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Wednesday, September 8, 2021

Thinking of getting your business online? No worries ! Let me introduce the E Commerce world.

Thinking of getting your business online?

Pibblu - Your Software Consultant - https://ps.pibblu.com


Step 1: Get a name for your Shop

Domain Name / Website Name is the online address for any E-Commerce shop. Customers visit your shop by typing the domain name in their Browsers. Ex: shopname.com / shopname.in

Some of the basic checkpoints for deciding the website names are

1. Is the name relevant to the business?

2. Small name. Names with 2 to 10 characters would be ideal.

3. Have just alphabets in the domain name. Avoid special characters or Alphanumeric combinations.  

* #1, 2, and 3 would help Customers remember names and access sites easily.

4. Have a ".com" extension. 

* ".com" extensions are commonly known and used across the world

5. Additionally procure similar or same domain names with other generic extensions. For example: if your domain name is fashion.com. If you are operating your business from India. Then, it is advisable to procure fashion.in domain name too. 

* This will help prevent your competitors from using fashion.in for negative marketing.

6. Make sure you buy the Domain Name from a reputed Domain Registrar.

* The Registrar should have the capacity to provide the best DNS facilities. (Google / Godaddy)

** None of the above criteria are mandatory but are good to have.

** The average cost of a Domain Name would come around 1000 INR per year

Step 2: Decide on how you want to build your E-Commerce Website

Broadly, there are two ways by which you shall build your E-commerce Website

2.1. Software As Service (SAS) E-Commerce Solution

2.2. Building E-Commerce Website on your own

2.1. Software As Service (SAS) E-Commerce Solution

SAS E-Commerce Solution is a concept of providing ready-made and customizable E-Commerce solutions to Merchants for an agreed monthly fee. The service provider will manage the Infrastructure and Security of the shop. The Merchants are just required to select the required shop layout, features, and other relevant shop specifications. SAS relieves the Merchants from concentrating on irrelevant tasks like maintaining the hosting server or securing the shop and allows them to completely focus on their business. It is very easy and quick to bring the Shop alive.  But, this benefit comes at the cost of an additional fee. This additional fee is worth spending as compared to the time and money that you would otherwise spend to maintain the infrastructure and to protect shops from hackers.

Some of the renowned SAS E-Commerce Solution providers are 

1. Shopify

2. WIX

3. Woocommerce

4. Magento

For a start-up E-Commerce venture, below are the approximate cost required with SAS E-Commerce Solution

1. Shopify: 4000 INR / Month (https://www.shopify.in/)

2. WIX: 500 / Month (https://www.wix.com/upgrade/website?businessTab=true) _ 

3. Magento: A very expensive solution. Meant only for Enterprises. We need to contact Magento Sales team through their inquiry form with specific requirements. https://magento.com/contact-us

4. Godaddy: 2000 / Month (https://in.godaddy.com/websites/online-store)

* In addition, Merchants might need to accommodate the domain renewal cost of 1000 INR / year, additional security cost of around 1000 / month, annual payment gateway cost of around 5000 INR / month.

* Most merchants would also spend an additional one time cost of around 15000 to 20000 INR for upgrading their shop with PAID plugins

Merits:

* All websites are prone to hacking attacks. Here in SAS, the Service Provider will take the pain of protecting the Shop from hacking attacks (or) restoring the shop to its original status if it is already hacked. Merchants need not worry about the Shop's security and shall simply focus on their business.

* Most SAS supports Mobile responsiveness

* Some SAS provides Mobile Apps at extra cost. ex: Shopify

* Some SAS provides POS support at extra cost. ex: Shopify

* Most SAS provide SSL for Free for the lifetime

* Shop's performance and capacity upgrade are easy for an additional cost

* Merchant need not worry about the Server setup / Shop installation

Demerits: 

* Shop customization has limitations. Extreme shop customization requires hiring costly developers from the Service Provider's Resource Pool

* Some localized features may not be readily available. Integrating localized features may require a considerable fee

* The shop source code will always be owned by the SAS Service Provider. The Merchant will have no rights to their Shop source code. In other words, for any reason, the Merchants cannot view / edit / deploy shop source code on a different server. Though, the Merchant always has the right to take a copy of their Data present in their own shop.

