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@ n a t h a n i n g r a m 
Nathan Ingram! @nathaningram
Ecommerce 101
@ n a t h a n i n g r a m 
Who is this guy?
Nathan Ingram
Freelance Web Developer since 1995
Instructor, WebDesign.com
Nat...
@ n a t h a n i n g r a m 
Coupon Code
wpyall25!

Good for 25% off anything you want to buy at !
iThemes, PluginBuddy, Web...
@ n a t h a n i n g r a m 
The Beginnings of Ecommerce
When did online shopping begin?
1979
Michael Aldrich connected a mo...
@ n a t h a n i n g r a m
@ n a t h a n i n g r a m 
The Beginnings of Ecommerce
Another big year for ecommerce… 
1994
Jeff Bezos starts Amazon
Nets...
@ n a t h a n i n g r a m 
Amazon.com launched in 1994!
but didn’t turn a profit until…
2003
Last year the average Amazon o...
@ n a t h a n i n g r a m 
Ecommerce Today
Ecommerce sales worldwide topped
$225B
in 2012
Source: InternetRetailer.com
@ n a t h a n i n g r a m 
In the first quarter of 2013
$5,277
was transacted per second by
Source: PayPal.com
@ n a t h a n i n g r a m 
The average consumer spends
$1200-$1300
shopping online every year.
Source: Forrester Research,...
@ n a t h a n i n g r a m 
By 2016
15% more people
will be shopping online
(192 million in the U.S. alone)
Source: Forrest...
@ n a t h a n i n g r a m 
know this stuff!
If you are even moderately serious!
about designing web sites, you need to
@ n a t h a n i n g r a m 
Ecommerce 101
The Standard Ecommerce Process
Ecommerce with Third Party Processor
Understanding...
@ n a t h a n i n g r a m 
The Standard Ecommerce Process
Shopping
Cart
Payment
Gateway
Merchant
Account
Bank
Account
@ n a t h a n i n g r a m 
Shopping Cart
The shopping cart’s job…
o  manage the shopping process
o  communicate with the
p...
@ n a t h a n i n g r a m 
Shopping Cart
Some Shopping Cart Options
for WordPress:
o  Shopp
o  Cart66
o  WooCommerce
o  Gr...
@ n a t h a n i n g r a m
@ n a t h a n i n g r a m 
Get the Chart
!
nathaningram.com/ecommerce
@ n a t h a n i n g r a m 
Payment Gateway
Similar to Point of Sale in a
retail store.

Authorizes payments for the
mercha...
@ n a t h a n i n g r a m 
Payment Gateway
Payment Gateway Fees:
o  A transaction fee (10¢*)
o  A batch fee (25¢*)
o  A mo...
@ n a t h a n i n g r a m 
Merchant Account
A bank account that receives
payments from a card issuer

Usually a separate c...
@ n a t h a n i n g r a m 
What Merchant Accounts Do
Acquiring Bank
(Merchant Account)

Issuing Bank!
(of the Credit Card)...
@ n a t h a n i n g r a m 
Merchant Account
The Acquiring Bank
(merchant account) assumes
the risk for a transaction.
o  F...
@ n a t h a n i n g r a m 
Merchant Account
Oh Good, More Fees…
o  Discount Rate (2-6%)
o  Monthly Minimum Fee
o  Customer...
@ n a t h a n i n g r a m 
Merchant Account
Application process can be
detailed and time consuming.

Secure merchant accou...
@ n a t h a n i n g r a m 
The Standard Ecommerce Process
Shopping
Cart
Payment
Gateway
Merchant
Account
Bank
Account
@ n a t h a n i n g r a m 
Ecommerce with a Third Party Processor
Shopping
Cart
Third Party
Processor
Bank
Account
@ n a t h a n i n g r a m 
Ecommerce with a Third Party Processor
Shopping
Cart
Third Party
Processor
Bank
Account
@ n a t...
@ n a t h a n i n g r a m 
Standard vs. Third Party Processors
Standard
Lower transaction fees
Looks more professional
Sim...
@ n a t h a n i n g r a m 
The Many Flavors of
Standard
Accepts all major
credit cards!
and echecks

No monthly fee

Advan...
@ n a t h a n i n g r a m 
What to Consider!
when Choosing a Payment System

1.  How much volume will you process?
2.  Do ...
@ n a t h a n i n g r a m
@ n a t h a n i n g r a m 
Get the Chart
!
nathaningram.com/ecommerce
@ n a t h a n i n g r a m 
What About Security?
Rule of Thumb:
A web page that collects sensitive
information from the use...
@ n a t h a n i n g r a m 
What About Security?
What is SSL?
SSL is a protocol that allows a
program on your computer to
e...
@ n a t h a n i n g r a m 
How SSL Works
Web Server
Web Browser
Hey, I need a secure
connection.
Sure, no problem, here’s ...
@ n a t h a n i n g r a m 
Types of Certificates
Shared SSL
Offered free by many!
hosting companies.
Shared by all sites!
o...
@ n a t h a n i n g r a m 
Sources for Certificates
Y O U R W E B H O S T
@ n a t h a n i n g r a m 
SSL and WordPress
WordPress HTTPS (SSL) Plugin
by Mike Ems

Available free from the WordPress P...
@ n a t h a n i n g r a m 
Nathan Ingram! @nathaningram
Ecommerce 101
@ n a t h a n i n g r a m 
Coupon Code
wpyall25!

