How to Create an E-Commerce Website

PayPal Business Guide

PayPal Business Guide – How to Create an E-Commerce Website © 2006 PayPal, Inc. All rights reserved. PayPal, Payflow, and the PayPal logo are registered trademarks of PayPal, Inc. Designated trademarks and brands are the property of their respective owners. Notice of Non-Liability PayPal, Inc. and the authors assume no liability for errors or omissions, or for damages, resulting from the use of this guide or the information contained in this guide. PayPal is not affiliated with the third parties mentioned, nor does it endorse or guarantee the products and services they offer.

Table of Contents
Introduction: The Elements of E-Commerce.........................................................................................................4 Step One: Establish Your Online Identity ...............................................................................................................5 What’s in a Name? ............................................................................................................................................................................. 5 How to Get and Manage Domain Names .................................................................................................................................... 5 How to Buy an Existing Domain Name ........................................................................................................................................ 6 Step Two: Build a User-Friendly Site.......................................................................................................................6 Plan Your Site Carefully..................................................................................................................................................................... 6 Choose the Right Site-Building Tools ............................................................................................................................................ 6 Build an Attractive E-Commerce Site ........................................................................................................................................... 7 Step Three: Select an ISP to Host Your Site ..........................................................................................................8 What to Look for in a Web Hosting Company .......................................................................................................................... 8 Step Four: Minimize the Risks of E-Commerce .....................................................................................................9 The Risks of E-Commerce ............................................................................................................................................................... 9 The Trust Solution: Authenticated SSL Certificates ................................................................................................................. 9 How Authenticated SSL Certificates Work .............................................................................................................................. 10 What You Should Know About Fraud ........................................................................................................................................ 10 The Best Ways to Mitigate Risks of Internet Fraud ................................................................................................................ 11 Your Privacy and Security Statement .......................................................................................................................................... 11 Step Five: Accept and Manage Payments .............................................................................................................12 The Payment Processing Network ............................................................................................................................................... 12 How Online Payment Processing Works ................................................................................................................................... 13 Payment Processing – Authorization ........................................................................................................................................... 13 Payment Processing – Settlement ................................................................................................................................................ 14 What to Look for in an Online Payment Processing Solution .............................................................................................. 14 PayPal’s Payment Processing Solutions ........................................................................................................................................ 15 • Website Payments Pro ........................................................................................................................................................... 16 • Website Payments Standard ................................................................................................................................................. 16 • Payflow Pro ............................................................................................................................................................................... 16 • Payflow Link .............................................................................................................................................................................. 16 • PayPal Email Payments ............................................................................................................................................................ 16 • PayPal Virtual Terminal........................................................................................................................................................... 16 Comparison Chart ........................................................................................................................................................................... 17 Step Six: Promote Your Site ...................................................................................................................................18 What’s Next: Measure Your Success .....................................................................................................................19 How to Get Started Today ......................................................................................................................................19 For More Information ...................................................................................................................................................................... 20

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Introduction
Your business may be small – but the internet lets you think big. Whatever product or service you offer, the internet levels the playing field and lets you compete with bigger businesses, reaching customers around the world who can conveniently buy from your online storefront 24 hours a day. But growing your business and increasing your profits online requires careful planning and important steps. To take full advantage of the e-commerce opportunity, make sure you base your web business on a solid foundation that covers every element of e-commerce:

1. Establish your identity. The right domain name can make the difference between a memorable online identity and getting lost in the crowd.

2. Build an attractive storefront. Creating a website is easier than ever – but following some basic guidelines will help make your site simple and fun for customers to navigate. And that means more sales for you. 3. Find the right online home. Even on the web, location is everything. Purchase and set up your own web server, or find a home for your site with a reputable internet service provider (ISP) or web host.

4. Let customers know they can trust you. Customers will provide you with private information, like credit card or phone numbers, only if they’re sure your site is legitimate and the information they send is protected. Make sure your site is secure – and that your customers know it. 5. Make it easy for customers to pay you. Make sure you not only offer customers a variety of convenient payment methods, but that you can process them all reliably.

6. Let the world know about your site. A memorable domain name, a great looking design, and top-notch products can make your site successful only if customers know about it. Promote your site to drive traffic to it.

PayPal offers a complete set of solutions that make it safe, easy, and affordable for you to receive payments on your website. This E-Commerce Guide outlines crucial steps that can give your online business a competitive edge.

