Trading on the Internet

3. What You Need to Set Up

If you are trading on the Internet for the first time, it is advisable to start on a modest scale so you can see what works - if it does work - before you scale up.

3.1 Your Internet service provider (ISP) will probably provide the web space for your Internet shop (see 6.3 and Internet service providers).

3.2 You should purchase your own domain name, as this will help visitors to your site to have confidence in your business. (See Going online.)

3.3 An Internet shop is controlled by specialist software that organises the products, allows the customer to browse, and takes orders.

• The most common type of retail package is known as 'shopping basket' or 'shopping cart' software. It creates a virtual shopping basket which holds the customer's provisional purchases until the shopper confirms the order and pays at a checkout page.
• Good shopping basket software calculates the postage and taxes payable in connection with each purchase.

3.4 You will need facilities for processing payments (see 5).

3.5 Launching and running an Internet shop will require some expert input.

• You will need legal help in adapting contracts and terms of trade for the online environment and to ensure you comply with the regulations controlling distance selling, data protection and electronic communications.
• You will need someone with enough technical knowledge to keep the system running.

3.6 One of the biggest factors in the success of your site is the investment you make in marketing your site.

• If you have a limited marketing budget, you will need to make up for this with time, effort and energy.
• You will need to advertise and publicise your site everywhere you can, both online and in the real world.

3.7 You will need to check you can fulfil online orders efficiently.

• Put appropriate systems in place to ensure you meet orders and consider the impact on the rest of your business.
• Ensure you have your employees' backing.
• Disappointed customers are unlikely to buy from you again.