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Posted on January 23, 2017Online Transaction Security Guide
With the rise of online banking options and shopping sites that encourage the use of checking and credit card information, online transaction security is even more important. As the web grows and diversifies with options for online payments, a number of false sites pose a constant threat to all computer users. Exchanging sensitive information without the appropriate encryption technology or security measures can make a computer user or identity particularly vulnerable. Online transactions take place at record speed, oftentimes faster than a standard credit card transaction or check processing. Transmitting personal data over the Internet does pose various risks, and taking preventative action is a necessary part of ensuring online safety.
Online transactions can be monitored, recorded, and key logged by a variety of hackers and third parties without the knowledge or consent of the user. This information is transmitted across networks and opens up the door to a variety of risks that can fall into the hands of the wrong party. If passwords are stored on a user’s computer, they are especially vulnerable to security breaches. A computer security hole can open up the door to the password files, and hackers can extract and copy this information without the user’s knowledge.
Password files and information need to be protected as much as possible. This may involve frequent changing of the password, and using unidentifiable keyword combinations. Making sure passwords are a combination of numbers, capital and small letters, and special characters can prevent any manipulation simply by guessing the code, and taking the steps to change the password frequently may help with unauthorized access. Not sharing passwords with any other person is another important step; online transactions rely heavily on a user name and password. If just one other person has knowledge of this combination, it may lead to dangerous ramifications in the long-term. Create passwords that are easy to remember but hard for others to guess. Make the password at least 8 characters long. Consider using multi-factor authentication. Many services offer an option to verify your identity if someone logs on to your account from an unrecognized device. The typical method is to send a text or other type of message to a mobile device registered to you with a code you need to type in to verity it’s really you.
To be sure that you are protected you can use IPsec Virtual Private Network, which allows you to create a secure connection to another network over the Internet. VPNs essentially forward all your network traffic to the network, which is where the benefits – like accessing local network resources remotely and bypassing Internet censorship come along. VPNs are a fairly simple tool, but they can be used to do a wide variety of things: access a business or home network while travelling, access geo-blocked websites, downloading confidential files and others. Secure websites and pages will feature two important conditions that indicate they are using encryption technology and a Secure Socket Layer. This is indicated by “https” (letter ”s” after the http portion of the URL), and means that the server is a secure one.
Downloading from trusted sources can help to protect a user’s sensitive information, as this limits the potential risk of viruses, worms, and other dangerous threats that can lead to data mining and data loss. Making sure all websites that involve direct credit card information and checking account information exchange have a padlock symbol or icon will ensure that the site has been assigned the authority to accept secure and protected information. Make sure you also double-check the website certificate prior to entering your payment details. Using software that protects and encrypts sensitive information like user names and passwords, and highlights if a site is secure or not, may dramatically improve your online transaction security. Such software should:
- Remove already known dangerous and suspicious applications.
- Store your passwords in encrypted mode in a secured place.
- Block known phishing web sites and warn about those that are suspicious.
- Stay up to date with latest antivirus and computer updates.
- Not allow the installation of third party software from untrusted sources.
If you want to learn more about online safety check out our list of common scams to look out for.
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Posted on December 20, 2016You’ve got scammed
While countless online services and shops have made socialising, shopping, working, paying and playing so much easier, it’s exactly these things that make everyone that partakes in the aforementioned online activities susceptible to fraud. Crafty cyber criminals come up with new scams every day to cheat merchants and consumers alike out of their hard earned money. Of course you know about phishing, pyramid schemes and the ol’ Nigerian prince with his money laundering scam, but there are more ways in which digital fraudsters use your inbox and gullibility to gain access to your personal information and financial data. This is a list of common and not-so-common scams to look out for. Spoiler alert: if it seems too good to be true, it probably is.
Greeting card scam
With the holiday season coming up, let’s start with greeting card or e-card scams. Festive fraudsters will send you an e-card pretending it’s from a friend or other trustworthy source and then, when you open or download the card, install malicious software, spyware, adware or a virus on your computer. We don’t have to tell you how this is detrimental. It’s very easy to protect yourself against attacks like this: if you receive an e-card from an unknown sender, delete it and if you do decide to gamble and open it, do not open any links or attachments!
