eBusiness - Small Business Necessity

The rapid growth of the internet commerce in recent years presents established small businesses with a serious dilemma. On the one hand, they can stick with the business model that has worked for them for the last number of years. On the other hand, they can make the shift to serious eBusiness.

Choosing to stand pat is usually much easier in the short term. But in the longer term this almost certainly means they will be left behind by technology, and lose many of their most important clients to more aggressive competitors.

But shifting to eBusiness may involve committing substantial resources to developing a new game plan. That usually means refining product lines to make them easier to sell online, upgrading computer systems and websites, and training personnel at all levels to be more web savvy. It also means developing or hiring staff to handle the administration of new marketing, sales, and delivery systems, and working with outside consultants and service providers to handle the technical aspects of the new program that cannot be handled by your own people.

Is adopting an eBusiness Solution worth the effort?

Are the short term difficulties involved in making the transition to eBusiness worth the effort?

In virtually all cases, Yes.

It is like any other investment in your business. Some businesses look at the cost of upgrading production equipment or of renovating their office or retail space and decide it is simply not worth the cost. They decide the future is too uncertain to risk moving ahead, so they opt to tread water until either circumstances change, or they simply cannot continue any longer in business.

In this sense, choosing to stay abreast of technological changes is a business necessity. And these days, deciding to get involved with eBusiness is the most important technological decision many current businesses will ever make.

Advantages of eBusiness

Here are some of the more important advantages of moving to eBusiness.

You can develop a more cost-effective Communication and Marketing Strategy - The most obvious advantage of "upgrading" to eBusiness is that it gives you a vital web presence. In an upgraded "eBusiness environment" your company web site becomes the focal point of your communications and marketing strategy. And in an era when an increasingly large number of people are using the web as their first source of product and service information, "being there" 24/7 is extremely important.

You can reach New Markets World Wide - The internet offers exciting ways of reaching new markets that could only be dreamed of in the past. There are methods of promoting your products online that allow you to precisely target the customers you are after whether they are in your town or on the other side of the world.

You can reach Local Customers and Prospects more effectively - Until recently, companies offering a product or service to local customers could not see the benefits of having an online presence. But as more and more people become comfortable with using the internet instead of traditional advertising sources like classified ads or yellow pages, having an aggressive web presence makes better business sense even for local companies. This may also offer a springboard to developing new markets further afield.

You can cut Advertising and Marketing Costs - Online advertising is not only more efficient, but it is often less expensive than traditional advertising. After sales training expenses can also be reduced by utilizing online seminars, training videos and tutorials.

You can streamline the Ordering Process by taking orders online - Implementing an online ordering system allows you to eliminate manual paper work or telephone order taking. It also offers the possibility of integrating your sales order system with order fullfillment and delivery so customers can be up to speed on the progress of their orders at all times.

You can cut Communications and Telephone Costs - While the costs of voice communications using long distance telephone services have been coming down rapidly over the last few years, switching to an eBusiness model offers the possibility of totally eliminating many of these costs. Of course there is traditional email. But beyond that, there are systems like "Live Help" where customers can chat live with support or sales staff. And the most recent development is VoIP (Voice Over Internet) which promises to completely revolutionize telephone service.

Finding the right eBusiness Solution

Every business is unique, so every business will require a unique eBusiness solution. Chances are most small businesses will not have the resources inhouse to make the move. In that case they should find an eBusiness solution provider that takes a comprehensive approach to each situation. Rather than offering a pre-packaged program, they should be able to look carefully at a business and make recommendations based on its specific needs. That includes the ability to provide staff training and ongoing support long after the initial system is put in place.

Best Ways to Choose a Credit Card Processing Company

Best Ways to Choose a Credit Card Processing Company

One of the most critical decisions for launching an online business is deciding on which credit card processor to use and how you will choose to process your customer's payments. There are two primary methods to choose from: You can use a true merchant account and do it yourself or you can use what is known as a third-party processor. The credit card processor method you select can possibly effect the execution of your entire Website.

Probably the best way to choose a credit card processor is by simply listing your needs and then comparing the various available plans. Will cost be the most important element and what other factors will be involved? Try comparing both a true merchant account to third-party credit card processors side by side.

How is a true merchant account different from a third party credit card processor?