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Step One: Establish Your Online Identity
Your web address (also called a URL or domain name) tells customers who you are and how to find you on the internet. It is the core of your internet identity – your online brand. And because no two parties can have the same web address, your online identity is unique.

What’s in a Name?
Quite a lot, actually. Not only does your domain name act as your address on the web, it also communicates the name of your business to every website visitor. And it can be used as part of your email address to reinforce your online identity. Keep these tips in mind before choosing your domain name: • Make it memorable. “Amazon.com” is more unique and less limiting than “booksonline.com.” • Describe your business. Avoid confusion by simply and logically describing your business, like “Flowers.com” for a flower shop. If you are setting up an online presence for an established business, make sure the name of your site matches the name of your business. • Keep it short. The best domain names are those that customers can easily remember and quickly type into their browsers. Complicated wording like “onlinecdstore.com” doesn’t work as well as a simple phrase: “cdnow.com.”

How to Get and Manage Domain Names
Once you’ve chosen your domain name, conduct domain name and trademark searches. If your domain name is available, register it with a domain name company or registrar. Registering is easy and inexpensive. Many businesses register a number of variations, just in case they want to use them later – or to avoid the risk of competitors obtaining similar names. You also may want to register common misspellings so that customers who type your address incorrectly still find their way to your site. E-commerce businesses most often register a name with “.com” as the domain name extension (the letters after the dot, also called a top-level domain or TLD). But names with “.net” and “.org” (for “organization”) are also common. Other suffixes include “.tv” for rich content/multi-media websites, “.edu” for schools and universities, “.biz” for small businesses, and “.info” for resource websites. Laws governing intellectual property are another consideration. Generally, you should avoid choosing a domain or business name that is identical or significantly similar to a trademark of another party. Even if a domain name featuring another company appears available for your registration, using it commercially could amount to trademark infringement. None of your domain or business name choices should include the trademarks eBay, PayPal, or any variation or phonetic equivalent. For specific guidance, you may wish to consult with an intellectual property attorney.

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How to Buy an Existing Domain Name
What happens if the domain name you want is already registered? You can either choose another name or buy your first choice from the current owner. The fact that the name you want has already been registered doesn’t necessarily mean it’s not available for sale. A domain-name broker handles domains that are for sale by their owners. Brokers include GoDaddy.com, BuyDomains.com, and AfterNIC.com.

Step Two: Build a User-Friendly Site
With a domain name in place, you’re ready to start building your e-commerce storefront. But before you begin, take some time to plan.

Plan Your Site Carefully
First, identify clear marketing goals, such as building a database of potential customers or putting a product catalog online to save the time and expense of printing and mailing. Then, figure out what your potential customers need to know before buying your products and services. This might include: • An overview of your company, its products, and services • Complete product descriptions including features and pricing • Testimonials and success stories • FAQs that answer common questions Create a site map that outlines how customers get from one page to the next. Your site should make it easy for customers to learn what they need to know, make purchase decisions, and make purchases. Use tools such as shopping cart software that quantitatively measure site activity – where customers are clicking, how often, and whether they end up purchasing.

Choose the Right Site-Building Tools
Many e-commerce businesses turn to professional web design studios to create their websites. But if your budget is limited, there are self-service site-building tools like Homestead Technologies that make it fast and easy for you to create your own polished and professional-looking site. You do not need extensive HTML knowledge to use these tools.