Employment search scam
When looking for a job, you probably upload your CV to a legitimate employment web site like Glassdoor for example. Unfortunately, it’s not only potential employers looking at your resume. You will receive a job offer from a foreign company you never heard of and they offer you the position of “financial representative.” They want to hire you because they are having trouble accepting funds in your area and need you to do that for them. You will be promised a commission of 5 – 15% for each transaction. If you apply, part of what they ask of you is to deliver your bank account data in order for you to get paid, but instead of getting paid, you are getting scammed. Scammers can use the data you so willingly (greedily?) supplied them with to steal your money and/or your identity.
Guaranteed bank loan scam
Please allow us to point out that no legitimate financial institution in the world would ever guarantee a bank loan. Credits card maybe, but never a loan. With these types of scams the old adage holds true; if it seems too good to be true, it probably is. You will receive an unexpected email or phone call saying that you have been pre-approved for a bank loan and all you need to do to get the loan is pay the “mandatory” processing fees. One would think that people would see right through this scam, but there are still a large number of people desperate or greedy enough to fall into this trap daily.
Catfishing/romantic scam
Catfishing (the term made popular by MTV’s 2010 documentary and tv-show) is the act of pretending to be somebody else to trick victims into giving you attention, money and/or merchandise. Even though the term is relatively new, the scam itself is very old. Decades before the Internet’s inception, fraudsters were already preying on the weak and lonely by feigning romantic intentions. The victims are led to believe that they have a romantic suitor and willingly pay for all sorts of things, from presents to rent and from iPhones to fitness equipment, just to keep their “suitor” happy and interested. Of course the catfish is only interested in your money, not in your heart.
Blackmail scam
There are many ways in which cyber crooks can employ the blackmail scam. First, they can get access to your computer (by installing spyware through a bogus e-card, for example) and use anything they find to blackmail you. Are you in a naughty chat room, but also happily married? Do you keep secret work documents or other sensitive information on your personal laptop? Boom! You’re a victim. Another way is duping the target into thinking that they are talking to a love interest that then convinces them to undress and act sexy for the webcam. Needless to say, the footage will be used for blackmail and extortion.
Lottery scam
Lucky you! Even though you didn’t enter a lottery of any sort, you have won a prize. And not just any prize, no, a ridiculous sum of money that is dangled in front of you like bait, just waiting for you to collect it. All you have to do is cover the transaction costs/transfer fees/processing charge so that you can collect your winnings. At this point in the list, it should not come as a surprise that you will never receive a payment and that the winner becomes the loser really quickly.
Disaster relief scam
As if natural disasters weren’t bad enough, online scammers found a way to make them even worse. We have all become accustomed to charities and NGOs setting up disaster relief web sites and phone numbers within 24 hours of a disastrous event. Fraudsters do exactly the same thing. They set up phony charitable web sites, email a whole bunch of targets and collect the donations they make. If you want to make a donation, always contact the charity directly to be sure that your money doesn’t end up in the hands of criminals.
Work from home scam
If you have ever logged on to the World Wide Web, you have probably seen an ad stating that you can “make money fast from your own home.” This scam preys on the homebound: the sick and elderly, stay-at-home-moms and low or no income families. You are promised a lucrative career stuffing envelopes, assembling products, being a mystery shopper or a telecommunication, marketing or travel agent. All you have to do is send some money to “get you started” (i.e. get envelopes, a head set, software, etc.) It should come as no surprise by now that all you got started is being scammed. The fraudsters collect your “investment” to never be heard from again, leaving you disillusioned and destitute. Once again, if it sounds too good to be true…
Fake travel agency scam
These types of scams are especially popular around the summer holidays. With everyone looking for cheap tickets and holiday destinations, it’s really easy for tricksters to set up a fake web site for a fake traveling agency. Unsuspecting travelers will book a trip to an exotic location for a ridiculously low rate and underhanded fraudsters collect their down payment, close the web site and abscond as fast as they can. With so many (free) options to create professional looking web sites nowadays, it’s hard for the consumer to differentiate between these fake web sites and the real deal. One way to make sure that you don’t become a victim of this scam is to use your common sense. We are starting to feel like parrots for repeating this, but if it seems too good to be true, it probably is. Be honest, have you ever heard of a super cheap vacation to a super exclusive destination? That’s because they don’t exist.