True Merchant Credit Card Processors

With a true merchant account, you are the merchant and you have the option of applying directly through a bank. However, this is often done through a sales agent. The account will be dedicated to your business only. You, as the merchant will have total control over the account and be totally responsible for it in everyway. You will have to provide a gateway for the account because this will not be included in the account.
Note: Some companies that offer credit card processor plans will extend a bundle that includes a gateway as an enticement. You are free to choose any gateway you prefer since they are totally separate entities.

Basically, your merchant account for a credit card processor is a direct account with MasterCard, Discover Card and American Express. If you resolve to accept payments from their members, you must abide strictly by their rules.

Third-Party Credit Card Processors

A third-party credit card processor company has it's own merchant account and they allow individuals and businesses to accept credit card payments through them. A third-party credit card processing company has all of the power since they make the rules, which you must adhere to since they are allowing you to share their merchant account.

When should you consider using a third-party credit card processing company?
-If your business isn't registered
-If you have been blacklisted
-If you or your mechanize is considered high risk
-If you have poor credit or no credit
-If you only process a small amount of transactions
If you are a non-programmer and can't carry out a complex API.

Additional considerations concerning third-party credit card processing
1. They will not charge higher rates for high risk businesses
2. They don't perform credit checks
3. They can't be used with a separate gateway
4. Their name appears on your customer's credit card statements
5. It can take up to a month to receive deposited funds.
6. You can't negotiate rates for third-party credit card processing.

Most reputable online merchants understand they will be accepting credit cards online and that they will need a merchant account and a payment gateway. There are good reasons for assuming this:
-If there are large volumes of transactions to be processed, the discount rate will be far superior with a true merchant account than with a third-party credit processing company.
-The merchant will have 100% control over the account. The merchant can deal directly with customers and it's the merchant's name that appears on the customer's credit card statement.
-Transparent checkout feature - Allows the customer transaction to be processed directly on the Merchant's Website, rather than being redirected to a third party site.
-Portrays a more professional image - A true merchant account is a more seamless process which is expected from customers.

When you apply for a true merchant account, you will have to go through a full credit check and you may not use the account in anyway for your own personal use. The rates are always negotiable but high-risk products will garner much higher rates. You may use a separate gateway of your choice for credit card processing and your business name will always appear on the customer's statement. Funds will be deposited within 1-3 days and you may be locked into a contract for several years.

Most online businesses that are just starting out have small margins and tight budgets. Cost will be the single most important factor in choosing a credit card processing company for most of them. The needs of each business will vary, as will the offers they receive for credit card processing. In making a comparison, it's almost like comparing oranges and oranges and can be quite difficult. One way to approach the comparison process is to collect the data on fees associated with both third party and a true merchant account first.
-Setup fee: how much you need to pay to establish the account
-Discount rate: the percentage of sales that the processor takes
-Transaction fee: the flat fee the processor charges for each transaction
-Monthly fee: the monthly fee associated with keeping the account active
-Setup fee: the cost to set up a gateway
-Gateway monthly fee: the monthly fee charged by the gateway provider for use of their payment gateway services

Next, list the number of transactions you will make each month and how much the average customer will spend on your Website. There is a multitude of third-party processors and true merchant providers for credit card processing that may be compared. For example, Papal and Verisign are two well known companies, but are completely different.

Conclusion

You may ultimately use both of these methods to use credit card processing online but the way in which they are implemented are very different. Each has it's own particular advantages. Since every business is different, you must consider all of the factors involved with accepting credit cards online, not just the costs. Sometimes, paying a few additional costs in fees can enhance your customers experience and the overall appearance of your Website. Take ample time to explore all of your options in order to find the best cost-effective credit card processing company that fills the needs of your online business.

Do Definitions Tell You How To Create A Better Business?

