Ecommerce Hosting and Online Payments
Red Rook can facilitate virtually any ecommerce hosting solution you require. Further down this page, we'll give an overview of the logical processes you might consider for order fulfilment and payment receipt. However, we recommend starting off small (and simple), before upgrading to more complicated solutions that are also likely to cost more in setup, and possibly, per transaction. We are only too happy to discuss your needs over the phone, or send us an email. We suggest you organise the hosting of your website first, before getting too bogged down in the options available for online ecommerce transactions.
An overview of ecommerce hosting and processes
The following options for online business ecommerce transactions relate more to the logical process involved, rather than the physical one. As technology changes, the physical constraints and capabilities also change. However, the logical process that requires ecommerce hosting will remain essentially the same. Remember, ecommerce web site design is no different, when it comes to basic web design principles, than any other web site. The only difference is that their can be additional effort (and sometimes cost) required for ecommerce hosting and web site development, you may need a method of ordering and delivery (perhaps using an ecommerce shopping cart), and you'll have to consider order payment options.
Ecommerce via email or a feedback form
You can design your ecommerce web site to contain information about your product/service and encouraging your potential customer to contact you (if they need further information) and place an order, usually via email or telephone. This system can be applied to most types and sizes of transactions and will probably suit the small business just establishing their ecommerce web site.
You may need:
- An email address and/or a web site with a feedback form
- A method of following up the enquiry e.g. fax machine, email, telephone, conventional mail service
- Payment acceptance method e.g. cash (or direct deposit to your bank account, or using a third-party service such as PayPal), credit card, or cheque
- A means of delivering the product or service to the buyer
It can be good because:
- Customers can contact you direct
- It's inexpensive to set up
- All your product information is on the internet
- Particularly if you use a Content Management System, there's low cost associated with updating your web site information
- You can provide flexibility with payment options
You need to be aware that:
- Customers may wish to pay immediately and you may miss out on the sale if you can't accommodate them
- You need to periodically check online for any new orders, in the event they've been placed via email
- Due to the product or service that you are supplying, and because you are requesting payment up-front, order fulfilment may be delayed
Online payment with later order fulfilment
This option means the customer's credit card details are processed “offline”, before order fulfilment. This works best with a product/service that requires physical delivery and has a relatively low purchase price e.g. books, CD's, souvenirs, web page design etc. The customer selects the products/services they wish to purchase and then supplies credit card details via a secure server.
You may need:
- A web site with a secure order form, which also requires the server have a Secure Socket Layer (SSL)
- A shared secure certificate or a dedicated secure certificate e.g. Verisign Inc. or Thawte Consulting
- An encryption/decryption software programme e.g. www.winpt.org
- An online shopping cart (optional)
- A credit card merchant account (which may also include an EFTPOS machine) with a mail order/telephone order (MOTO) facility through your bank
- A means of delivering the product or service to the buyer
It can be good because:
- This option is relatively inexpensive to set up
- Once set up, the system is simple to operate
- There is less likelihood of technical difficulties than "real time" transactions
- You can manually check each purchase before processing the credit card transaction and delivering the goods/services
You need to be aware that:
- You will need to find a web host provider with SSL facilities and either a shared or dedicated secure certificate
- You need access to a bank merchant account with a MOTO facility
- Some customers may wish to pay immediately
- Not all customers will be comfortable paying using credit card and you will still need to offer alternative payment methods
- There is a risk of credit card fraud
Real time payment and order fulfilment
The ecommerce transaction is processed, via a link with the financial institution, at the moment the payment details (usually a credit card or PayPal) are submitted. Order fulfilment may also occur immediately e.g. supply of a password to unlock software, download of software or music etc., or it may still require the physical delivery of a product.
You may need:
- A merchant account with a financial institution that supports real time transaction processing or an alternative arrangement with a third party provider that may come bundled with an ecommerce "shopfront" software package
- Additional software that supports real time transaction processing
- An online ecommerce shopping cart such as osCommerce (optional)
- A digital dedicated or shared secure certificate
- A means of delivering the product or service
It can be good because:
- Allows immediate purchase and payment by your customer
- There is the potential for no need for manual intervention
- Your customers can view you with a higher degree of credibility
You need to be aware that:
- It can be expensive to set up (although costs are decreasing)
- You may be up for expensive ongoing costs, including transaction fees, and higher costs for ecommerce web hosting
- There's a higher associated level of technical difficulty
- There is increased scope for breakdowns
- You may have more need to process refunds because of user error, and customers placing an incorrect order
- There is greater potential for credit card fraud and product loss, particularly if payment enables an immediate download of the purchased product, and whilst the credit card is valid, it may not be in the hands of the credit card owner
