May 15, 2023
As consumers continue to veer away from brick-and-mortar shopping and pivot to e-commerce stores, online merchants will continue to flourish. Especially in this post-pandemic world, businesses need to be prepared to take sales off the shelves and onto their website.
What is an online merchant?
Online merchants are simply businesses that operate their business through the internet. This often involves having an online store and using a popular platform like PayPal or WooCommerce to operate and manage sales.
They generate revenue by selling and distributing items or services mainly through their website, so having the ability to process payments is critical. As customers travel through the online sales process load up their shopping carts, they’ll eventually work their way towards a final purchase.
At this stage, a payment gateway becomes an essential tool for online merchants. The gateway serves as the technology which communicates the customer information to the merchant’s bank. This transaction can be made with a number of payment resources.
Some online stores like startup CBD companies will only have the ability to take direct debit or echecks. The cost for this transaction is far less than credit card payment processing. Direct debit usually only costs around 2% while credit card processing runs around 4%. Moreover, direct debit is more secure. Customers enter their banking information and can process a transaction safely and quickly. Consider ACH or direct debit if you’re a new online merchant looking to get started.
How Online Merchants Run Their Stores
There are many benefits to running an online store including low overhead and fewer employees. Everything from product distribution to returns and chargebacks can be managed from home.
When it comes to product distribution, many business owners choose to have a dropshipping business. This means that they never have to deal directly with product packaging and distribution firsthand. Once an order is placed online, the production or distribution or facility is automatically made aware, and the order is fulfilled.
How Does Fulfillment Work?
Fulfillment is everything that happens after an order is placed. It involves all of the logistics associated with production, distribution, and shipping. Amazon has changed the game when it comes to short shipping time and tracking. Now, a company needs to have a trusted shipping company in order for products to be placed in the hands of the buyers.
Merchant Shops and Branding
A merchant’s website is their brand, and store. Combining a quality user experience with a streamlined shopping journey is essential to maximize profits and keeping customers coming back.
If your brand isn’t on point with your product offering you may be missing out on making the impact you want in terms of product recognition. Moreover, your site imagery, layout, and copy should reflect the items you offer.
If you’re selling a luxury brand, you may want an elegant minimalist design, whereas an e-commerce store for vape may be more modern and appealing to different audiences.
In any case, the way you sell your product should help your business grow. Having the right payment processing company will help your company keep transactions flowing.
May 15, 2023 | Merchants | Dustin