3 Things To Consider When Building An Online BusinessPosted on: March 14th, 2012
Building an online business is a highly promising undertaking although uncountable number of entrepreneurs have ventured into it and failed. To build a successful business one needs to focus on building web traffic and focus less on making money. Initially an online business may seem to be demanding a lot of work and costs yet the returns are so low compared to the amount of input, however with persistence and hard work the business may start getting increasing returns with drastic reduction in input work needed. The first three things to consider when building an online business are: taking payment online, the number of products to sell and the kind of e-commerce platform to use. These first three things to consider for a successful online business include a wide range of issues as outlined below.
Taking Payment Online
When building an online business, one need to consider the means of taking payments online since it entails more complicated requirements than expected by many new entrepreneurs online. There must be a payment gateway to collect and send payment details to the network that banks the payments. The online business must also establish an internet merchant account with which payments are first received before being transferred to the relevant business bank account. When choosing a payment provider, you need to consider a number of issues such as the reliability, flexibility, charges, brand name, security and integration options of the payment provider.
The online payment players that you need to consider prior to launching an online businesses will include service providers such as PayPal and authorize.net who have a history of effective and efficient service provision. PayPal and autyhorize.net are both recommended for successful establishment of online businesses because of their simple, universal, cheap set up costs and the ease with which new clients adopt it. However, in as much they are recommended, the service providers also have disadvantages such as: cases of client`s accounts being freezed, low quality services and negative public perceptions of being associated with cheap websites.
Number of Products to Sell
Prior to launching an online business, you must be aware of how many products you want to sell considering that more number of products amounts to a significantly huge amount of work to deal with. The most important factor to consider is building the best e-commerce for websites which will directly influence the number of products to be sold online. On the other hand, it is advisable for you to select the number of products you wish to deal with and use this information the select the type of online store and e-commerce that will support that number of products to be sold. In building an online business, you may incur costs that vary depending on the needs and requirements of e-commerce stores. Varying needs of different online businesses have their own running expenses although it is important to note that initial development costs are usually huge. The number of products to sell online should be varied depending the entrepreneurs capability to sustain development costs and how many products to sell. Although initial costs of designing the ecommerce website and integrating the business may be expensive, it is a onetime cost that may start off a successful online business.
In case you have a limited number of products to sell, you may consider using EBay stores to launch and operate your online business. The EBay stores is an inexpensive option especially when you don’t have funds to facilitate search engine optimization platform. For businesses that need to operate on a large scale online sale with extensive stores, it is recommended to use the custom shopping cart that may be designed to accommodate unlimited volumes as desired.
Which E-commerce Platform to Use?
When launching an online business, you need to know the kind of e-commerce platform that is right for the business depending on business budgets and amount of online sales intended. Open source carts are the most probable options to use though it can be ineffective incase you encounter problems with which you have no one to turn to for a solution since they are not created by any specific company or individual. Open source cart systems are developed by the public openly to offer free e-commerce platform such as the PHP web scripting language and the SQL database server. No costs and licenses are required for online businesses to be able to use, setup, maintain and run their online stores. Other options may include the shopping carts that are pre-made and proved to offer effective e-commerce solutions to online businesses at reasonably lower rates. The pre-made shopping carts can only support a limited number of online businesses and rarely offer possibilities of customization with regards to the specifications and needs of a specific business.
Hosting proprietary purchased software offers unlimited flexibility of your control and designs that you want for your online business. Professional web designers can assist you to create the best e-commerce for a website that you host and can acquire a license to use and customize to fit your business needs. The software can enable you to multitask, create and manage clients with ease. Custom shopping carts can be a good option for building your online business since it can be created to meet your business needs and preferences irrespective of how complicated and unique your specification may be. It can also enable you to come up with best e-commerce websites as long as your creativity and specifications are effectively put into place by the technical team creating you shopping program.
Hosted shopping cart is a refuge solution to online entrepreneurs who need more simplified solutions to relieve them of the burden of maintaining servers and continuously seeking solutions for software issues and complications. With hosted shopping carts, you do not need to hire an IT expert to maintain for you the complications involved with custom made shopping carts.