With the advent of smarter technologies in the financial industry, the payment processing sector has undergone a revolutionary change in recent years. These trends are shaping the way merchants would deal with their everyday business in the upcoming days, especially after the pandemic crisis.
Although contactless payments started out as a necessity the previous year to prevent the spreading pandemic, it is expected to gain popularity as the mainstream payment mode. Both customers and businesses find it convenient, fast, and secure, and it hastens the entire checkout process.
Being a business owner, especially in the eCommerce sector, it’s important to understand the latest technologies and new implementations in the payment processing industry. Here is a list of the top credit card processing trends that you must know to stay afloat.
1. Buy Now, Pay Later
As the name suggests, this payment method offers the highest form of flexibility to buyers by allowing them to own a product and use it before completing the payment. In this case, the payment is usually made in easy installments as per the convenience of the consumer.
The best thing about the Buy Now, Pay Later system is that it involves no interest or late fees if you make the payment on time. Some of the top benefits of this trend are –
It increases the basket size of the customers, which is a plus point for merchants. Shoppers tend to add more items to their carts since they don’t have to pay for them immediately. As a result, it enhances the cash flow of both the merchant and the customer.
It reduces cart abandonment rates. A study conducted by Salesforce has shown that 85% of customers have abandoned their carts in the second quarter of 2020. This may require the merchant to spend more money to make these buyers complete their purchases. However, the new Buy Now, Pay Later trend may solve this problem and help merchants regain their lost revenue.
It boosts long-term growth. Buy Now, Pay Later offers us the flexibility to pay for our purchases, and it helps manage our budget more efficiently. Therefore, it is a highly demanding payment mode and is expected to facilitate business growth.
2. Mobile Payments
Mobile payments are not new, and customers and businesses have been using this method even before the pandemic. However, it grew significantly after the coronavirus outbreak as it prevents the spread of the virus and is a better alternative to credit card payments as well.
It all started when Apple introduced its mobile wallet technology by launching Apple Pay in 2015. Soon after that, other brands like Samsung, Google, Chase, etc., have come up with their mobile wallet versions, all of which help users transfer funds instantly and flexibly. By 2017, 39% of shoppers in the United States were using smart mobile wallets to make payments at retail stores and eCommerce portals.
Summing up the benefits of mobile payments, they are –
Convenient and Flexible
Allows you to pay from anywhere, at any time.
Provides numerous payment modes.
Highly time efficient.
Offers an added layer of security.
Enables you to manage your expenses better.
Comes with exciting deals and offers.
3. Frictionless Payments
Who doesn’t like to experience a smooth and efficient buying process? Offering frictionless payments can make you stand out and give you a good competitive edge. At times, when two merchants are providing the same product at the same price point, what really makes one of them the preferable brand is the number of flexible and seamless payment options it is accepting.
Hence, business owners must widen their payment methods by accepting more cards and other different transaction methods like digital wallets, gift cards, loyalty programs, installments, or by reducing surcharge fees. Having such a wide variety of payment methods will surely make your customers return, thus increasing your brand loyalty.
4. Artificial Intelligence and Machine Learning
The advancements in AI and ML have been strongly felt in the past few years, including the payments industry. AI technologies can be extremely beneficial for merchants who can reconcile their payments better using anti-fraud systems and smarter applications.
For instance, technologies like personalization and automation of the POS system can streamline consumer experiences and offer high security levels while processing payments. It also enables merchants to manage their vital data as well as settle payments with ease.
5. NFC and EMV
NFC or Near Field Communication is a popular modern payment system because of its better security standards and ease of use. NFC is a process by which data can be transferred wirelessly via smartphones, tablets, laptops, and other devices when in close proximity to the device or terminal receiving the data.
In the payment industry, NFC technology is the driving force behind contactless payments involving eWallets like Apple Pay, Google Pay, Android Pay, and other contactless cards.
EMV chip, similarly, is a tap/wave technology associated with credit cards and is another popular type of contactless payment. EMV (or Europay, MasterCard® and Visa®) is a more secure method of transferring funds using a chip embedded within debit, credit, or prepaid cards.
EMV chips can help reduce the liability of both the merchant and the credit card processor since the transactions are more secure. Furthermore, EMV payments are usually cost-effective since they come with slightly lower processing fees for merchants compared to the regular swipe/touch payments.
6. Cloud Migration
Cloud migration is gaining momentum rapidly as it comes with numerous benefits. It is defined as the process of transferring applications, databases, and IT processes to the cloud. Cloud migration may also involve the process of transferring data from one cloud to another.
Although many financial institutions still work on legacy systems, they are soon expected to change their processes. By adopting cloud solutions, payment processing systems would be able to access, store, and process tons of data over the internet.
The cloud migration system would eliminate the need to store and manage data on physical devices, which is a cumbersome process and quite risky. With cloud technology, your data will be secure, and you can have better agility and scalability. Besides, these solutions come with low operational costs and an added efficiency.
The COVID-19 pandemic has been tough for a whole lot of industries, and in fact, some have yet to recover from the hurt inflicted. However, the previous year has unexpectedly accelerated the growth of some sectors, including the direct-to-consumer (D2C) markets.
A majority of the e-Commerce market is occupied by the D2C sector, mostly in response to the need for maintaining social distancing norms. For example, D2C brands like Casper and Warby Parker have been flourishing continually for quite some time now.
What is the D2C Business Model?
As opposed to the B2C (business-to-consumer) model, D2C companies manufacture and deliver their products directly to the end-user without involving any middleman or traditional stores.
