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Planning for E-Commerce

By Kevin Taylor, MBA
CEO and President, KT Graphics LLC.
 

The size of a business is not a deciding factor for its presence on the World Wide Web. In fact, the Internet, a wide region for millions of businesses to showcase and sell their products, evens out any differences in size, giving equal opportunity for each organization to display and distribute its services. A website that allows one to do business is an online store that is open 24x7 for customers to stop by and shop. Therefore, it is extremely important that individuals understand the various nuances that make a website suitable for e-commerce purposes. Even if a business is not creating its own e-commerce website, it is advisable to be familiar with what goes into making such a site a successful platform for commercial dealings. Here, one will find various aspects that will help create an e-commerce website in a simple, hassle-free manner.

Creating a domain name

Getting a domain name is the first important step toward building an e-commerce website. The website's URL is going to be everywhere that promotes the business - the business cards, brochures and other promotional material. It tells people exactly how and where to look for the business on the Internet. In fact, it gives the business a unique address on the Web. Therefore, make sure that this domain name is short, easy to remember and related to the nature of the business. The same domain name will be used to create e-mail addresses; so always pay attention when choosing a domain name.

After choosing the domain name, the business needs to procure and manage the domain name. This could be a tough task since the business may not get some of its first choices as someone else may already have that domain name. It is recommended that an individual have at least ten domain names in mind so that the process is not too delayed. Once one finds that the domain name is available, it has to be registered with a domain name company or registrar. This will cost anywhere from $8 to $ 35 per year, or in some cases a little more. It is a good idea to register a few misspellings of the domain name too, so that even if customers looking for the business misspell the name, they are still led to the correct site. This technique also discourages competitors from taking names that resemble the domain you choose.

Next, one has to choose a TLD or top-level domain, also known as domain name extension. Commercial firms naturally go for the .com extension. There are also others such as .net and .org, and several others for specific institutions like .edu, .biz, .tv, .info etc.

If a particular domain name is in use, it may not mean it is not available for sale. An individual can approach the current owner of the domain and buy it from them if they want to sell it. For this, one needs the assistance of domain name brokers who handle domains that are put up for sale by the owners.

The first step towards building an e-commerce website is completed once the domain name is ready. The next step is to build an attractive website.

Planning and building a website

Every company wanting a space on the Web with a profit-making motive is looking for a commercial website. Remember that the web content will help customers decide if this is the website from which they will buy. Thus, it is very vital to plan the site's contents carefully. Understand who the audience is and what the ultimate goal is. Understand the relevance of what is being sold to the lives of those who will buy it. Put yourself in your customers' shoes to comprehend if all their questions are being answered, and they are being provided what they want in the easiest possible way.

Another thing to be careful about is the type of information being provided. While the website building responsibilities may go to a third party, you must have an upper hand on how things are done. Don't forget to include an "about the company" page that gives detailed information about the company and its products and services. Do incorporate detailed information on what the products and services are, about the pricing, key features, and if possible even testimonials from customers who may have bought the product before. Anything that builds credibility with potential customers is worth being on the site.

Even if an individual is building the site on one's own, it is important to make sure the best site-building tools are used. Make a comparison with other famous e-commerce sites to know how to go about the process.

Navigation and loading time are very important aspects of a good e-commerce site. Adding a site map helps to tell clients how to navigate through the site. Most importantly, keep the website simple so that it loads as quickly as possible. Remember, there is a risk of losing prospective clients to slow websites that take several seconds to download.

Setting up good sites costs money. Have priorities clear in mind in order to know exactly what is affordable in terms of website costs.

Setting up a web server or choosing an ISP

The next step involves hosting the site on a web server so that customers can access the website on the Internet. Not all companies can afford to set up and manage their own web server hardware and software. For this reason, ISPs or web hosting companies are available to connect the site to the Internet for a monthly fee. They connect the website to their web server, allowing customers to access the site speedily from anywhere.

Setting up the e-commerce store

It is finally the time to set up the e-commerce store where people can buy the products and services, and make safe payments. It is up to you to ensure that transactions can take place in a secure fashion. Understand that, unlike in a brick-and-mortar store, customers cannot touch and feel the product, nor can they actually watch the payment process. The business has to build confidence in clients and remove the risks associated with e-commerce from the site to be able to gain loyal clientele.

A storefront usually falls into five categories, depending on what is being sold and how it is marketed. These are single product sites and specialty stores; general stores; service sites; shopping malls; and affiliate stores. One method of e-commerce is to join an existing online shopping mall for which there is a fee. All one has to do is upload his/her own web pages on to the mall's already exiting software. This also ensures that an individual wouldn't have to generate traffic onto the website. The mall, by itself, would have plenty of traffic.

If an individual wants an independent e-commerce website, one has to get the shopping carts ready. Just like in a real store, customers walk through the various pages, picking up items they wish to buy and load their shopping carts with these. The shopping cart software is created using a combination of web page forms and a database.

Next, the customer is expected to make payments. There are several modes that can be incorporated within the site. What one must ensure is thorough safety, whatever the technique is. Sites that accept credit cards assure the purchaser of a secure server that handles information in an encrypted format. Others depend on Pay Pal where there is no need for a secure server or for dealings with a bank. Digital certificates by issuers like VeriSign guarantee authenticity of identities and security.

Other than the good old credit card payments, and in some cases debit cards, checks are a good way to accept payments. The first is the tried and tested method of printing out the forms and sending it with a check. The second is printing of the check by the seller and depositing it just like an ordinary check. This however, obviously needs the purchaser's permission.

