E-Commerce
E-Commerce is an online term that refers to selling products virtually. The "e" stands for electronic. In other words, people do not drive to the shopping mall to visit stores, but rather, they purchase through various website stages which include shopping carts, secure payment processors, virtual payments through echecks, credit cards, debit cards, or online wallets, in addition to using email and live chat support. For the majority of instances, customers do not see a person's real face, nor do they talk directly to someone, other than by way of Instant Messaging. While it seems quite normal to order products through the internet, and actually all commerce really now assumes that it includes the internet, the total technical process is involved and complicated.
Many components are involved in e-commerce. Most importantly, your customers need to feel completely secure and confident when providing their financial information to conduct business. Legitimate e-commerce sites will have purchased SSL Certificates which tell the customer that the business or individual is who they say they are. It does not necessarily mean the company is honest, just that its business information has been verified. Another area that involves security is the Payment Processor. Previous to third party companies such as PayPal, WorldPay and 2Checkout, online companies required approved online merchant accounts through their banks. Now, businesses have many more options to collect monies from customers. Lastly, customers need to know that their information is not going to be shared or distributed with others. Typically, both a Privacy Statement readily available on the website, and a Disclosure Statement on the purchase page will help to allay their fears.
Another important function of e-commerce is how well your Server provides information, and manages the load from visitors and shoppers. This will include both hosting services and the actual server itself. You will need to ask yourself some serious questions that directly impact your ability to reap a profit. For example:
- How often is the server down?
- How often does the database malfunction leaving your customers with no catalog to view or no way to purchase products?
- Is your shopping cart working in tandem with your website?
- Are others on the same server sending out spam email causing your site to be slow, chasing away your customers?
- Does your hosting company or server management react quickly to issues and get them fixed promptly?
Anything that involves the hosting of your website can mean the difference between an excellent customer experience and missed sales opportunities. Unlike a physical store where you can apologize and ask customers to wait a minute while you fix the problem, this cannot be done online. Your customers are left to fend for themselves, and ultimately leave the website, never to return.
Although the customer does not use the Backend Management of your website, this is important as it relates to e-commerce and serving your customers efficiently. Whether you choose Open Source Software or a custom scripted package, you and your staff need to be able to control the orders in a timely and effective manner.
- Do you know what payment goes with what order?
- Do you have the means to track orders from purchase until shipment and delivery?
- Does your Shopping Cart and backend take into account sales taxes and shipping costs? What about specialty handling fees or even environmental taxes?
Finally, the Design of your store, which is basically the layout of your website, will be a main consideration when setting up an e-commerce destination.
- The ease of navigation,
- The professional nature of all the parts interacting together to create a seamless and safe shopping environment,
- The way in which you ensure all customers are treated with the proper respect and excellent service they deserve, and
- A plan for promotion, so that potential customers know you exist are all as important as having inventory and being able to sell to your store's visitors.
Ideally, your website from start to finish, including what the customer sees and what you and your staff see, must be a well-oiled machine, and should be open for business every hour of the day and every day of the year.