More and more businesses nowadays are beginning to sell and distribute their products and services through the Internet. It is a win-win situation – consumers get the best selection at the lowest prices, and retailers get entry to markets outside their geographic location. But dependent on the type of e-commerce website the business is using, the cost to carry out the project could range from a couple hundred to several thousand bucks.
E-commerce on the Cheap
It is a common misconception that so as to conduct business over the Internet you need to have an expensive merchant account that will permit your clients to pay you by credit card. This used to be the scenario, but today there are numerous services available that make e-commerce a very inexpensive option. These services come in the form of third party credit card processors.
A third party credit card processor acts as an intermediary between the customer and your website. Generally, a customer will click on a link to buy a product and be taken to the third party’s web site to process the credit card information in a secure environment. The payment for the purchase is deposited in your account, and the order information is forwarded to you. The only cost to the e-commerce retailer is generally a small fixed fee and / or a small percentage of the sale.
Although using a third party credit card processor could be cheap, it does have its disadvantages. The shopping cart system may not easily incorporate with your web site because it is not simply customizable. Also, it looks a little less professional when the purchaser should leave your website so as to enter their credit card information. However, when evaluating these disadvantages with the expenses linked with creating a professional e-commerce web site, they truly do not seem like a huge deal.
Really Taking the Plunge
Opening a fully functional online store with the ability to process credit cards on-site could be quite a costly production. Here’s a list of elements that all need to be integrated: a shopping cart system, secure web server, payment gateway, and a merchant account.
You will find some shopping cart systems which are available for free, and numerous web hosts offer the capability to integrate a shopping cart system into your website. However, if you would prefer your system to be fully featured, easy to use, seamlessly integrated with your website, and include advanced functions for example automatically calculating tax and shipping charges, the cost could run some hundred bucks.
The most costly and hard part of the procedure is getting a merchant account to process credit card numbers. These accounts usually have monthly and transaction fees linked with them. Luckily, most businesses already have merchant accounts, and these could be made use of to process credit cards on the Internet as well.
In combination with the extra expenses associated with processing transactions directly on your website, there is also a substantial difference in the price. Your webmaster will charge to setup the different solutions. Using a third party to process transactions usually just entails inserting a few lines of code into the website which shouldn’t cost greatly.
As with any project, it’s most likely greatest to start small before shelling out big bucks for a professional e-commerce solution. And do not forget, even after you have spent thousands of dollars obtaining your e-commerce website launched, you’re probably going to have to spend thousands more marketing your website in order to recover your investment. E-commerce is not cheap!
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