The e-commerce landscape has evolved significantly, and it's no longer a question of whether you should accept credit cards and checks on your website. The real question is how to establish a successful e-commerce solution that aligns with your business model and budget. This article will explore six critical mistakes that can derail your e-commerce efforts and provide insights on how to avoid them.
According to Nua Internet Surveys, as of January 2000, there were approximately 248.6 million people online worldwide. Research from Cyber Dialogue revealed that twice as many US adults used credit cards to buy products and services online in 1999 than in 1998. The Internet economy was projected to be worth $1 trillion by the end of 2001 and $2.8 trillion by the end of 2003. Furthermore, the worldwide market for business-to-business e-commerce was expected to expand to $7.29 trillion by 2004, more than 50 times larger than in 1999, according to TechWeb.
Given these statistics, it's no surprise that more entrepreneurs and businesses are eager to establish e-commerce websites. However, setting up a successful e-commerce site involves more than just creating an appealing site and getting a credit card merchant account.
Here are the six critical mistakes that can derail your e-commerce efforts:
If your merchant account doesn't support e-commerce or AVS (Address Verification System), you'll need to manually enter transactions and risk losing your account due to bank regulations. Ensure your processing solution uses AVS and that your merchant account is set up for Internet processing.
Processing solutions that don't support real-time processing can hinder your growth and marketing efforts. Manual order entry can be time-consuming and costly, especially if the customer lives overseas.
Not all web hosts support certain shopping carts, and not all shopping carts work with all credit card processing solutions. To avoid customer service nightmares, work with a company that can provide one-stop service for your web hosting, shopping cart, and e-commerce needs.
Most banks that accept Internet merchants only allow a certain volume to be processed on a monthly basis. As your business grows, you can find yourself in a bind. Ensure that your merchant service provider can help you establish a relationship with a bank that offers higher processing limits and is flexible enough to grow with you.
Some merchant service providers may charge higher processing and transaction fees if you have less than perfect credit. Ensure that you work with a merchant service provider that's honest with you and will take the time to answer all your questions.
New or home-based businesses are often required to pay thousands of dollars upfront to get their merchant account approved. If you plan on processing a high volume, have high priced items, or high-risk products, select a merchant service provider that has enough experience to negotiate reasonable terms with the bank for you.
AIS Media was founded in 1997 with the goal to be a one-source solutions provider for companies wanting to do business on the Internet. They offer lightning-fast and reliable web hosting services, complete credit card and online check processing solutions, and integrated shopping carts and easy Internet storefront builders.
