Chapter 5
IN THIS CHAPTER
Identifying must-have shopping cart features
Using hosted shopping carts
Finding software for your server
Developing a customized solution
Do you absolutely need a shopping cart? No. If you sell only a few items, you can easily get by with using an online order form. Customers making a purchase can print the form and then fax it to you (yes, some people still do that). Or, after customers fill out designated boxes on the online form and click Send, the results arrive in your inbox for manual order processing.
With that in mind, here’s the real question: Do you want a shopping cart for your website? Absolutely — especially if you sell more than a handful of items. We encourage you to use a shopping cart regardless of how many products you plan to sell.
Assuming that you’re serious about making money online and growing a viable e-commerce business, a shopping cart is an essential tool. For starters, it speaks to the credibility and security of your website. From a customer’s point of view, using an antiquated, form-based process on a website can give the impression that the site is a small, mom-and-pop type of business. A lack of a fully functioning shopping cart may also cause concerns about the site’s security. If customers think their credit card information won’t be handled properly, you could lose sales.
Additionally, a good shopping cart makes doing business with you easier — and makes managing and growing your online business easier as well. In other words … a shopping cart is an absolute necessity for your online e-commerce business! This chapter helps you sort through all the latest options so that you can start selling like a real pro.
Today’s sophisticated applications have grown into more than simple shopping baskets for online customers. You can also incorporate quite a few tools into your shopping cart program. Your job is to figure out which features you need most, right now — and which features will serve you best in the long run. Before you can do either, you have to understand what’s out there and what’s important to use. Changes in shopping behavior and the e-commerce market make this knowledge critical to your business success.
A shopping cart with mobile commerce enabled, for example, is now more than a nice-to-have marketing feature. According to a report from Internet Retailer (www.internetretailer.com
), mobile e-commerce accounts for 30 percent of all U.S. sales, adding up to $104 billion in 2015. Mobile commerce (m-commerce) sales in Asia, Europe, and Latin America are growing three times as fast as those in the United States. Regardless of location, there’s no sign that mobile purchases are slowing, so a mobile-ready shopping cart is a must. Speaking of international online shoppers, global sales are increasingly responsible for driving a great deal of business for all types of e-commerce sites. If you plan to sell internationally, choosing a shopping cart that handles multiple currencies and integrates with payment gateways from countries beyond North American borders is critical.
As you can see, you have a lot to consider about the necessary functionality and features of a shopping cart. To make this process easier, we divide the most sought-after features into four standard categories:
Each shopping cart program has a set of administration tools. Although the specifics vary among types of software, ultimately these tools give you control of your shopping cart. Here’s a list of features to look for in admin tools:
Administrative functions: Passwords, pricing changes, and options such as font size or number of items to display on a page are examples of the most basic settings that an administrator controls. Other admin functions should allow for easy management of order processing, inventory, shipping, returns, and more.
If you’re not the type to be tethered to a desk, or you travel a good deal and don’t have staff to stay behind and manage your business, look for shopping carts that can be managed from mobile devices. You may need an app for your iPhone, iPad, or Android device that gives you mobile-ready access to the administrative features in your shopping cart.
Which features are most important to your customers? When you’re test-driving a shopping cart demo, try to view the experience from the eyes of your shoppers. Does the cart help your customers process their orders quickly? Or does it leave them frustrated and stick your site with a bad case of shopping cart abandonment? Here are some additional elements or features you can include that can benefit your customers (sometimes these features are considered add-on features or widgets and you must pay more to have them included in your shopping cart):
Product views: Customers can’t touch or feel your products when they’re shopping online. The only qualities on which customers can base their purchasing decisions are the images and descriptions you give them. Be sure to use a shopping cart that allows you to upload multiple images for one product.
The use of 3D and virtual reality tools (such as Facebook-owned Oculus Rift — the virtual reality headset) is beginning to become an important option for e-commerce retailers to show products. Online retail sites such as Wayfair (www.wayfair.com
) are starting to experiment with virtual reality technology that gives users more realistic views of products and product placement in their homes. The technology may start out clunky, but we think 3D product views will become more sought after by consumers, so keep your eyes open for these customer-centric viewing options in the near future.
