What Makes a site
an E-Commerce site?
Very simple,
any site that enables its
visitor to pay online is an
E-Commerce site.
Some businesses
choose to use their "old"
website as an ecommerce website
or build a new simple site, then
adding a payment option through
Pay Pal or similar services.
When a visitor is interested in
an item or service and would
like to pay for it he clicks on
a link that takes him to the
payment service provider, in
this case pay pal. He then pays
using his credit card or other
available form of payment and
returns to the website to
continue shopping. This is by
far the least recommended way of
doing e-commerce, as your
visitors leave your site and
that is never a good thing. Once
you send your customer to
another website, even if it is
just to pay for your item, you
relinquish control over the
transaction. You lose part of
the impression you created as a
serious company and might lose
the sale. How would you feel if
you wanted to purchase an item
and were told to pay for it at
the store across the street and
then come back to pick it up,
because they did not have a
credit machine? While this is
not exactly how it's done in
this case, but it is the same
feeling your customer will be
left with.
Merchant
account? I have one...don't I?
Maybe you do, but
most likely it is for physical
transactions or what is called
"card present" transactions.
Your online merchant
account will provide credit
processing solutions from a bank
or other credit processing
provider. They are the ones
processing the actual credit
card transaction, giving you the
approval for the credit card and
transferring the funds to your
bank account. Authorize.net is
the largest merchant account
provider to e-commerce websites
today.
Payment
gateway, Your gate to online
business
An integral part
of every E-commerce website is a
payment gateway. That is
basically a link between your
site and your bank or the credit
card processor where your
customer's transaction will be
processed. This link is
essential since it provides your
customers the security they need
when they shop on your site. The
information they enter such as
credit card number, expiration
date etc.. will be sent through
a secured tunnel directly to the
credit card processor and will
return with an approved or
declined status the same way.
Think of it this way, you have
your site on one side and your
bank on the other. Payment
gateway is like a trusted
messenger connecting the two.
Database,
the foundation for every
e-commerce site
Whether you are
planning to have just a few
items or unlimited items sold on
your site, it is always a good
idea to have your database in
place. The data base holds all
your item information in an
organized and centralized way.
Your item description, price and
other info is stored in the
database and can be accessed by
the site administrator or the
shopping cart. The database is
like a library of your catalogs,
but much more then that. It can
be a base for collecting
important information such as
user or item activities, sales
reports, contact requests and
many more options.
Shopping
cart? What is that?
Shopping cart is
essentially a piece of software
installed on your website. This
is the mechanism that ties
everything together. It pulls
information from the database
and displays it on your site for
visitors to browse through.
Once a purchase process is
initiated the cart will
collate all the items ordered,
calculate totals and add
preconfigured values such as
shipping & handling costs to the
price. It will send the
transaction details through the
payment gateway to the merchant
account provider and receive the
information back. It can be
configured to display a message
confirming the transaction and
send an email message to both
the site owner and the customer
with a similar confirmation. The
best way to look at it is that
the cart is like a store
manager, making sure everything
works together.
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