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Build an Attractive E-Commerce Site
Following these basic guidelines will help make your site attractive and easy for customers to use. A site that’s easy to navigate and understand makes it simple for customers to buy from you. 1. Explore website design options. Online and printed materials offer a wealth of style choices, best practices, and tips to help you design an attractive and compelling website for maximum marketing effectiveness. 2. Your homepage is your site’s front door. It’s essential for it to make a good first impression on visitors. Make sure your homepage clearly presents the following basic elements that customers look for: • Your company name, logo, and tagline prominently displayed • Contact information, including your phone number, email address, mailing address, and fax number • A link to an “About the Company” page for customers to quickly learn who you are and what your business offers. • A “What’s New” section for news, announcements, and product promotions • Your privacy statement, clearly describing your policy for protecting customers’ personal information 3. Make it easy for customers to navigate your site. Try to minimize the number of clicks it takes the customer to go from your homepage to your point of sale. Four to six clicks is a useful rule of thumb. Create a site map listing the basic sections of your site; keep a link to this map in the same place on every page of your site to make it easy to navigate. 4. Keep things simple. Don’t fill up your site with graphics, animations, and other visual bells and whistles. Keep the same basic color palette and fonts your company uses in other communications, such as your logo, brochures, and signage. Also, make sure the text is easy to read – black letters on a white background is easier on the eyes than orange type on a purple background. When creating content for your site that describes your products and services, make sure you utilize the most appropriate keywords, as this can lead to higher rankings in search results – and thus drive more visitors to your site. See Step Six to learn more about keywords, search results, and search engine optimization. 5. Keep download times short. Test pages to make sure they’re not too heavy with graphics that will slow load times, and minimize the size of your images when possible. Most users navigate to another site if a page takes more than eight seconds to load. 6. Test, test, test. You only have one chance to make a positive first impression on new visitors to your site. Broken links, incorrect phone numbers, and spelling or grammatical errors tarnish the professional polish you’re striving for. So take time to review and test your site thoroughly before going live.

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Step Three: Select an ISP to Host Your Site
Your website is a series of files that reside on a special computer, a web server, that’s connected to the internet. For customers to visit your site, they must actually connect to that web server through the internet. Many businesses prefer the complete control of purchasing, setting up, and managing their own web server hardware and software. Other small- and medium-sized businesses prefer to turn to an internet service provider (ISP) or web-hosting company. For a monthly fee, ISPs will connect your site to the internet at high speed using one of their web servers. The host provides your site with space on a server, and offers tools for managing and maintaining your site, customer support, e-commerce features, and more. There are many ISP options to choose from, so use the following criteria to help find one that meets your needs.

What to Look for in a Web Hosting Company
• Shared hosting or dedicated server. Shared hosting means your site is housed on the same host server with several other websites. This is an economical solution for smaller sites. Paying the host for a dedicated server can provide faster access and more storage space. Does your ISP or web hosting provider offer both options? • Hard-disk storage space. Smaller sites may need only 300-500 MB (megabytes) of website storage space, while busier e-commerce sites may need at least 9 GB (gigabytes) of space – or their own dedicated web server. As your site grows, your ISP should be able to accommodate you with a range of options. • Availability. If you run an e-commerce business, your site must be accessible to customers 24 hours a day. ISPs maximize the availability of the sites they host using techniques like load balancing and clustering. Can your ISP promise near 100% availability? • Email accounts. Email accounts that match your domain name are often available from your ISP. Are they included with your monthly access and hosting fee? • SSL Encryption. The security of credit card numbers and other personal information customers send you should be a top concern. Does your ISP or web host protect your site with an SSL server ID? See Step Four below to learn more about website security. • Support. Does your host offer 24/7 customer service?

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Step Four: Minimize the Risks of E-Commerce
To turn your online storefront into a thriving business, you must first win your customers’ trust. Many web users are still uncomfortable sending credit card numbers over the internet. Merchants who can prove the security of their website will gain the loyalty – and business – of consumers.

The Risks of E-Commerce
In traditional brick-and-mortar businesses, consumers accept the risks of using credit cards because they can see and touch the merchandise and make judgments about the store. On the internet, without those physical cues, it’s more difficult for customers to assess the safety of your business. Also, serious fraud and security threats have emerged such as: Consumer Identity Theft: So-called phishers send fraudulent emails to consumers warning, for instance, of a problem with a credit card account in an attempt to lure the person to provide personal information. Once they’ve obtained the credit card information, these criminals can use it to steal products outright or open other accounts by impersonating the victim. Merchant Identity Theft: Just as offline criminals can break into a cash register, online criminals can hack into the accounts of web merchants and funnel money to themselves. These criminals might be employees or visitors to a building who copy unprotected login information. They can use the information to hack into a backend system and hijack a merchant’s payment gateway account, which provides the secure connection between your online store and your internet merchant account. Once they’ve hijacked the merchant’s payment gateway account, they can steal cash directly from the business by issuing credit card or other payments to themselves.

