Getting Inside Online Shopping Carts

By Staff Writer

What is an online shopping cart?
Similar to metal carts at your local store, online shopping carts allow customers to shop on your Web site by putting in the items they'd like to buy, and as they continue to browse, adding or removing selections before checking out. Better than your grocery cart, online shopping carts calculate shipping costs and taxes and then total everything up. The cart then goes through a secure gateway to your merchant account for credit card validation. At that point, the customer gets confirmation or a receipt and you get the order for fulfillment.

Why do you need one?

Shopping carts make online ordering more efficient and easier for your customers.

Shopping carts make online ordering more efficient and easier for your customers. If buying isn't straightforward and simple, the customers will be less inclined to buy. You need a shopping cart so you can increase sales and decrease the steps of the buying process. If customers can't buy directly from your site, you risk losing the sale. It's that simple!

How do you shop for a cart?
First, start with understanding the basic, and essential, terms: A Merchant Account is the banking relationship (account) that allows your business to accept credit card payments online. Sometimes these are included in larger packages, but if not, check with your bank. Most offer an online merchant account option.

Once you can accept credit cards, you need to be able to process them. That's where the Payment Gateway comes in. It's your real-time credit card processor. Unless you choose an inclusive package, you'll need to subscribe for payment gateway services for a monthly fee.

Lastly, all sites that take credit cards must use SSL (Secure Sockets Layer) to encrypt the card information. Typically, the payment gateway will provide the security certificate.

Now that you know the lingo, choose from the three main categories of shopping cart applications.

• Shopping cart software. You pay a flat rate to license software that you then install and host it directly on your site. This allows you more control and burdens you with greater responsibility for how your cart looks and works. One thing to look out for: compatibility. Because you're doing it on your own, you'll need to do your homework and make sure your cart, merchant account and payment gateway are all compatible and will work smoothly together. It may be cheaper, but you'll also have to do more work.
  
• ASPs (Application Service Providers). ASPs host the cart and give you everything you need to use it. It can be a great option for business owners who are less technically inclined. You don't need to worry about compatibility with different components because you get them all from one source. You'll also have less control over the look and feel of your shopping cart with an ASP.
  
• Customized shopping carts. This software you write and build yourself. These are basically only used for very specialized sites and typically expensive. In all likelihood, most small business owners have no need to consider this option.

What should you look for in a shopping cart?

Customizable: Your shopping cart should be able to manage the volume of your business and be able to grow and change with you.

Professional look: Your shopping cart should maintain the professional appearance of your site. It should be able to show shipping options, product categories and should be able to include your business logo.

Security: A secure site not only reduces risk for your business, but it also reduces your customers' risk. Make sure the cart you choose offers reliable security and encryption.

Real-time checkout and automation: Make sure your customers stay happy by offering order confirmation, credit card verification notice and order status. If a product is out of stock, your cart should be able to let them know. Also look for a cart that automatically totals tax and shipping charges.

How much do shopping carts cost?

Prices for an online shopping cart vary based on who hosts it, what’s included and how long your contact is.

Prices for an online shopping cart vary based on who hosts it, what's included maintenance, security, etc.) and how long your contact is. ASP costs typically range between $30 and $60, and you may need to also pay for a merchant account. A software one-time cost can be between $200 and $600, or you can lease it for around $40 a month.

If you're looking to save money by using one of the many "freeware" carts available online, you may want to think twice. As tempting as it is, freeware will end up costing you more in the long run in terms of time and money to make it fit your site. It may also cost you customers because freeware often imposes limits on size and needs frequent updating.

What do shopping carts come with?
Although different packages vary widely, ASP and shopping cart software typically include the following standards:

• A shopping cart that tracks items added and totals price, including tax and shipping costs
• A system that gives you, the merchant, customer information needed for fulfillment
• Back-end maintenance options for promotions, new products or price changes

Additional extras may include:

• Customer information storage
• Tracking options (for revenue)
• Inventory/stock management

Getting left in the aisle

Research shows that an amazing 75% of online shoppers leave Web sites with items in their shopping cart before checkout. Keep your shopping cart easy, quick and straightforward.

Imagine walking up and down the aisles of the grocery store, filling your shopping cart with all the items you're thinking about buying. Now imagine leaving the full cart in the store, unpaid for, and walking out. It may be hard to imagine doing it in a brick-and-mortar store, but research shows that an amazing 75% of online shoppers leave Web sites with items in their shopping cart before checkout. Surveys indicate that the biggest reason they abandon their carts is due to the shopping cart itself. Don't add to the statistic! Keep your shopping cart easy, quick and straightforward. Avoid long forms, long load times and confusing pages. Also, before the customer hits checkout, make prices easy to find so they don't have to add items to their

Now that you have the answers to your shopping cart questions, it's time to ask yourself some questions. Do you sell only one or two products on your Web site? Are you planning to grow? Would you prefer handling the technical aspects yourself or would you rather have someone else manage it? Comparison shop for your site shopping cart and soon you'll be checking out bigger sales and better revenue.