B2C companies manufacture the goods and pass them over to a retailer who then delivers them to the customers. In B2C models, there is typically an intermediary retailer, such as Walmart or Amazon, who sell the products of various manufacturers.
The best part about D2C models is that buyers can enjoy a more simplified and streamlined shopping experience. Moreover, retailers no longer need to worry about meeting another company’s policies and standards or stocking up their shelves.
As a result, D2C merchants can develop more meaningful relationships with their customers and build a stronger brand image. This new business model also enables retailers to receive instant feedback on their products and services, thus creating more positive reviews and testimonials.
The Rising Popularity of Online Shopping
The pandemic has greatly accelerated growth in online sales and the D2C movement. After the WHO declared COVID-19 a global pandemic in March 2020, e-Commerce stores and retailers have witnessed a surge in online shopping.
In May, some businesses started reopening, which further gave a significant boost to page views and order counts. The next month saw a steady growth with order count and page view up by 57% and 75% respectively over the previous year.
Since people avoided stepping out, and most of them were working from home, they were ordering their daily essentials online. Since consumers were shopping online and didn’t have to worry about limited cash issues, they were spending more while purchasing online. And this was a huge plus point for retailers, especially the D2C businesses.
Why 2020 Was a Year for D2C Brands
The obvious answer to this is that brands are realizing the benefits of creating direct sales channels to connect with their consumers better. D2C strategies focus on enhancing customer relationships by offering more personalized solutions.
Further, the new business model is encouraging the development of more advanced recurring revenue systems, such as through subscription payments. Some of the key reason behind the success of D2C include:
Creating customized experiences. Direct-to-consumer business models are flexible enough to offer more personalized services to buyers. One can have complete control over the entire experience chain, be it product delivery, sending personalized messages, or offering a seamless website browsing experience. In short, D2C brands aim at providing more value-added services by building an emotional appeal around them.
Improvement of profit margins. D2C brands are now able to cut down distribution costs by eliminating all intermediaries. This further enables them to have greater control over their profit margins.
Taking control of data. If you are maintaining an excellent customer relationship, then you probably have access to all your buyers’ data in real-time. For example, tracking and analyzing vital consumer data like purchase histories, patterns, behaviors, trends, unique needs and preferences, etc., allow you to understand your shoppers better.
Since you know your customers’ tastes and have an idea about what they are likely to purchase next, you can explore new strategies to address their requirements at the right time. For instance, you can implement new marketing automation tools and workflows or try clustering new audiences.
Digital-first marketing opportunities. D2C brands are exploring various opportunities and possibilities of the digital world, getting global control over all their channels. They are working on regulating their brand and merging all their conversion efforts under one funnel. The journey towards D2C models might be through the development of more intelligent workflows throughout the product cycle.
Some Tips for a Better Future!
Now that D2C is going to take center stage for at least the next few months, here are some tips you can try to grow your D2C brand.
1. Don’t Close Your Physical Doors Entirely
Although online portals have a stronger presence within your target group, there are ways you need to improve your customer relationships. Offering efficient services and quality products at your brick-and-mortar store is among them. In fact, some brands are also providing the option of order pick-ups from a nearby retail store.
2. Cultivate the Right Talent
Adopting the new D2C model might mean a shift to a new business environment, mindset, and even talents. Whatever your strategies and upgrades, make sure each of your plans is centered around your customers. Use the right talent and hire the right teams to create engaging customer experiences.
3. Look Beyond SEM and Social Media
No, we are not saying that you must abandon special media marketing and SEM strategies altogether. In fact, try to look for better ways to promote your brand side-by-side, making social media strategies.
For instance, try to tie up with the latest streaming and smart TV services to attract your audience better and in more engaging ways. These advertisers are able to reach wider audiences than expected due to the pandemic.
4. Have a Specific Purpose
The pandemic crisis and lockdown restrictions have forced people to explore new hobbies and talents, which is why the previous year has seen a drastic change in customers’ behaviors and buying trends. Also, people have started to go for less expensive options and alternatives.
So, try to have a specific purpose, a unique value proposition, and a stronger way to engage your consumers.
There’s been a new trend among shoppers when it comes to online shopping this holiday season: make the last-minute purchase online and pick it up in-store. It has, in fact, become so popular that both consumers and retailers alike have come up with a trendy new anacronym: BOPIS (buy online pick up in-store), and according to Adobe, BOPIS orders were to see a surge of 39 percent over the 2018 holiday season.
According to Target CEO Brian Cornell, this also leads to more shoppers leaving their shopping to later in December, which led to stronger retail sales overall due to the increase in physical brick and mortar shopping as opposed to shopping that was otherwise done exclusively online. In total, Target saw an increase of more than 5 times in the number of items bought for in-store pick up during the 2019 holiday season than they did in 2018.
According to data put together by Salesforce, when a store’s online site offers in-store pickup as an option, shoppers will start to become more active. In total, retailers who are offering in-store pickup can expect to attract an increase in customers of as much as 48 percent against those that don’t in the final 5 days running up to Christmas.
Overall, a company such as Walmart, for example, will be losing out on money for each digital order. If they are able to convince a customer to make their own way to an actual physical store to collect the item themselves, however, it can start to save Walmart some money. And it all soon adds up.
One of the first companies to adopt the concept of in-store pickups was Nordstrom. Nordstrom’s co-president Erik Nordstrom found that by allowing customers to pay online with their credit or debit card and collect in-store, they could greater engage with their customer base. Recently, Nordstrom has increased its openings of local smaller stores which, while not actually selling any products, allow customers to collect their digital orders.