The Trust Solution: Authenticated SSL Certificates
Authenticated Secure Sockets Layer (SSL) digital certificates provide crucial online identity and security to help establish trust between parties involved in e-commerce transactions. Customers must be assured that the website they’re communicating with is genuine and that the information they send through web browsers stays private and confidential. There are three key elements to inspiring the confidence of your customers and ensuring secure online transactions: Encryption: The process of encrypting information to make it unintelligible to all but the intended recipient forms the basis of data integrity and privacy necessary for e-commerce. Authentication: It’s important to have your website authenticated. Authentication means a trusted authority can prove you are who you say you are. To prove that your business is authentic, your site needs to be secured by best-of-breed encryption technology and authentication practices.

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Digital Certificates: A digital certificate is an electronic file that uniquely identifies individuals and websites and enables secure, confidential communications. These certificates serve as a sort of digital passport.

How Authenticated SSL Certificates Work
An authenticated SSL certificate allows the receiver of a digital file to be confident of both the identity of the sender and the integrity of the message. Before a high-assurance SSL certificate is issued to an online business, three conditions must be met: • Confirmation that the organization named in the certificate has the right to use the domain name included in the certificate • Confirmation that the organization named in the certificate is a legal entity • Confirmation that the individual who requested the SSL certificate on behalf of the organization was authorized to do so When web visitors connect to sites, they reach one of two kinds of servers. If they reach servers that are secure, they’ll get messages indicating that fact (a closed padlock icon and “https” in the URL). Similarly, if they reach servers that are not secure, there will be warnings to that effect, provided that their browser security is set to maximum. A truly secure web server is one that has an authenticated SSL certificate. The authenticated certificate tells users that an independent, trustworthy third party has verified that the server belongs to the company it claims to belong to.

What You Should Know About Fraud
Because the credit card isn’t physically present during online purchases, credit card associations hold merchants liable for fraudulent transactions. So merchants must take additional steps against online fraud. Credit card associations can impose stiff penalties for fraud – expenses on top of stolen goods and related shipping costs. Moreover, American Express, Diners Club, Discover Card, JCB, MasterCard International and Visa U.S.A. have adopted the Payment Card Industry (PCI) Data Security Standard developed to protect account and transaction information of cardholders. The PCI standard requires merchants to adhere to a set of information security requirements or risk substantial fines. More information about PCI Data Security Standard and compliance requirements are available from your bank or by visiting: http://usa.visa.com/ business/acceping_visa/ops_risk_management/cisp_merchants.html and https://sdp.mastercardintl.com/merchants/index.shtml Fortunately, there are ways to protect against fraud and gain compliance. The most important thing you can do is choose a reliable and secure payment solution that includes basic and advanced antifraud features.

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The Best Ways to Mitigate Risks of Internet Fraud
• Choose a secure and reliable payment system. The solution should take advantage of standard processing level antifraud features such as card security code, a three- or four-digit number printed on the physical card, and address verification system (AVS), which verifies the address supplied by the credit card holder matches the address on file at the issuing bank. Both of these antifraud features should execute during the payment processing authorization phase. In addition, your antifraud service should include options to upgrade to advanced fraud protection, essential for high-value, high-volume, and international transactions. • Look for solutions that protect you – and save time and money. The ideal solution offers added protection against credit card fraud, cash fraud, and hacking attempts. It also allows you to manage all of these features quickly and easily with a single plain-English interface. PayPal Fraud Protection Services allows merchants to easily configure the system to meet their needs. With PayPal, you don’t need technical or fraud expertise to ensure the integrity and profitability of your business.

Your Privacy and Security Statement
A vital component of every e-commerce website is a comprehensive security and privacy statement that describes exactly how your business secures information and uses it. This is extremely important to your customers. TRUSTe – a nonprofit association supported by leading businesses such as PayPal, AT&T, Land’s End, and Wired – regulates the use of data collected on the web. When you abide by the association’s rules regarding the use of information collected on your site, you can display the TRUSTe logo as yet another symbol of trust. See http://www.truste.com for more information about TRUSTe’s policies and how you can join.

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Step Five: Accept and Manage Payments
It takes just a click or two for consumers to complete most online purchases in seemingly simple and instantaneous transactions. But for merchants, the typical transaction weaves through a web of banks, processors, and other institutions to ensure customer payment information is executed reliably and securely. To earn and keep customer confidence and trust, working with an experienced and secure payment processing service is essential.

