Friday, May 18, 2012
As we all know that ecommerce is all about trading and this trading is happening through online medium. There are various business models of ecommerce. You can find giant companies like Amazon, buy.com and snapdeal.com also there are small-cap companies in ecommerce business. As in ecommerce there is a one mediator who takes care of all your financial transactions and this mediator is a Payment Gateway. By this payment gateway you can able to sell your product in the online world, so it is too important that you have a first-class Payment gateway. Big companies have a huge budget for expanding and promoting their business so payment gateway has not become a roadblock for their business. Small-cap and startup companies have a limited budget so here the problem takes its place.
There are many ecommerce business models; if you are in a business of low-priced goods selling then it is quite difficult to find out the perfect eCommerce solution. As I said that Payment Gateway is the thing which handles all the trading in ecommerce hence it is compulsory that you have at least one of it. Generally a Payment gateway provider’s revenue model is dependable on your selling figures. As high your website sells products as high they earn, means they charge as per transaction and this charge they can deduct from goods price.
Here comes the main problem when you are in an ecommerce business and your product prices are less than $5 to $10. In this case Payment gateway will not charge you low but they will charge you as per their standard rates so in the end you didn’t get anything in terms of profit. A perfect ecommerce solution for this situation is that you have to choose a payment gateway which provides a service at cheap price.
A revenue model of ecommerce business is completely dependable on the transactions but you will only earn revenue in ecommerce if the transaction is high. Customer acquisition is a thing which plays a big role in ecommerce revenue model. If your customer acquisition is high and your transaction is low then you never earn a single penny from your ecommerce business. If you have high priced products in your ecommerce website and transaction will happen on those products then only you can earn some revenue hence it is most important that you are completely aware with such things before you are going to start your ecommerce venture.
In such low-priced product’s business you have a one benefit that if you didn’t have a credit card option in your payment gateways then it is fine because for purchasing such low-priced products people will not go to use their credit card they can simply choose cash on delivery (COD) option. This benefit will definitely help you in finding the cheap payment gateways because usually payment gateways charged you high when they provide the credit card option.
I would like to say that if you are starting an ecommerce venture and if you don’t have any knowledge about it then you must have to consult someone who has experience in the ecommerce sector. Take advice from he/she and then plan your business plan accordingly.
At this moment in time an ecommerce is an exceptional opportunity for doing a business but you have to take care of such things and get the best ecommerce solution so you can earn some bucks otherwise at the end of day your ROI will be Zero.
There are many ecommerce business models; if you are in a business of low-priced goods selling then it is quite difficult to find out the perfect eCommerce solution. As I said that Payment Gateway is the thing which handles all the trading in ecommerce hence it is compulsory that you have at least one of it. Generally a Payment gateway provider’s revenue model is dependable on your selling figures. As high your website sells products as high they earn, means they charge as per transaction and this charge they can deduct from goods price.
Here comes the main problem when you are in an ecommerce business and your product prices are less than $5 to $10. In this case Payment gateway will not charge you low but they will charge you as per their standard rates so in the end you didn’t get anything in terms of profit. A perfect ecommerce solution for this situation is that you have to choose a payment gateway which provides a service at cheap price.
A revenue model of ecommerce business is completely dependable on the transactions but you will only earn revenue in ecommerce if the transaction is high. Customer acquisition is a thing which plays a big role in ecommerce revenue model. If your customer acquisition is high and your transaction is low then you never earn a single penny from your ecommerce business. If you have high priced products in your ecommerce website and transaction will happen on those products then only you can earn some revenue hence it is most important that you are completely aware with such things before you are going to start your ecommerce venture.
In such low-priced product’s business you have a one benefit that if you didn’t have a credit card option in your payment gateways then it is fine because for purchasing such low-priced products people will not go to use their credit card they can simply choose cash on delivery (COD) option. This benefit will definitely help you in finding the cheap payment gateways because usually payment gateways charged you high when they provide the credit card option.
I would like to say that if you are starting an ecommerce venture and if you don’t have any knowledge about it then you must have to consult someone who has experience in the ecommerce sector. Take advice from he/she and then plan your business plan accordingly.
At this moment in time an ecommerce is an exceptional opportunity for doing a business but you have to take care of such things and get the best ecommerce solution so you can earn some bucks otherwise at the end of day your ROI will be Zero.
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