Answers


What to do Now

Questions before you start.

1. Now that you have web space, what do you do with it?  Well that is up to you but for this topic we are going to create an online business.  Before starting an online business ask your self these questions.

• What type of business do I want?

• Do I have a product or service to sell?

• How will I list my products for people to view online?

• Will I need extra software to conduct business?

• What types of Payments will I accept?

• Will there be shipping involved?

• What are the tax laws concerning my business?

• How will I promote my online business?
  
  
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Where to start

2. You have answered some of the questions and now need a starting point.  For this discussion we are going to assume the following:
   
   We are going to sell products via online ordering form.
   We are going to list our products on a web site for ordering.
   
   Now lets get started...
   
   A rule of thumb for your website is that you have the following:
   A homepage with your business name on it
   A contact page with different methods on how the customer can contact your company.
   A page with any information concerning returns and warranty information.
   
   
   
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What do I need to conduct business online?

3. You will need the following to conduct business online if you are not going to accept payment on TekBurst servers.
   
   You will need a business account at PayPal or WorldPay.
   Optional: SSL certificate for your ordering form or shopping cart.
   
   This would be the only requirements for you to sell products online and let a third party deal with your purchase submissions.  Third Party billing is a good way to start taking orders because the customer orders the product and PayPal or WorldPay deposits the funds in your account.  Third Party vendors will charge a fee for all transactions.  Visit PayPal or WorldPay at their websites for transaction fee quotes.  Here is an example of a purchase made from your website and sent to PayPal for completion.
   
    

   • Customer places order at your website for your product.

   • After completion of your order form customer will choose the Payment option "Pay via PayPal."

   • Customer is then redirected from your site to the secure PayPal site.

   • Customer fills out credit card or banking account information.

   • Customer verifies amount of charge and finalizes transaction.

   • Total transaction time is about 2 to 5 minutes.

   • Customer is then redirected back to your site to confirm the order is complete.

   • PayPal Notifies the seller that a purchase has been made and that the funds are in the sellers account

   • Customer is notified by PayPal of the transaction via email.

   • Seller ships product to the customer.

   • Transaction Complete.....

   
   
   
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What is the Online Transaction Process?

4. The online transaction can be very complicated or as simple as the above example.  If you have billing software and are able to take orders via your own web site on TekBurst servers, then this will be the process.
   
    

   • Customer places order on your secure site

   • Customer enters payment method (in this case a credit card) and clicks to end the transaction.

   • Customers credit card information is then encrypted and sent to the payment gateway.

   • The payment gateway sends the encrypted info to the merchant account.

   • The merchant account will forward this information to the bank that issued the credit card.

   • The issuing bank will verify that the card is valid and that all information about the customer is correct.

   • If the transaction is accepted, the issuing bank will send an authorization code to the merchant account.

   • The merchant account then applies payment to your bank account upon approval.

   • The gateway account receives the authorization code and records the details of the transaction.

   • You receive the new order and ship it to the customer.

   • Funds are in your bank account within 2 to 3 days, according to which merchant account you have.

   • Transaction time "after customer ends transaction" approx <5 seconds
      

   
   
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What types of payments to accept.

5. Whichever type of payment you decide to accept needs to be the one best suited for your business.  Decide if you are going to accept credit cards and list the cards you will accept on you site.  If you are going to accept PayPAl or WorldPay only, then list these on your site.  FYI:  The more payment options you have the more customers you will be able to service so don't limit yourself.  PayPal, WorldPay, Credit Cards, E-cheque and even checks & invoices, can all be used on the same site.
   
   Credit card purchases are the most common for internet purchasing.  The customer will enter all requested information and the transaction is complete.  There is an almost instant approval for credit card purchases because all of the transaction is done electronically.  You can accept credit cards via your secure online shopping cart or order form, or the customer can be redirected to PayPal or WorldPay and pay via credit card.
   Check and Invoices are another payment option.  The customer will send you a check for your products through the mail.  This can be tricky so be careful.  Do not ship out your product until the payment has cleared the bank.
   Debit cards and PayPal payments via customers checking account are another form of payment.  The customer's money is transferred from their checking account straight to your PayPal account.  PayPal will charge you a processing fee and the remainder will be in your account.  It takes 3 to 4 business days before you can withdraw the new funds.  At PayPal there is no charge for withdraw of funds.  For more information on PayPal withdraw and processing times, log in to your PayPal account and go to the withdraw tab.
   
   
   
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   What will I need to get started?