The Payment Processing Network
The payment processing network connects sellers, buyers, and banks to enable the secure and reliable execution of online transactions. Sellers need an internet merchant account with an acquiring bank that allows them to accept customer credit cards electronically. Customers need a bank that issues credit cards and verifies the customer’s credit limit and available cash balance for proposed purchases. The elements and participants include individuals, institutions, and processes and services. Individuals Merchant: Someone who sells goods or services. Customer: The holder of the payment instrument. Institutions Customer Issuing Bank: The institution providing the customer’s credit card. Acquiring Bank: Provides internet merchant accounts required to enable online card authorization and payment processing. Credit Card Associations: Financial institutions that provide credit card services in concert with credit card associations such as Visa and MasterCard. Processor: A large data center that processes credit card transactions and settles funds for merchants. A processor can be either a bank or a company dedicated to providing these services. Ceridian is an example of a payment processor.

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Processes and Services Authorizations: The process of verifying that customer credit cards are active and have sufficient available credit limits. Settlements: Processing authorized transactions to settle funds into a merchant’s account. Payment Processing Service: A service that connects merchants, customers, and banks involved in online transactions. A third party, such as PayPal with its secure payment gateway, usually offers this service.

How Online Payment Processing Works
Online payment processing consists of two principal steps: authorization and settlement. Authorization verifies that the card is active and the customer has sufficient credit to make the transaction. Settlement is the process of charging the customer’s card account and transferring money from the customer’s account to the merchant’s account.

Payment Processing – Authorization
During authorization, a bank verifies that holders of a payment instrument, like a credit card, have sufficient credit or funds to make a purchase. 1. Customer decides to purchase online and inputs credit card information. 2. Merchant’s website receives customer information and sends it to payment processing service. 3. Processing service routes information to processor. 4. Processor routes information to bank that issued customer’s credit card. 5. Issuing bank sends authorization (or declination) to processor. 6. Processor routes transaction results to payment processing service. 7. Processing service sends results to merchant. 8. Merchant decides to accept or reject purchase.
1 2 3 4

Customer

Merchant

Processing service

Processor

Issuing bank

8

7

6

5

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Payment Processing – Settlement
Once the merchant has shipped the product or authorized the download of merchandise, the merchant may request the payment processing service settle the transaction. During settlement, funds are transferred from the customer’s account to the merchant’s bank account. 1. The merchant informs the payment processing service to settle transactions. 2. The payment processing service sends transactions to processor. 3. The processor checks the information, and forwards settled transaction information to the card association and card-issuing bank. 4. Transactions are settled to the card issuers and funds move between the acquiring bank and issuing bank. Funds received for these transactions are sent to the merchant’s bank account. 5. Acquiring bank credits merchant’s bank account. 6. Issuing bank includes merchant’s charge on customer’s credit card account.

1
Processing service

2

Credit Card association

3 4
Merchant Processor
Issuing bank

5
Acquiring bank

4

6

Customer

What to Look for in an Online Payment Processing Solution
Finding a reliable, secure, and flexible payment processing solution for your business is critical, so it’s important to take the time to investigate and assess the options available to you. A payment processing solution should be: Secure • Backed by an established, trustworthy company • Comply with the Payment Card Industry (PCI) Data Security Standard • Provide comprehensive and standard antifraud features • Store customer financial information with state-of-the-art encryption • Supply password-protected account management

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Reliable • Provide reliable and cost-effective acceptance and processing of a variety of payment types • Authorize credit cards in real time • Scale to thousands of transactions to meet peak demand • Based on a fault-tolerant network of redundant servers to ensure uninterrupted operations Easy to Use • Provide easy, flexible integration with merchant’s website • Scale rapidly and seamlessly as transaction volume increases • Work with leading internet merchant account providers • Provide easy-to-use tracking and reporting system • Store transactions records securely • Process offline transactions via a virtual terminal • Provide recurring billing payment for services • Offer upgrade options to accommodate future growth

