Start A Successful Online Business When Your Budget Is A Big Zero Is Possible
thing you would need with e-commerce is a website which you may design yourself or have a professional do it for you. This would be your virtual shop – hence, it needs to be presentable, inviting, and easy to navigate. Simplicity would work fine, just as long as the website is attractive enough to get the surfer interested in looking around and functional enough to get him or her what they want when they want.
Then, you would need a domain name and web hosting services. A domain name is www.yourbusinessname.com or edu, org, or whatever which would be your address on the Web. In order to have a good 24×7 presence on the web, you would need a good web host which would give you sufficient bandwidth (meaning space to spread your website) so many people could watch and use the website at the same time. You need to have a server uptime of at 99.8% and that would cost some funds as well.
Once you have a great website and an excellent web host, you would need to concentrate on getting people see and visit your ’shop’. For this you would need to advertise online and offline with whatever means you have. There are many, many ways to draw customers to your website, but in order to make the effort count you need to concentrate on attracting only those people who are in some measure interested in what you have to offer. This is called targeted advertising, i.e. you target your dragnet to only those surfers who would be most likely to buy something.
There Are Excellent Alternatives
The above procedure would at the minimum cost you about US $500. If you insist in getting outstanding quality in everything you endeavor, the cost might go to US $1000. This means that unless you have this capital, you might not get the returns you would have planned to get. So, what happens if you do not have this cash ready to invest?
Do not worry – there are some great alternatives to set up a very profitable business. It is called affiliate network. What you need to do here is find a great affiliate network – some of them charge a huge fee to allow you to become a member, while yet others offer you all kind of help for free + offers you an excellent commission for every item you sell for them. The Click2Sell.EU ( http://www.click2sell.eu ) is one of such super affiliate networks which offers you an excellent platform to launch your business, even if you do not have your own website. They help you with everything for free + they offer some mind blowing returns for the promotion of their products. You can easily add your products to the marketplace and start selling online within minutes by accepting payments. Moreover, an army of affiliates will be there waiting for your product to promote. You can easily make money this way. So if you want an excellent business with zero capital – checkout it out today.
Do You Have to Have Your Own Product to Make it in the Ecommerce World
The internet has become an invaluable marketing tool for virtually any product or service, so much so that many people first make the decision to start an online business, then consider what items to offer for sale.
There are a number of approaches that can be considered, and the options are not limited to offering merchandise alone.
Merchants who choose to sell a selection of products use their website as an online catalog and order-taking center. Software, books and music top the list of most widely purchased products through online venues.
Things to keep in mind while deciding what products to offer include size and weight, which will affect shipping; durability of the product, since fragile or perishable items also present shipping challenges; and the existing supply and demand in the market.
Rather than produce a product of their own, some business owners choose to act as a broker or distributor for products produced by another individual or company. Crafters and other artists often seek such channels through which to sell their wares. Other venues for obtaining products include trade shows, wholesalers, and local businesses that would like a wider customer base.
Services can also be sold over the internet. In fact, the web offers a convenient, cost-effective way for service providers to tell their story, link to samples of their work, and allow a method of contact for consumers who would like additional information.
Information continues to be one of the most sought-after products that consumers purchase online. Ebooks, white papers, special reports, and ongoing subscriptions can generate substantially higher profit margins than product sales, since associated costs are minimal.
It is wise to research both demand for a product or service as well as existing suppliers before making a final decision on what to sell. Search tools such as Google Overture and Yahoo allow merchants to test keywords to determine how popular those search terms are. Highly sought-after items are likely to be bigger sellers, provided there isn’t already a lot of competition for that business.
Some website owners generate revenue without actively selling any product or service. A website devoted to providing information about a particular topic, for example, can earn income by selling ad space to merchants with related products.
Cost-per-click (CPC) advertising is similar, but instead of paying a flat fee for ad space, merchants pay the affiliate a small amount for each visitor that clicks the link.
Affiliate marketing is another way to earn income with selling. Affiliates display ads or links for a merchant on their site. When visitors use the link to make a purchase from that merchant, the affiliate is paid a commission.
There are many options that business owners can consider beyond selling a product online. A wide variety of opportunities today make it possible for any business owner to succeed in ecommerce.
Is Accepting Credit Card Payments Necessary for Online Business Owners
For online business owners today, offering the options customers want is a vital aspect of winning the sale. Multiple payment methods give consumers a choice, but credit card payments are far and away the most popular.
Credit cards are convenient for consumers to use and sites that accept them show higher revenues from impulse purchases and other add-ons.
There are two ways that ecommerce sites can arrange to accept credit card payments. One is by establishing a merchant account through the business owner’s own bank. Another is to use a third-party service to process the payments.
