Part 3: Sell Your Products Online

CIBC Business Toolkit – Grow and Manage Your Business Online

2 Sell Your Products Online

The opportunity for you to grow your business through eCommerce is significant. Whether you are an existing “bricks and mortar” retailer interested in adding a new sales channel or you are a new, virtual operation, eCommerce offers a 24/7 shopping opportunity for consumers to purchase your products and services.

eCommerce appeals to consumers looking for convenient ways to purchase goods whenever they have the time. It also gives them the ability to window shop and compare prices, variety, and scope of products amongst a range of vendors – not just those in their geographic area.

eCommerce gives you the ability to:

• Expand your business and your customer base into new geographic areas to grow in ways you couldn’t with a bricks and mortar location. This could include the United States as well, if your merchant service provider has the ability to process in US dollar funds.

• Appeal to cost-conscious consumers or “window shoppers” by showing your competitive pricing and unique products or services.

• Reduce your overhead. Research shows that the cost of maintaining a bricks and mortar store versus a “virtual” store are significantly higher. Using eCommerce to sell your product or service can save you money in terms of physical space to display, sell and store your product, personnel, and security risks.

So how do you begin to set-up an online store? Here are a few simple steps to get you started:

Design & Develop Your WebsiteYour website will be the backbone of your eCommerce business. It will need to meet the requirements and demands of your business, including functionality, branding and customer experience.

With the convergence of online, mobile, social and brick-and-mortar environments, it’s increasingly important for businesses to develop an integrated multi-channel strategy to make it simple for customers to engage and transact.

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Get Started When you’re looking to launch your eCommerce business, you can choose from a full-custom approach to an all-in-one platform.

For a fully customized website, you will typically require the services of a web designer. Together, you will determine how your website should look and what it will include in terms of products, services and content. You will also need to select and register a domain name and secure a web hosting provider.

“Web-in-a-box” platforms, available through Global Payments, simplify the process of opening an online store by stepping you through the process and providing you with everything you need to run your online business. Available for a monthly fee, services incorporate all of the tools needed to create and maintain your eCommerce website, including: domain registration, web hosting, shopping cart software, SEO integration and customizable website design templates.

Accept Payments Of course, no matter your approach, a key component of your eCommerce website is payment acceptance. A merchant services provider, like Global Payments or Payfirma, will work with you to set up your merchant account, select a certified eCommerce gateway and establish the payment page where your card transactions are completed.

There are two ways to accept payments on a website:

Host the transaction acceptance on your website If you would like to host the payment page where transactions are accepted yourself, you will need an API Integration (application programming interface integration). In this scenario your customers will enter their credit card information for their purchase directly on your website. The API (application programming interface) such as that provided by Global Payments or Payfirma, gives you instructions (programming script) on how to connect your website directly to your merchant services provider for authorization. In this scenario you will have full control of the customer experience throughout the check-out process; however, your website must be secure and Payment Card Industry (PCI) compliant to ensure that your client’s credit card information remains safe.

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Have a Merchant Services provider to host the transaction acceptance on their secure site If you would like your merchant services provider to host the acceptance of transactions on their secure site, you require a Hosted Payment Page. In this scenario, your merchant service provider supplies you with a secure payment page linked to your website where your customers enter their credit card information.

For example, Global Payments offers Global Transport® Secure eCommerce, an innovative and cost-effective hosted eCommerce payment solution that you can easily integrate to your website. It allows you to securely accept and process credit cards and Visa Debit cards through your online store. Global Transport Secure uses HTML Clone® Technology, automatically mirroring your website’s look and feel in real time, ensuring brand continuity and reducing order abandonment. Global Transport Secure is a secure and PCI friendly solution that ensures your customers credit card information is kept safe.

Alternatively, Payfirma offers the PayHQ platform which can help your business to sell more online, in store, and on the go. PayHQ allows you to collect credit card payments on your smartphone or tablet from anywhere, and it allows you to connect your iPad to a cash drawer and receipt printer. It also makes selling online simple by easily connecting your website to an online payment gateway using custom plug-ins to over 500 of the most popular shopping carts and eCommerce platforms.

