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Nathan Ingram ! @nathaningram

Ecommerce 101

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Who is this guy? Nathan Ingram Freelance Web Developer since 1995 Instructor, WebDesign.com NathanIngram.com

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Coupon Code wpyall25!

Good for 25% off anything you want to buy at !

iThemes, PluginBuddy, WebDesign.com

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The Beginnings of Ecommerce When did online shopping begin?

1979 Michael Aldrich connected a modified home TV!

to a transaction processing computer over!a telephone line in the UK.

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The Beginnings of Ecommerce Another big year for ecommerce…

1994 Jeff Bezos starts Amazon

Netscape introduces SSL encryption Pizza Hut introduces online ordering

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Amazon.com launched in 1994!but didn’t turn a profit until…

2003 Last year the average Amazon order was over $47

Source: InternetRetailer.com on 6/26/2012

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Ecommerce Today Ecommerce sales worldwide topped

$225B in 2012

Source: InternetRetailer.com

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In the first quarter of 2013 $5,277

was transacted per second by

Source: PayPal.com

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The average consumer spends

$1200-$1300 shopping online every year.

Source: Forrester Research, Mashable Infographic 9/4/2012

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By 2016 15% more people

will be shopping online (192 million in the U.S. alone)

Source: Forrester Research, Mashable Infographic 9/4/2012

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know this stuff! If you are even moderately serious!

about designing web sites, you need to

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Ecommerce 101 The Standard Ecommerce Process

Ecommerce with Third Party Processor Understanding SSL

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The Standard Ecommerce Process

Shopping Cart

Payment Gateway

Merchant Account

Bank Account

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Shopping Cart The shopping cart’s job… o manage the shopping process o  communicate with the

payment gateway o  keep the user happy

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Shopping Cart Some Shopping Cart Options for WordPress: o  Shopp o  Cart66 o  WooCommerce o  Gravity Forms o  Easy Digital Downloads o  iThemes Exchange

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Get the Chart !

nathaningram.com/ecommerce

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Payment Gateway Similar to Point of Sale in a retail store.

Authorizes payments for the merchant and keeps a log of authorized transactions.

Example: Authorize.net

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Payment Gateway Payment Gateway Fees: o  A transaction fee (10¢*) o  A batch fee (25¢*) o  A monthly minimum fee ($20*)

* Current Authorize.net Fees

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Merchant Account A bank account that receives payments from a card issuer

Usually a separate company than the Gateway

Works like a collection agent

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What Merchant Accounts Do

Acquiring Bank (Merchant Account)

Issuing Bank!(of the Credit Card)

Hey, one of your customers made a purchase for $100.

OK, here’s the money

Sweet, thanks.

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Merchant Account The Acquiring Bank (merchant account) assumes the risk for a transaction. o  Fraud

o  Chargebacks Why would they take this risk?

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Merchant Account Oh Good, More Fees… o  Discount Rate (2-6%) o  Monthly Minimum Fee o  Customer Service Fee o  Annual Fee o  Chargeback Fee !Types and amounts vary widely between banks.

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Merchant Account Application process can be detailed and time consuming. Secure merchant account approval before constructing the ecommerce platform.

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The Standard Ecommerce Process

Shopping Cart

Payment Gateway

Merchant Account

Bank Account

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Ecommerce with a Third Party Processor

Shopping Cart

Third Party Processor

Bank Account

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Ecommerce with a Third Party Processor

Shopping Cart

Third Party Processor

Bank Account

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Standard vs. Third Party Processors Standard

Lower transaction fees Looks more professional Simple recurring billing

Quick automatic deposits Requires SSL on site

Rigorous PCI Compliance Complicated setup process

Third Party Higher transaction fees Can appear amateurish

More complicated recurring billing Automatic deposits n/a or weekly

No SSL required No (or simple) PCI compliance

Easy setup process

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The Many Flavors of

Standard Accepts all major

credit cards!and echecks

No monthly fee

Advanced + Customers!pay without!

leaving your site

$5 monthly fee

Pro + Virtual terminal!

for phone transactions

$30 monthly fee

Payflow Pro Integrates PayPal!with your current

merchant account

$25 monthly fee!10¢ per transaction

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What to Consider!when Choosing a Payment System

1.  How much volume will you process? 2.  Do you need to do recurring billing? 3.  Where are you based? 4.  Does the company have a good reputation? 5.  What level of support will you receive? 6.  Does the gateway integrate well? 7.  Are there any hidden fees?

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Get the Chart !

nathaningram.com/ecommerce

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What About Security?

Rule of Thumb: A web page that collects sensitive information from the user should be secured with SSL.

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What About Security? What is SSL? SSL is a protocol that allows a program on your computer to establish a secure connection to a remote server.

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How SSL Works

Web Server Web Browser

Hey, I need a secure connection.

Sure, no problem, here’s my security certificate.

Sweet, thanks VIghro' boneH vide'os vIneH

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Types of Certificates Shared SSL

Offered free by many!hosting companies.

Shared by all sites!on a server.

URL is not your domain,!can cause trust issues!

with users.

Domain Validated Certifies you own your

domain name.

Usually issued within!an hour or two.

Cheap

$20+ a year

Extended Validation Certifies you own your business and domain.

Can take a few days to!a few weeks to issue

Green bar in browsers

$149+ a year

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Sources for Certificates Y O U R W E B H O S T

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SSL and WordPress WordPress HTTPS (SSL) Plugin

by Mike Ems

Available free from the WordPress Plugin Repository

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Nathan Ingram ! @nathaningram

Ecommerce 101

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Coupon Code wpyall25!

Good for 25% off anything you want to buy at !

iThemes, PluginBuddy, WebDesign.com