Mugged on vacation scam
One day, you will receive a desperate email from a friend. They are currently on vacation, but got robbed, their phones and credit cards stolen, and now need you to transfer some funds to pay the hotel bill and make sure they can get by the last couple of days. Rest assured, your friend didn’t get mugged, they probably didn’t even go on vacation. Criminals gained access to your friend’s computer and sent out this sob-story email to all their contacts to take advantage of your generosity and helpfulness. A surefire way to protect yourself from these types of scams is to double check with your friend. Try to arrange a phone call so that you will have the opportunity to ask your friend a few questions that only they would know. Or better yet, arrange a Skype video call. Needless to say, when in doubt, don’t transfer any money at all.
We hope that this list has made you a little more prepared for the dangers out there and gave you some ideas on how to protect yourself from sordid scammers.
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Posted on November 30, 201610 Tips on How to Create the Ultimate Web Shop
The ease of creating an online environment and running a web shop right from the comfort of one’s own home or garage has resulted in each Tom, Dick, Harry and Paula thinking that they can become the next Amazon, AliBaba or Zalando. Even though it seems easy enough, to become really successful, it takes a lot of hard work and sound strategy. As a payment service provider, we encounter hundreds of web shops in every corner of the world (wide web), some of which highly successful, some not so much. We have asked around and would like to present you with a list of useful tips that will hopefully help you to become the next online tycoon.
Looks matter
A flashy, professional web site may seem like the obvious choice, but if you sell organic dog food, a sleek site in grays and blues will just look weird. It also works the other way around: when you sell concrete slabs, a colorful, interactive web shop will make you look silly. It’s paramount that your online environment reflects you and your business. If you have lots of text, choose a font and colours that are easy on the eyes (so no Comic Sans, mmkay?). When dealing with mostly pictures, make them the highest quality they can possibly be, this is your showcase. Also, think about layout and functionality. What would you like shoppers to see first? How should everything work? And how should your web shop make them feel?
Put the ‘you’ in unique
For those lucky few that come up with a completely new service or product, it’s easy. They’re unique because nobody else does what they do and that is their USP. But if you sell clothes for instance or own a restaurant, how do you do that differently from your competition? Do you only use fair-trade products or do you operate from a paperless office? Make it known! Do you have Annie Liebowitz shooting your pictures or Salman Rushdie creating your copy? Shout if from the rooftops! Are the sweaters you sell 100% mermaid hair? That should be on the homepage! Even though everyone is unique, your product or service probably isn’t. The trick is to find and highlight that one thing that does make you stand out from your competition and showcase it in any way you can.
KYC, the other white meat
Know Your Customer. Seems simple enough, but is actually quite hard. What kind of person do you envision your customer to be? Are they male or female? Educated? Wealthy? Lazy? Handicapped? Sports fanatics? How does your merchandise or service improve the life of your customer? These are all things that you should have figured out before you open shop. After you start processing orders, you can employ a CRM-system of your choice to keep tabs on who your customers actually are and then adjust your strategy to cater to them. Do you see an increase in activity in a certain area; offer them a promotion. Are your customers more active during the night, then update your web site at night too to ensure that your customers are around to see it.
Shopping for carts
Choosing the right shopping cart software can make or break your shop. If your merchandise needs mainly visual displaying, choose a shopping cart that allows for that kind of interface. Want to offer your services worldwide? Make sure your shopping cart software is suitable for that. For smaller, starting merchants, we advise taking a shopping cart that is recommended/endorsed by your web host. With their extensive experience, they will be able to provide you with exactly what you need, fully integrated and ready to go. Larger, experienced web shop owners may benefit more from purchasing a loose plug-in, since there are more options for customisation to make it fit seamlessly into a web shop’s back-end.
Proper payment system
Having a proper payment system is equally important as having a suitable shopping cart. Choosing the right payment service provider is key to setting up a payment system that will fit your needs perfectly. First, think about how you would like customers to pay for your merchandise and services. Should they be able to pay via credit card? Would you like people to be able to order on the go with their smartphones? Will you cater to areas outside of your own country? Do you know which alternative payment methods they use there? A good payment service provider will be able to answer all your questions and advise you on which payment methods to offer. We recommend using a payment service provider from your own country that can advise you in your own language, in your own time zone.
