E-commerce is short for “electronic commerce” or the act of buying and selling products and services online. Year after year, internet sales have continued to grow as consumers now have the luxury of buying a product they see in the store online, have it shipped to their home, and in many cases with free shipping included. The convenience factor of sitting in your pajamas buying something online vs. driving to the store is priceless to many. E-commerce has changed the way that people and businesses conduct business as there is very little overhead in just selling products strictly online.
In the old days, owning a store-front or “brick and mortar” store was the only way to conduct business and sell products. Many small storefronts still operate this way. though businesses who sell their products and services to a national audience have found e-commerce to be their business savior. The rise in internet sales has also led to the rise in small businesses being able to compete against the big store corporations in ways they were unable to before.
What is An Online Shopping Cart?
An online shopping cart is a virtual cart where you collect all of the items you want to purchase on a specific website. The customer pays online via credit card, PayPal or any other approved payment option.
If you are looking to start an e-commerce company and build a website for selling products, there are many things to think about.
1. How many products are you looking to sell?
2. What type of payment options will you allow?
3. Will you charge extra sales tax, handling fees or shipping fees?
When hiring a web design company to develop a website for you, there are a few phrases that are more advanced than just building a normal website. After the website is built, each product that will be for sale needs to reside in the shopping cart administration with all of its information. Each link or “add to cart” button on your website will link to the corresponding item residing in the shopping cart admin. As a business owner, you’ll want to set up a merchant account, which is where the payment processing occurs. After a merchant account is a setup, you need to set up a payment gateway for the merchant to send the transaction through. The payment gateway takes the transaction and forwards it through the payment processor used by the merchant’s bank.
The payment processor takes the transaction and forwards it to the proper credit card company used.