The Process of Online Transactions
Buying something online is a little bit more complicated and multi-layered than many people think. There is a process to online transactions that business owners should be aware of. First and foremost, taxes must be paid by customers in certain states. Laws have been passed in recent years that state customers living in particular states must pay sales tax on items ordered online. This information must be implemented in your shopping cart software, so that the taxes are calculated properly. Online transactions also require goods to be shipped, so it's up to you to decide what to charge the customer. This often depends on your shipping provider. Some merchants charge a flat rate no matter how much the customer buys, while others go on weight. Some ecommerce businesses charge shipping fees based on dollar amounts that are spent. During holiday times, it's good to offer promotional rates (if not free!) on shipping to generate more business and show your customers you appreciate them.
Online security is the most important part of online transactions. You don't want your customers to feel like their information is visible to others and can easily be stolen. Using a secure site with encrypted technology makes a huge difference. Getting your SSL certificate really helps to prevent fraud and theft online. The general rule of thumb is to use a 128 bit SSL security certificate. Most people purchase items online using a credit card. Because of this fact, payment options should include at least the major credit card companies (Visa and MasterCard), as well as e-check options, which allow customers to pay online using their bank account. Paypal.com is another option for many online merchants as well. Once you've got your taxes, shipping, security, and payment options in place, you are ready to sell online and reap the benefits of having an ecommerce business!
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