When talking to people about what they think is involved in marketing, CRM, ecommerce, direct marketing, web development, web design and graphic design it is quite clear that most people have a confused and jumbled view about what they all are, what they cover, which is most important and which is easiest to understand. It is nearly always the case that someone understands what is meant by graphic design – not a surprise, perhaps, as it has been around the longest and has it’s roots in “old technology”. Not only that research has shown that only 7 to 11% of all communication is verbal, the rest being non-verbal as messages can be communicated through “graphical” factors such as gesture; body language or posture; facial expression and eye gaze, clothing, hairstyles, architecture, symbols and graphics. So definitely not a surprise – we are very visual. It is nearly always the case that people also believe they understand what is meant by web design – though many people blur it with web development. Again, probably not surprising, but, actually, probably not helpful either. Why not? Because if you don’t have a real ‘definition’ for something (definition = clarity and differentiation from other concepts) then you don’t know what you are buying. And, guess what, if you don’t know what you are buying you can be “ripped off”. So we thought we would be boringly helpful and using Wikipedia and a range of other sources definitions (only so we are not accused of slanting the evidence) try to explain what marketing, CRM, ecommerce, direct marketing, web development, web design and graphic design really are. We also thought we’d arrange them in what we regard as their order of importance to the success of your business – which is pretty much in reverse order to most people’s understanding of what they are and see if anyone can be bothered to read what could be “possibly the most boring and convoluted article ever” and challenge these views. 1. MARKETING: The most widely accepted definition of marketing on a global scale comes from the Chartered Institute of Marketing (CIM) in the UK which is the largest marketing body in the world in terms of membership. The definition claims marketing to be the "management process of anticipating, identifying and satisfying customer requirements profitably". Thus, operative marketing involves the processes of market research, new product development, product life cycle management, pricing, channel management as well as promotion……… It is one of the company's management tools to ensure that products and services are developed according to market requirements, and that they are profitable. 2. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) includes the methodologies, technology and capabilities that help an enterprise manage customer relationships. The general purpose of CRM is to enable organizations to better manage their customers through the introduction of reliable systems, processes and procedures. Customer Relationship Management is a corporate level strategy which focuses on creating and maintaining lasting relationships with its customers. Although there are several commercial CRM software packages on the market which support CRM strategy, it is not a technology itself, rather, an holistic change in an organization's philosophy which places emphasis on the customer………. A successful CRM strategy cannot be implemented by simply installing and integrating a software package and will not happen over night. Changes must occur at all levels including policies and processes, front of house customer service, employee training, marketing, systems and information management; all aspects of the business must be reshaped to be customer driven. 3. ELECTRONIC COMMERCE, EC, e-commerce or ecommerce consists primarily of the distributing, buying, selling, marketing, and servicing of products or services over electronic systems such as the Internet and other computer networks.......... It can involve electronic funds transfer, supply chain management, e-marketing, online marketing, online transaction processing, electronic data interchange, automated inventory management systems, and automated data-collection systems. It typically uses electronic communications technology such as the Internet, extranets, e-mail, ebooks, databases, and mobile phones………. Internet marketing is a component of electronic commerce. Internet marketing can include information management, public relations, customer service, and sales. 4. DIRECT MARKETING is a discipline within marketing that involves the planned recording, analysis and tracking of individual customers' (business-to-business or consumer) responses and transactions for the purpose of developing and prolonging mutually profitable customer relationships………. DM uses non-addressable media as well as addressable ones. The important thing is that it seeks a response and it is this which the recipient, usually a marketer, bases their future actions, or contact strategy, on. In fact all DM is done through media, it's just that many, e.g. email, telemarketing, SMS, are "addressable". It usually is not taken to include face-to-face contact. Direct marketing is attractive to many marketers, because in many cases its effectiveness can be measured directly. 5. WEB DEVELOPMENT incorporates all areas of creating a web site for the World Wide Web. This includes web design (graphic design, XHTML, CSS, usability and semantics), programming, server administration, content management, marketing, testing and deployment. The term also refers to the "back end", that is, programming and server administration. There is usually more than one member that works on a given development team, each specialising in his or her own field. A web developer typically has more database, cgi, and engineering experience and develops the interface between the front and back end, undertaking programming tasks for a web site. This can include e-commerce applications or implementing a site search tool, for example. 6. WEB DESIGN is the design of web pages, websites and web applications using HTML, CSS and images. A web designer designs web pages. Usually a designer will produce a mock-up of a page in a graphics application (for example, Adobe Photoshop). Once you have approved the design, a designer can produce an HTML template, CSS files and all of the images needed to produce the web site. 7. GRAPHIC DESIGN is the applied art of arranging image and text to communicate a message. You can apply it in any media, such as print, digital media, motion pictures, animation, product decoration, packaging, and signs.

