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A guide to building a great ecommerce site for your business.

The second quarter 2008 e-commerce estimate increased 9.5 percent (±1.2%) from the second quarter of 2007 while total retail sales increased 2.5 percent (±0.5%) in the same period (source: Census Bureau of the Department of Commerce). It’s no wonder that so many business-minded people are investigating numerous ecommerce opportunities. In fact, no other option allows entrepreneurs to operate a profitable business without the overhead or risk of running a brick and mortar store.

But before you jump into an ecommerce site, you need to first plan and develop your ecommerce business model to ensure the most success

Building a great ecommerce site for your business is more than purchasing an ecommerce shopping cart. A great deal of research needs to be done about your unique venture such as demand for your products, audience, geographical territory, sales tax requirement etc. Once that is completed, attention then needs to be diverted to the ecommerce site itself.

The fact is that designing the ideal ecommerce business is a lot like trying to find that perfectly tailored suit – one size does not fit all. Below are the detailed ecommerce features that you need to know and simple suggestions for customizing the options to best fit your unique web site and business needs.

Site Architecture / Site Functionality for your ecommerce site

Identifying the functional requirements of a site is paramount to creating comprehensive site architecture. Site architecture can be defined as the content and functional structure of a site, i.e. an index page, a contact us section, an about us section, a products section, a checkout area, etc. Each area comprises a single element of a larger hierarchy of information and functionality. If your website's main goal is to sell a product, clearly identify your product and how to purchase it on your home page. However, if your site is primarily informational, your site will need to convey information in a clear, easy-to-read format.

You and your web designer should work together to the answer the following questions when evaluating your website content:

    • Is the scope/mission of the website clear?
    • What are the functional requirements of the site?
    • Is the content easy to read for intended users?
    • Is contact and help information easily located within the website?

Write effective web content for your ecommerce site

Web shoppers are impatient. They want to know what you offer immediately, and they won’t wait around for your page to load on their screen. That’s why your web page needs to have plenty of white space, compelling web copy, and optimized graphics. If you make your site too graphic heavy, the web pages will load slowly, prompting your shoppers to move on. Make sure that any graphics you do post are crisp and clear. Digital images are ideal. Other ways to enhance the selling potential of your ecommerce site include:

1. Put your best selling products in a prominent place. Update this list of best sellers on regular basis, just as big department stores do. The beauty of the Internet is that you can give the impression that your company is much bigger than it really is. Therefore, imitate the sales techniques of the big name retailers.

2. Post the price clearly. Study after study shows that online shoppers place more importance on “honest pricing” rather than “lowest pricing.” Therefore, state the product price and shipping/handling charges upfront. Otherwise, your buyers may ditch the order at the last minute if they are surprised with higher than anticipated costs.

3. Avoid colloquialism. Since you are marketing your products globally, your writing style and word choice need to be universal, so that people from around the world can understand it. Avoid slang or phrases that only native speakers of your language would understand.

4. Attract buyers. Give buyers easy ways to make a buying decision. For example, if you are selling books online, let buyers read an excerpt before ordering. If you are selling gift items, add a search feature so that buyers can look up products by price and by occasion.

5. Set up a shopping cart system. Shopping carts make buying easier for your customers, as the technology allows people to surf your site and keep a running tally of their items ordered. Some shopping carts require considerable web design knowledge to set up, while others are very easy to implement. A good shopping cart system should allow you to add more products as your product line expands. 

PCI Compliance for your ecommerce site

For merchants who want to be certified to use Visa, MasterCard and other major credit cards on their ecommerce websites, it is required by the credit card company that they be PCI compliant. The specific standards are available on the Internet or from the credit card company itself. Size and type of business, number of transactions and total amount of all transactions will determine what is required of your web site company. For a business having more than 6 million transactions per year, an audit is required to be done for application. Any merchant violating the rules after being accepted as compliant will be sanctioned or fined.

Look for a web hosting service that is PCI compliant. The servers must have extra layers of security and credit information must be encrypted. Crucially important is the continuing ability to stay one step ahead of the hackers. Their illegal infiltration must be predicted and prevented.

