopping cart system confuses customers, they'll just leave.
2. Can it calculate shipping costs and sales taxes? Customers need to know shipping costs up front. You may also be required to pay state and/or local sales taxes when you ship to customers in your own state.
3. Does it handle online credit card authentication and processing? This is crucial if you're planning to do online product delivery (software downloads, for example).
4. Can you update your store online? Online updates mean that you can make quick changes to your online store from any PC with Internet access.
5. Does the system offer much design flexibility? You want to be able to load your own graphics and customize the layout and color scheme to reflect the purpose of your site.
6. Can you integrate the program into your existing Web site? This option means that you don't have to redesign a site from scratch. You can just take your existing content and link it to the dynamic pages.
7. What reporting system does it use? The best ones will let you save reports in a variety of formats that you can download to a spreadsheet or word processor.

Merchant Account Alternatives
If you really can't afford a merchant account or can't qualify for one, some companies will process transactions for you. This is called factoring. When your customers get ready to pay, they're taken to the factoring company's Web site and enter their personal data and credit card information there. The factoring provider typically charges you between 7% and 15% of your total sale, a transaction fee, and chargeback fees. Well known sites are Authorize. net, 2Checkout, Moneybookers.

Alternatively consider opening an account with PayPal and receive the benefits of factoring without the huge transaction fees. You can set up a business account for free and use it to accept and send money online. A credit card isn't even necessary; PayPal can also deduct money from a checking account.
The fees are miniscule compared to other MAPs - you pay a small transaction fee, but no monthly minimum charges, set up fees, gateway fees, or application fees! However, your customers must have a PayPal account before they can buy from you. Although setting up an account is easy, the extra steps required may drive away some customers. Online shoppers have a bad habit of abandoning their shopping carts; each additional step in the transaction only gives them more opportunity to leave.
In spite of that, PayPal is a good payment alternative for extremely small retailers. You can test the waters for your product before committing to the high monthly cost of a MAP.

The GWS-Host e-Commerce Solution:

Download Solution leaflet