Understanding E-Commerce 
In Two Minutes

This article is designed to give you a quick overview of E-Commerce and what is needed to build a virtual storefront.

Your Domain Name 

Your domain name is your official "address" on the World Wide Web. This is like getting a dba - "doing business as". In order for people to locate your address, they type in the complete URL (Uniform Resource Locator) of your site, which is usually preceded by http://www. For example: http://www.yourdomainname.com. Your must register your domain name so that people can find you on the Internet.

Your Website 

This is your online connection to your prospects and customers. The design of your site is critical to the success of your business! If it does not look like a professional, legitimate business, no one will order anything, no matter how great your products or services are. If you are serious about doing business on the web, either go back to school and learn html, java, cgi, etc., or hire a professional to design your site.

Internet Marketing 

After you have your website online, it is important to do online marketing in order to drive traffic to your new site. Some common Internet marketing strategies include search engine registration, banner advertising, opt-in e-mail, pay-per-click advertising, e-zine advertising, press release distribution, and links on other relevant web sites.

Merchant Account 

A merchant account is a bank authorized account which allows you to accept major credit cards and checks through your website. Many traditional banks will not give you a merchant account if you do business on the Internet because they may classify it as high risk. Be careful when looking for a merchant account provider! Watch out for hidden fees, high setup fees, and other unscrupulous business practices.

Online Payment Transaction Software 

This is the software that automatically processes your customer order information, address, credit card number, etc. This data is sent to a credit card authorization network, which verifies that the credit card is valid and verifies that the shipping address matches the billing address. A possible warning sign that the card has been stolen is that the billing and shipping addresses do not match.

Secure Server Connection - https:// 

A secure server is a computer that encrypts confidential ordering data for customer protection. You know you are on a secure server when the URL in your browser says "https://". The "s" stands for "secure." If ordering information is not sent via a secure server, computer hackers may intercept it.

Shopping Cart 

Shopping cart software allows you to accept product orders for multiple products from your website. This software automatically calculates and totals orders for your customers. Some setup must be done in the html code of your website, and the shopping cart software must be installed on the server which hosts your site or on the secure server which accepts sensitive ordering information.

Getting Started

Preparing For E-Commerce