Nikhil Desai provides
this timely focus on eCommerce.

etwork Computing (Jan/Feb 99) commented that: "Not that long ago, the idea that serious money could be bartered across the Internet was being dismissed as pure fantasy. How could you be confident that your credit card details would not be misappropriated when ordering goods and services?

"Now Electronic Commerce (eCommerce) is set to become as commonplace as strolling into the local supermarket and plucking produce off the shelves. Indeed, the web has taken such a grip on the financial spin doctors that a modest £6.5 million take-over of an online publishing specialist by W H Smith immediately added more than £90 million to the High Street retailer's market value. With Internet bookseller Amazon.com valued at billions - even though it has yet to make a profit - the web is truly, as one market analyst put it; sexy... anything with a spot of Internet is sky-rocketing."

Recent events in world stock markets have shown the "dot com's" finding a more realistic share value level - but nothing seems to stop the relentless roll forward of the internet. Internet usage has increased by 25% in the UK over the last year, and more and more people are using the internet as an everyday way to make purchases. The number of letters and parcels being delivered by postal services around the world has decreased by 18% over recent years, showing the increasing acceptance of email as the normal form of business communication.

eInnards

So how does eCommerce actually work? The consumer moves through the Internet to the merchant's web site. From there, he decides that he wants to purchase something, so he is moved to the online transaction server, where all of the information he gives is encrypted. Once he has placed his order, the information moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. This generally takes place in no more than 5-7 seconds.

There are many different payment systems available to accommodate the varied processing needs of merchants, from those who have a few orders a day to those who process thousands of transactions daily. With the addition of Secure Socket Layer technology, eCommerce is also a very safe way to complete transactions. There are several basic steps involved in becoming 'commerce enabled':

Getting an Internet Merchant Bank Account.

Web hosting.

Obtaining a Digital Certificate.

Finding a provider of online transactions.

 

Internet Merchant Bank Account

In order to be able to accept credit cards over the Internet, you must apply to your bank for an Internet Merchant Bank Account. This can be relatively easy or somewhat difficult, depending on which country you live in and what bank you are with.

USA: In the US, this is a simple procedure. Many banks offer Internet Merchant Accounts, and most online transaction providers will support them. Ask your bank for details.

INTERNATIONAL: Since the vast majority of online transaction providers are located in the US and are restricted in their ability to interact with banks outside their own country, international merchants have very little choice. An international merchant has to find a way to get a US merchant account, embark on the equally difficult task of finding a local online transaction provider, or utilise one of the few companies that services the international market. In addition, many banks outside the US have very restrictive policies regarding Internet accounts. Luckily, the situation is improving, and most online transaction providers will help you with this if you get in touch with them. Here are some additional issues to keep in mind when you apply for a Merchant Bank Account:

A US Merchant Account can take up to a month to come through.

If you already have a Merchant Bank Account, you will probably also need to upgrade it to an Internet account.

Ensure that your bank accepts Internet merchant accounts and has credit card processors that can connect to FDC, Paymentech or CyberCash.

Your account must be able to handle Card Not Present transactions.

Web Hosting

Web hosting is a very important step in this process, as this is how you gain a presence on the Internet in the first place.

It is important that the web hosting company is capable of providing you with the level of service that you need to maintain your Web Store. A few things to look for are:

Good uptime and fast Net connection.

Good technical support.

Staff that are knowledgeable about eCommerce.

Compatibility with major eCommerce providers.

It is always good to spend some time when choosing a web hosting company, as there are many 'fly-by-night' businesses out there. For the money you are spending, make sure that the company is reputable.

Obtaining a Digital Certificate

A Digital Certificate, also known as a SSL Server Certificate, enables SSL (Secure Socket Layer encryption) on the web server. SSL protects communications so you can take credit card orders securely and ensure that hackers cannot eavesdrop on you. Any eCommerce company will require you to have SSL before you can use their services.

Thankfully, for most people obtaining a Digital Certificate is not a problem. For a minimal fee, one can usually use the certificate owned by the web hosting company where your page resides.

If you are a larger company, however, you may want to get your own Digital Certificate. A certificate costs about US$125.00 and can be obtained from companies like Verisign.

Finding a Provider of Online Transactions

Before you start looking for a provider, you should stop for a moment and consider what exactly you need. How many transactions do you expect to be completing in a month? How many products do you have to put on your web site? How complex does the software need to be? How much are you willing to spend?

There are many online transaction providers out there, and they all have varying packages. Deciding on a provider's package that fits your needs is perhaps the most important aspect in creating an eCommerce website.

eCommerce can be a very rewarding venture, but it should not be undertaken lightly. There is a lot of information to absorb. Additional points to consider are:

If you know nothing about web design, it is probably a good idea to hire a designer.

If you anticipate a lot of growth for orders coming through your site, decide how you are going to cope with the increased load before you are swamped.

Investigate the websites that are possible rivals and formulate a strategy for competing against them.

Marketing your site is also extremely important on the web. Here are some useful tips:

Try finding web sites with similar themes and make deals to create reciprocal links.

Create an advertising banner and purchase space from a popular website to display it.

Now that you know the basics, you should be able to make some informed decisions about how to proceed. Remember that you can ask for further advice from the company that you decide to employ.

Nikhil Desai is the Netpoint Project specialist on eCommerce and Oracle database programming for the web and can be contacted via email: nikhildesai@netpointproject.net

The Netpoint Project

The Netpoint Project provides a comprehensive range of Internet services, offering full domain name registration, free dial up accounts and email addresses (UK), website hosting and website design - including all graphics, animation, sound and database facilities, plus editorial and photographic services as required.

WIRE design, formed in 1990, specialists in graphic design are the web design arm of The Netpoint Project. A full website maintenance and marketing package is also offered plus sourcing any associated hardware or software you may require.

As the first step towards your company's new web presence, the Netpoint Project can produce a report for you, to include a preliminary site map, home page visual and some ballpark figures for the design and production of your website. Contact Netpoint for a Website Questionnaire. Also, several White Papers relating to the Internet are available at no charge on request.

Contact The Netpoint Project on telephone: +44(0)1273 778122
or at the website: www.netpointproject.net