If you wanted to attend our Introduction to E-Commerce event but couldn’t, don’t sweat it. Below is a short summary of the information that was covered, complete with Brad’s full slideshow presentation.
What is E-Commerce?
Electronic Commerce most commonly refers to websites that sell products or services (shippable, digital, or tangible) and collect payment online.
E-Commerce is made up of the following:
- Payment processing
- Website and Data Security
- Web/Customer Analytics
- Website Merchandising
The 3 Key Elements
Merchant Account
A special type of bank account that enables a business to accept credit and debit cards payments. They’re usually provided by your bank. It usually also integrates with a “payment processor” as an intermediary to payment gateway.
Example: PayPal, Google Checkout
Payment Gateway
The Internet equivalent of a Point of Sale (POS) credit card terminal, a payment gateway is an interface for getting an approval or rejection of a transaction by a “payment processor” and merchant account.
Shopping Cart
An online shopping cart is a digital version of a shopping cart or basket shoppers carry around a store with them. It is a piece of web-based software that manages all of the products in your store and helps you process and keep track of orders.
Cost and Pricing Models
E-Commerce sites come with a list of common costs:
- Discount/Interchange Rate – A percentage of the transaction amount (1-6%) that is paid to the merchant account provider.
- Per-Transaction Fee – $0.05 – $0.45 cents per transaction
- Monthly Fees – Charged on gateways, merchant accounts, etc. Varies by the integration method used.
- Chargeback Fee – If a customer disputes a charge with his/her credit card company. ($20)
- Application Fee – Usually charged for a merchant account. The fee can range from $49-300.
Other topics covered:
- Credit Card Interchange Rates
- Merchant Account and Payment Gateway Options
- Shopping Cart Options
- Website Security Basics
- Measuring Your E-Commerce Performance
- Driving Traffic to Your Store
- New Technologies and Other Considerations
For more information or to review Brad’s complete presentation, feel free to contact us at info@buckeyeinnovation.com or (614) 289-7900.