Promotion is paramount
Promote your web site as much as you can, simple as that. Send out press releases to local media and/or influencers. Hire a freelancer if you don’t know how. Advertise on social media, for as little as $5 you can get a Facebook campaign going, and if you have awesome visual content share it on Instagram. Get intimately acquainted with Twitter and if you have interesting stories to tell, start a blog or snap away on Snapchat. If you don’t have enough time to do everything, pick one medium and do that really well. Ask your friends and family to like and share your web shop as much as humanly possible, make them shout from the digital rooftops. And if your budget allows it, also advertise offline, on TV or in the local newspaper. Anything to get the word out.
Dare to customer care
Especially when you sell a product or service that is not so one of a kind, make sure that your service is the distinguishing factor. Treat your clients like you would want to be treated and you’re halfway there. Being an open book instills confidence in your patrons. Be available for questions and take complaints seriously. Honour your promises and be clear when you are out of stock. It should be easy for customers to return their purchases and refunds should be given (within reason, of course) without making a fuss. Excellent service is a paramount to ensure great word to mouth advertising and customers returning to your shop. Also, offer a super safe payment experience, like Fort Know safe. Ask your payment service provider about their security options and PCI compliance.
Conversion is key
It’s tempting to make decisions based on your gut and past experiences, but if you really want your shop to soar, you will have to employ metrics; cold, hard data. Your store’s conversion rate directly measures the profitability and consequently is the measuring stick of your success. You can use metrics to predict future successes or to determine if everything is working like it should be. A good mnemonic is “when conversion is down, something is up.” Your customers’ behaviour on your site is a great bellwether. The funny thing is that what is most valuable to your company comes (almost) free. Keeping tabs on your daily, weekly, monthly and yearly conversion and making little tweaks accordingly will do wonders for creating an awesome customer experience and will keep your them coming back for more.
The customer journey
Creating an exceptional customer journey is not as hard as it looks; all you have to do is pay attention. In the eyes of the consumer, you are only as good as the last time they were in contact with you, so evaluate each and every contact point between your customer and your company. This is where you build customer loyalty by actively ensuring that your customer has a great experience each time and possibly even shares that positive experience with their friends. Take special care of the checkout process; consumers nowadays are notorious for their short attention span. A good rule of thumb is to make the path from product to payment as short and easy as possible. Also, take a peek at how your competitors are doing, maybe there is something that you can do better of different to make you stand out even more.
Terrific traffic
What is a web shop without visitors? Key is getting potential customers to your shop and it all starts with search words. Search Engine Optimisation (SEO) is crucial for generating traffic to your site. Determine which words your customers would use when looking for your product or service and use them as much as you can in your web site’s copy. Don’t forget to also include them in the meta title and meta description. This is after all the text that search engines display and lets viewers know what your page is about. Please note that each separate page should have its own unique title and description. Finally, optimise your images, videos and URLs (short URLs that include the most important search words), create a Google AdWords campaign and you are good to go.
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Posted on November 28, 2016Possible changes to the EU e-commerce landscape
As a part of the Revised Payment Services Directive (PSD2), the European Banking Authority (EBA) has proposed to reduce risk and mitigate fraud in the payment industry by implementing passwords to authenticate payments upward from EUR 10.
One of the repercussions is that payments in apps like Uber or web shops where consumers register their card are no longer automatic, but require a password to be entered for every transaction over EUR 10. For the consumer this means extra steps in the payment process, which we know might discourage them from finalising the purchase or order, even though this extra step adds extra security to the process. Additionally, purchases outside the EU might be blocked because foreign web sites might not adhere to the new European standards. This will not only frustrate the consumer, but also foreign merchants counting on European business.
In the beginning of 2017 the EBA will adopt the final proposal. Of course we can’t look into the future, but we are prepared for it. Our collaboration with identification and payment authentication service iSignthis provides our merchants with the highest level of online payment security and Know Your Customer compliance. Please reach out to your eMerchantPay representative to ask about how we can help prepare your business.
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Posted on November 22, 2016Risk & Fraud Management Challenges Infographic
Risk and fraud are a part of a merchant’s life as much as profits and customers. But how does one deal with credit card fraud, stolen identities and securing sensitive data? Our white paper ‘Risk and fraud management challenges within the payment industry’ discusses these topics in-depth. This infographic highlights the white paper’s most important findings.
