What You Need for an Ecommerce Website
Author: Tiara Rea
Are you ready to take the plunge into the wide world of ecommerce web hosting? Many customers who call Lunarpages asking for rates on business hosting are not prepared for some extra costs that pop up as we explain what is necessary for your ecommerce website to run efficiently, and these extra features are extremely important not only to the success of your business but also to the security of your customers’ sensitive payment information. Without them, potential customers may not trust your website and current customers may be wary about having you hold their information.
This is starting to sound like a ghost story. 
As the evil ecommerce features creep up around every corner, Lunarpages Web Hosting promptly rescues the victims with upfront information to prepare you for your new ecommerce website!!
I thought this article would work best as a Q and A, answering some of the most-asked questions we’ve received here at Lunarpages.
So firstly, what exactly is ecommerce?
Ecommerce is just a fancy term for any online business that runs a website where customers can purchase goods or services directly from your website.
What’s the first thing I need to start my ecommerce website?
Get a reliable web host! No, really. You need a website that has all the features necessary to get an online business up and running, including:
* Domain name (LP gives you one free with the Basic Plan or 4 free with the Business)
* Email accounts (unlimited email from LP)
* Shopping Carts (choose from 4 different carts at LP: Agora, OsCommerce, Zen Cart, and Cube Cart)
Those are all the freebies once you’ve got hosting. Now comes the fun part.
What else do I need to run an ecommerce website?
* Dedicated IP Address
* SSL Certificate
* Payment Gateway
These three things sound like funny Star Trek episodes but in reality are the cornerstone for any successful ecommerce venture.
A Dedicated IP Address is simply a single, static IP that is not shared across any other websites. At Lunarpages, we charge $2.95/month to add this to a Basic Plan or it comes free with the Business. Without a Dedicated IP, you can’t get an SSL Certificate, without which you can’t get most payment gateways, without which you can’t accept credit card payments directly on your website. The explanation for this circular reasoning is simply that the combination of Dedicated IP and SSL Certificate ensure your website’s payments are encryted and secured, which is what payment gateways need to see as well.
An SSL Certificate is nothing more than a certificate that encrypts the sensitive payment information processed on your website. If you go to Lunarpages.com, you’ll see there is a small lock at the bottom of your browser. This lock basically tells you, as a consumer, that the website is secure and that we are a trusted merchant. Without that little lock, many potential clients will not trust your website and will not buy your products. You can purchase an SSL Certificate for $99 or $119 per year from Lunarpages Web Hosting, and we’ll install it for free for you.
And lastly, a payment gateway is a merchant that processes the payments from your website and more or less converts the electronic transaction into actual funds that go to your bank account, etc. At Lunarpages, we recommend Authorize.Net, as they are a reliable and affordable choice.
Can I use PayPal or Google Checkout instead of a payment gateway?
That’s a trick question, that is. Both PayPal and Google Checkout are payment gateways of their own. These two services (and others like them) simplify the checkout process by allowing you to send your customers to their services to complete transactions. This means you don’t have to purchase an SSL or Dedicated IP and thus will cut down on your costs.
February 26th, 2008 at 4:02 am
Even if you decide to use a remote payment gateway (PayPal / Google Checkout) it is STILL a good idea to have a dedicated IP and your own SSL.
The Reason ??? CUSTOMER CONFIDENCE.
Credit card data is just one form of data that needs security in transit. Personal data (names, addresses and tel numbers) are ALSO keen targets for ID fraudsters.
Then, there’s the psychology of the online shopper. More and more people are understanding the significance of SSL, and have a far greater degree of trust in online merchants who visibly and proactively display their website’s security credentials.
New web browsers now help people with SSL issues – again, helping people be confident about where they so their online shopping.
I have been hosting most of my e-commerce sites with Lunarpages for several years, and for a couple of dollars, the dedicated IP address and dedicated SSL has probably been responsible for thousands of £ of additional business – all from customers who may have abandoned the site if it had not been made clear to them that it was fully SSL secure!
Don’t try to save a couple of dollars at the expense of successful business. Get a dedicated IP and a dedicated SSL.
February 26th, 2008 at 4:10 am
What are the pros and cons of the merchant account SSl route vs PayPal and Google as a Gateway?
February 26th, 2008 at 10:00 am
I have been using PayPal as a gateway for several years now. They charge a flat percentage of all sales. While it is a sliding scale, basically unless you sell thousands of dollars worth, the percentage is around 4% (I forget the exact amount at the moment).