Major big-box retailers like Target, Walmart and Best Buy are all now offering customers the option to pay online with their credit or debit card and pick up in-store at their convenience. Ultimately, for large name retailers such as these, offering their customers the option to make their purchases online and pick their items up in-store opens up the ability to leverage already existing store infrastructure, teams and tech against any losses made through their digital sales.
In total, holiday sales this year saw a rise of 14.6 percent over the 2018 holiday season, which, according to the NRO (National Retail Federation), way above what was expected and predicted.
With the 2014 holiday shopping season about to grind down to the home stretch, the sales figures are already rolling in. And once again, online transactions have maintained their brisk and healthy growth from years past.
Cyber Monday chalked up record sales, rising a reported 17 percent from 2012 according to USA Today. Cyber Monday, the Monday after Thanksgiving, has been embraced by the media as a flashpoint date for online retail sales during the traditional holiday shopping cycle. The convenience of online shopping versus the hassle of holiday shopping traffic gets the consumers interested. Combining that convenience with the staggeringly low sale prices of the time period and suddenly the appeal of online shopping becomes apparent for folks looking to get their holiday shopping done inexpensively and hassle free.
So with the boom in online shopping, there exists a disparity in sales tax in some instances. This isn’t something that comes up too often in Delaware, the original home base of Host Merchant Services. But many states have sales tax for purchases, and are finding it difficult to compete with the surging online retail business.
While legislation in some states requires sales tax be paid on some online transactions, most sales are still untaxed. In many states that translates into a 5-10 percent price advantage for the online vendor. But it also is a 5-10 percent disadvantage for local brick-and-mortar stores that not only collect sales taxes, but also pay property taxes, employ local residents and support local causes.
Thus there’s been a movement to level the playing field by attacking the sales tax disparity. The Marketplace Fairness Act is the solution to the sales tax disparity. The marketplace fairness act is:
“Marketplace Fairness Act of 2013 – Authorizes each member state under the Streamlined Sales and Use Tax Agreement (the multistate agreement for the administration and collection of sales and use taxes adopted on November 12, 2002) to require all sellers not qualifying for a small-seller exception (applicable to sellers with annual gross receipts in total U.S. remote sales not exceeding $1 million) to collect and remit sales and use taxes with respect to remote sales under provisions of the Agreement, but only if such Agreement includes minimum simplification requirements relating to the administration of the tax, audits, and streamlined filing. Defines “remote sale” as a sale of goods or services into a state in which the seller would not legally be required to pay, collect, or remit state or local sales and use taxes unless provided by this Act.”
Which means out-of-state online, catalog or remote would need to collect sales tax at the time of the transaction, just as local retailers are required to do. For this to happen each state would have to simplify their sales tax laws, making it easier for national vendors to calculate the tax and manage it.
The Marketplace Fairness Act would pave the way for states to require online sellers from out of state to begin paying the sales tax they’ve escaped for years. Senator Dick Durbin (D-Ill.) said “The Marketplace Fairness Act would level the playing field for small businesses by allowing states — if they so choose — to treat brick and mortar retailers the same as remote retailers.” Durbin, who is sponsoring this bill, is best known for authoring the Durbin Amendment, a piece of legislation that caused much controversy in the Payment Card Industry when enacted.
The act passed the Senate. But has yet to be voted on in the House, with all signs pointing to it not passing the House.
There’s been an uptick in media coverage and analysis of this bill. Essentially the verdict is that the increased sales volume from the holiday shopping season is going to push the political infrastructure to once again address the issue of state sales tax and online merchants.
And that raises the most interesting question of all for the credit card processing industry: Is the global aspect of online shopping going to take a huge step towards pushing sales tax to a federal layer and remove it from the states?
That’s a very big picture outlook on the issue. But as online shopping becomes more and more prevalent, the issue gains traction. The world is becoming a pretty tiny place due to the saturation and convenience of communication. You can video-call people on the other side of the globe instantly with your smartphone right now. Mobile Wallets and NFC are seeking to make it so that you can wave your magic wand, or iPhone, and pay for things instantly. State based sales tax laws look to fall behind the curve of quick evolving technology. Five, ten, even fifteen years down the line the way we make purchases and the marketplace wherein we make those purchases may have evolved past the scope state sales tax. The Marketplace Fairness Act seems to be just a precursor to a larger movement afoot in the retail sales industry.
A joint venture between AT&T, Verizon Wireless and T-Mobile known as Isis Mobile Wallet has released a revolutionary mobile payments app that promises to change the way people pay for goods and services. The trio of mobile service providers are ecstatic to finally debut this mobile payment platform right before Black Friday and the rush of the holiday shopping season, as this technology lets consumers conveniently utilize their mobile phone to pay for goods and services. Use of the platform makes it easier for merchants to accept a wider variety of payments and the Isis system itself encourages repeat purchases through loyalty programs tied into the app and its software.
The debut of Isis also heralds a huge step forward for Near Field Communication technology (NFC), a topic we’ve been consistently covering since our Official Merchant Services Blog began.
What Is the Mobile Wallet Platform?
The Isis Mobile Wallet platform is a completely free mobile application that utilizes NFC technology to allow consumers to pay for purchases by waving their mobile device in the air at a terminal that captures the pertinent information out of thin air. The mobile payment industry has been dealing with one large obstacle from NFC recently, as Apple hasn’t made its iPhones compatible with NFC. And so an Isis representative said that iPhone support would come at a later time. Until then, the app is available on all other compatible phones, but users should be aware that downloading the app could cost money if they are not subscribed to a monthly plan with unlimited data.