Good for 25% off anything you want to buy at !
iThemes, PluginBuddy, Web...
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Ecommerce 101 - WordCamp Birmingham 2013

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An overview of the Ecommerce process. Presented at WordCamp Birmingham, August 24, 2013.

Published in: Economy & Finance, Business
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Ecommerce 101 - WordCamp Birmingham 2013

  1. 1. @ n a t h a n i n g r a m Nathan Ingram! @nathaningram Ecommerce 101
  2. 2. @ n a t h a n i n g r a m Who is this guy? Nathan Ingram Freelance Web Developer since 1995 Instructor, WebDesign.com NathanIngram.com
  3. 3. @ n a t h a n i n g r a m Coupon Code wpyall25! Good for 25% off anything you want to buy at ! iThemes, PluginBuddy, WebDesign.com
  4. 4. @ n a t h a n i n g r a m 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.
  5. 5. @ n a t h a n i n g r a m
  6. 6. @ n a t h a n i n g r a m The Beginnings of Ecommerce Another big year for ecommerce… 1994 Jeff Bezos starts Amazon Netscape introduces SSL encryption Pizza Hut introduces online ordering
  7. 7. @ n a t h a n i n g r a m 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
  8. 8. @ n a t h a n i n g r a m Ecommerce Today Ecommerce sales worldwide topped $225B in 2012 Source: InternetRetailer.com
  9. 9. @ n a t h a n i n g r a m In the first quarter of 2013 $5,277 was transacted per second by Source: PayPal.com
  10. 10. @ n a t h a n i n g r a m The average consumer spends $1200-$1300 shopping online every year. Source: Forrester Research, Mashable Infographic 9/4/2012
  11. 11. @ n a t h a n i n g r a m By 2016 15% more people will be shopping online (192 million in the U.S. alone) Source: Forrester Research, Mashable Infographic 9/4/2012
  12. 12. @ n a t h a n i n g r a m know this stuff! If you are even moderately serious! about designing web sites, you need to
  13. 13. @ n a t h a n i n g r a m Ecommerce 101 The Standard Ecommerce Process Ecommerce with Third Party Processor Understanding SSL
  14. 14. @ n a t h a n i n g r a m The Standard Ecommerce Process Shopping Cart Payment Gateway Merchant Account Bank Account
  15. 15. @ n a t h a n i n g r a m Shopping Cart The shopping cart’s job… o  manage the shopping process o  communicate with the payment gateway o  keep the user happy
  16. 16. @ n a t h a n i n g r a m Shopping Cart Some Shopping Cart Options for WordPress: o  Shopp o  Cart66 o  WooCommerce o  Gravity Forms o  Easy Digital Downloads o  iThemes Exchange
  17. 17. @ n a t h a n i n g r a m
  18. 18. @ n a t h a n i n g r a m Get the Chart ! nathaningram.com/ecommerce
  19. 19. @ n a t h a n i n g r a m 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
  20. 20. @ n a t h a n i n g r a m 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
  21. 21. @ n a t h a n i n g r a m Merchant Account A bank account that receives payments from a card issuer Usually a separate company than the Gateway Works like a collection agent
  22. 22. @ n a t h a n i n g r a m 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.
  23. 23. @ n a t h a n i n g r a m Merchant Account The Acquiring Bank (merchant account) assumes the risk for a transaction. o  Fraud o  Chargebacks Why would they take this risk?
  24. 24. @ n a t h a n i n g r a m 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.
  25. 25. @ n a t h a n i n g r a m Merchant Account Application process can be detailed and time consuming. Secure merchant account approval before constructing the ecommerce platform.
  26. 26. @ n a t h a n i n g r a m The Standard Ecommerce Process Shopping Cart Payment Gateway Merchant Account Bank Account
  27. 27. @ n a t h a n i n g r a m Ecommerce with a Third Party Processor Shopping Cart Third Party Processor Bank Account
  28. 28. @ n a t h a n i n g r a m Ecommerce with a Third Party Processor Shopping Cart Third Party Processor Bank Account @ n a t h a n i n g r a m
  29. 29. @ n a t h a n i n g r a m 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
  30. 30. @ n a t h a n i n g r a m 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
  31. 31. @ n a t h a n i n g r a m 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?
  32. 32. @ n a t h a n i n g r a m
  33. 33. @ n a t h a n i n g r a m Get the Chart ! nathaningram.com/ecommerce
  34. 34. @ n a t h a n i n g r a m What About Security? Rule of Thumb: A web page that collects sensitive information from the user should be secured with SSL.
  35. 35. @ n a t h a n i n g r a m 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.
  36. 36. @ n a t h a n i n g r a m 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
  37. 37. @ n a t h a n i n g r a m 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
  38. 38. @ n a t h a n i n g r a m Sources for Certificates Y O U R W E B H O S T
  39. 39. @ n a t h a n i n g r a m SSL and WordPress WordPress HTTPS (SSL) Plugin by Mike Ems Available free from the WordPress Plugin Repository
  40. 40. @ n a t h a n i n g r a m Nathan Ingram! @nathaningram Ecommerce 101
  41. 41. @ n a t h a n i n g r a m Coupon Code wpyall25! Good for 25% off anything you want to buy at ! iThemes, PluginBuddy, WebDesign.com

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