Selling online through online shops

A few years ago this industry went mad with every man and his dog wanting to get an online shop and become rich over night. Lots of you will remember that madness and also remember the bubble bursting. We remember it very well, as it was a significant phase in this relatively young industry.

There were many mistakes made at that time but fortunately for those of us that are still around there have been many lessons learned.

Not only have Kiswebs learned from that stage of development but we are pleased to say that the general business community has learned and we are now dealing with a much more informed world when it comes to selling and buying online.

Should you be selling online ?

When businesses approach us and say they would like to sell online we do not just say yes ok - lets get you up and running.

Not every business should sell online or at least not every business is ready to sell online.

There are many factors that have to be taken into account.

• Are you an established business with a proven track record or are you a new start business with no track record of selling ?
• How are you going to market your site ?
• How can you build confidence in the purchaser so they are happy to divulge their credit card information to you ?
• Do you have the infrastructure in place to deliver on your promises ?
• What happens if someone is unsatisfied with the products you send ?
• What is your returns policy ?
• How long will it take from order to deliver ?

Remember people expect things NOW !

How does it all work ?

The usual setup is as follows. You get a website that has an online shop part to it. People buy certain products and the shop calculates the total costs including vat and delivery charges if they are applicable.The purchaser then is directed to ( hopefully ) a secure area of your website or a secure area on a third party web site, and confidently submit their credit or switch card details in order to make a purchase.

The third party is usually known as a PSP or Payment Service Provider, the most common PSP's are ; Worldpay, Netbanx, Secure Trading, but there are many many more.You are generally notified by email with the order details and the purchaser is notified of confirmation that the order has been received and is being processed. It is really over to you at this stage to make sure you deliver the correct products and on time.

What is the role of the PSP (Payment Service Provider )

The PSP sort of acts like a bank and a shop simultaneously as not only do they take the money from the purchaser but they also charge the shop owner a percentage of the money taken for the purchase. Why do they take money and what are they actually doing ?

To put it simply the PSP does all the checking of credit cards to make sure they are valid and authorises the transaction, before depositing the money for the purchase, minus their percentage, into your bank. This removes the need for you to do checking and as such saving you time and effort.

Generally speaking the cost to you as a shop owner will amount to somewhere between 3% - 6% of the total purchase cost. This will be made up of charges to your PSP and also your bank and will vary depending on the value of your purchases and also which PSP you use.

Want to know more ?

Call us on 0141 332 7144 or alternatively contact us through our online contact form