How the Platform Works
The NFC technology used in the mobile payments app allows mobile devices to transfer information when they are tapped together. Merchants who use devices with this technology can accept payments quickly and securely from customers who have compatible devices. But wait, there’s more.
Mobile payments represent just one of the benefits of the Isis app. Merchants can offer loyalty rewards to customers through the app. These rewards can be earned and stored directly on a mobile device. We’ve delved into some of these types of incentives in our coverage of the Barclays bPay app, as well as social gifting articles. The basic idea of what’s happening is the app is giving customers yet another avenue for savings through their mobile device, in hopes to spur more purchases. Discounts are automatically deducted from a sale when Isis is used to pay for a product or service. There’s no need for merchants to have cards or keychains printed, and customers do not have to worry about keeping track of dozens of loyalty cards.
Some specific incentives that are tied with the Isis debut: Isis Mobile Wallet customers can use My Coke Rewards and Isis to get three free drinks at select vending machines, while Jamba Juice is giving away 1 million free smoothies to Isis users. Purchases made from an American Express Serve account through the Isis wallet are eligible for a 20 percent discount (up to $200).
A PIN is used to protect personal information if a phone is lost or stolen. The wallet can be locked when a phone is lost to prevent information from being breached.
Phone Compatibility With NFC Technology
NFC technology requires a cellphone user to have personal payment information stored on their phone. The sensitive nature of this information means that extra precautions must be taken. An enhanced SIM card that specifically details that it has been made for secure data storage must be used in conjunction with the application. Interested customers will have to get an enhanced SIM card to run Isis. They will also have to download the app on Google Play or get signed up at retail stores run by the three carriers.
I just sat down at my desk and took a few moments to read Antonio Regalado’s fascinating column on E-Commerce from MIT Technology Review. I recommend it to anyone who runs a business, or really anyone who plans to buy something in the next month or two — you know, during the Holiday Shopping Season.
It’s That Time of Year Again
With that holiday shopping season right around the corner the media spotlight on E-Commerce is about to get dialed up a few notches. The standard media grind of finding a new story to keep things fresh, yet rehashing the same old topics over and over again, is really quite fond of the E-Commerce tale since it basically hits every mark needed in a story this time of year. It’s well trod ground (retail sales figures during the time of year when people flock to shop retail), it’s fresh and flashy (buying with a smartphone is the new “it” thing) and it’s easy to write about (everyone’s got a smartphone and in between texts can probably offer an opinion about the story).
So there’s going to be a flood of “E-Commerce, it’s not just for kids anymore!” style pieces written, along with chart after chart of how many billions of dollars are being spent on products through the whiz bang-up new gimmicks of smartypants phones and interwebs tubes (it’s not a truck, but it powers a fleet of delivery trucks!)
It’s this pending recycle of the news cycle that Regalado’s piece really underscores. It’s starts with the subhead of the article, “E-commerce is an idea whose time has come and gone. Here’s why.” A bold statement when placed up against the pending flood of stories that are going to tell us that E-Commerce is (still) the next big thing.
But that’s the hook of Regelado’s article. And it certainly worked its magic on me and got me to read it.
More Than Meets the Eye
Regalado’s point isn’t that E-Commerce is done. It’s more that it’s becoming part of the everyday fabric of retail business. So he’s saying that E-Commerce has been merged into a total shopping experience and is no longer a new gimmick.
The article really slams this point home when it quotes Chris Fletcher, a research director at Gartner (who we here at HMS have used data and graphics from on this very topic). Fletcher told the MIT Technology Review’s Business Report, “we should stop calling it E-Commerce and call it just commerce,” and suggested that it’s really just a part of the shopping experience now.
This quote called up more than a few variants of the corny joke, “In China, they just call it food.” But the point is very well taken this year, and is something we’ve been alluding to for two years now at Host Merchant Services: The whole shopping experience has blending together with Online and Brick and Mortar since the very beginning.
Days of Future Past
This has really obvious but powerful ramifications for our company. As more and more people just accept online shopping as much a part of the process as window shopping or catalog shopping, the amount of credit and debit card transactions continues to increase. Those are the two most common methods of payment in this online environment. And so as the business evolves to the point where popping into a Macy’s ends up auto-texting you a free discount code on your next Macy’s purchase, payment card transactions become the norm.
Keeping an Eye on Heat Mapping
Oh and Regelado’s article really dives into that bit with your location spawning discounts:
” Threatened by the growth of low-cost online merchants, traditional retailers are reacting by following customers onto the Internet. Macy’s does it as well as any. On its website, it installs 24 different tracking cookies on a visitor’s browser. On TV, it runs ads with Justin Bieber that urge millennials to download its mobile app, which tells them which of the chain’s stores is closest to their location. Once inside, they can use the app to scan QR codes on a pillowcase or a pair of shoes. Online orders now ship from the backrooms of 500 Macy’s stores that this year began acting as mini distribution centers.”
Omnichannel marketing is the buzzword associated with this. But it’s something we’ve been discussing at HMS for awhile now. Our partnership with Barclay’s Mobile app opened this slick marketing tactic up to us ages ago. It’s really quite clever. The business uses its connection to your phone (and thus your own transaction history, your GPS location, as well as data that it can find in various places like social media) to track your buying habits.
I remember the first time the heat mapping aspect of Omnichannel Marketing was explained to me by HMS Tech expert Ken Hemmel.
He described a system where I’d be walking along on Main Street in Newark, which was where the Barclays app was being targeted, and I’d pop into a restaurant. I’d buy a meal and have a glass of a particular wine with that meal. The information would then prompt my phone the next time I walked past a wine and spirits store that was participating in the program. And I’d be given a coupon code to save money on a bottle of that kind of wine I had with my meal. This would combine transaction history, with GPS location and turn into an aggressive marketing tactic to get my business.
