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Starting an E-Commerce Web Site

Written: Feb 02, 2009 · Updated: Feb 03, 2009

So you want to start an internet business but need some ideas on where to begin. This article assumes that you have already decided on a type of business, found a niche, done your research on customer demand, marketing techniques, etc. and now you're looking for some technical information on how to implement this.

First step: Get a Domain Name

Once you've decided on the type of business, you need a domain name. Whenever possible a domain name should indicate the product or brand that you are promoting. For example, if you are in the mortgage business, a domain name like "mywebsite.com" doesn't say much. However, "mortgageloans.com" does. The words in your domain name are important. They can help in promoting your brand, as well as being critical in the all important area of Search Engine Optimization. So come up with a name that says something about your business, your geographic location, or your brand. Better yet, come up with a name that promotes all three.

Once you have thought of a few names, you need to register them. There are many sites where you can do this, such as godaddy.com, register.com and networksolutions.com. There are many more. In fact, most hosting companies will also allow you to do domain registration.

Chances are, the domain name you want is already registered. This is why you need to come up with a few names to start with. If "mywebsite.com" is already in use, you might try "mywebsite.net" -- although for some products or services, having a .net domain name may not be a good idea. Most people associate the .com Top Level Domain as the primary source for a given brand or service. Only you will be able to determine which Top Level Domain is the right one for you to use.

Purchase Web Hosting Service

The next thing you will need is a web host. These companies provide the computers and web servers where your web pages are stored. Although it is not necessary, you can use the same company to register the domain name and host your web pages. If you are not very familiar with web hosting in general, this may be a good idea since the shared domain registration and hosting services are often easier to configure, which means you'll get your web site working faster.

Before deciding on a host, be sure you read the rest of this article and determine what kind of software you will be using and what level of support you will require. A big mistake is to purchase hosting services only to find out that the host cannot provide the software services you will need, or they're not very good in providing support at the level you will require. Some hosts also make it difficult to move your site, requiring fees before releasing your database contents or allowing you to change the DNS settings for your domain name. Again, proper homework will let you know if your potential new host has a reputation for being hard to deal with in this area.

Some things to look for in a potential web host:

E-Commerce Friendly -- Since your business will be e-commerce based, be sure you find a host that is capable of supporting that. Many hosts provide e-commerce software solutions with their hosting services. Some of these are good, but sometimes they offer older versions of the software. If you have a specific e-commerce solution in mind, make sure your host supports it and if they provide that software, make sure it's a recent version.
Customer Support -- Depending on your level of proficiency on the Internet, you may need a high level of support, or very low support. Either way, you'll want to find a hosting company that can help you the way you need to be helped. If you prefer email support or telephone support make sure that your host can provide it.
MySQL Databases -- Many e-commerce systems require the use of a database. Databases are used to store large amounts of data in a form that can be retrieved very quickly. These databases are installed and managed by your host. Look for a hosting company that can provide the version of database that your software requires. Some hosts have a limit to the number of database requests that are allowed per minute or per hour. At the beginning, this may not be important, but as your site grows and you gain customers you may run in to this limit. So look for a host that provides as close to an "unlimited" number of database transactions as you can find.
PHP Support -- Like databases, many e-commerce products require PHP. PHP is a server side (meaning it runs on the web host) technology that allows you to generate HTML pages, rather than having static HTML pages. The combination of the database and PHP is what allows the e-commerce software to display all your products and respond to your customer's action of adding items to their shopping cart. Without this, all of your visitors will see exactly the same pages. You need a host that not only provides PHP support, but can provide the version of PHP that your e-commerce software requires. For most shopping cart applications, you will need PHP version 5.

There are too many web hosts on the Internet today to go through a list. This is another area where you will have to do some research. Use your favorite search engine to look for "web hosting services". Find one that offers their services at a reasonable price and promises good support. Then ask them questions. If their web site doesn't say that they provide MySQL databases and PHP, move on to the next one. If they do provide these services, ask them other questions. Often times, just asking them simple questions will give you an idea whether or not they can provide timely support at the level you require.