PayPal’s Payment Processing Solutions
PayPal’s payment processing solutions are designed to meet the demanding and diverse needs of a variety of online merchants. By providing affordable payment connections among merchants, customers, and financial networks, PayPal’s solutions take advantage of the latest technical resources to streamline transactions while preventing fraud. Products including Website Payments Pro, Website Payments Standard, Payflow Pro, and Payflow Link allow everyone from mom-and-pop online retail stores to enterprise-level businesses to process transactions easily, reliably, and securely. What’s more, additional options will allow you to scale quickly and seamlessly as your business grows. PayPal’s Fraud Protection Services and Recurring Billing Service for Payflow, along with other customer service packages, include professional integration support. Most importantly, Payflow offers one of the industry’s few payment processing services with immediate connectivity to all major processors and most shopping carts. Note, however, that you do not need a PayPal account to process credit cards on your website. Once you have your own website, determining which product is right for you is a matter of asking a few simple questions: 1. Do you need an all-in-one solution that includes an internet merchant account and allows you to process credit cards online? If you don’t have your own internet merchant or business bank account, PayPal can provide a total solution with its Website Payments Standard and Website Payments Pro solutions. Website Payments Pro: Website Payments Pro is an all-in-one payment solution that allows customers to shop and pay on your site. You can accept credit cards directly on your site and get the features of a merchant account and gateway through a single provider at a lower cost. Website Payments Pro allows you to control your checkout from start to finish.

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Website Payments Standard: Website Payments Standard lets customers shop on your website and pay on PayPal. It offers a pay-peruse model with no set-up or monthly fees. Like Website Payments Pro, it includes shipping and tax calculators, reporting tools to measure your business, and support for international currencies. 2. Do you have your own internet merchant account or business bank account that allows you to process credit cards online? If you do, consider PayPal Payflow Gateway products: Payflow Pro: Scalable and fully customizable, the Payflow Pro solution is recommended for merchants who require peak site performance and direct control over payment functionality on their site. Merchants using this service can enhance the customer experience by allowing shoppers to complete the checkout process without ever leaving your site. Payflow Link: This service is designed for merchants who require a simple solution to selling on the web. In order to use this service, you need to add only a small piece of HTML code that will link your customers to order forms hosted by PayPal. This simple package allows you to process payments by credit cards, debit cards, and checks both on and offline. It also works with most major shopping carts. 3. Do you need a basic payment processing service? Look first to a basic PayPal service for processing credit cards payments. These include: PayPal Email Payments: Email Payments lets you send customers email invoices that they can pay on PayPal. This simple solution does not require you to have a shopping cart or an internet merchant account. PayPal Virtual Terminal: Virtual Terminal provides your business with the same functionality as a stand-alone credit card-processing terminal, but allows you to accept credit card payments by phone, fax, and email. You can use Virtual Terminal on any computer with an internet connection and a web browser. Also, you can use PayPal as an Additional Payment Option. This option allows merchants to put the PayPal logo on their own website to accept PayPal as an alternative payment source, in addition to credit cards such as MasterCard or Visa.

Our research shows that small- to mediumsized businesses get an average sales lift of 14% by accepting PayPal in addition to credit cards.*

* Q1 2006 PayPal phone survey of businesses doing a minimum of $120,000 USD in annual online sales.

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I need an all-in-one solution.

I have an internet merchant account.

I need basic payment processing.

Additional payment option

Website Payments Pro Customer Experience Where customers shop: Where customers check out: Customers need a PayPal account:
Integration

Website Payments Standard

Payflow Pro

Payflow Link

Email Payments

Virtual Terminal

PayPal

Shop on your website

Shop on your website

Shop on your website

Shop on your website

Varies with your business

Varies with your business Phone, fax or mail

Shop on your website

Your website PayPal or on PayPal

Your website PayPal or on PayPal

PayPal

PayPal

No

No

No

No

No

No

No

Internet merchant account:

Included

Not needed

Required

Required

Not needed

Included

Required

Shopping cart Yes support: Technical skills:

Yes

Yes

Yes

Not required Not required Yes

APIs

HTML

APIs or HTML

APIs or HTML

Not required Not required

APIs or HTML

Ability to accept phone, Included fax, or mail orders:

Upgrade

Included

Included

Upgrade

Included

Upgrade

In addition, all PayPal products accept major credit cards and bank transfers, include industry-leading fraud protection services, and offer online, phone, and email support.