A Whole Store in Your Pocket
Another salient point Regelado’s article made really resonated with me personally. The article cites US Census economic data and states that only 5.2 percent of US retail purchases were made online in 2012. But then the article cites the effect of online research, noting that 80 percent of BestBuy customers said in a survey that they already searched for price information online before making a purchase in person. And that a third of them do so on a phone while inside the store.
So the last two purchases I made at BestBuy were an HD TV, which I searched for information on while in store, and a computer which I was shopping for online before I went there. I fell right into those statistics. I wanted to comparison shop and read reviews before making the purchase and had the device right there in my hand that let me do exactly that.
The only thing that held me back from ordering either of these items completely online was impatience. I wanted the item that day. Which is exactly what Relegado’s article also gets into:
“But now [Amazon] and other Internet companies, including eBay and Google, are investing in same-day delivery—getting goods to people just hours after they order them. With their drop boxes and fleets of delivery cars, they’re bidding to eliminate one of physical retailers’ main advantages: immediate gratification.”
The suggestion is that technology is pushing retailers to evolve. They embrace social media, and online power, and create a shopping experience once again tailored to meet the needs and convenience of their customers.
Been There, Done That?
It reminds me of Warren Ellis and Darrick Robertson’s groundbreaking comic book, Transmetropolitan. Set in a Bladerunner-on-acid style future and revolving around a pastiche Hunter S. Thompson-inspired Gonzo journalist named Spider Jerusalem, the comic had a very humorous but also telling take on marketing and advertising in our near future. It suggested neural advertising bombs delivered directly to our brains, tracked by our own viewing habits, to offer us the products we’d be most interested in. As deft and powerful as that future marketing blitz was shown to be in the imaginary world of Transmet comics, the reality is we’re about to be in on the beta test of that entire concept with the way retail is evolving through E-Commerce.
If your website runs an online store so that it can sell merchandise to customers, there are several methods that you can use to sell your product to the customer. However, the most efficient method of getting customers to buy your products easily is to use a shopping cart. There are many benefits to shopping cart templates.
Benefits of the Shopping Cart
When a website decides to sell a whole catalog of items, they will typically make it easier for customers to buy multiple items by allowing them to use a virtual shopping cart that will store all of their items until they decide to check out. It would be a hassle to have customers buy items one at a time, and the shopping cart eliminates this difficulty. It is common practice to make it as easy as possible for customers to purchase goods so that they don’t change their mind.
Not only does it make it easier on the customer, but on the credit card processing company as well. Shopping carts can be used to create a list of items that need to be shipped out on your end. This is a lot easier than going through one item at a time and matching it with the customer ID so that you can send it off to the correct place.
Coupons and Deals
The shopping cart idea also allows for the use of complex coupons and deals. For example, if you have a buy two get one item free sale, the shopping cart keeps track of the amount of items that the customer buys and will be able to implement the deal without any outside work. It not only keeps track of the amount of items that the customer buys, but can keep track of the total money spent that can be used for other deals. Without the shopping cart, it would be difficult to track this information.
Adding Items
It is really easy to add items to your product list with a shopping cart. If you have a quality shopping cart template, you will be able to enter this information into your website very quickly. If you have a website that is constantly changing the products or services that it offers, this could be vital.
Creating Your Shopping Cart
It can take a lot of work to construct a shopping cart from scratch, so you can save time by using shopping cart templates. These templates already have all the graphics and coding completed, and are easy to use. You will be able to quickly learn how to place the cart on your own website, add and remove items that the customers can buy, place in deals and coupon codes, and every other aspect of the cart.
Once implemented, customers will be able to use it to keep track of their items. They can then proceed to a checkout menu and enter in their information that will send the payment to your account, and give you detailed information about the placed order.
Conclusion
Customers are much more likely to purchase from an easy to use website that specializes in simplicity rather than a website that they need to adapt to. This is a waste of their time…so increase your sales and reduce wasted time by using a shopping cart for your online store today!
Welcome to the world of entrepreneurship! In today’s era creating and managing an eCommerce online store has become a popular way to transform your passion into a profitable venture. Whether you have a product idea or want to tap into a product category the possibilities are limitless, in the vast realm of eCommerce.
Where should you start? How can you ensure that your online store shines amidst competition? Don’t worry, because this comprehensive guide is here to assist you every step of the way. It will provide you with all the knowledge and tools to build an online store.
From selecting the right ecommerce platform and designing your website to choosing products that resonate with your target audience and implementing marketing strategies – we’ve got everything covered. So buckle up. Get ready for a journey, towards establishing your own thriving online empire!
Without further ado let’s dive in and discover how to create and manage a store that not only grabs attention but also generates unprecedented sales.
Choose the Right Ecommerce Platform
Setting up a store starts with selecting the right ecommerce platform. With a range of options, it can feel overwhelming to make a decision. However by understanding your needs and considering factors, like user-friendliness, customization options, and pricing you can narrow down your choices.
When choosing an ecommerce platform consider the size and scale of your business. If you’re starting small or don’t frequently engage in ecommerce a simple and affordable option might be suitable. On the other hand, if you have growth plans or require advanced features such as inventory management and customer segmentation opting for a more robust solution would be beneficial.
It’s important to think about how the platform integrates with tools and services that are crucial to your business operations. For example, if social media marketing plays a role in your strategy look for platforms that seamlessly integrate with social platforms.