2.2. Building E-Commerce Website on your own

There are two options available
2.2.1. Building E-Commerce Website from scratch
2.2.2. Building E-Commerce Website from an existing Open Source Applications

2.2.1. Building E-Commerce Website from scratch

This is generally a very costly approach. This approach requires dedicated developers, designers, and architects. For any start-ups or small businesses, for a common E-Commerce shop, this approach is not advisable. So, this is not discussed in detail in this blog. 

You shall always reach me if you want to create a unique e-commerce system and if you need a technical consultation. 

2.2.2. Building E-Commerce Website from an existing Open Source E-Commerce Applications

Open Source E-Commerce Applications are ready-made E-Commerce solutions provided by a group of developers. Open Source E-Commerce Applications are allowed to be used by anyone free of cost. Unlike SAS, the source code of Open Source Applications is available for everyone's view and edits. Generally, the Open Source E-Commerce Applications address most of the basic requirements of E-Commerce shops. The Open Source Community Developers earn money from the additional paid plugins that may be required by the Customers.

Some of the Open Source E-Commerce Applications are 
1. Magento - For Enterprises / High-End shops
2. Prestashop - For Mid Range Shops
3. Open Cart - For Small / Light Weight Shops
4. WooCommerce - WordPress - Blogging + E-Commerce Extended

Building E-Commerce Solution from an existing Open Source Application will be quick and easy. But, maintaining the Shop would be a difficult job. In a very short time, most Merchants would realize they would need additional features to bring their shop on par with the industry standards. As the E-Commerce application is completely managed by the Merchant, Merchants are left alone on their own to handle technical issues. In order to upgrade the shop, to fix issues, to protect the shop, or to handle other technical issues, Merchants would ultimately end up recruiting developers to address the shop's growing requirements.

Approximate cost requirements for building a mid-range E-Commerce website:

Domain Name / Year: 1000 INR

Hosting Server / Year: 6000 INR

Security: SSL certificate: 3000 INR

Payment Gateway: Annual Maintenance Cost 4000 INR / year + 1% to 2.5% of Order Total as Transaction Fee

Logistics: 40 - 60 INR per KG

Data Entry: 60 - 100 INR per product

Images: 60 - 100 INR per product

Merits: 

* Hiring developers for maintaining Open Source E-Commerce applications is comparatively easy. Hence the shop customization or integrating localized features can be done at a reasonable cost 

* The shop source code will be owned by the Merchant

* As the Open Source Applications are continuously upgraded by an active developers community, any loopholes will be identified quickly and upgrades will be available on a regular basis. Keeping the shop up-to-date by applying all upgrades will avoid most of the security vulnerabilities.

Demerits:

* Merchants may deviate from their actual business and end up spending huge time fixing up technical issues.

* All websites are prone to hacking attacks. The biggest pain that the Merchant would experience in this approach is when the shop is hacked. When the shop is hacked, the Merchant would require immediate attention from an experienced developer, which is not always possible. Taking the shop to Maintenance mode / protecting the shop from google black listing / cleaning up the hacking scripts / restoring the shop to its healthy original status / identifying and fixing the loopholes are all the biggest tasks that will be laid before the Merchant overnight. The merchant may get distracted from the actual business and start dealing with all irrelevant stuff, if not guided by an experienced developer.

* Merchants always depend on the developer's support to handle technical issues. Some of the common issues are
1. Server Offline / Server availability issue
2. Insufficient RAM
3. Insufficient Hard Disk space
4. Insufficient Data Bandwidth
5. Insufficient Permissions to Folders, Servers, and Database
6. Insufficient Database Space
7. Security Configuration Issue
8. Hacking Attacks
9. Open Source Application Upgrade
10. Caching
11. Performance
12. Number of Files Restriction Issue
13. Application - Server Compatibility issues
14. Application Configuration issues
15. Application Enhancements
16. Third-Party Service Integrations
17. Application Upgrades
18. Mobile responsiveness
19. Server setup / Shop installation

* Hackers usually will have a common hacking script for the famous open source applications. So open source applications are more prone to hacking attacks if not upgraded regularly.

CONCLUSION:
Did you understand the various options available in front of you? if not, go through the article once again and decide the right option that is suitable for you.

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