E-commerce Explained

E-commerce or electronic commerce is the name given to the process of sale and purchase of goods over the Internet. A seller displays his wares on a website. A potential buyer browses the items for sale and selects some for purchase. The payment is made with a credit card. The seller receives payment and the item is shipped to the purchaser.

This system has completely blown away the boundaries of time and place. You can buy anything anywhere anytime. The facilities in this type of transaction to both the buyer and the seller are amazing. They are not restricted by the geographical placement of their shops. There is no time bar and the process requires so fewer people to handle it.

To be able to sell on the Internet you have to obtain the following: -

Merchant banking accountFor accepting credit cards over the Internet, its mandatory to obtain a Merchant Banking account from your bank.

SSL Server Certificate.This enables SSL (Secure Socket Layer encryption) on the web server. Now you can accept credit cards securely without the fear of hacking. This certificate costs about $125.00 and can be obtained from Thawte or Verisign. For a small fee you can also use the certificate of the company hosting your web page.

Space to host your web site.This is the “real estate” of eCommerce. There are many companies providing space on their servers to host your websites. Check them thoroughly. Ensure that they provide fast access to the Net, good uptime, and a qualified support staff.

Online shopping softwareThis is a package that allows the users to select items from your site, purchase them, manage the accounts and bind all aspects of the e-commerce site to make it a cohesive entity.The most common varieties are the shopping cart model, online catalogue model or the order form model. It may have a onetime purchase cost or a monthly rental for usage. Ensure while ordering that this is not too high as it will cut into your profits.

Now you have all the basic ingredients to deploy an e-commerce site. If your not conversant with web designing, hire a web designer. Alternatively, web templates can be used. Once the site is up and running you have to look into increasing your profits. Advertise blatantly but avoid spamming. Spamming gives the site a bad reputation. You can write up articles about your site and distribute it on various free content sites.

Now you have the basic guidelines for starting an eCommerce website. So take some judicious decisions and start up!




Related Article

Accept Credit Cards Online

Home > Internet Marketing Articles > E-commerce Explained

Back to top