Also, take into account the level of knowledge required to operate the chosen platform. Some platforms provide drag-and-drop website builders that make it easy, for anyone without coding experience to create their store. Others may require some HTML knowledge or professional assistance.
Keep in mind that every platform has its strengths and weaknesses when it comes to optimizing your website for search engines (SEO). Look for platforms that offer built-in SEO features, like URLs, options for optimizing tags, and page structures that are friendly to search engines.
By considering these factors and conducting research, on the various ecommerce platforms available today you’ll be able to choose one that perfectly matches your specific requirements. This will ultimately lead you towards establishing a store.
Choose a Niche and Develop a Business Plan
Selecting an area and crafting a thought-out strategy is a vital step, in establishing and operating an online shop. It’s essential to choose a niche that aligns with your passions, expertise, and market demand. The key is to find the balance where there’s both a need for your products or services and a level of popularity.
To begin identify a product category that enjoys appeal or an underserved market segment that resonates with your interests. Research thoroughly to grasp the concerns, preferences, and buying habits of your target audience. This valuable insight will enable you to tailor your products and marketing efforts
Once you’ve pinpointed your niche it’s time to create a business plan that will act as your roadmap to success. Outline clear goals, strategies, financial projections, and marketing tactics as contingency plans.
When formulating your business plan consider factors, like market conditions, competition analysis, customer acquisition costs, pricing strategy, shipping logistics, and customer support capabilities. A crafted plan will guide you through the stages of launching and expanding your online store.
Keep in mind that successful online stores possess their style and brand identity. Leverage this opportunity by offering products or delivering customer service to set yourself apart from competitors.
To achieve long-term success, in the eCommerce world, it is crucial to select the niche and create a well-thought-out business plan that caters to the specific needs of your target audience. By doing you position yourself effectively for growth and prosperity.
Plan Your Ecommerce Online Store
When it comes to launching a store one of the critical steps is carefully planning your ecommerce online store. This involves selecting the software or website builder that aligns with your business requirements and ensures a shopping experience, for your customers.
Consider the nature of the products you intend to sell and the level of customization you desire. Some platforms offer flexibility in terms of design and functionality while others may be better suited for stores with simpler needs.
Think about your target audience and their preferences. Take time to research what features and functionalities are important to them when they shop online. This will help narrow down your options and choose a platform that specifically caters to their needs.
Another crucial aspect to consider is search engine optimization (SEO). Look for platforms that come equipped with built-in SEO tools or provide ways to optimize your product pages for visibility on search engines.
In addition take into account factors such, as pricing, payment options, shipping integrations, and customer support. These elements can significantly impact the success of your store.
Lastly don’t forget about scalability. As your business expands you’ll want a platform that can handle increased traffic and sales without compromising performance.
Before you launch your store it’s important to plan your ecommerce online store. This will give you a foundation, for success in the market. Make sure to invest time in researching options and selecting the one that best aligns, with your business goals and meets the needs of your target audience.
Pick the Right Products
When it comes to running a store one of the most crucial aspects is selecting the appropriate products to sell. This decision does not affect your sales and profitability. Also determines how effectively you can attract and retain customers.
To make decisions, about which products to offer in your store conducting comprehensive market research is essential. Begin by identifying your target audience and gaining an understanding of their needs and preferences. What are they searching for? What problems do they need solutions for? By answering these questions you can discover product ideas that align with this demand.
Next, explore product categories that resonate with your target market’s interests. Are there any trending or niche items that you could leverage? Look for gaps in the market where competition’s limited but demand is high – this will give you an edge.
Another crucial factor when selecting products is whether they align with your brand identity. Your online store should have its style and values so opt for products that mirror this image.
Consider aspects such as profit margins and shipping requirements well. Ensure that the products you choose provide room, for profit while being easy to ship without incurring costs.
If you follow these steps and carefully choose the products, for your store you’ll position yourself for success, in the fiercely competitive world of ecommerce. Therefore it’s crucial to invest time in researching and assessing product options before making any conclusive choices!
Design Your Online Store
Creating an ecommerce online store business requires attention to designing your online store. It’s not, about making it look good; it’s also crucial to ensure that it is user-friendly and optimized for driving conversions.
When you design your store it’s important to consider the layout and navigation. Make sure your website is easy to navigate allowing visitors to quickly find what they’re looking for. Incorporate categories and filters to help users narrow down their search.
Another vital aspect of design is the appeal of your store. Choose a professional theme that aligns with your brand identity. Utilize high-quality product images. Provide descriptions to captivate customers.
In today’s mobile-driven world mobile responsiveness is paramount. Optimize your store for devices since more people are shopping on their smartphones or tablets than ever before. Ensure that the design seamlessly adapts across screen sizes.
Don’t underestimate the significance of trust signals on your website. Feature customer reviews, testimonials, and payment icons and prominently display contact information on each page to establish credibility, with customers.
Simplify and streamline the checkout process so that customers can easily complete their purchases without unnecessary steps or distractions causing friction along the way.
When you carefully consider these design aspects while establishing your store you will be able to create a welcoming atmosphere that imparts trust in visitors encouraging them to make purchases from you.
Begin Listing Your Products
Now that you have your ecommerce online store set up and your online store designed, it’s time to start listing your products. This is where the real work begins!
First, gather all the necessary information about each product you plan to sell. Take high-quality photos from different angles, write detailed descriptions that highlight the features and benefits of each item, and determine the pricing for each product.
Next, create a product page for each item on your website. Make sure to include all relevant details such as size options, color choices, and any variations or customization options available. Use keywords in your titles and descriptions to optimize them for search engines.