Many web hosts provide a forum. See if you can sign up for the forum and look around. See what kinds of problems the host's current customers are experiencing and the level of support they receive. If the host is not very responsive or their current customers are having a lot of problems, move on. You don't need to spend your time fumbling around trying to get help when you could use it to build your business.

Decide on Your E-Commerce Software

Just like web hosts, there are many difference E-Commerce software solutions. These are also called "Shopping Carts." Some of these products are for purchase and others are available for free. This is, yet again, and area that you will have to research. Unlike the hosting company you choose, this will have a greater effect on your business -- so do your homework and choose the best solution for you, not the one most recommended by your friends or your web host.

The paid shopping cart services have difference database and hosting requirements. So while doing your research on the shopping cart, make sure you take notes so that you know what kind of a hosting company you will require.

Some paid shopping cart products are as follows:

ShopSite -- http://shopsite.com
SunShop - http://www.turnkeywebtools.com/sunshop/
Mercantec Softcart - http://www.smedia.info/hostingmercantecsoftcart.asp

In addition to the paid services, there are many free shopping cart applications. The free carts have a much lower start-up cost, but often come with a higher learning curve. This is because they are often harder to customize, configure and operate. If you're going to go with a free, or open source solution, make sure that you have the time to devote to learning the software and learning how to be a good web host.

Some free and open source shopping cart products are:

osCommerce -- http://oscommerce.com
Zen Cart -- http://zencart.com
Magento -- http://www.magentocommerce.com
phpShop - http://www.phpshop.org

There are, of course, many others. Here again, you will need to do your research. Join the support forums for these products, ask questions and don't be shy in admitting that you need help. Many of these forums are happy to provide free support and welcome new users. But also remember that you're getting free support from other users. While often helpful, some of the forum members are just other web site owners like yourself and not necessarily computer experts or professionals. While this is often good, it also means that the level of support many not be as good as professional help. Also because it's free, often times the support will take longer than hiring a professional consultant. But if you are budget conscious and want to get started with little expense, this may be the way to go.

Legal Requirements

Just because you have an e-commerce web site and are making money on the Internet, does not mean that you will not have to take the necessary steps to appease your local government. Depending on your location and the type of business entity you desire, you may need to take the steps to legally establish your business. In many cases, this is a simple matter of filing a Fictitious Business Name statement with your local county and getting a city business license. You may want to incorporate. You will have to pay taxes. You will probably want a bank account.

Make some phone calls and find out what the requirements are for where you live. As with any government agency, it is far better to find out ahead of time and make sure you've done all your paperwork than to get unfriendly letters from your county telling you that you have to pay a fine. I don't know you and I cannot make recommendations on what type of business entity you need. All I can say is to consult with some professionals (attorneys, accountants, etc.) and do your homework and make sure you set things up the way you will need them.

Marketing Techniques

Once you have your domain name, a hosting service and you've chosen your e-commerce software, you will be up and running. Now all you need is customers. After setup, marketing will take up most of your time. Don't be discouraged by a lack of customers. Just because you have a web site, this does not mean that you will have customers. There is no "if you build it, they will come" on the Internet. You have to get the word out and promote your site. After all, no one will know your web site exists until you do your promotion. The various Internet marketing techniques are almost as endless and the e-commerce software solutions. There are many web sites and forums available for learning and discussion on this topic and we here at PatchMonkeys.com will also provide articles on this subject in the near future.

Conclusion

Starting an e-commerce web site is going to be a lot of work, especially if you are a novice at computers or the Internet. But it can also be a lot of fun. The best advice is to do your homework, but this is true no matter what kind of a business you want to start: Internet based or brick and mortar. Starting a business means you need to do a lot of research and there's no getting around it. You will need to spend a lot of time doing reading about web hosting, participating in web forums for your e-commerce software and learning as much as you can about the tools and software you're going to use. This isn't easy, so don't assume that it will be. You will also need to learn as much as you can about Search Engine Optimization and marketing. So be prepared to spend a lot of late nights doing reading. Welcome to the world of e-commerce! We hope you enjoy yourself.