Bank Merchant Accounts – Most banks offer merchant accounts and processing gateways to their account holders. Funds from credit card purchases, less the agreed-upon fees, are deposited into the merchant account, then moved to the owner’s business or personal account on a regular basis (usually within 24 hours).
The primary disadvantage is that approval for merchant accounts is more difficult to obtain for internet businesses than for standard retail businesses. Every bank has its own qualification guidelines and fee schedules.
Third-party services such as PayPal eliminate the need for a merchant account. They offer real-time processing of payments and transfer of funds to the business owner’s account for a fee, usually a small flat rate plus a percentage of the sale total per transaction.
Other features available might include a shopping cart that the business owner can install on the website, conversion from U.S. dollars to foreign currency, the ability to accept multiple forms of payment (such as electronic debits or echecks), customer service, and set-up assistance.
PayPal offers three account types, two of which can be used by merchants to accept credit card payments: the Premier Account and the Business Account. An individual can open a Premier Account, but a Business Account can only be opened by a registered business.
A 2.9 percent fee is charged for receiving a payment, but as the dollar volume increases, the rate drops. Premier and Merchant Account holders can incorporate special html code into their website to create a “Buy Now” button. With one click, the customer is taken to a payment page to complete the transaction.
PayPal also provides a shopping cart to merchants. This software lets the consumer select multiple items for purchase, then proceed to the payment page to pay for all selections at once.
The cost for setting up a merchant account, processing gateway, and shopping cart can range from $500 to $1,500, more so if the etailer chooses to hire a web master to consult on or install the system.
For the start-up or small business owner, third-party services such as PayPal may provide a more accessible, affordable alternative to traditional banking options.
Don’t Limit Your Business to One Payment Method
If the objective of generating storefront traffic is to achieve a high conversion rate, it makes sense to examine any obstacles that may interfere with the outcome. Limiting a business to just one payment method can mean fewer conversions, and ultimately, less profit.
A study of North American online businesses found that offering more than one payment method increased conversions by twenty percent! Shoppers would add items to their cart, proceed to check-out, then fail to complete the transaction if their preferred method of payment was not available.
Clearly, offering multiple payment options is a convenience that consumers seek and a simple way for business owners to increase sales.
Credit cards remain the most frequently used method of payment. However, some people choose not to use them for online purchases, creating the need for alternative methods. PayPal, with an estimated 50 million users worldwide, has filled that need. Other methods include electronic checks and, of course, good old-fashioned cash in the form of a check or money order by mail.
Each method obviously has advantages and disadvantages for the business owner. Credit card transactions carry fees that the merchant must cover, but as the most preferred payment method, accepting this form of payment ensures a healthy number of completed transactions.
PayPal is widely used among internet shoppers, and allows the merchant to accept payment by electronic check as well as credit cards. Fees are also assessed to the merchant for this type of transaction.
Accepting payment by mail opens the door to the small percentage of shoppers who do not trust even the most secure shopping cart when it comes to releasing personal information. The downside is the time delay in waiting for the check to arrive and then to clear before shipping the order.
One thing analysts agree on is that conversion is about the customer. When considering what options to offer shoppers, such as alternative payment methods, the business owner must think about the people behind the numbers. Without conducting a full-scale demographic study, it is possible to develop a composite of the type of people who are likely to buy.
What are their habits, their likes and dislikes, their preferences and concerns? The answers can help business owners decide what factors might prevent completion of a transaction, and more importantly, which options facilitate a sale.
A business can be successful even if it accepts only one form of payment. But providing shoppers with options simply removes one of the most common reasons for abandoning a shopping cart without completing the transaction.
Offering multiple payment methods to potential customers will ultimately lead to higher conversion rates, increased sales, repeat business, and word-of-mouth referrals from satisfied customers.
Essential Ecommerce Resources
Domain name? Hosting account? Dreams of riches? The basics are in check and you’re ready to jump in the ecommerce game. It’s exciting, fast paced and competitive. It’s also a tough arena to gain success in.
Anybody can start an ecommerce site. But how will your site stand apart from the sea of millions and retain a loyal consumer base? How will you grow? A steady stream of resources and tools are essential. Here are some tips to help you on your way.
How will you get paid?
The options are plentiful and require careful consideration for your specific business model. Option one is a true merchant account. A merchant account is solely yours and must be granted through a processing bank. The merchant is completely responsible for the account, including gateway access.
Qualifications can be steep for a true merchant account and you must be a legally registered business to apply. Like anything credit related, the merchant’s credit score will determine factor eligibility and rates.
If your site has low transaction volumes, a merchant account may be too costly as fees are incured with minimal usage. While a merchant account gives you complete control it can be difficult to obtain and costly to maintain.
