Ecommerce refers to payment transactions that occur over an electronic system. Today, however, the term is predominately associated with online transactions between an Internet merchant and consumers. Compared to transactions by mail and telephone, online transactions involve less service expense due to reduced overhead. If your business isn’t reaping the benefits of online payment, below are seven reasons to explore the offerings of online account providers today.
Easier to reach customers
Internet ecommerce allows businesses to reach customers worldwide. But it also helps them reach local customers who would rather buy online than by telephone, mail, or in store. According to a study by the J.C. Williams Group, over 6% of all U.S. retail transactions are conducted online. If your business doesn’t accept online payments, it could be missing out on significant revenue.
Less hassle for customers
At a time when consumerism thrives on convenience, online payments are a business’s best friend. Instead of waiting for representatives to take their call, waiting days for money to clear their account after mailing a check, or driving to a store, many people would rather pay instantly, have the money withdrawn from their account within hours, and avoid using gas. Ecommerce merchant service providers make these things possible.
Great for niche products
When sold in-store, niche products often languish on the shelf, not selling until a member of their target audience walks through the door. When they are sold online, though, they become available to members of their target audience around the globe. For makers of niche products, ecommerce merchant services can mean the difference between high volume selling and low volume selling that barely generates a profit.
Potential to decrease payroll
When companies accept payment by telephone or mail instead of online, they hire call representatives and data entry specialists to facilitate and manage the payment process. While some call representatives and data entry specialists are more necessary for administrative and customer support, accepting remote payments online can eliminate the need to hire them in large teams.
Selling in store incurs multiple costs that selling online does not, such as building insurance, utility payments and building maintenance, to name a few. For companies that sell exclusively or predominately online, the low overheard that comes with Internet ecommerce translates into lower product or service prices that beat the competition’s prices.
Ecommerce merchant service providers are required to meet PCI (Payment Card Industry) security standards, which ensure the security of processed, stored, and transmitted credit card information. PCI standards protect merchants by assigning them a level (1-4) based on the number of VISA transactions they have over a 12-month period. With PCI compliancy in place, merchants and their customers can feel confident about the security of credit card transactions.
Ideal for most businesses
If a business sells products or services to consumers or other businesses, selling them online increases its sales opportunities. Depending on a business’s needs, ecommerce providers can supply it with online account options that meet its business goals and its customers’ expectations simultaneously.
For many companies, selling online has become more profitable than selling in-store, and the benefits above are seven reasons why. If you haven’t been impressed with other ecommerce merchant service providers, let AVP solutions demonstrate how an online merchant account can improve your business’s revenue. With over 25 years experience in Small Business Merchant Accounts and over 25 years of servicing merchants, we have the experience you need in a merchant service.