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Posted on November 14, 2016Get down with OTT
Last week we presented our new tokenisation service, One Time Token. This service helps non-PCI-compliant merchants to collect card data on their own servers and to process payments securely. But what is a token and how does it work?
During the tokenisation process, the primary account number (PAN) and other sensitive card details are replaced by a non-sensitive equivalent that has no meaning or value, a token. There are two basic types of tokens: reversible and irreversible. You can probably guess where we are going with this, but just in case, allow us to explain. Reversible tokens provide entities using or producing tokens with the possibility to obtain the original data through a process called de-tokenisation. Irreversible tokens can never be converted back to the original data, by any party, under any circumstance. These two basic types of tokens can each be divided into two subcategories. Reversible tokens can either be cryptographic or non-cryptographic and irreversible tokens are authenticable or non-authenticable.
- Reversible cryptographic tokens – the tokens are created using strong cryptography. The PAN or other data is not stored; the encrypted data is only retrievable by using the cryptographic key.
- Reversible non-cryptographic tokens – a PAN is assigned to a token in a pre-generated table of random values. The token is then de-tokenised by looking it up in a card data vault.
- Irreversible authenticable tokens – tokens are mathematically created through a one-way system that can confirm if a certain PAN is used, but cannot be used to de-tokenise the token.
- Irreversible non-authenticable tokens – these types of tokens can never be linked to a specific PAN, but may be linked to a specific customer or merchant account.
When handling payments and sensitive data, security is paramount. Compared to older systems that stored sensitive information on databases and freely shared card numbers etc. over various networks, tokenisation makes it much harder for hackers and other fraudsters to gain access to the card and payment details. Because of the innovative properties and the relative ease with which to implement a tokenisation system or subscribe to a tokenisation service, we expect other industries that handle sensitive data, like medical or criminal records, to follow suit soon.
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Posted on November 8, 2016EMV’s Not So Happy Birthday
Last year on October 1st, EMV was introduced in the United States as a way to counter credit and debit card fraud in retail and to protect issuing banks against the liability shift. On its 1-year anniversary, we decided that it was time to check up on the implementation and share our findings with you. A quick reminder: EMV is a technical authentication standard (chip technology) for payment cards and the terminals and ATMs that accept them, and was originally created by Europay, MasterCard and VISA.
Even though we wish that we could give you nothing but good news on EMV’s American dream, it seems that the introduction has been quite messy. PaymentsSource reports that merchant penetration is still below 35% and that customers don’t know if they should dip or swipe their card when making a transaction, let alone adapt to entering a PIN instead of signing a receipt. It’s easy to blame the customer for not being able to remember a PIN, or the merchant for being slow to adopt this new standard, but the real problem lies with EMVco not taking enough time to properly prepare the American market and the local merchants. Even though the US are notorious for being the most complicated payment market in the world, little, if any, formal or official education accompanied the introduction and both merchants and consumers are lost. Besides that, the timing of the introduction was a bit off too, right before the holidays. Merchants were hesitant to adopt a new payment process right before The Most Lucrative Time Of The Year and by the time EMV launched in the US, only 150 million Americans were given a new card with the EMV chip technology. Also, EMVco should have taken into account that in contrast to Europe, which only deals with two small handfuls of payment service providers and issuing banks, America literally has hundreds of financial entities to consider, which makes the process of getting terminals and ATMs evaluated and approved lengthy and tedious.
Luckily, there is also good news to share. For those merchants that are EMV compliant, it is already working! According to MasterCard, counterfeit fraud has dropped 60% among the company’s top-5 EMV-enabled merchants since EMV’s introduction in October 2015. Furthermore, in June of this year MasterCard and VISA both announced that they would be deploying a series of initiatives to help accelerate the implementation for merchants and all other stakeholders in the payment chain. In August, the card schemes announced that 80% of consumer cards are now outfitted with chip technology. So even though EMV’s first year was rough, we are confident that its second year will be worthy of a proper celebration at the end of it.