For your shopping cart to work optimally, it has to become a seamless part of your overall site. If it doesn’t work, you need to be able to get help. Along these lines, you have to consider several critical integration and maintenance factors:
Integration with third-party applications: Your shopping cart needs to fully integrate with the other components of your business, including accounting- and inventory-management systems and your CRM (customer relationship management) software. One of the stickiest points of integrating any type of third-party business system with your shopping cart software is how well your shopping cart can relay information to the other system. If these two programs can’t function together (or integrate with each other), your workload doubles.
Some shopping carts may offer an API (application programming interface) or a set of APIs that allow you access to the shopping cart for further customization or integration. Keep in mind that using APIs may require hiring or contracting with a software developer (or someone with development or coding skills).
Of all the benefits a shopping cart can offer, the area of promotion and marketing usually receives the least amount of scrutiny before the purchase. Your first inclination is probably to look at how many products a shopping cart holds. Then you find out how much it will cost you. Marketing is one of the last items you consider, perhaps because you don’t realize a shopping cart can offer that feature.
Think again! The following list of marketing and promotion functions is a small sample of how your shopping cart can help you increase sales. See how many features are built into your shopping cart of choice:
<TITLE>
and <META>
tags for every product page or <ALT>
tags with keywords.You don’t have to use all these marketing tools. They might even feel overwhelming at first. Don’t worry: That’s perfectly natural. However, we recommend using a shopping cart that has a variety of promotional features. Then, as you become more comfortable, start testing the waters and increasing your sales.
Marketing features and administrative tools aren’t the only features that can sway your decision in selecting a cart. You can make your decision based on how the cart is delivered to you (or set up for use). For instance, one easy alternative is to use a hosted solution. The shopping cart is stored on someone else’s server and you pay to have access to it. A cloud-based solution is by far the most common option today.
Hosted shopping carts have four specific advantages:
As we mentioned, most people go with a hosted shopping cart (probably without even thinking about it as an option) because it is the prevailing method for delivering most e-commerce services. Start-up online retailers find it easy to turn to a single hosted vendor for everything from their domain name and hosting to a shopping cart and payment gateway. In this section, we describe a few popular shopping carts to start you on your search for the perfect hosted shopping cart solution.
You might instead decide to use a storefront, an all-in-one e-commerce solution. If you do, a hosted shopping cart is included with your storefront as part of the complete package. If you go this route, remember that each storefront has its own shopping cart with different features. We include a popular storefront shopping cart in this section, too, to give you an idea of what to consider. If you want to know more about using storefronts, you can discover all the details in Book 8, Chapter 1.
The 1ShoppingCart (www.1shoppingcart.com
) shopping cart has been around for a long time and has a large fan base. The company has moved beyond operating as only a hosted shopping cart and now offers marketing automation (e-mail marketing and contact management) and lead generation services. In fact, its starter plan, called “Autoresponder,” does not even include the shopping cart software. However, we still like 1ShoppingCart because its shopping cart functionality remains a powerhouse in the e-commerce industry. You can choose from two plans, which both include the company’s other marketing automation and lead generation services as part of the package. The Basic plan is $69 per month for a single user; or choose the Professional plan for $129 per month for three users. In addition to the number of user licenses, the biggest differences between the monthly plans are the additional features included with the Professional version, such as affiliate management, digital products, and “one-click upsell.” As for basic shopping cart features, you get the same features in every plan.
1ShoppingCart has an extensive set of shopping cart features, with great flexibility and choice. For example, 1ShoppingCart supports up to six shipping methods, in addition to international shipping, and provides a variety of ways to calculate shipping (including the option for free customer shipping). It also has a robust recurring billing feature and an impressive set of upsell features customized to the buyer’s shopping history.
