ecommerce shopping cart systems
Some eBayers have asked me about alternative shopping cart systems to for example Miva which I highly recommend. Two alternatives come to mind: 1. ProStores: for an eBay seller this one is a natural. The reason is that it can interface with eBay like no other. It’s a quick study to get started and I will post some additional information here to get you started quickly and easily. This system carries some issues, such as pricing on the transaction end, but overall I would rate it highly for eBay sellers. Check out the offering of ProStores here. 2. OSCommerce. This solution is fully customizable, but who would want to. To get going quickly there are no issues, it’s pretty much install it and run. But there, that’s the key issue. If you are going to use this type of system you will need to understand how to install it, or get a host to install it for you. The customization for headers and site design are not that difficult and I will post some additional information as time permits on quick starting this project.
If you want your online business to be a success, you have to accept credit cards. Statistics showed that right after starting to accept credit cards; the sales can increase by as much as 400%. To do this you need to have an Internet Merchant Account.What is an Internet Merchant Account?
Essentially it is a bank account for an online business, it allows merchants to deposit and refund online payments. In trust, the bank agrees to allow you to charge people’s credit cards for goods and/or services you provide. The bank in turn, has the responsibility for debiting the funds from the customer(s) and depositing it into your account. What kind of options are there?
Typically, you have two when it comes to acquiring a merchant account. First, the normally preferred method is to acquire your own merchant account. The second option is to use a third-party merchant account. This means that another party allows you to accept credit cards using their merchant account. This can be more expensive, percentage-wise, but is a good option for people with very low volume or who are unable for some reason to get their own merchant accounts.What are the advantages of having my own merchant account?
Lower credit card percentage fee
Ability to use own ordering system (shopping cart, etc)
More control over transactions
Don’t have to go through a third party
Able to sell any kind of products/services
Much shorter wait time for money, in some cases no wait
Fees refundable on returns
Lower credit card percentage fee
Disadvantages?
Larger startup fee
A few monthly fees involved (depending on the provider)
There is an approval process, which can take 30 minutes to a few days
What are the benefits or a third party account?
Able to get if turned down for your own merchant account
Less hassle, don’t need to deal with bank directly
Less initial investment than own merchant account (usually)
Disadvantages?
Higher percentage fees
Much longer wait for money
Higher chance of being down by using another company’s service
Less control over transactions
Complexity of going through another company
Must use their shopping cart
Overall higher costs per item
Usually only limited to tangible items
When accepting credit cards through a merchant account, what kind of fees can be expected?
Startup Fee — This fee is a one-time cost and can range anywhere from $99 and up, depending on the merchant provider you go with.
Credit Card Fee — There is a credit card fee charged by the major credit card carriers directly. Visa and MasterCard typically charge less than American Express and Discover. Expect anywhere from 1.5% to 4% deducted from each sale. This credit card fee is taken off the top, and is deducted from the charge amount before the money is depositing into your account.
Transaction fee — In addition to a percentage on each sale, your merchant provider changes to cover their costs of network usage, equipment, etc. These fees can range anywhere from 10 cents to $1 per transaction, depending again on your merchant provider. This fee, like the credit card fee, is taken off the top and deducted before the money is deposited in your account.
Additional fees — Depending on whom you sign up with, there may be additional fees associated with your account. (ie: statement fees, minimum traffic fees, charge-back fees, etc.)
There are many merchant providers available to assist you in obtaining the ability to accept credit cards as payment for your goods and/or services. Having a basic understanding will allow you to make an educated decision when it comes to selecting the right provider to help make your business successful.
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