A popular and less expensive alternative is third party processing. Essentially the merchant is able to utilize the true merchant account of a third party. Paypal.com is perhaps one of the most widely recognized third party processing companies. In lieu of a credit check, only identity verification is required.
Third party processing is easy to integrate with an existing website by adding a few simple lines of code. In other words, no programming knowledge is necessary. Third party merchant accounts rarely require any sort of contract or commitment. If you are just starting out, the ease of use, low cost and flexibility of a third party merchant account can be a terrific asset.
Know Your Customers
It seems elementary but is not as easy as it sounds. Most websites have a conversion rate of 2%. What does that mean exactly? Only 2 out of 100 visitors to the site actually make a purchase. Learning what the other 98 visitors are doing and why they didn’t perform a transaction is necessary in order to grow your conversion rate.
Most web hosting companies offer a plethora of statistics included in your package. It would be nice to have a single magic tool to learn why visitors to your site don’t make a purchase. Unfortunately such a tool doesn’t exist. The best way is to simply ask.
The key to getting accurate and helpful feedback is to inquire in a non-obstructive way. It may sound old-fashioned but the old adage stands true; you won’t know if you don’t ask.
Make Them Feel Secure
Internet consumers need to feel secure in all phases of the transaction. The protection of their financial and personal information is paramount. All ecommerce sites must meet four requirements: privacy, integrity, authentification and non-repudiation. Most sites leave the mechanics to their hosting company but it’s very important to understand the basics.
Customer Service Is Still King
When we shop we like to know the merchant is available to answer questions and assist us with all phases of our purchase. We might not need a sales person but it’s nice to know the option is there. Ecommerce customer service software has become a necessity.
Implementing solutions to immediately assist customers with live interaction is a sure-fire way to acquire repeat customers. Internet consumers are savvy. Immediate satisfaction is matched only by the demand for accurate, real time information.
Hop aboard the ecommerce marketing train and don’t buy a one-way ticket. If you want to stay afloat, a multifaceted marketing plan is the only way to survive. Webmasters can no longer rely on a single action marketing philosophy.
Craft a marketing plan that encompasses email, newsletters, blogs, link exchanges, search engine optimization, article database submission and cross promotion. Long gone are the days of marketing only to the consumer. A solid business to business marketing plan has become essential in the ecommerce rat race.
Ecommerce resources are plentiful, the solutions robust. Create your own excitement and commit to the long haul. Weathering growing pains can lead to big gains. Success and longevity are attainable once the fundamentals have been implemented.
Top Reasons Why Customers Leave Without Buying
Every website has a lot more shoppers than buyers. Online business owners have addressed this problem by studying consumer preferences. Here are some of the top reasons visitors don’t always become customers, and suggestions for improving on any limitations that apply:
• Ease of use. Shopper’s don’t spend time trying to navigate a site that is confusing, difficult to use, or requires too many clicks to complete a transaction. Business owners can encourage shoppers to finalize sales by simplifying the process. Buttons, especially “add to cart” and “proceed to checkout”, are best displayed prominently, preferably above the fold.
Changing quantities, colors, and adding and removing items or changing shipping method should be easy to accomplish. Check-out instructions should be clear and simple. Customers appreciate the efficiency and respect for their time that a smooth purchase experience provides.
• Functionality. Websites that don’t work the way they should will not only lose sales, but discourage future visits from potential customers. It may be worth the investment to hire a knowledgeable web master to design and maintain the storefront and shopping cart.
A smooth-running website not only increases sales, but also frees the business owner to focus on other activities that can ultimately lead to more traffic and more conversions.
• Availability of information. Is an item in stock? How soon will it ship? What is the cost? What shipping and payment methods are available? Consumers are more likely to complete a sale when they are provided with sufficient information to answer all their questions about a product or service.
Providing an FAQ page is one way to provide answers. A convenient link to detailed information about specific products also helps. Many websites also include a contact form or live-help telephone number for customers with additional questions.
• Credibility and security. The online business owner’s website is her one means of instilling confidence in the buyer. Some ways to do this include:
- providing a physical address, telephone number, and email address
- displaying the VeriSign or other certification authority logo
- clearly communicating the website’s privacy policy
- publishing an “About Us” page that explains the company or business owner’s background, objectives and accomplishments.
• Multiple payment methods. Businesses that accept multiple forms of payment show significantly higher sales. Accepting credit cards, whether by setting up a merchant account or by using a third-party service such as PayPal, is crucial.
The benefit of using PayPal is that it also allows customers to pay by direct transfer from their checking accounts, providing yet another option.
Business owners who put themselves in their customer’s shoes will develop insight and be positioned to make positive changes that can lead to higher conversions, increased revenues, and greater profits.