While setting up a shopping cart on the web has never been easier there are still many issues you need to address

Common questions about setting up an online shop

Answers to common questions re setting up a shopping cart on your web site.

1. SSL stands for Secure Socket Layer. You’ve come across this when you’ve bought something on the web yourself although maybe you haven’t realised it. When buying anything from a professionally set up shopping cart from Amazon to ZDnet you’ll see that, once you start the payment process i.e. adding your credit card information - the web site address in your browser address bar starts with the prefix https:// rather than http:// and a little padlock icon appears in the footer of your window. This shows that the payment processor is using secure encryption so that your details cannot be hacked into by an outside individual.

Whatever shopping cart option you choose you need to be sure that the payment gateway you use to process your customers information and payments uses this technology. All the options mentioned on this site do.

2. AVS stands for Address Verification System. This is when a Payment Processor matches up the credit card details entered by a visitor to your web site with the Home Address they have given. Not all payment processors do this especially if your customer comes from another country.

3. Different scripting/code for designing a shopping cart. There are many different types of Shopping Cart programs which are built using an assortment of programming languages and hosting/server side applications. From databases to the mechanics of how the site works.

This site, having been built for those wanting to add a shopping cart to their site for the first time, won’t go into all the various different ways that companies and individuals use to build shopping carts from scratch but you can find out more about various coding languages here.

My point has always been that someone else can sort out the nitty gritty I just want to use the application! No matter what car I choose to drive I do not need to know how to build the engine that drives it , I just need to know that it gets me from A to B safely and is a good drive!

4. Do you need a credit card? Well yes you do really - to buy software and set up a PayPal account and so on - but I’m sure you could set up a shopping cart without one - but it does help.

5. Do you need a separate business banking account? Bear in mind that having a Business Banking Account is not necessarily the same as having a Merchant Account and whether you need one or both relates very much to which Payment Processor/Gateway you’ve opted for to accept your visitor’s payments.

My view has always been that it is not necessary to have a Business bank account to run an online shop but this does depend on what level you see your site attaining (now or in the future). Business accounts and Merchant accounts cost money in my country! Check with the payment gateway you intend to use - if in doubt use PayPal!

6. Do you have to set up a company? In my opinion no - there are thousands of online shops on the Web trading as individuals. I’m sure an accountant would tell you otherwise (mentioning the fact of liability should you be sued by someone) but it’s up to you and depends on the level of income you expect to receive and so on. If in doubt take legal advice.

7. Shopping Cart Verification? Companies such as VeriSign and the like were set up to re-assure web buyers that the site that they were buying from had been verified as using SSL (see above) and was therefore a safe place to enter credit card information. Generally a fee will be involved for them to check out your site and allow you to add their logo - when a visitor clicks on that logo they will be taken to a secure page to tell them that your site has been verified by the company as offering a secure shopping environment - it’s up yo you.

However I should add that a decent hosting company will allow you to buy your own secure server allowing you to have an https:// option on your site.

8. Tax Issues? This varies from country to country and covers more than one area. If we’re talking about adding Sales Tax to your customer’s purchases any decent shopping cart can allow you to do that. As regards your paying income tax and so on (i.e. declaring your business to them whether you are a sole trader or limited company) be honest and do it! Imagine if your shopping cart takes off and you get closed down?

Start as you mean to go on. If you don’t make a profit in year one most countries tax services allow you to claim back some or all of your expenses and even have losses taken into consideration in year 2. Find a book-keeper or accountant and ask their advice. If you start earning a substantial income (I sincerely hope you do) then being worried about the ‘Revenue’ catching up with you will be a burden you just don’t need!

9. Privacy Policies? Absolutely - confirm to your visitors and buyers that their information, of whatever kind, will not be shared with 3rd parties other than to your Payment Processor to get their payment through quickly and securely.

It’s also worthwhile creating a Terms & Conditions link on your site to let clients know your refund policy and so on. This establishes trust and will reassure your visitors that you are someone they are prepared to do business with.