Branding Your Ebiz - Creating A Name Your Customers Trust

If you want customers to spend money with you online, you have to make them feel confident they’re dealing with a legitimate business. They’re giving you their personal information, as well as their credit card number. If your website sends a clear message you run your business from home, they may not feel comfortable entrusting you with that kind of info. That’s why it’s important to create a brand your customers recognize and trust. What’s a Brand? A brand is what differentiates you from every other eBiz out there: • A brand is a set of expectations you create in your customers’ minds in regards to your business. It comprises everything from the quality of your website to your customer service to your actual merchandise. More than just a name and logo, it’s your buyer’s entire experience with your company. • A brand is a reputation. A good brand adds value to your product—buyers expect a certain quality based on the brand name. If they recognize your brand and have a good association with it, they’re likely to choose it over other similar products, even if it costs a little more. Your Branding Should Be Consistent Explains Eileen Parzek, of http://SohoItGoes.com, “Consistently use a brand design throughout all your different marketing material… It gives a sense you’re bigger than you really are.” You need to figure out what your marketing message is and carry that message through all your promotional materials. If you have business cards, press kits, and print materials, they should reflect the design of your website from the fonts and color palette to the logo and tagline. Your format should also persist through all of your web pages—the layout, the tone of your copy, even your navigation. Having a unified, professional-looking web store can go a long way towards building a customer’s confidence in you. A well-designed site gives your business credibility—customers associate the quality of your site with the quality of service and merchandise they expect from you. Your Branding Should Be Continuous Your brand should evolve to reflect the changing needs of your target market—branding’s an ongoing process. It begins, ideally, in your business’ startup phase and continues through the life cycle of your business. Says Parzek, “[Branding] is not something you ever stop doing. You have to be conscious of it at all times.”

How To Build Your Online Consignment Business

Get the Word Out! Consignment is a simple concept—taking other people’s products and selling them for a percentage of the sale. According to Skip McGrath, of http://skipmcgrath.com, a successful eBay PowerSeller, “[Consignment selling] is the fastest growing phenomenon on eBay.” The key to successful online consignment is marketing your services. You really have to promote your business, and McGrath shares some techniques for doing just that. There are four areas you’ll use: advertising, public relations, networking, and creating a website. 1.Advertising: the market you’re in will determine your course of action here. The Retail Market—selling products for ordinary people: • Door hangers • Classified ads in small to medium-sized market newspapers • Flyers • Posters • Radio spots • Attorneys—estate executors and bankruptcy processors The Business to Business Market—selling excess inventory for retailers and manufacturers: • Classified ads in business journals • Direct mail • Attorneys—bankruptcy processors • Local charities and not-for-profits—rather than always asking their supporters for money, they can ask them to donate products you know will sell. So you can build a relationship that’s profitable for both of you. 2.Public Relations. • Write a press release, print out a copy and mail it to all your local newspapers—they’ll promote your new business in hopes you’ll advertise with them. • Community groups—the Lions, the Jaycees, your local chamber of commerce. These are especially useful for business marketing. Your chamber of commerce should have a newsletter that you can advertise in and every chamber member in town will get. If you sign up for a community group, volunteer for something. You’ll make more contacts and be taken more seriously than if you just show up to the meetings to gain more contacts. 3.Networking •The McGrath 3-foot Rule. Explains McGrath, “I always have business cards on me…and anyone that gets within 3 feet of me [is] going to learn what I do.” •Cold call on potential customers. Walk around the business section of town (or your neighborhood for retail) and let them know that you can help them liquidate their surplus merchandise. If businesses seem reticent, offer to let them give you one or two pieces as a trial and then make sure you do a good job selling those. •Build a database of your customers. Collect business cards and stay in contact periodically. Send an email, send a Christmas card. Retaining customers is easier than finding new ones. 4.Create a website • Try to include your city and the word “consignment” in the title—these are very popular search terms right now. • Have a link from your site to your consignors so they can check the status of their own auctions. • Send out emails or newsletters through your website to your customer database. You may find some methods work for you better than others, but the main thing is just to let the world know you’re there—get the word out!

5 Benefits Of Using Feeds - How Feeds Can Help Your Ebiz

What’s a Feed?

