How to set up an ecommerce site

An ecommerce website is like most other sites with two key differences. It usually has a shopping cart, and it requires at least one payment method to be able to accept payments online. For payment methods other than third-party options, a merchant account is needed. Some web hosts specialize in ecommerce hosting and provide features for ecommerce websites. However, most web hosting providers can host ecommerce websites, depending on the specific needs of the ecommerce site.

Ecommerce websites and shopping carts

Numerous shopping cart software programs are on the market. Some are free, while others are commercial. Many web hosts, in particular ecommerce web hosts, offer pre-installed shopping carts. Be sure to research shopping carts to learn which ones are best suited for your ecommerce needs and will integrate with your payment methods. It's also a good idea to choose a web host that is familiar with the shopping cart that you choose.

Shopping carts require databases, which are included with most web hosting plans.

Ecommerce websites and payment methods

Most ecommerce sites allow customers to pay via PayPal or via credit card. Some offer just one or the other method, but those that don't offer both will end up losing some business as some consumers won't use PayPal (by choice or because it isn't available in their country) or won't pay with a credit card online.

To offer PayPal as a payment option, you just need to have a PayPal account. The PayPal site (external link) explains how to accept PayPal payments. With a PayPal account, you can also accept credit card payments. The downside to this is that people in countries where PayPal isn't available won't be able to pay via PayPal or credit card. Also, PayPal transaction fees can be higher than merchant account fees.

To accept credit card payments that don't go through PayPal or another third-party option, you need the following:

• A payment gateway
• A merchant account
• An SSL certificate
• A dedicated IP address

A payment gateway transfers payments from customers' accounts to your account, and a merchant account authorizes the payments. A merchant account with a payment gateway is a good option for sites where the monthly sales volume is over about a thousand dollars. The monthly fees and transaction fees typically work out to less than PayPal fees with this amount of sales.

An SSL certificate enables the secure transfer of credit card information from customers. SSL certificates are offered with some web hosting packages, and they can also be purchased separately. An SSL certificate requires a dedicated IP address.

See also

• How to get started with a website
• E-commerce hosting
• E-commerce terminology
• Shopping cart software
• PCI compliance