What is E-commerce?

Electronic commerce is a way to sell goods and services via the Internet. Product information is made available on the site along with a means for visitor to make purchase with credit cards using secure methods to transfer private consumer information. These on-line businesses can be managed remotely and securely by the merchant who can access and update information.

 What are the risks of getting involved with e-commerce?

The primary concerns are regarding security and cost effectiveness. The security of confidential information is important to you and your client so having this information readily accessible and transferable can be a risk unless your site is properly set up. As with any business venture, investing in something new requires a threshold of investment and a sound approach in order to insure some level of success. Since not all e-commerce sites are commercial successes, a businessperson needs to look to an established developer to help learn what are the costs and important considerations in developing a site.

The Federal Trade Commission is a governmental organization that has provided some valuable tips for consumer protection regarding e-commerce at this url: http://www.ftc.gov/bcp/menu-internet.htm

 Why would I want to do my commerce on line?

An e-commerce site can:

• make purchasing easier for your clients
• reach a broader client base
• be an efficient mechanism to make transactions
• advertise more cost effectively than traditional methods
  

 What does it cost to set up a site?

The scope of the site will determine how costly it will be. Few companies can afford the extensive features offered at amazon.com though even a small business owner such as a craft shop can benefit from a commerce site if it is done properly.

The costs to set up a site include:

• your time (pulling together text & photos, working with developer, filling orders, maintaining the site)
• developer fees (consultation & making the site)
• site hosting fees

The actual costs for the development portion can range from $3,000 to $10,000 for a basic commerce site and $10,000 to $50,000 for sites that have greater features. Medium to large business can invest millions of dollars for sites that have high volume transactions and require complex systems that use state-of-the-art systems to provide a highly interactive experience for the consumer.

Almost any type of business can be effective selling on the Internet yet to do be successful takes time, money, a good product and a knowledgeable developer. Contrary to the hype, e-commerce is not profitable for every business that puts up a site. E-commerce is a specialized enough area that hiring a developer is required in most cases.

There are several examples of e-commerce sites on the web you can visit to learn more about how they work. Learning how they work will help you determine how you would envision your site functions.

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