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On opening a Toronto flower shop, the two principles realized they could shake things up, skip the middleman and sell luxury flowers online directly to consumers, like traditional online giants FTD and Teleflora. Two years later, they have 20 employees, own their own trucks and warehouse, have standing orders with farms and solid relationships with large online businesses. They’re a million dollar company delivering to over 8 million Canadians across Ontario alone.

Unfortunately, their merchant services provider was impossible to communicate with, didn’t seem to have any fraud detection in place, and was slow to make deposits into their accounts. They needed a new payment processor with strong communication, fraud detection and an open source API that would allow their company to expand and grow.

ActionAfter performing a search, they chose Payfirma because they offered low initial cost and processing fees, and were Canadian. Payfirma’s focus on exceptional customer service was something they found to be extremely reliable. The company’s co-founder stated, “I initially had sent in a support ticket at a ridiculous time outside of business hours, and the person who ended up replying to me was Michael, who I learned was the CEO of Payfirma. I have a lot of respect for a person who cares that much about his business.”

ResultsWith Payfirma’s powerful API they were able to modify the plugins to suit their specific needs, allowing them to be in control of their financial future. Now they have time to focus on expanding their business and Payfirma’s API gives them the ability to do just that. Communicating with the company’s in-house software is easy, allowing their employees to focus on customer service and selling, thereby creating a seamless and efficient solution.

The ability to customize their checkout page means they can tailor the experience to their customers’ needs, which has led to increases to their conversion rate. The biggest enhancement they see, however, is being able to detect fraud, something which will become even more important as they expand into other areas such as mobile payments.

Case Study: Using Payfirma To Support Online Growth

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This growing business was looking for a payment processor but more than that, one that could really scale with the company. What they found with Payfirma is a growth partner that will be with them every step of the way.

Set up a Merchant Account Looking to expand your business online and accept payments on your website? Talk to your CIBC business advisor, for more information and to discuss options for hosting your payment page and certified eCommerce gateway vendors. Global Payments and Payfirma are CIBC’s preferred merchant services providers, supplying small businesses with comprehensive payment solutions and innovative payment products.

Summary The resources available to help small businesses set up a successful eCommerce website are readily available. As the most extensively used Internet function by consumers, an eCommerce operation should be considered as part of your overall growth strategy.

For additional information on accepting payments through your website:

• Refer to resources in Appendix B • Contact your CIBC business advisor • Call 1 877 299-2358

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Online marketing terminology can seem like a new language. Let us translate for you.

• API Integration (Application programming interface integration): API integration is a method of enabling merchants to accept credit card payments over the internet by providing your website developer a set of programming instructions to connect to an eCommerce Gateway. Since payment information is collected on your website, your web page must be PCI compliant to help ensure card information is safe and secure.

• Domain Registration: It refers to the process of registering a domain name, which identifies one or more IP addresses with a name that is used in URLs to identify particular web pages.

• eCommerce Gateway: Application service provider that enables online merchants to accept payments over the internet.

• Hosted Gateway Connection (Hosted Payment Page): Hosted Payment Page is a method of enabling merchants to accept credit card payments over the internet by using a 3rd party web page to gather and authorize your customer’s credit card information. At time of payment, your webmaster directs your customer to a secure web page managed by your eCommerce Gateway and your customer returns to your website after the card has been authorized.

• Merchant Service Provider: Provides businesses with the ability to accept credit and debit card payments both on and offline for goods and services.

Appendix B: Additional Resources4 Opt ins To Accelerate The eCommerce Buyer Process

Creating an eCommerce Web Site: It’s Easier Than You Think!

Jumpstart Growth By Adding Subscriptions To Your Online Store

Why You Should Include Gamification In Your Online Store

Appendix A: Key Terms