E-commerce
Introduction
 E-commerce (electronic commerce) describes using the internet to buy and sell goods and services online. This web page will provide you with an insight into the process of building an e-commerce website and the preparation work required.
E-commerce websites offer businesses greater opportunities to expand their market but equally involve a broader range of scope and complexity during set up than other types of website such as static 'brochure' websites.
Shortcuts to subject areas
Basic e-commerce options (PayPal Buy Now buttons)
If you are thinking of offering only a relatively small number of single item purchases it may be worth considering the straightforward and inexpensive e-commerce option of using PayPal Buy Now buttons.
 This option is simple to integrate into your website and does not require a database. In other words, PayPal Buy Now buttons can be integrated into a static 'brochure' style website very easily.
To make use of PayPal Buy Now buttons, you first need to set up a Premier or Business account with PayPal. Then, a step by step guide for adding buttons is available when logged onto your account at the PayPal website. Josh.biz can implement this on your behalf or offer assistance.
Buttons can be displayed in a traditional default style (as displayed above) or you can choose to use your own custom designed button graphics.
Sometimes, clients display a Buy Now button on their website to accept variable payment amounts. This offers an easy method for customers to pay invoices online.
PayPal Transaction Fees
PayPal will deduct transaction fees from the payments you receive in return for their services. Typically these fees are currently no greater than 3.4% plus 20 pence (per transaction). Please check with the PayPal website for precise transaction fees.
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Shopping carts
 Terminology: Shopping carts, trolleys and baskets
Before explaining shopping cart systems further, first some terminology requires explanation.
British people are more familiar with the term shopping trolley for the item pictured on the right. Americans prefer to use the term shopping cart. As with most IT terms, the Americans rule the roost. Hence we have to get used to using the term shopping cart system in the world of e-commerce.
When shopping online, you may discover the term 'Add to cart' occasionally crops up for this reason. Josh.biz prefers to use the phrase 'Add to basket'.
What is a shopping cart system?
Although PayPal Buy Now buttons are suitable for small numbers of single item purchases, most businesses selling online will require a full shopping cart system, which allows customers to browse and place products into a virtual shopping cart (basket). Customers then proceed to checkout to pay for their order using a Payment Processing System.
Websites which utilise a shopping cart are driven by an interactive database and are therefore also referred to as database driven websites.
Important considerations
One of the reasons why e-commerce websites with shopping carts tend to be more complex to develop is because of the many issues that need to be explained and discussed when preparing and building. For example:
- Deciding which products you wish to sell online
- Organising (categorising) your products into logical departments
- Determining prices (including taxation, packaging and delivery charges)
- Describing the products and making suitable images available (essential for marketing)
- Deciding how payments will be collected
- Ensuring your staff are trained to operate the shop and fulfil the orders
Josh.biz will discuss your requirements and ideas with you. We'll put our ideas to you also. We'll work with you from concept through to completed project and you will receive regular opportunities to see how its all going along the way.
Naturally, once your shop is online, we like to continue to work in partnership with you to ensure your success. Online shops can (and should) be continuously updated and marketed, taking advantage of techniques such as special offers, featured products, newsletters, discount schemes, etc.
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E-commerce considerations in more depth
 If you're thinking of creating a database driven e-commerce website with a shopping cart here are some important subject areas to focus on. These should be carefully considered and discussed early in your project development.
Creating an online product catalogue / database
An e-commerce website usually requires an online product catalogue which offers the opportunity to place your products into categories and subcategories (similar to departments in a physical shop). Each category (department) may have multiple sub-categories (sub-departments). This is essential for presenting your products to customers in an organized manner.
Product Information and Photography
It will take some effort on your part to initially get your catalogue online, including organising images and descriptions of your products and inputting the information into your database of products. Josh.biz usually offers to place a sample selection of products online for you but if your budget permits Josh.biz can arrange to 'populate' the entire shop for you.
The quality of product photography should not be underestimated or overlooked. In some cases the cost of professional product photography can exceed the total website design cost. This is particularly true if the images will require professional preparation and processing.
Pricing, tax and delivery charges
When calculating prices, some products can be priced individually. In more complex cases, products might need to be priced according to attributes such as size and colour.
Different tax classes may be applicable to products. For example, some products may need to include VAT. Others may not. Packaging and delivery charges also need to be planned very carefully, especially if selling internationally.
 Maintenance, shipping and fulfilment
You need to ensure that staff who will be handling the incoming orders are properly equipped and trained. They will need a modern, fast computer, full-time internet connection, e-mail software and the computer skills to process the orders.
Taking orders and payments online is just the first step. You will need to be able to dispatch and deliver goods or services in a reasonable time. There is a danger of being overwhelmed if your site attracts a large number of orders before you are geared up for them.
Ensure that you have your supply (stock) and delivery (fulfilment) channels ready to go. You must know up front how you are going to source / manufacture your products and how you are going to fulfil orders. Also consider whether the shopping cart should control stock levels and how this element would integrate into existing systems within your business.
