Online Store Considerations

When opening an online store or eCommerce website, there are many additional factors and start-up costs that need to be addressed to ensure that your website is secure, operates properly and is legal. This article is meant to be a starting point for planning your web store or eCommerce solution and covers the basics of getting a storefront online.

Operating a Business

An online store front is a business, no different than opening a physical store front. You will be accepting payments for products and services. Meaning that you will need a license or registration in order to operate that business legally. If you are selling products within your home state, you will need to have a sales tax license and report your income to avoid potential prosecution from the IRS. Check with your local chamber of commerce for the proper forms, registrations and legal requirements to ensure that your business is in accordance with local and federal laws before opening your store.

Business Accounts

When you are accepting online payments, that money is deposited into a bank account. It is strongly recommended that you create a business account specifically for this purpose. Consult your financial institution for the best option.

Payments and Security

When accepting payments online, several additional services are required for proper and secure operation of any store. A dedicated IP address is required to have an SSL certificate. An SSL certificate is required by most merchant account providers. A merchant account is required to accept credit card payments directly through your website.

Without these services in place, any customer information or credit card transaction that takes place on your site is vulnerable to security threats. This will result in browser messages saying that your site is not secure when it is pulled up by visitors, which will result in lower sales. Even worse, sensitive information from your business or your customers could fall into the hands of hackers, spammers or scammers.

Additional Content Requirements

Aside from the basic content you will have on your website, such as product and company information, it is highly recommended that you have several other documents in place that are easily found by your visitors.

Terms of Service: This legal document is an agreement between you and your website users outlining acceptable actions on your website and actions that you may take if the guidelines are not followed. This is also a great place for any important legal disclaimers you wish to include.

Privacy Policy: This document will elaborate on how you handle sensitive information and serves to give peace of mind to your customers by detailing how you will not misuse the personal information provided during the course of making a transaction in your store.

Return Policy: No matter what your return policy may be, it's best to let your customers know. If you do not offer returns, having "All Sales Final" posted clearly on your site can prevent unwanted legal threats and actions. If you do have a return policy, clearly stating the terms of the policy can also reduce these threats and give your customers peace of mind.

Of course, with any legal documentation featured on your site, you are bound to the terms, just as your customers are. It is always best to consult with a lawyer regarding these matters to be sure of your liability. You'll need to comply with the terms you provide on your website.

Another option is to find generic documents online and modify them for your needs, a quick Google search can usually get you what you need at no cost, but do so at your own risk.

NetSense Media is not liable for any legal action brought against clients that do not have or abide by the recommended legal documents. We may recommend a course of action regarding the implementation of these documents, but our clients accept full responsibilities for all legal matters regarding their business and business websites.

Product Presentation

Presenting your products in a sensible and uniform fashion is very important. Most people are cautious when shopping online and having an unprofessional look or layout to your products can discourage potential customers away from your store

Make sure you have professional quality photos at a uniform size for all of your products. Including photos of product options such as different colors, sizes ECT. Using poor quality photos or incorrectly sized photos can take away from the professional look of your site and possibly cause the site layout to appear jagged or unsymmetrical.

Having an accurate and detailed description of each product is also essential. The more detail you can provide for your customers, the less questions they will have about your products and the more likely they will buy on the spot.

Also think about how you wish for your products to be organized. Most online store applications use "categories" to separate product types - mens, womens, t-shirts, hats, ECT. Put some thought into how you would like to display the various types of products you have. Take a look at other popular sites and online stores that are similar to what you are looking to do if you need some inspiration. Your organizational scheme should make sense, not only to you, but to your customers as well. We are always here to help if you have questions.

Store Sales, Marketing and Advertisement

Unfortunately, an online store is not like "Field of Dreams" - just because you build it does not necessarily mean anyone will come. Unless you have made additional arrangements with us for business management, marketing or advertising, you will have to get the word out about your store on your own. And no one will know it's there unless you tell them.

Once your store is open, it is up to you to generate sales. If your online storefront is in conjunction with a business you've been running for some time, you'll already have a customer base to contact. If not, it will take time to build. If generating profits from your store immediately is your goal, it's best to set aside as much of a budget as possible for advertising and targeted marketing campaigns to direct traffic to your site.

We take pride in building professional websites for our clients, but we can make no guarantees regarding sales volume, product success or customer satisfaction. At the end of the day, it's up to your customers to decide if they would like to purchase your products or not, and up to you to determine how much time, effort and money you will put into your business and promotions.

Bottom Line

Although there are more costs associated with an online store than a regular website, the overhead is relatively low when compared to a physical store front. Online stores are able to sell products worldwide 24/7 with automated ordering and checkout from a single location. The success of any business often hinges on budgeting, overhead, operations and planning. With the right products, marketing and strategy, generating profits through a web store is a reasonable goal.

There is a lot to consider when opening an online store, it is really no different than starting any other business and it should be treated as a business venture. A lot of planning and consideration should be given to every aspect of your online business. Taking all factors and costs into consideration should be just as much a part of the planning process as deciding which products you will sell and how you will market them. We are here to help you through the process.

More Questions?
Please contact us with any other questions you may have, we are happy to offer more information and address your concerns.