When working on credit card sales, there are key points to consider. One has to first get a credit card merchant account in place and sign a merchant agreement with a merchant acquirer. While negotiating with merchant acquirers one has to understand how much setting up the merchant account is going to cost. There are a number of fee payments to take care of- application fee, setup fee, statement fee, discount rate etc are just a few of them.

Next, prepare a return and refund policy, the absence of which can get an individual into a lot of trouble. Get a clear cut time span for return of products; fix valid reasons; the authorization methodology; documentations required while returning; shipping charges etc. The credit card company backs up a return policy whenever a cardholder has a complaint against the merchant. Make sure you put up a return and refund policy on the site. Also watch out for chargebacks and credit card frauds, which are situations a business cannot completely do avoid.

E-cash is touted as the future of web transactions, but there are still decades to go before people will get comfortable dealing with e-cash transactions or the immediacy with which bank accounts are debited when purchases are made using them, unlike when purchased with a credit card. The same problem persists with debit card purchases.

Closing all loopholes

It is time to take a look at miscellaneous factors that may act as loopholes, and therefore need closing. It is important that all bases be covered if one seriously intends to maintain a site and run an e-commerce business.

The first thing to do will be to take care of domain name disputes. A domain name is a trademark that must be unique to each business. It has to be registered so that it becomes solely your property and no one else can use it. Even a domain name that is similar could result in disputes. Using celebrity names can also call for trouble, so steer clear of that. According to the Anti-Cybersquatting Consumer Protect Act, the law can take action against those using a trademark name or a famous name in bad faith. To avoid any kind of domain name disputes, it is best to do some research on the Internet to check what domain names are already chosen. Keep options open for a trouble-free registration of a domain name. If affordable, an individual could also hire a law firm to research trademarks online. Once one has a good domain name, make sure to maintain it by renewing its registration. If not, any other web business can scoop up the domain name and point it toward the server of their site. This could be damaging to one's business, especially if porn pirates pick up the domain name.

It is a good idea to convey to one's customers in as many ways and words as possible that the site is secure. In fact, dedicate an entire page to security that clearly explains how protected the site is. Next, create a privacy policy, and make customers aware of it. Add a link to the privacy policy on all the web pages. And remember; do not ask for personal information from clients unless there is a special purpose for it. Asking for personal information when no transactions and other such dealings are expected is only going to make customers uncomfortable about "why" is it needed and "for what" is it going to be used.

Accepting advertising on a website is the owner's choice. If the traffic to the site is high, this could be another way to get money flowing into your coffers. Banner exchanges and banner ad arrangements are pretty much the current trends. A very important aspect of running a site is to optimize it for search engines. Those days are gone when web developers "tricked" search engine robots into ranking the site high via "invisible" keywords et al. Today the trend is more professional with search engines completely booting such sites from the database. Hire a professional search engine optimization company for this purpose, but only after careful consideration on where exactly the business is investing its money.

Maintaining and updating the site

Now that the site is all set to go up on the Web, it is time to test it for any possible problems. Testing can be done in different ways. However, it is vital to know for what problems an individual has to test the site. First, the site should not have any broken links; second, the download time should be acceptable; and finally, the text should be legible and functional in popular browsers. Maintain a record of the tests conducted and observations made. Find out which are the targeted browsers and platforms, and check which are the ones used more by the target audience.

To test the site, one could either assume the role of the target audience, and check the site for its functionality, making records of what works well and what doesn't; or one could hire people from the target audience and ask them to check and make observations about the site. One can also get assistance from popular evaluation systems to come up with one's own rate card. However, if the rate card displays low scores, shoppers may not want to do business on the site. If an individual wants to create a feedback form on his own, make sure direct questions are included instead of vague one's such as "What do you think about this new site?"
Alternatively, a business could create a success metrics or goals that need to be achieved over a period of time. If the site does not achieve these goals, one could ask feedback from users.

It is highly imperative to ensure visitor comfort in the site. Even if there are new tools that an individual is dying to use, make sure one doesn't change the usability patterns and appearance too often. This could make navigation and searching for items difficult for regular visitors, and eventually be a prime reason for them to stop visiting.

Apart from this, there are several site improvement tools available, which are either run online or are available for sale. These can be installed on the system and one can manage site maintenance on his own. Additionally, check with your host company for maintenance tools that come with the hosting packages. Also, depend on third-party monitoring who will notify you in a matter of minutes, if they notice any lapses in service or any other maintenance issues.

Keep in mind that Internet calls for frequent and quick updating of information. Responsibilities do not cease with creating, publishing and publicizing the website. One has to take wide-ranging steps to ensure that the data is updated often, depending on the industry and the products one exhibits. Thus, keep the site fresh over a fixed schedule of time. Keep giving visitors new and interesting material so that they want to keep coming back. Add newsletters, e-zines, product reviews and the like, if these help. What is important is to not let the website become stagnant. Ensure it always meets new and changing demands of your customers.

Contact KT Graphics for more information or to begin your custom e-commerce website solution (702) 538-8329.

References
Crowder D., Bailey A. (2004). Creating Web Sites. New Jersey. John Wiley & Sons.
VeriSign. (2003). How to Create an E-Commerce Web Site.
Flum A. (1999). What is Involved in Creating an E-Commerce Site. Retrieved July 10, 2007, from
http://www.aksi.net/e-commerce-guide3.ht

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