By Jordan Foutz, eCom expert of PinnacleCart.com
October 22, 2012

In the realm of eCommerce software there are two basic options to decide between: lease a hosted solution or purchase the licensed version. For those that don’t know, licensed shopping cart users pay a one-time fee to “license” the software and then install it on a web server so they can run their store.  With hosted solutions, the online merchant pays a monthly fee for both the software and the hosting environment it resides in. Every business is unique in its needs so our goal to help you decide which version is better for your online store.

There are positives and negatives to both solutions; today we’re going to look at both to help you better understand what solution works best for you.

First let’s look at the advantages a licensed solution provides.

Licensed Benefits:

• You control the hosting environment so you can customize your cart as necessary.
• You can choose when and how to keep updated with current applications and code.
• It is more portable and can be moved to hosting companies of your choice.

Licensed Drawbacks:

• You are responsible for the hosting environment. This can be a good thing or a bad thing depending on your level of technical expertise or the level of expertise of the hosting company you select. But generally speaking, you are responsible for technical aspects of your store.
• Licensed software typically has a higher start-up cost than hosted does.  This may not be the best for those just starting out but when you look at the big picture, it has a much better overall value as your only paying for the software once and will continue to use it for year.

Hosted shopping cart packages give you the following benefits:

• Reputable ecommerce solution providers will provide you a PCI compliant hosting environment, free of charge.
  DO NOT consider any solution that isn’t PCI compliant.
• If you are trying to reduce costs during your first year of business, the overall costs of a hosted solution are less than the one-time fees of licensed software.
• Everything is included in a hosted set-up as the site and shopping cart are bundled together under one server.  From email hosting to customer support, you’re covered.  That means less troubleshooting for you!

Hosted shopping cart packages give you the following drawbacks:

• You do not have much control over the design of your store front.
• Generally speaking, you are very limited on the amount of customizations you can make to the feature set. Most hosted solutions update the software globally which can wipe out any code changes you make.
• Your business is tied into the offerings of the ecommerce provider you select. As your business grows you will need additional server space, bandwidth and more.  You selected provider will control these costs and you’ll have to pay the fees they charge.
• Over time, hosted solutions never stop charging their monthly fees (and transaction fees, where applicable).  To get out of monthly fees, you will need to upgrade to a licensed solution.

Both solutions have their advantages and disadvantages. Hosted eCommerce (sometimes called SaaS) are a fantastic way to start an ecommerce store. The cost of start-up is much lower, when compared to licensed solutions, and most of the technical aspects of the store are managed by the provider, allowing you to spend your time on the things that matter most, like making money.  Licensed solutions provide greater freedom and flexibility, which you’ll need as business grows.

Choosing between licensed and hosted eCom software will depend on you business needs… but there may be a 3rd option!

So what should you do?

My suggestion is to use an eCommerce solution that can offer you both. Selecting a company that offers both hosted and licensed provides your business the maximum flexibility and allows your business to grow without constraint or limitations. While it’s true that most shopping cart companies fall on only offer one type of solution, either hosted or licensed, if you do your research (or use a site like zippycart.com, which does it for you ) you’ll find a couple of companies that offer both, such as Pinnacle Cart and CoreCommerce.

Remember this is a fundamental decision that could dramatically affect the outcome of your business for years to come. Make sure you plant your business in soil that will allow it to germinate and flourish and help you achieve the success and lifestyle you seek.

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By Jordan Foutz
Aug 20, 2012

There are many things that eCommerce merchants can do to boost consumer confidence in their businesses. One common practice amongst eCommerce webmasters is using graphic elements to help buyers feel at ease about making a purchase. Most if not all merchant account providers and processors offer merchants security seals, buttons, or graphics to indicate that all payments can be processed securely through the merchant’s website. Some of the biggest things you can do to increase consumer confidence in your site involve graphics, design, and messaging.

While offering live help isn’t necessarily a graphic element, it is another great way to make your audience feel at ease and secure with your site.  It shows visitors that they can get help quickly and reduce the time it would take to find something or get a response from a contact form. Additionally, it allows merchants to advance their message in a way that instills confidence that the business is a safe place to do business. It is essentially the same as hiring a greeter to say hello to your online customers.

Many big brands use live chat services for their own company websites and here are some rave reviews from them:

“Live help allows us to help our customers at the most important part of the sales funnel, in real-time. If there are questions, feedback or praise, we’re always there to help”

“Live help allows us to help our customers at the most important part of the sales funnel, in real-time. If there are questions, feedback or praise, we’re always there to help”

“Our sales team is extremely happy with our chat software experience. Their wickedly friendly setup, easy to navigate chat controls and outstanding customer support have increased our team’s sales productivity and close rate by over 35%! Our live chat leads are converting into sales efficiently and quickly. We couldn’t have made a better choice”

“If you are doing customer development, want to provide better customer service, or just want to increase conversions, you NEED to be talking to your customers. Engaging through live help is the best way to do that.”

Live chat can increase conversion rates as well as build audience confidence in your site.  In fact, there are many different reasons an online merchant would use live chat.  The biggest reasons are outlined below:

• Proactive outreach – Customers feel a greater sense of obligation if they feel someone cares about their needs. With most of the programs out there, you can easily and automatically generate a chat box that allows site owners to say hello to visitors. Operators can ask them anything from how did you find us, which isn’t incredibly clear with analytics at times,  to inquiries regarding product availability like “do you have the men’s XXL unicorn t-shirt in in lavender?”.
• Visitor Tracking – Many of the chat programs out there have very detailed reporting which includes visitor location/IP, referring pages, etc. which can help eCommerce merchants understand more about their traffic so they can fine tune their marketing campaigns.
• It is new technology leveraging old school principles of trust – The internet is a new thing for most people and they have a hard time trusting it. The reality is that if you, as a visitor, can sense that someone is there manning the controls giving you a warm fuzzy feeling that you’ll receive the  goods purchased on that eCommerce site, you’re going to see conversion rates and average order sizes improve dramatically.

Jordan Foutz is the Director of Marketing at Pinnacle Cart.  Pinnacle Cart offers eCommerce solutions to SMBs who are serious about selling their products online. Some unique features of Pinnacle Cart include a quick and easy Facebook store setup, a mobile web option for merchants, and adherence to the industry’s highest security standards: PCI / PA-DSS compliance.

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