When listing your products, consider your target market and their needs. Think about what would appeal to them and how you can differentiate yourself from competitors in the same niche. Highlight unique selling points that make your products stand out.
Don’t forget to provide accurate inventory information so customers know if an item is in stock or not. This will help manage customer expectations and avoid disappointments or delays.
Regularly review and update your product listings based on customer feedback or changing market conditions. Stay vigilant with monitoring stock levels so you can quickly restock popular items before they run out.
Listing products may seem like a daunting task at first but with careful planning and attention to detail, it can become an enjoyable part of running a successful online store.
Choose The Best Payment Options
When it comes to running an online store, choosing the best payment gateway is a critical decision that can greatly impact your success. With so many different payment methods available today, it’s important to consider the preferences of your target audience and provide them with convenient and secure options.
It’s also essential to consider the specific needs of your target market when selecting payment options. If you’re targeting international customers, offering multiple currencies or alternative methods like Alipay or WeChat Pay might be beneficial.
Additionally, don’t forget about mobile payments. With more people shopping on their smartphones, providing options like Apple Pay or Google Wallet can enhance the user experience and streamline checkout.
Remember that security should always be a top priority when selecting payment providers. Look for reputable companies that offer fraud protection measures and comply with industry standards such as PCI DSS (Payment Card Industry Data Security Standard).
Choosing the best payment options for your online store requires careful consideration of your target audience’s preferences and needs while prioritizing security. By offering diverse and convenient payment methods, you can enhance customer satisfaction and increase conversions in your ecommerce online store journey
Finalize Shipping Strategies and Policies
Finalizing your shipping strategies and policies is a critical aspect of running a successful online store. It’s important to carefully consider all the factors involved in order to provide the best experience for your customers.
First, you need to determine what shipping options you will offer. Will you provide standard shipping, expedited shipping, or both? Consider the preferences and expectations of your target audience when making this decision.
Next, establish clear and transparent shipping costs. Customers appreciate knowing exactly how much they will be charged for shipping before making a purchase. Offering free shipping can also be an effective way to incentivize sales and attract more customers.
Another important consideration is the packaging. Make sure you choose appropriate packaging materials to ensure that products arrive safely and undamaged. This not only protects your reputation but also reduces the chances of returns or refunds due to damaged goods.
Additionally, it’s crucial to communicate your return policy regarding damaged items or other issues that may arise during shipment. Be sure to outline any requirements or steps that customers need to follow to initiate a return or replacement.
Consider partnering with reliable courier services or fulfillment centers that can handle the logistics of delivering orders efficiently and on time. Research different options available in your area and select one that aligns with your business needs.
By finalizing these aspects of your online store’s shipping strategies and policies, you can help build trust with customers while ensuring smooth transactions from start to finish.
Publish and Promote Your Online Store
Now that your online store is set up and ready to go, it’s time to get the word out and start driving traffic to your website. The success of your online store depends greatly on how well you promote it and attract potential customers.
One of the most effective ways to promote your online store is through digital marketing strategies. Utilize social media platforms like Facebook, Instagram, and Twitter to create a presence for your brand. Engage with your target audience by posting relevant content, running contests or giveaways, and interacting with followers.
In addition to social media marketing, consider investing in search engine optimization (SEO) techniques. This involves optimizing your website’s content so that it ranks higher in search engine results pages when users search for keywords related to your products or industry. Research popular keywords within your niche and incorporate them into product descriptions, blog posts, and meta tags.
Another powerful promotional tool is influencer marketing. Collaborate with influencers who have a following that aligns with your target market. They can help showcase your products through reviews or sponsored posts on their blogs or social media accounts.
Don’t forget about traditional marketing methods as well! Consider running ads in local newspapers or magazines if you have a physical location tied to your online store. Attend trade shows related to your industry where you can showcase and sell products directly.
Remember that promoting an online store requires ongoing effort – not just a one-time push at launch. Continuously analyze which marketing channels are driving the most traffic and conversions for you, then invest more resources into those areas while refining others.
By taking advantage of various promotional strategies tailored specifically for an ecommerce online store business model like yours, you’ll be able to reach a larger audience and increase sales potential significantly!
Conclusion
Setting up and running an online store can be a challenging but rewarding venture. With the right strategies and tools in place, you can create a successful online business and tap into the growing world of e-commerce.
By choosing the right ecommerce online store that suits your needs, selecting a niche market, planning your website layout and design effectively, listing products strategically, offering convenient payment options, optimizing shipping strategies, publishing and promoting your online store wisely – you are well on your way to creating a profitable online store.
Remember to conduct thorough research on your target audience and their needs. Utilize social media platforms to reach out to potential customers and engage with them regularly. Keep an eye on market conditions and adapt accordingly to stay ahead of the competition.
Building brand identity through effective logo design, utilizing search engine optimization techniques for better visibility in search engine listings, providing excellent customer support – these are all crucial aspects that contribute to the success of your online store.
As a new entrepreneur in the ecommerce online store market, it may seem overwhelming at first. However, by following these steps diligently while keeping an open mind for future adjustments based on customer feedback or changing trends – you can build a thriving online business that stands out from the rest.
Remember that setting up an online store is not just about selling products; it’s about creating an enjoyable shopping experience for your customers. By combining quality products with exceptional service and marketing efforts tailored towards reaching your target audience effectively – you will be able to establish yourself as a trusted player in the competitive world of e-commerce.
So go ahead! Take this comprehensive guide as a starting point for launching your own successful online store today. Embrace innovation, stay adaptable to change,and never stop learning along this exciting journey!
Here’s wishing you tremendous success in building and growing your very own profitable ecommerce online store empire!