Win your shoppers’ trust on your ecommerce site

Current research shows that online shoppers typically place little trust in ecommerce sites. Customers are wary of giving their credit card and personal information online, making online privacy and security key issues. That’s why your first priority is to assure customers that your site is safe. Ways to accomplish this include:

1. Post your security statement. Your ecommerce web site should be set up to encrypt all credit card transactions. This means that when a customer enters his or her credit card number on your online order form, and another Internet user attempts to intercept the data transfer, all the other user will see is garbled information. In addition, you can have firewall features that prevent outside users from penetrating your site’s security.

2. Post your privacy policy. Clearly state that any information customers give you, such as phone numbers or email addresses, will be kept strictly confidential. This provides your buyers assurance that their personal information will not be sold to third parties or added to a telemarketing list.

3. Post third party affiliations. Your customers want to know that your ecommerce web site is indeed a legitimate business, especially for higher-priced transactions. Show your affiliations with such organizations as the Better Business Bureau, the Chamber of Commerce, or any other industry-related professional organizations.

4. Post testimonials. Let your current satisfied customers sing your praises. Post testimonials from past clients who are happy with your service and products. Include their name and web address so that potential clients can contact them for a reference check.

Protect yourself from online fraud

One of the main fears that businesses owners face when accepting credit cards is the risk of fraud. While there are ways to protect you from dishonest buyers who attempt to pay with stolen credit cards, realize that no method is completely foolproof. Here are some ways you can minimize the risk of fraud:

1. In your order form, always ask for the exact name on the credit card and the street address that the credit card statement goes to. A thief typically wouldn’t know all this information.

2. Always ship the merchandise to the “bill to” address, which is the same address where the cardholder receives the credit card statement address. Normally a thief would want to send merchandise to his or her personal address.

3. For an unusually high transaction amount, ask for an alternative form of payment, such as a check or wire transfer. Since these methods of payment are more cumbersome than simply giving a credit card number online, you can counter any objection by offering an incentive, such as free shipping.

4. Install transaction-tracking software. Just as the IRS computers flag certain tax returns, you can automatically flag transactions that appear out of the ordinary. You can then create a profile of fraudulent transactions using predictive statistical models. These models are based on complex mathematical formulas and can be used to detect future fraudulent transactions.

Offer post-sale customer service assurance in your ecommerce site

One of the drawbacks of ecommerce is that there is rarely face-to-face human interaction with your customers. Some alternative ways to communicate with your buyers include:

1. Confirm the order as soon as you receive it. Send an email thanking the customer for the order. In the email specify the expected delivery date. Don’t make false claims. If the product is on back order, say so. Offer to give a discount or free shipping if the delivery time is outside of the expected timeframe. No one will be happy if they receive their Christmas present after the New Year or receive a beautiful bouquet of red roses after Valentine’s Day has come and gone.

2. Once you ship the product, follow up with a phone call. During this time you can make special promotion offers for reorders. Such a personal touch builds customer loyalty.

3. Record all feedback, good or bad. Use the feedback you receive to strengthen your ecommerce business model.

Secure Hosting for your ecommerce site  

First and foremost is security. Consumers want their credit card information protected. By taking note of the https at the beginning of the url versus the http, shoppers are assured of privacy through encryption. Online shoppers expect an ecommerce web site to accept major credit cards. If an online store will not accept them, it raises a red flag to any seasoned shopper. PCI Compliance (see above) is another important issue for merchants.

A good ecommerce hosting provider should provide PCI Compliant hosting as well as SSL certificate.

SSL is a technology which protects sensitive information from being accessed by an unauthorized individual. It is an acronym for Secure Sockets Layer. The SSL Certificate when granted to a web host provider is unique. Each SSL Certificate indicates the verifiability of the owner's identity. With the certification a protected transaction takes place. Each certificate has two "keys." There is a public key which encrypts information in preparation for a secure transmission. The private key receives the encrypted information and deciphers it.

The following takes place:

    • Browser points to an SSL Certified website
    • SSL is authenticated
    • Encryption method is put into place
    • Secure transmission begins
    • Secure transmission is received
    • Information is deciphered

In conclusion, ecommerce is here to stay and gaining momentum year to year. If you are looking to build an ecommerce site we can help. Please email support@localweb.com