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Step Six: Promote Your Site
Now that you’ve established a compelling, secure, and easy-to-use web storefront for your products and services, it’s time to let people know about it. Here are a few tips for driving traffic to your site: • Make the most of search engine optimization. Search engine optimization refers to designing your website so that it gains the highest possible ranking in search engine listings. When consumers enter a keyword or keyword phrase that is relevant to your business, you want your site to be listed prominently in the search results. Higher rankings can drive more visitors to your site. Unfortunately, there is no surefire method for improving your natural search rankings. That’s because search engines do not reveal their criteria for determining the relevance of a particular web page to a particular search query. You will need to spend time investigating which keywords to target for your business. In the course of your research, you should identify which keywords are most relevant to your business and then determine their popularity – i.e., how often they are used in searches. From there, you will need to create content to support these keywords. There are lots of websites that discuss search engine optimization and provide additional resources. One good site to reference is Search Engine Watch at: http://www. searchenginewatch.com • Purchase keywords. Another way to reach prospects who are actively searching for products or services your business offers is to purchase keywords on search engines and directories. You can purchase one or more words and phrases related to your business, and when a customer searches for any of those words, an advertisement for your site will appear. The placement of your ad, relative to other advertisers, is based on what each advertiser is willing to pay (sometimes referred to as a bid) for each keyword click. Highly searched keywords can be expensive to purchase, but because these types of programs are run on a pay-per-click model you don’t actually pay for your ad until a visitor clicks on it. This gives small businesses more flexibility in controlling costs and maximizing their investment by allowing them to adjust their bids as needed. Keywordbased ad programs are great for small businesses as they typically cost just a few dollars to get started. • Advertise. Placing a banner ad on other high-traffic sites can attract huge numbers of prospective customers – and doesn’t have to cost a fortune. You might also consider using some offline methods of advertising like radio and newspaper. Every business is different so you will need to evaluate what advertising methods would work best for you. Be sure to include your website URL in any advertising you do. • Register your site with search engines. Registering your site with popular search engines and web directories is a good way to draw traffic to your online storefront. Make sure your business is listed in search results when customers look for the products and services you offer. Manually submitting your site to search engines and directories can be time consuming, so easy-to-use search engine submission services like SubmitWizard can help you automatically submit your site to hundreds of search engines including Yahoo!, Google, and Lycos. • Put your domain name everywhere. Brochures, advertisements, business cards, press releases, and even hats, jackets, and T-shirts can be effective ways to promote your site and establish your corporate identity.

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What’s Next: Measure Your Success
Now that your online store is open for business, it’s important to monitor how well you’re doing. Of course you want to know how much you’re selling. But you also want to be able to track the number of people who visit your online store, where they come from, and which search engines and directories they use to find you. This information is vital to your business because it will help you assess whether your marketing activities are succeeding or failing. If you’re hungry for traffic statistics and detailed reports, consider using shopping cart software or signing up for a third-party website analysis service like WebTrends. These can be useful tools, especially since two-thirds of all consumers abandon the online shopping process before making a purchase. These tools can help you understand what paths consumers are taking through your site and what’s causing them to leave so you can minimize shopping cart abandonment. You can also track sales activity on your website and create reports showing how much your site is generating from repeat customers.

How to Get Started Today
You can acquire everything needed to begin accepting online purchases in three easy steps: 1. Choose a payment processing service. • Website Payments Pro • Website Payments Standard • Payflow Pro • Payflow Link • Email Payments • Virtual Terminal 2. Set up an internet merchant account, if you don’t already have one. All online businesses need to operate with an internet merchant account, primarily for depositing and refunding online payments. PayPal’s Website Payments Pro and Standard feature an integrated internet merchant account and gateway to make it quick and easy for you to begin doing business online. If you register for either PayPal Payflow Pro or Payflow Link, PayPal will provide you the option to apply for an internet merchant account with our preferred merchant account provider. 3. Customize your payment processing service with additional services. Help protect your business and your customers from fraud: • Fraud Protection Services. From simple automated credit card fraud screening to enterprise-grade perimeter security services, PayPal can save you time and money while protecting your business.

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• Express Checkout. Provides your customers a secure and convenient payment flow because they don’t have to re-enter information already stored in their PayPal account. Accept repeat payments from your customers: • Recurring Billing Service for Payflow Gateway. A fast, cost-effective way to accept repeat payments for installment plans, monthly fees, or subscription-based services. Offer your customers an alternative to credit card payments: • Providing customers with a variety of payment choices, including credit cards and PayPal, has been shown in several industry studies to contribute to an increase in revenue.

For More Information
For additional PayPal product and pricing information, please call us at 1-888-847-2747, send us email at paymentsales@paypal.com, or visit the PayPal Merchant Services section of the PayPal website at www.paypal.com.

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