Monday, 6 August 2012

Selling Online – How Does One Open an Online Store?


* If you want to open up an online retail store – how does one go about doing this? Online trading is really about e-commerce. There are definite things one needs to know when selling online.

* A website should have a services area and a products area, a shopping cart system and a checkout system in place.

* Acquire a merchant account from the bank of your choice. Once you have opened up a new account you will then have two options to make your online selling work for you:

Offsite Processing:
  • The company will have their shopping cart on their website, but as soon as the client activates the payment part of the process they will be redirected to a third party payment access.
  • Once the payment has been completed the client is then re-routed back to the company website.
  • This process is a little more affordable as you don’t require a SSL certificate plus other monthly costs and transaction costs.

Onsite Processing:

  • When you follow this route the company will need to obtain a SSL certificate from a third party and you would also need to create checkout systems, payment systems and a shopping cart.
  • The payment system is linked into an external payment gateway to process the payments.
  • You will do everything you require from your website, but take note - it is very costly.
  • Costs could be in excess of R1 500 per month and also include a percentage of each and every sale.

Merchants can also use Paypal to sell online without all of the expenses of normal e-commerce. This option is perfect for SME’s or for individuals who cannot afford to lay out thousands on e-commerce costs and fees. The negative part about this method is that it can only be used in conjunction with an FNB cheque account.

Selling online is lucrative, but needs to be done correctly right from the outset.

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