Feeds are a way of sharing content. When you make material from your website available for publishing on other sites, you provide them with a feed. Basically, it’s a code that lets them post your articles and blogs. There are different kinds of code—XML, RSS, Atom, etc.—but essentially they’re all just different ways of accessing a feed.

According to internet expert Sydney Johnston, “The great thing about a feed is everybody wins.” The article writer gains exposure, the reader learns about something of interest to them, and the online seller gets an endless source of pertinent content.

What Can a Feed Do for My Online Business?

Feeds are useful in a number of different ways:

• They Eliminate Spam-filters. They’re 100% opt-in, so readers can subscribe and unsubscribe at will. Feeds are delivered directly to your subscribers, so you don’t contend with filters knocking you out of their inboxes.

• They Provide Free Content. One of the best ways to differentiate your site is to supply readers with interesting material—educate them on topics relating to the product you’re selling. If you sell preschool toys, chances are you don’t want to study child development and write numerous articles on the subject—so find someone else who’s already done that and make their feed available to your customers. The constantly updating, applicable subject matter gives your visitors a reason to keep coming back.

• They Can Improve Your Search Engine Rankings. In the past, search engines were unable to read feeds, but software is now available to translate them into live links the engines can see (check out http://CyberWS.com). Search engines love fresh, dynamic content, so feeds are ideal. They provide relevant information that updates automatically. Not only do your customers get the facts they’re looking for, but the search engines like your site and give it better position.

• For Affiliate Marketers, They’re an Alternative to Banners. You not only give your customer valuable knowledge, but if they click through and purchase something, you get credit. And unlike with banners, you don’t look like you’re putting up junk ads or spam.

• They Can Increase Your Traffic. Anything you write, you should make available as a feed. When other sites pick it up, it’s free advertising for you—all their traffic is able to click through the feed to your site. So you gain new potential customers you wouldn’t have otherwise.

Feeds on any subject are easy to find. There’s a whole collection of search engines just for feeds, like http://Plazoo.com and http://Feedster.com. Says Johnston, “The future of the internet for entrepreneurs is feeds. If people don’t master them, they’re going to get left behind, period.”

3 Tips For Choosing A Payment Gateway: Collecting Money Online

As a consumer, when you check out of your local convenience store, you may swipe your credit card through a point-of-sale device and your gas, coffee, and donut are paid. But what if you are the retailer and your business is online? It’s not like you have a card-swiping device at every customer’s PC! There must be a way for you to process that information. Essentially, that is the job that a payment gateway does for online retailers. Roy Banks, president of http://Authorize.net, a leader in the payment gateway industry, describes his company’s function as “the digital version of a hardware point of sale terminal.”

What is a Payment Gateway?
Payment gateways allow online merchants such as eStore owners or auction sellers to accept credit card payments over the internet. They authorize the cardholder’s credit—that is, they check to ensure that the customer has enough money on their credit card to cover the charges. They then place a hold on that amount so the buyer can’t turn around and spend that same money elsewhere before it gets transferred to the retailer’s merchant account. Banks describes this as “the technology…necessary to consummate a payment transaction.”

A Payment Gateway is NOT a Merchant Account.
Many people confuse merchant accounts with payment gateways but they are not the same. Merchant account services act, for the most part, as a liaison between your business bank account and the payment gateway. When a customer orders a product from your online business their card is processed via the payment gateway. The money is then moved over to the merchant account service. The merchant account service then moves those newly captured funds to your business bank account.

3 Tips for choosing a Payment Gateway:

1. Is it PCI-compliant? That means that the company’s security has been audited by a third party and found to be up to industry standards. Since payment gateways store all your customers’ credit card information (sparing you the stress), it also means you can sleep better at night, knowing your customers’ valuable information is safe and sound.

2. Good customer support. ‘Nuf said.

3.Lastly, it is important that the payment gateway you choose be integrated to the third-party solutions you are planning to use. That means things like store front platforms and shopping carts—you want them to be compatible with your gateway.

Payment gateways will not only allow you to collect the monies from your sales, many also offer an array of security features, some of which will help you avoid becoming a victim of fraudulent orders! In the end, they will make your ecommerce business a less-stressful, more pleasant experience—for both you and your customers.