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Posted on October 12, 2016Let’s get digital
Maybe you have noticed it too, but a lot of blogs and other media have been mentioning the rise of online grocery shopping these past couple of weeks. This probably has something to do with the report that Internetretailer.com released earlier this month. This 2016 Online Food Report states that the online sales of groceries grew by 15% the past year and now accounts for 4.4% of the global market. But that is not all: did you know that online grocery shopping sales almost top $50 billion worldwide? To us, this makes complete sense: nobody wants to spend their free Saturday morning making their way through crying children, pushy shoppers and free sample mayhem in order to get their weekly groceries. Completely in sync with 21st century consumerism, consumers want to buy things, they just don’t want to go outside to do it.
Being a payment service provider, one of our more important tasks is to keep an eye out for innovative technological developments and growth markets. In this sense we are much like fashion designers (however so slightly less fashionable): we are always working a few seasons ahead of our client base, and have entire teams dedicated to look into the future. This helps us to ensure that our products are not just up to date, but also ahead of their time.
This is why the findings in Internetretailer’s report coincide with a trend that we ourselves noticed a while back. We observed that brick and mortar retailers are being spectacularly surpassed by their digital counterparts. To tap into this promising growth market, our Product Development and IT teams have been working around the clock to implement and update all the necessary software and hardware that prepares our gateway for all the new physical-gone-digital retail merchants.
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Posted on October 6, 2016One size fits none
A while back we wrote a blog about cross-border e-commerce. As you may remember, one of the main messages was that “one size fits none.” This means that when you have a global client base, you will have to cater to each target area individually and never simply copy-paste your domestic strategy to a new location. When we wrote it, we actually had some heated discussions about putting this specific tidbit in there; one half of our team felt that we would insult the intelligence of our merchant base by putting in something so obvious and the other half felt that we wouldn’t do them justice if we didn’t give them all the necessary information, even if it was an “open door”.
Today, this internal argument has finally been settled, since our “open door” has found acclaim with Jason Moens, VP of Product with Flywire. PYMNTS.com interviewed him about what information, technology and integrations payment processors must take into consideration when facilitating payments across borders, and he reiterates: “it’s actually quite naive for merchants to assume that a single experience will work well for everyone, because of the varying nature of individual consumer needs.“ Ha! Seems like half our team was right after all.
According to Moens, too many payment institutions forego going the extra mile to ensure smooth transfers, either on the sending or the receiving end. Not because they don’t see the added value of smooth transfers, but because they are under the impression that this is just the way it is. Apparently, most payment processors simply accept the fact that transferring money to foreign localities is expensive and complex, and factor that into their process. And what’s worse is that they don’t even believe they have a problem, because the money gets from A to B safe and sound. That the money travels – figuratively speaking, of course – via the whole alphabet, some numbers and a few punctuation marks to finally find its way to B is apparently no problem.
Luckily, FinTech is a field of shakers and movers, which means that innovative and advanced technologies are introduced every day to help ensure easy and efficient cross-border transactions. And because we pride ourselves in finding the “shakiest movers” possible, our gateway and our products are always secure, up to date and ready to process your payment from wherever you want to.
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Posted on May 26, 2016How to profit from shopping cart integration
What is a shopping cart?
A shopping cart is a piece of software that allows shoppers to view a merchant’s merchandise (products and/or services) on a web site and to buy it online. This makes actually setting up a shopping cart environment within your web site’s backend the first step in making a profit with your web shop.
Plug-in and go
There are a couple of options when it comes to integrating shopping cart software: a shopping cart can either be purchased as a loose item (plug-in) or is offered as an integrated feature by services that facilitate and host e-commerce web sites. For smaller or starting merchants, we recommend the last option, because of the convenience. For larger and experienced web shop operators, we endorse implementing a plug-in, since there are more options for customisation to make it fit seamlessly into your web site’s back-end.
Shopping for carts
When you go online, you will find an overabundance of shopping carts and endless reviews on all their features. Our highly skilled IT and Product Development teams have done extensive research and we have made an initial selection of the 6 most-used shopping carts to offer to our merchants:
- PrestaShop – fast, efficient and easy to use, PrestaShop’s free e-commerce solution provides everything you need to open, operate and maintain a successful online store
- openCart – a free, turnkey-ready, “out of the box” shopping cart solution to help you build a successful online store
- osCommerce – provides you with the tools to set up your very own complete and self-hosted online store and to securely sell products and services to customers worldwide
- X-Cart – PHP/MySQL-based secure shopping cart software with an open source code
- WooCommerce – with a free core platform and hundreds of premium add-ons available, WooCommerce allows you to set up an online shop with functionality catered to your store’s needs
- Magento – an open-source content management system for e-commerce web sites
Get the word out
Ok, let’s see. Assuming that you already have a merchant account (if you don’t, inquire here), after selecting and implementing shopping cart software, you now have a functioning web shop and awesome merchandise to sell. But how will you get word out about your magnificent new web shop? The answer is – and always has been – marketing! Without spending on marketing and PR, you will have a hard time getting the word out about your web site and the great things it has to offer. Get that ad space, get intimately acquainted with social media, never say no to free publicity, have a little patience and see those orders flooding in.
