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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.

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.

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.

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.

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.

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:

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.