FoxyCart (www.foxycart.com
) is a true hosted shopping cart, but several things make this solution unique. For starters, FoxyCart promotes itself as being only one thing: a secure e-commerce platform — not a jack of all trades or a turnkey solution — and it means it.
Unlike many typical shopping cart solutions, FoxyCart does not attempt to include other back-end functionality, such as accounting, CRM (customer relationship management), or affiliate marketing. Although we usually suggest that start-up online retailers choose a shopping cart with more functionality, FoxyCart is an exception. It is set up as a solution for developers to use on behalf of online retailers. Yes, this means you need to work with a developer if you do not have certain programming skills. Again, this seems contrary to our typical advice, but in certain circumstances, FoxyCart makes it worthwhile to pay someone.
If you need a fully customizable shopping cart and the ease of a hosted product once customization is complete, FoxyCart is the ideal fit. It is fully customizable and can integrate with just about any third-party software, from QuickBooks to Salesforce. The shopping cart features one-page checkout, guest checkout, coupons and discounts, international shipping, tax calculations, and unlimited shipping options, including multi-shipping (shipping to multiple addresses from a single order), free in-store pickup, and free ground shipping. You see an example of the customizable, simple checkout process in Figure 5-1. FoxyCart also supports integration with over 70 payment gateways and allows for alternative payment methods (including Bitcoin). The most important take-away when considering choosing FoxyCart for your shopping cart is remembering that it is a fully customizable, hosted solution.
How much does it cost? This is where it gets even more interesting. FoxyCart starts out free, for as long as you need it — with a catch. Think of it as an unlimited free trial that gives you plenty of time to set up, customize, and learn to use the software. You pay for the service only when you are ready to launch your store live. This is beneficial because it doesn’t mean you’re throwing away money for monthly service fees while your store is still in development. When it comes time to pay up, FoxyCart uses a combination of monthly and per-transaction fees. The standard plan is $15 per month, plus a transaction fee of .5 percent (up to a maximum of 15 cents) with the first 100 transactions free. A custom SLL certificate costs $100 annually. The advanced plan is $250 per month with the same .5 percent transaction fee (up to a maximum of 5 cents), with the first 1,000 transactions free. The advanced plan does not charge for a custom SSL certificate. If your needs are particularly extensive, FoxyCart offers an Enterprise plan for $2,000 per month.
You may be scratching your head and again asking, “How much does it cost?” Here’s an example to help explain its pricing model. On the standard plan, if your average order is $25 and you have 200 transactions a month, you would pay approximately $28 per month. If you sell less than 100 items in a month, you only pay $15. This pricing model is beneficial if you stay under the maximum allowed number of free monthly transactions, or if your number of transactions fluctuate based on seasonality, for example. In that case, you are not locked into paying a high monthly fee just because you have a peak selling season each year.
Shopify (www.shopify.com
) is not only a hosted shopping cart but also a complete e-commerce solution that has received rave reviews since launching in 2006. With Shopify, you get access to a long list of shopping cart features at a price ranging from $29 to $299 per month. In addition to the number of user accounts you get, the biggest difference between monthly plans comes down to some important shopping cart features. Abandoned cart recovery, gift cards, and real-time carrier shipping calculations (from UPS, FedEx, and USPS) are available only in the two more expensive monthly plans. In addition, some key administrative-tracking and -reporting capabilities are available only in the most expensive monthly plan.
If your e-commerce needs don’t fit the standard mold, Shopify has designed three other unique pricing plans. A super basic version is available if you want to sell only on Facebook. Dubbed Shopify Lite, it costs only $9 per month. A Retail plan is available for merchants selling in bricks-and-mortar locations, which includes hardware integration. (This plan is a $40 add-on cost to any of the standard plans, and requires that you have an iPad.) The final option is an Enterprise package that includes lots of bells and whistles, no transaction fees, and allows you to sell on social media sites such as Facebook and Pinterest. Pricing varies for this option so you’ll need to get on the phone and talk with a Shopify salesperson. (Although most e-commerce start-ups don’t need to even think about this level of service, we still like to mention the availability of enterprise plans for existing, large e-tailers who are considering different back-end options for their online stores.)
