Ecommerce 101 Nathan Ingram!
Who is this guy? Nathan Ingram Freelance Web Developer Brilliant Web Media WebDesign.com
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The Beginnings of Ecommerce When did online shopping begin? 1979 Michael Aldrich connected a modified home TV! to a transaction processing computer over! a telephone line in the UK.
The Beginnings of Ecommerce Another big year for ecommerce 1994 Jeff Bezos starts Amazon Netscape introduces SSL encryption Pizza Hut introduces online ordering
Amazon.com launched in 1994! but didn t turn a profit until 2003 Last year the average Amazon order was over $47 Source: InternetRetailer.com on 6/26/2012
Ecommerce Today Ecommerce sales worldwide topped $225B in 2012 Source: InternetRetailer.com
In the first quarter of 2013 $5,277 was transacted per second by Source: PayPal.com
The average consumer spends $1200-$1300 shopping online every year. Source: Forrester Research, Mashable Infographic 9/4/2012
By 2016 15% more people will be shopping online (192 million in the U.S. alone) Source: Forrester Research, Mashable Infographic 9/4/2012
If you are even moderately serious! about designing web sites, you need to know this stuff!
Ecommerce 101 The Standard Ecommerce Process Ecommerce with Third Party Processor Understanding SSL
The Standard Ecommerce Process Shopping Cart Payment Gateway Merchant Account Bank Account
Shopping Cart The shopping cart s job o manage the shopping process o communicate with the payment gateway o keep the user happy.
Shopping Cart Some Shopping Cart Options for WordPress: o Shopp o Cart66 o WooCommerce o Gravity Forms o Easy Digital Downloads o ithemes Exchange
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Payment Gateway Similar to Point of Sale in a retail store. Authorizes payments for the merchant and keeps a log of authorized transactions. Example: Authorize.net
Payment Gateway Payment Gateway Fees: o A transaction fee (10 *) o A batch fee (25 *) o A monthly minimum fee ($20*) * Current Authorize.net Fees
Merchant Account A bank account that receives payments from a card issuer Usually a separate company than the Gateway Works like a collection agent
What Merchant Accounts Do Hey, one of your customers made a purchase for $100. OK, here s the money Acquiring Bank (Merchant Account) Sweet, thanks. Issuing Bank! (of the Credit Card)
Merchant Account The Acquiring Bank (merchant account) assumes the risk for a transaction. o Fraud o Chargebacks Why would they take this risk?
Merchant Account 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.
Merchant Account Application process can be detailed and time consuming. Secure merchant account approval before constructing the ecommerce platform.
The Standard Ecommerce Process Shopping Cart Payment Gateway Merchant Account Bank Account
Ecommerce with a Third Party Processor Shopping Cart Third Party Processor Bank Account
Ecommerce with a Third Party Processor Shopping Cart Third Party Processor Bank Account
Standard vs. Third Party Processors Standard Lower transaction fees Looks more professional Simple recurring billing Quick automatic deposits Requires SSL on site Rigorous PCI Compliance Complicated setup process Third Party 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
The Many Flavors of Standard Accepts all major credit cards! and echecks No monthly fee Advanced + Customers! pay without! leaving your site $5 monthly fee Pro + Virtual terminal! for phone transactions $30 monthly fee Payflow Pro Integrates PayPal! with your current merchant account $25 monthly fee! 10 per transaction
What to Consider! when Choosing a Payment System 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?
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What About Security? Rule of Thumb: A web page that collects sensitive information from the user should be secured with SSL.
What About Security? What is SSL? SSL is a protocol that allows a program on your computer to establish a secure connection to a remote server.
How SSL Works Hey, I need a secure connection. Sure, no problem, here s my security certificate. Web Browser Sweet, thanks VIghro' boneh vide'os vineh Web Server
Types of Certificates Shared SSL Offered free by many! hosting companies. Shared by all sites! on a server. URL is not your domain,! can cause trust issues! with users. Domain Validated Certifies you own your domain name. Usually issued within! an hour or two. Cheap $65 a year Extended Validation Certifies you own your business and domain. Can take a few days to! a few weeks to issue Green bar in browsers $99-$350 a year
Sources for Certificates Y O U R W E B H O S T
SSL and WordPress WordPress HTTPS (SSL) Plugin by Mike Ems Available free from the WordPress Plugin Repository
Ecommerce 101 Nathan Ingram!
Coupon Code wpyall25! Good for 25% off anything you want to buy at! ithemes, PluginBuddy, WebDesign.com