Legal Business Name and Documentation

1. In order for you to accept credit card orders online you must be a legitimate business operating under a legitimate business name.  Your business name must be registered through your state government.  You must also have a TaxID (Corporations and LLC) or if you are a Sole Proprietorship your SSN will be your TaxID number.  You will need this documentation in order to receive a gateway account and a merchant account.  You will also need a business checking account for your funds to be deposited to.
   
   Note:  Please consult legal and accounting firms in your area for proper guidelines on business names and all documentation that is needed for starting an online business.  Your state or local SBA would also help in these areas of interest.  Please feel free to visit the SBA website for further reference.
   http://www.sba.gov
   
   As with starting any business you should reference your local and state laws for conducting business in said areas.  
   
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What is a gateway account and do I need it?
 

2. A payment gateway takes the place of the card swipe machine you are used to seeing in department stores and other places that conduct face to face business.  The card swipe machine captures the customer's credit card information and sends the data through to the appropriate institutions for approval.  Since we are not conducting face to face business or taking orders over the phone we will need a payment gateway account.  At TekBurst we can assist you in choosing a gateway account and point you in the right direction to the gateway account that is suited for your business.  Each payment gateway account will charge a processing fee for each transaction that is requested from your site and sent to the gateway for approval. 
   
   
   Here are a few sites that offer payment gateway accounts as well as merchant accounts.
   
   Wells Fargo
   Authorize.net
   
   
   
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What is a merchant account?
 

3. A merchant account or "payment service" are generally available from financial institutions and third party affiliates.  It allows you to accept a variety of credit cards from your customers, process online payments quickly and securely, and send the money to your business account. They also help to protect you and your customers against fraud and provide transaction records so you can track your sales.
   
   Information on the payment gateway and the merchant account were borrowed from the WellsFargo website.
   
   
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SSL Certificate
 

4. In order for customers to choose your website as the place to purchase, you must have great security.  The majority of customers will not purchase anything or even fill out a form on a  non-secure site.  This is a best practice around the world because your personal and financial  information is subject to intersection on a non-secure site.  With a secure site the customer is ensured that the information they are sending to the seller is encrypted and cannot be seen by a third party.  The encryption levels today ensure the customer and the seller that it is safe to do business online without worries. 
   Certificates come in different types and levels of encryption and TekBurst will assist you in making your choice.  There are many companies that offer secure certificates for your server.  Choose the one that is best for you and your business. 
   
   
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Shopping Carts
 

5. Shopping carts are a convenience for you as a seller and to the consumer.  Shopping carts allow the customer to browse through your products and with a simple click put that item in their virtual basket until they're ready to checkout or send the purchase through.  TekBurst offers 3 types of shopping carts, Agora, Oscommerce, and Cube Cart.  Each of the shopping carts are free but you may need to pick another shopping cart if these are not compatible with your needs.  Some payment gateways require you use a certain type or brand name of shopping cart that will be compatible with their software. 
   To install your Agora or Interchange shopping cart just go to your Cpanel and with one click it is installed.  Now you can start adding items to your catalog and customizing the look of the shopping cart. 
   For further instructions on installation and customizing your shopping cart please read all documentation for the shopping cart you chose to install.
   
   
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   Promotion of your site

How do I promote my site and products?

1. I have my catalog customized and all my products are listed but I haven't had any sales, what am I doing wrong?  You haven't done anything wrong it is just no one knows you are in business.  You have to let the public know what type of company you are and what you are selling. 
   For Internet businesses the best place to start would be by submitting your site to a search engine.  Submitting to a search engine will get your business noticed and get your products moving out.  Another place to start would be with classified ads.  Classified ads are a good way to get your name out there and with little or no cost.
   
   Another form of promotion as well as a selling point is Ebay™.  Ebay allows merchants to list their products via auction style websites.  For more information on Ebay please visit http://www.ebay.com
   
   
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What is a search engine or directory?

2. A search engine is one of the most powerful tools on the Internet.  It gives a user the ability to search through millions of web pages for a particular subject just by entering a single word or phrase.  Go to any search engine and type in basketball at the search prompt.  The search engine takes your input "basketball" and looks through the websites listed in their database for the word basketball.  Next the search engine sends back a list of web pages that have the word basketball in them. They are hundreds of search engines on the web that will list your site in their database of web sites.  Some engines are free and others require a fee.
   
   
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Where do I find help with promotion?

3. Go to any search engine or directory and do a search on web site promotion.  The results will vary depending on which search engine you choose but you will find many different types of web site promotion tools and companies that will promote your site for a fee.  The banner below for BULLMARKETER.COM is a great place to start for promotion.  Choose the best technique that suits you and your business.  You will find in your quest to conduct online business that promotion of your company and site are the most important tasks for you to have a successful online business.

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