The Official Merchant Services Blog would like to announce that Host Merchant Services has now added next-day funding to their already impressive line of services. Merchant services customers appreciate getting their deposits the next business day, as this is critical for funding payroll and inventory purchases for the week.
Merchants can now expect funding for MasterCard, Visa, and Discover transactions by the next business day, rather than within 48-72 hours, as is customary for other processors. All HMS Merchants can qualify. HMS long-term merchants will attain next-day funding, immediately upon request.
A merchant who currently has two day funding for example, would not see the money from a transaction processed at noon on a Monday, until Wednesday morning at the earliest, creating a 48-hour delay that could be the source of a merchants’ cash flow dilemma.
Any merchant that processes with Host Merchant Services and batches, or settles their terminal regularly in the evening, will receive those funds in their bank account by the next business day. Batching is the end-of-day or end-of-shift process in which the merchant balances and submits transactions for clearing and settlement. This allows executives to make quicker business decisions that impact their bottom line, as well as increase cash flow for the business.
Merchants should beware however that not all next day funding programs are created equal. While many companies claim to offer next day funding, merchant account providers have different capabilities and requirements resulting in very different times for fund dispersal.
Next day funding can benefit particular types of merchants like restaurants, principally when it comes to those that have heavy weekend volumes. For these merchants, next day funding can help them gain their weekend proceeds faster so they can be used to fund payroll and inventory purchases for the week. These restaurants would get their deposit for Friday, Saturday and Sunday activity on Monday instead of Tuesday, which is a very big cash flow benefit.
Host Merchant Services is always looking for ways to make it easier and more convenient to do business as well as provide added value in accelerating the growth of companies. With next day funding Host is enabling small business owners to improve their cash flow with faster funding of dollars earned through credit card sales. This corresponds with HMS’s ongoing goal to provide quality payment transactions solutions at the best price to merchants across the United States. Contact Host Merchant Services now to save money on your processing fees, as well as see your money a full day earlier than with other processors.
Today the Official Merchant Services Blog brings NFC technology back into the spotlight, with a look at a pilot program U.S. Bancorp is running in two test cities. The company, one of the nation’s more tech-oriented big banks, is joining the ranks of companies testing near-field communication (NFC) technology by pairing a rewards credit card with Apple Inc.’s iPhone in Salt Lake City, Utah, and Portland, Oregon.
It’s been a while since we discussed the technology surrounding Near Field Communication, or NFC, so lets take a moment to recap. NFC is a short-range high frequency wireless communication technology which enables the exchange of data between devices with a touch. This touch capability allows for sharing, pairing, and transaction capability between the NFC devices. A smartphone or tablet that is NFC capable can be used as a keycard or an ID card. The same device can also be used to make credit card payments.
U.S. Bancorp, based in Minneapolis is offering new holders of its FlexPerks Travel Rewards Visa Signature card a special sleeve for the iPhone 4 and iPhone 4S. The sleeve contains a microNFC chip, and an antenna that facilitates payments by communicating with contactless point-of-sale terminals. Unlike a small but growing number of smart phones running Google Inc.’s Android operating system, the iPhone does not have a built-in NFC chip. With the sleeve and U.S. Bank’s new Go Mobile app, cardholders will be able to use their iPhones to make purchases at any merchant location that accepts the contactless Visa payWave card.
Cardholders will receive the case free for participating in the test. The case also includes a battery that extends the iPhone’s charge time by more than 50%, a feature U.S. Bank says will appeal to frequent travelers. The card itself is free in the first year but afterward charges a $49 annual fee.
U.S. Bank, already has offered the FlexPerks card with a Europay-MasterCard-Visa (EMV) chip so that international travelers can use their cards easily in EMV countries, which is now most of the industrialized world. The new test is part of an effort to learn how consumers and merchants take to NFC, according to Dominic Venturo, chief innovation officer at U.S. Bank Payment Services.
Some major players in mobile payments, notably PayPal Inc., Square Inc. and Starbucks Corp., are using non-NFC technologies such as browser-based systems or 2-D bar codes. NFC is a high-capacity, fast technology, but skeptics cite its need for chip-equipped phones and POS terminals as reasons to use other technologies. And while still small considering that the U.S. has about 8 million card-accepting locations, Venturo says the number of locations capable of accepting NFC payments, is now up to about 300,000 and growing.
U.S. Bank picked Salt Lake City and Portland for the NFC testing because of their tech-oriented populations and previous experience with high-tech card or Internet systems. Salt Lake City, for example, is one of the two test cities for Isis, the NFC mobile-payments joint venture of AT&T Mobility, Verizon Wireless and T-Mobile USA. Also, the Utah Transit Authority, the Salt Lake area’s mass-transit system, already accepts contactless cards. Google, meanwhile, picked Portland as its first test site for Google Offers, a competitor of Groupon Inc.’s daily-deal offers now available in about 40 cities. U.S. Bank has no end date for the test and in fact considers it a limited rollout that may expand later this year.
This technology is being embraced by some major companies in the e-commerce industry for its ability to process credit card transactions. PayPal purchased Zong for just that reason. Visa invested heavily in mobile payments, as seen by their marketing plans for the 2012 Olympics. Google is making its Google Wallet and Google+ beta work toward that same vision of mobile payments made through NFC-based touch technology. Only time will tell if the future of NFC payments is in fact bright and as usual, Host Merchant Services will keep you up to date on any new developments.
Overall, a company such as Walmart, for example, will be losing out on money for each digital order. If they are able to convince a customer to make their own way to an actual physical store to collect the item themselves, however, it can start to save Walmart some money. And it all soon adds up.