Abandonment issues
Like with everything in life, shopping cart integration is not without its challenges. You will find that, next to the usual suspects of fraud and data security, one of the most common challenges in online entrepreneurship is shopping cart abandonment. As all merchants will tell you, it’s highly frustrating when a customer fills up their cart on your web site, but then abandons it completely. But why would they do such a thing? According to Statista.com, these are the top-5 reasons for shopping cart abandonment:
- Unexpected costs – high shipping costs and other unforeseen amounts like taxes and administration fees will trigger the customer to abandon the purchase, because the final amount due is (much) higher than initially anticipated.
- Just browsing – while browsing, some consumers get so excited that they deposit articles/services in the shopping basket like there’s no tomorrow, but, when the browsing is done, ‘come to their senses’ and abandon their potential purchases.
- Found better deal elsewhere – as we have mentioned in our earlier post about cross-border e-commerce, consumers have become increasingly savvy and are highly aware of the fact that going online to compare prices will eventually land them the best deal possible. And who doesn’t like a good deal?
- Overall price too high – shoppers tend to drop everything they like in their basket whilst browsing and then, when the time comes to pay, come to the conclusion that the price of the purchase is higher than they can afford.
- Decided against buying – for whatever reason, the shopper just simply decided that he didn’t want to make a purchase. Maybe they concluded that they didn’t need an inflatable palm tree, a Harry Potter crossword puzzle of the day subscription or expensive organic bear food after all.
Small change, big difference
Of course, for a merchant it’s quite disastrous when potential customers leave their store without buying something. Especially if this is a recurring problem. Just a few small changes to your web site, interface and online demeanour can make the difference between your customers abandoning their purchase altogether and them coming back for more.
- Unexpected costs – to avoid shoppers abandoning their purchases because of “hidden fees,” make sure that all additional costs are clearly visible on your web site and in your shopping cart. Another possible solution is to make a pop-up appear with each item that is dropped in the basket that immediately states the total price and/or additional costs to avoid surprises, abandonment and, ultimately, disappointment.
- Just browsing – you may have lost the customer this time, but when they come to your shop again, send them a pop-up reminding them of the merchandise they still have in their shopping cart. Or, when they have emptied out the cart, use targeted suggestions based on their previous almost-purchases to remind them that last time they found something they liked. Just remember, less is more, nobody wants to be bombarded by pop-ups every time they visit a web site.
- Found better deal elsewhere – to avoid losing (potential) customers to your competitors, try to always be aware of what their pricing is like and – if possible without going bankrupt – adjust your own pricing to make sure that you always offer the best deal. Also, it is advisable to start a loyalty programme offering your devoted customer base special rates and other perks to ensure their return to your little corner of the Internet.
- Overall price too high – if the customer has been mindlessly filling their basket, there is not so much that you can do, they overshopped and overspent. What might help is to offer customers the option to put a spending limit on their shopping basket before they start dropping items in their cart (especially handy for people with kids that know how to use a credit card.) This is of course a judgement call, since it’s favourable for people to spend as much as possible in your online store. But would you rather have them spend some of their disposable income or none of it? That’s what we thought.
- Decided against buying – a tried and proven method against shopping cart abandonment are reminder emails. Having a – preferably humorous – email reminder of the abandoned shopping cart can really improve your chances of a shopper returning to your web shop to complete their purchase. Two key elements that all successful reminder emails have are an overview of the abandoned content and great copy that triggers customers to come back. And if you want to go all out, you also offer a discount, reserve the items in the cart and throw in some cool visuals.
With these tips and tricks, nothing should stand in the way of your web shop becoming the next Amazon. Are you ready to start making some profit?