Also good to know, Shopify’s shopping cart integrates with over 70 payment gateways, including several popular European payment gateways. If you’re selling internationally, Shopify’s shopping cart is particularly useful because it supports website checkout in more than 50 different languages. It also handles multiple currencies and automatically calculates major county and state tax rates.
A mobile version of the shopping cart is included free with all monthly Shopify plans, which means your customers can buy products from any mobile device. Shopify also provides an app that enables you to manage orders from your mobile phone. Because Shopify is a complete e-commerce solution, it offers lots of free and low-cost templates for your online store, including some that are responsive (mobile-ready), helping to ensure that your complete site (including your shopping cart) is displayed properly on every mobile device. Customers are more likely to not only browse products from their phones but also drop items into the shopping cart and complete the purchase. In Figure 5-2, you see an example of a clean, simplified shopping cart that also works well on any mobile device. For a complete list of features included with the Shopify shopping cart, visit www.shopify.com/online/ecommerce-solutions
.
Before so many hosted shopping carts flooded the market, stand-alone or off-the-shelf software was your best bet for a quick, inexpensive solution. The software was available from an Internet service provider (ISP), or you could license the product yourself. A stand-alone shopping cart allows you to add the software to your own server. Many web developers pursue this option and then become resellers of their particular shopping cart programs.
When you use this type of shopping cart, one big advantage is that you aren’t tied to a specific web host. In theory, that feature makes managing your store easier if you switch service providers. However, with importing and exporting functions now a common tool in most shopping carts, where your site is hosted is less of a concern. Other advantages include control and price. For larger stores, the price issue is particularly important. Whereas you might pay $250 to $2,500 per month (or more) for a hosted shopping cart that supports an unlimited number of products with complex back-end and feature requirements, you might find that paying a little more up-front makes it easier on you as your company grows.
In general, we recommend stand-alone shopping carts for larger retailers who have an existing website. If you’re just starting out or are a small online retailer, it’s hard to beat the convenience, support, and savings of either a hosted or an all-in-one e-commerce solution. In fact, many stand-alone shopping cart software providers are now hosted or storefront solutions.
If you want to get your hands on one of the remaining stand-alone shopping carts, you can approach it in two ways:
Here are a few remaining providers:
www.shopfactory.com
): Provides the capability to create ready-to-go storefronts with shopping cart systems included (or sold separately).www.x-cart.com
): A PHP e-commerce software that you can buy and download, it includes many standard shopping cart features, is mobile-ready, and can be customized. A free version is available for new or small e-commerce stores.www.pdgsoft.com
): Shopping cart systems with built-in search engine capabilities. PDG is built specifically to integrate with QuickBooks and QuickBooks Point of Sale.Custom cart development takes place when you program (or someone you hire programs) a shopping cart unique to your needs. You are truly building a shopping cart from the ground up!
On the bright side, you can get a program that meets your specifications in every way. And if you know how to program or have someone willing to donate the time (or give you a steal on the price), this option can be less expensive than an off-the-shelf, or hosted, solution.
Then again, hiring someone can get expensive fast, especially if you require a good amount of customization. (Remember too that you can get an incredibly robust hosted shopping cart for less than a few hundred dollars per year.) Another problem is that a customized solution can be difficult to integrate with payment gateways or will involve at least some additional coding. Perhaps the biggest drawbacks are the limitations on support and ease of scalability. Every time you hit a snag, you have to go back to the developer for help. If your needs change or you discover a feature you want to incorporate, you’re again dependent on your developer, which can get expensive.
If you decide to delve into the custom route, you will need to take the following actions:
Get bids and quotes. Gather at least three bids before selecting a developer. Then ask for a final quote delivered in writing before you begin the project.
To ensure that you can compare apples to apples, provide each prospective programmer with the same list of specifications. Ask each company to develop a bid from your list.
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