Josh.biz ensures that adequate training is provided for all e-commerce websites we develop. Naturally, it is in our customers interests to be able to operate their online shop with confidence - including tasks such as adding and removing products, moving / copying products between categories, adjusting prices, etc.
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The Zen Cart shopping cart system
Josh.biz uses one of the worlds best open source e-commerce solutions for our customers - Zen Cart. Zen Cart offers a powerful and inexpensive shopping cart solution for online traders.
Why Choose Zen Cart?
Many web designers and e-commerce suppliers will offer you a website built using their own proprietary solution. This may work extremely well, but will probably tie you to that supplier. If they disappear or you become dissatisfied with their service, you may find yourself having to rebuild again from scratch - a costly mistake for any business to make.
In contrast, our solutions are used by thousands of web developers in the UK and around the world so you are not tied to one supplier or developer. By using Zen Cart, you are free to change web designer, web host or payment provider at any time.
Today's e-commerce market demands very fast implementation of new web stores at extremely competitive prices. Using Zen Cart as your e-commerce solution, Josh.biz can bring virtually any business up to speed in no time at all.
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Payment processing systems
 PayPal
PayPal offers a very simple and inexpensive payment processing system which can be plugged easily into most shopping carts including Zen Cart, with no set up or initial fee. Once a customer has gathered products into their shopping basket and provided their personal details, PayPal can handle the payment collection entirely. Since the payment collection takes place on the PayPal website (then returning the customer to your website afterwards), this also avoids the requirement for costly security on your own website.
Note that PayPal is able to collect payments from all major credit and debit cards. Customers are no longer required to have a PayPal account to use this method of payment. As you can imagine, this option is increasingly popular.
PayPal Transaction Fees
PayPal will deduct transaction fees from the payments you receive in return for their services. Typically these fees are currently no greater than 3.4% plus 20 pence (per transaction). Please check with the PayPal website for precise transaction fees.
 Other payment processing options
Alternatively, some clients prefer to process their own payments on their own website using payment providers such as Protx and WorldPay in combination with a merchant account (see Wikipedia's explanation of merchant accounts if required). Josh.biz is an authorised Protx Partner.
If payments are to be processed in this manner on your own website, security is highly important and some additional but reasonable charges will be incurred for this.
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E-commerce website hosting
Please refer to our FAQ page for a brief explanation of hosting if required.
Because of the more complex nature of hosting e-commerce websites, Josh.biz requires that clients sign up for our specially prepared e-commerce website hosting package which provides enhanced functionality, increased bandwidth and security. This package currently cost £240 per year and also includes a full support package as well as free technical updates (when required) to the shopping cart engine.
All our Zen Cart e-commerce websites are hosted on fast and highly secure servers provided by a local Norfolk company with Zen Cart Hosting Certification.
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How much does an e-commerce website cost?
The cost of e-commerce websites can be split as follows:
- The design cost of the website itself.
The costs of designing an e-commerce website should not be greatly different to designing a normal brochure type website (approximately £700).
- The cost of implementing the shopping cart (Zen Cart) - £900 upwards
- The cost of setting up and running a secure on-line payment system (unless opting for PayPal) - prices variable
- Hosting - £240 per year
So overall, e-commerce websites with shopping carts tend to cost £1,600 upwards to develop. Then, on a yearly basis the hosting fee is payable. Note that additional costs may be required for optional items such as product photography and filling the shop with product data.
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E-commerce examples from the Josh.biz portfolio
The Pot Company
www.thepotcompany.co.uk
The Pot Company - Largest supplier of frost proof terracotta pots, glazed stoneware, heavy-duty galvanised planters, contemporary, durable zinc, resin and fibreclay products
Designed using XHTML and CSS technology.
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How long does an e-commerce website take to develop?
The creation of an ecommerce website is a considerable undertaking and accordingly a minimum of 3 months should be allowed for the entire process. Delays in providing product information (including product photography) is the most common reason for delay.
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Regulations
Another major consideration is that, if you are selling overseas, you will be subject to other countries' regulatory regimes.
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The keys to successful e-commerce
The majority of successful online businesses have common characteristics which include:
- Selling the right product at the right price
- A professional design for your online storefront
- Providing a simple process for real time online payments
- Creating an effective promotion of your online business
- Having an e-commerce partner who listens to your needs and works closely with you
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Useful links
If you are considering selling online for the first time, here are some extremely useful website links which we certainly recommend reading.
Connecting Somerset - an excellent selection of articles available for free on e-commerce (and web design generally)
Business Link - e-commerce advice section
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Government e-commerce statistics
The Government Office for National Statistics (the ONS) reports that the value of internet sales rose by an incredible 56% per cent in 2005 alone, with internet sales to households rising to £21.4 billion in 2005 from £16.5 billion in 2004, a rise of 29.7 per cent.
The full News Release, published by the ONS can be viewed here (dated 13 October 2006).
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Ready to get started?
Call Josh on 01263 862610 or 0771 717 0779.
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