What It Takes To Start An Ecommerce Business

day's economy, more people are looking toyour host before you launch your website.
supplement their income by starting a side business,The next consideration is a financial one. Most likely,
or making a complete move to self-employment. Anyou need to accept credit cards, and to do so you'll
e-business often appears to be a quick and easy fix -have to obtain a merchant account. Shop around for
and sometimes it can be - but it's important to knowthe best rate you can find, or ask your host or other
what it takes to get started. The benefit of an onlinebusiness owners for a referral. Make sure the
business is that the startup costs are generally lowermerchant account you choose supports a payment
than a brick-and-mortar store. If you choose togateway that is compatible with your shopping cart.
drop-ship items, you may not have any costs forThe gateway and the merchant account work
rent, insurance on your inventory, or interest chargestogether to charge customers' credit cards and then
for purchasing stock in advance using credit insteadelectronically deposit the funds into your checking
of cash. But even companies who stock items haveaccount.
lower costs - rent is cheaper on warehouse spaceSometimes the trickiest part of setting up an
than it is on retail space, fixtures and signage areecommerce website is working with shipping charges
often unnecessary, and you may not need to hireand sales tax calculation. For shipping calculations, a
staff until your business begins to grow.little trial-and-error may be required. Keep a close eye
But what aspects of your business should youon your initial orders, and make sure your average
consider in advance?shipping costs are about the same as the average
The first consideration is your image and yourcharges to your customers. You may also wish to
product offerings. Research and select a unique,increase your shipping charges to make a little profit
memorable name for your company, one thaton them, or decrease them to encourage more
reflects the products you plan to offer. Next, decideshoppers to complete their orders.
on a domain name, and register it - your host canSales tax may be easy or difficult, depending on
help. You may choose to register .com, .net, and .orgwhere your business is located. You should speak
domain names to avoid desaturation of your brand inwith the state taxing authorities for any states in
the future. Depending on your budget and your goals,which you have nexus, which is loosely defined as a
you may also wish to register the name of yourstate where you have a physical business presence.
company as a trademark with the United StatesFind out what your requirements are, and work with
Patent and Trademark Office.your shopping cart to make sure that the right
Sourcing is the next hurdle. This term refers tocustomers are being taxed the correct amount. Learn
finding and working with vendors who wholesale thehow to complete your sales tax return, and make
products you are interested in selling. Considersure that you keep accurate and detailed records to
whether you wish to drop-ship your inventory -help you maintain sales tax compliance.
where the vendor stocks the items and ships themOrder fulfillment is the last step. When a customer
directly to your customers - or if you want to stockplaces an order on your website, you then need to
your own items. You may also choose to do aship his order to him. Make sure you have facilities in
combination of the two approaches. Vendors mayplace for communicating an order to your
require that you provide them with a resaledrop-shipper, or that you have the software and
certificate, so make sure you are registered withsupplies necessary to package the products,
your state government to collect sales tax prior togenerate a label, and print postage (unless you plan
beginning your work with vendors.to take your orders to the local post office or carrier
Next, research your web site hosting needs. Manystore). Provide customers with an easy-to-understand
hosts offer plans that include shopping carts, such asreturn policy (on your website and in your packages,
Miva Merchant, as part of the monthly fee. Youif possible) and a way to contact you if they have
should look for a host that has a good reputationquestions or problems.
among other businesses who use the same shoppingReviewing each of these aspects of your business,
cart software, and one that offers phone supportprior to launching the company, should be part of
(24/7 if possible). Purchase an SSL certificate - theyour overall plan to help your company achieve the
software required to encrypt sensitive informationsuccess you desire.
such as your customers' credit card details - through