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E-Commerce: How E-Commerce Works
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When you first begin the process of providing products or services online, it can be quite overwhelming. However, with a basic
understanding of the way things work and a managed solutions provider like WebIntellects, your online transition will be quick and easy.
The Basics
- A customer is surfing the Internet for products and/or services.
- They come across your web site. To make this web site visible on the Internet you need to host it with a hosting company (WebIntellects, for example).
- As the customer adds services and/or products that they
wish to purchase, they are placed into a shopping cart.
(Miva
Merchant or Miva Order, for example). Once they have
finished shopping on your web site they will "Check Out".
They now fill out the credit card information on a secure
page (SSL) on your web site to pay for their purchases.
- Once the credit card information fields are completely
filled out, the customer will hit "Submit". This information
is then transmitted to a Credit Card Transaction Provider
for authorization (PayPal Payment
Services for example). The order is then either declined
or accepted. This process takes about three seconds.
- If the transaction is approved, the information is then
transmitted to a merchant account (payQuake,
for example). There it will stay for about 24 to 72 hours.
- The money that is in your merchant account will then be placed into your business account.
Online Store Operation Methods
- Simple Check Receipt Method - This is the cheapest
and easiest way to run your online store. When an order
is placed, an e-mail will be sent to you telling you what
the order was for. Your customer will then need to send
you a check in the mail for payment of products or services
before they receive them. This method is not recommended,
as the reason for shopping online is convenience. However,
in certain instances this might be the way you will need
to run your online store.
Pros:
- Simple.
- Cost effective.
- No chance for credit card charge backs.
Cons:
- Not convenient for your shoppers.
- Takes too long to receive payment.
- Higher rate of canceled orders.
Required to operate store:
WebIntellects E-Commerce Package
- Simple Credit Card Validation - This is the most popular
method for those needing an affordable way to operate
an online store. This is also the best choice if you just
want to test the E-Commerce waters. Once an order is placed
on your store, you will be sent an e-mail telling you
what the order was for and your customer will be sent
an e-mail telling them the order was received and is being
processed. You will then need to log on to your store,
view the order, and take the credit card information from
the order. At your physical store or home, you will then
use a credit card swipe/punch machine to run the credit
card transaction manually. Once the credit card is approved,
you can then send your customer the product or service
they ordered.
Pros:
- Simple.
- Cost effective - you do not need an online merchant
bank and payment portal.
- Quick and easy to set up.
Cons:
- Transaction is not instant. Your customers must
wait on you.
- You must be available to manually charge credit
to complete the order.
- If you receive a large number of orders, it becomes
time-consuming.
Required to operate store:
- Real-time Credit Card Transaction - This is the way
all the larger online stores do it. With this method,
the credit card transaction becomes part of the ordering
process. An online shopper decides to purchase from your
store. They will use your shopping cart to purchase items
and, when ready, "Check Out". During the "Check Out" phase
they will enter their credit card information securely
and submit it. Within three seconds, they will be told
if their credit card was declined or accepted. Once accepted,
they will receive order confirmation and a receipt. When
the order has been placed and after the credit card is
approved, you will be sent an e-mail with all the details.
The money is automatically deducted from your customer's
credit card and deposited into your business account.
Pros:
- Convenient for you and your shoppers.
- Instant credit card transactions.
- Professional - all large E-Commerce sites operate
their stores this way.
Cons:
Cost - Requires an online merchant account and payment
portal.
Required to operate store:
The Steps To Get Started
- The first step is to get approval on a merchant account.
We refer people to Card Service International. They accept
about 99% of all applications and have no contracts. All
merchant accounts are month to month. If you already have
an online merchant account, you will not need another
one. Make sure not to confuse a business merchant account
with an online merchant account. Most banks provide merchant
accounts, but only a few support online transactions.
payQuake
- The next step is to find a web hosting provider that
offers E-Commerce hosting. An E-Commerce hosting package
should have some sort of shopping cart support for you
to organize your products and make buying easy for your
customer. WebIntellects offers numerous solutions to meet
this need.
WebIntellects E-Commerce Packages
- Once you receive your merchant number and you have decided
on a hosting provider and shopping cart, you then need
to decide on a transaction provider. A transaction provider
(or payment gateway) will tell your customers if their
credit card was declined or accepted within a few seconds.
If you do not want to take real-time credit card transactions,
you will not need this. You can always use a credit card
swipe machine at your home or business to avoid the fees
associated with payment gateways.
- The final step is to integrate the merchant account,
shopping cart and the transaction provider together. All
of WebIntellects' services work seamlessly with each other.
In many cases you need only check a box to set up.
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