Source: In today’s fast-paced society, where the world of commerce is not limited by borders, small businesses need to expand their ability to exchange their goods and services in return for payment. With more consumers shopping online from the comfort of their living rooms, small businesses need to consider alternatives to traditional payment systems. Samuel K. Burlum provides a review of the available options.
One of the residual benefits of technology advancement for small businesses is that it brings small businesses and distant markets closer together. Fifty years ago, an independent retailer on Main Street USA would have never been able to communicate with a potential customer in a foreign country, let alone sell their goods or services from afar. Today, many small businesses can offer their value propositions outside of their zip code with the help of electronic commerce platforms and digital tools.
Small business owners have a two-fold win. Firstly, small business owners have a multitude of digital advertising options available to them to reach potential consumers in other geographic locations outside of the physical reach of their businesses. Secondly, by using ecommerce platforms, small businesses can collect payment for their products and services without the customer ever having to step foot into their physical business location.
There are two kinds of ecommerce platforms to consider: Self-Hosted and Hosted. There is a difference between the two types of platforms which a small business owner should consider before choosing the platform and service that works for them.
Self-Hosted platforms are designed to be coupled with web hosting. These systems work similarly to partnering a web blog roll to an existing website. However, instead of partnering content, you are partnering a payment system. These systems can be tailored to the specific needs of the business, such as the implementation of a shopping cart for an online store. When using a self-hosted ecommerce platform, businesses are afforded the flexibility to alter their system, website, or even transition from one service provider to another.
Hosted ecommerce platforms are ecommerce platforms that integrate all of the moving parts of an ecommerce system into one. Hosted ecommerce platforms include access to the master web servicer that services multiple end users, the online shopping cart, bill collection, transfer of funds, and technical and design support. Because hosted ecommerce platforms are designed to be universal platforms utilized by many ecommerce participants, these systems and functions are more uniform.
Some of the most recommended Self-Hosted ecommerce platforms include Magento, OpenCart, WooCommerce, Zen Cart, and Big Cartel. What these platforms have in common is that they are designed for use by both the home-based business and the small brick and mortar business. These self-hosted platforms allow users to customize their own tools without the help of outside tech support. They also allow for the business owner to take advantage of search engine optimization tools, and user-friendly systems for shoppers. Much like creating a website, these platforms offer multiple templates, built-in blogging tools, and individual control over design and tool integration changes.
Shopify, Big Commerce, PrestaShop, Volusion, and YoCart are highly recommended Hosted ecommerce platforms for the small business owner to the major corporate-run online store. Shopify is the most recognizable and popular ecommerce platform of the bunch; however they all offer an elevated service package. Many of these systems are mobile friendly, include full blogging capability, offer a number of payment gateways and options, support multiple languages, have app capability, and include automatically integrated back office security. These platforms have some flexibility for custom features to be added, and can be integrated into almost any digital marketing advertising tool.
Alternatively, Facebook now offers a purchase button on business pages, allowing for small businesses to share their products on one of the largest social media platforms in the world, and some of the most popular ecommerce websites where products can be offered include Alibaba, Amazon, Craigslist, E-bay and Etsy.
Several payment processing options are available with ecommerce platforms, such as Payline Data, Stripe, Dharma Merchant Services and PayPal. Choosing the best fit for your ecommerce platform may require a little research, since you will also want to consider which options are most secure and what the fees will be.
One of the most common ecommerce payment gateway options is PayPal, which can be used as either the primary payment gateway or as a secondary payment option, since many consumers have PayPal accounts. PayPal has served many small businesses and online marketers as a payment collection option. PayPal’s functionality is the reason it is preferred by so many small businesses and online shoppers. PayPal serves as an online e-bank account where consumers can hold money for use in making online transactions. Small business owners can put PayPal to work just the same as a cash register, where they can generate an invoice and bill clients, collect from clients, and then either hold their revenue in their PayPal account, or transfer their money to a traditional bank account.
Cost will vary between ecommerce platforms. Some require a monthly or yearly subscription flat fee while others will waive the flat fee in exchange for a percentage of the purchase-sale transaction – much like operating a merchant account tied to a credit-debit card terminal. Business owners should consider how many online transactions they project their online store will generate and compare the percentage rate against the flat fee rate. Shipping and handling costs, taxes, and import-export fees (when warranted) will also need to be factored in.
Before deciding on the platform for your small business, consider all of the options, costs, and how well your potential consumers will respond to the ecommerce tool. If the process is overly complicated, you may lose sales if potential customers are not comfortable with the transactional platform.