It works rather well. I’ve seldom heard complaints from customers. Occasionally, I get a dummy that can’t figure it all out, but the checkout is really not much different than any other checkout. Occassionally I hear from a PayPalphobic person, or a PayPal-hater. And then we just work something else out (e.g. sending me a check!)
The downside is that whenever you need help at PayPal, you will have to have the patience of a saint. On their website they say they’ll email responses “promptly”. That has turned out to be as much as 72 hours (3 days). And then as often as not, the response will be some sort of weird non-sequitor that has nothing to do with the question that you asked. You can call in for help, but expect a long hold time, and then a basic idiot that doesn’t understand what you’re saying. On the upside, at least you get a response!
)
February 26th, 2008 at 11:35 am
One of the biggest problem of using PayPal (I’m not familiar enough with google’s checkout to comment on that), is that PayPal is not a bank and you are bound by their policies which have no oversight by banking regulators or anyone else for that matter (they can play god). For instance, if someone files a claim against you (real or not), they can, at their option, freeze your entire account until they feel it’s resolved. Normally, I think they are reasonable, but I’ve known people that have been under their thumb. A bank could never do that, they could freeze the amount under question, and not a dime more.
Additionally, while it is easy to move money you receive from your PayPal account to your regular bank account, it takes several days (even though it only takes seconds for them to withdraw it from your account!).
On the plus side, there aren’t monthly fees, and for small operations it’s very affordable. I have one client that I set up with PayPal, and it works fairly well. The cost of a merchant account and gateway can otherwise be prohibitive.
I personally use PayPal for all of my ebay transactions, and while I don’t agree with all of their policies, they are still the best option.
February 26th, 2008 at 12:02 pm
How can I track affiliates using one of your shopping cart softwares. Can you provide links to add ons if available
February 28th, 2008 at 5:31 am
Paypal has worked very well for me, but if you are selling on a large scale, I strongly suggest going a different route. Paypal will typically side with the buyer and I have been burned on some very large transactions. For example I sent a digital camera that turned out to be bought with a stolen credit card. I shipped it and saved proof of shipping, but since it was a stolen credit card and there was some weird loop hole in paypal’s seller protection I had to eat the $280 and never got my camera back.
February 28th, 2008 at 3:06 pm
Liz: I will try to write up a bigger article based on your question for next month, but as a simple rule, the only real benefit is perception. PayPal secures their website, so you don’t need the SSL. Your customers will be redirected to PayPal to pay, whereas if it’s on your own website, you MUST have this technology to secure and encrypt the payments as well as to assure your customers that the transaction is safe. Andy’s also right that PayPal can be reeeeeeally slow and Valerie’s comment about the “guidelines” in PayPal is also something to look into. They have their own rules and regulations, so reading the fine print is a good idea to make sure it’s the best solution for you.
Will Byron: What do you mean by tracking affiliates using a shopping cart? If you’re looking to earn affiliate commissions from Lunarpages, visit http://www.lunarpages.com/affiliate/ for more information. You’re also welcome to email me at affiliate@lunarpages.com
March 5th, 2008 at 5:24 am
Are the dedicated IP and the SSL good for the whole domain (including additional subdomains) or would you need a separate one per domain name?
Why does the LunarPages site come up with an issue re the certificate? When I click on the CPanel after logging in I get a message indicating:
There is a problem with this website’s security certificate.
The security certificate presented by this website was not issued by a trusted certificate authority.
The security certificate presented by this website has expired or is not yet valid.
The security certificate presented by this website was issued for a different website’s address.
Security certificate problems may indicate an attempt to fool you or intercept any data you send to the server.
We recommend that you close this webpage and do not continue to this website.
Click here to close this webpage.
Continue to this website (not recommended).
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March 6th, 2008 at 10:23 pm
I really need to put e comm on my site. My webmaster has giving me a quote that I can’t afford right now. How much is the norm for adding e comm?
May 23rd, 2008 at 7:39 am
That is an interesting article. In our experience website owners find it difficult to understand visitor behaviour even with good systems such as Google Analytics.
We have recently come across an excellent piece of software that not only allows them to monitor individual user behaviour in real time, but also facilitates direct engagement between visitor and user. This has been increasing conversions by an average of 15% in the websites we have implemented it in.
It seems that the individualised data gives a more enlightening perspective.