Ecommerce Basics - Ecommerce Summit 2013

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2. When did online shopping begin? 1979 Michael Aldrich connected a modied home TV to a transaction processing computer over a telephone line in the UK. 3. Another big year for ecommerce 1994 Jeff Bezos starts Amazon Netscape introduces SSL encryption Pizza Hut introduces online ordering 4. Almost 20 Years Later Ecommerce sales worldwide topped $200B in 2012 Source: 5. In the third quarter of 2012 $4,423 was transacted per second by Source: 6. The average consumer spends $1200-$1300 shopping online every year. Source: Forrester Research, Mashable Infographic 9/4/2012 7. By 2016 15% more people will be shopping online (192 million in the U.S. alone) Source: Forrester Research, Mashable Infographic 9/4/2012 8. know this stuff! If you are even moderately serious about web design, you need to 9. The Standard Ecommerce Process Ecommerce with Third Party Processor Understanding SSL 10. Shopping Cart Payment Gateway Merchant Account Bank Account 11. The shopping carts job o manage the shopping process o communicate with the payment gateway o keep the user happy 12. Some Shopping Cart Options for WordPress: o Shopp o Cart66 o WooCommerce o Gravity Forms o Easy Digital Downloads o iThemes Exchange 13. Download the PDF Below the Chat Window 14. Similar to Point of Sale in a retail store. Authorizes payments for the merchant and keeps a log of authorized transactions. Example: 15. Payment Gateway Fees: o A transaction fee (10*) o A batch fee (25*) o A monthly minimum fee ($20*) * Current Fees 16. A bank account that receives payments from a card issuer Usually a separate company than the Gateway Like a collection agent 17. Acquiring Bank (Merchant Account) Issuing Bank (of the Credit Card) Hey, one of your customers made a purchase for $100. OK, heres the money Sweet, thanks. 18. The Acquiring Bank (your merchant account) assumes the risk for a transaction. o Fraud o Chargebacks Why take this risk? 19. Oh Good, More Fees o Discount Rate (2-6%) o Monthly Minimum Fee o Customer Service Fee o Annual Fee o Chargeback Fee Types and amounts vary widely between banks. 20. The application process is detailed and time consuming. Secure merchant account approval before constructing the ecommerce platform. 21. Shopping Cart Payment Gateway Merchant Account Bank Account 22. Shopping Cart Bank Account Third Party Processor 23. Shopping Cart Bank Account Third Party Processor 24. Lower transaction fees Looks more professional Simple recurring billing Quick automatic deposits Requires SSL on site Rigorous PCI Compliance Complicated setup process Higher transaction fees Can appear amateurish More complicated recurring billing Automatic deposits n/a or weekly No SSL required No (or simple) PCI compliance Easy setup process 25. Accepts all major credit cards and echecks No monthly fee + Customers pay without leaving your site $5 monthly fee + Virtual terminal for phone transactions $30 monthly fee Integrates PayPal with your current merchant account $25 monthly fee 10 per transaction 26. 1. How much volume will you process? 2. Do you need to do recurring billing? 3. Where are you based? 4. Does the company have a good reputation? 5. What level of support will you receive? 6. Does the gateway integrate well? 7. Are there any hidden fees? 27. Download the PDF Below the Chat Window 28. A web page that collects sensitive information from the user should be secured with SSL. 29. What is SSL? SSL is a protocol that allows a program on your computer to establish a secure connection to a remote server. 30. Web ServerWeb Browser Hey, I need a secure connection. Sure, no problem, heres my security certicate. Sweet, thanks VIghro' boneH vide'os vIneH 31. Offered free by many hosting companies. Shared by all sites on a server. URL is not your domain, can cause trust issues with users. Certies you own your domain name. Usually issued within an hour or two. Cheap $20+ a year Certies you own your business and domain. Can take a few days to a few weeks to issue Green bar in browsers $149+ a year 32. Y O U R W E B H O S T 33. Plugin by Mike Ems Available free in the WordPress Plugin Repository 34. SESSION TWO UNDERSTANDING THE ECOMMERCE PROCESS