It’s hard to believe how fast things are moving in the IT world. Some businesses have been accepting online payments for over 20 years. But two decades ago, there weren’t nearly as many businesses selling online, and global payment gateways weren’t used to receive online payments worldwide.
Some businesses are still stuck in that position, relying solely on in-store sales to create an impressive bottom line. This does not mean that businesses are set to fail, but it does mean that they can make more money if they start selling online.
If your business is considering accepting payments online, the good news is that online payment processing is faster and more secure – and the benefits of accepting them are better understood than ever before. Here are four key pointers in moving forward with the online business.
1. Rapidly expands sales zone
Expanding a sales area by creating more locations is time consuming and expensive. Even global brick-and-mortar retail giants like Walmart and Costco are still trying to cover all emerging market bases.
When a business offers products and services online, it makes them available to anyone who can access the e-commerce website (e.g., you probably won’t even be able to sell a portrait of Kim Jong Il to North Korea). With few exceptions, the Internet can make the world your permanent sales zone.
2. Affordable payment processing fee
You can reach consumers worldwide with a retail website, but the site needs a payment gateway to process online sales, which means you will pay a processing fee (MSP) to the gateway provider merchant service provider. However, you can set the fee in your favor based on how you sell.
For example, depending on the provider’s processing protocol, the amount of sales over a given period, the average revenue per sale, and the total revenue from sales over a given period may be a consideration for you when selecting a payment gateway.
Considering that you should earn more from online sales than you would pay for an MSP to process a transaction, processing fees should not stand in the way of your online sales goals. If you use a global payment gateway, you can accept a variety of international payment cards in addition to the current 164 official currencies.
3. Opportunity to work only online
One of the primary hurdles in running a profitable business is startup costs. The chain of events is often as follows: a startup takes out a business loan to get things started, expects to repay the loan within three years, and achieves profitability at the end of three years. Many small businesses cannot do this far. Nonprofits are a major factor in paying off debt while covering business expenses in an early period.
Just working online will not cover all your initial costs. You need to create at least one business website and implement a payment gateway. But these medium costs are not in the same universe as buying or leasing double-net or triple-net retail property and providing overhead.
If you sell products that can be easily shipped without loss, and you’re not just interested in the presence of a brick-and-mortar, transforming a web-based business will offer two major benefits: the opportunity to grow a global customer base and the long term Operating costs.
4. Promotes the purchase of bricks and mortars
It may seem that online shopping and in-store shopping are mutually exclusive, but research suggests otherwise. Consumers often shop for products online, then search for products in stores, so that they can “kick the tire”, test products directly. This activity is called omnichanneling because it involves multiple sales channels to make a sale.
According to Forbes, “retailers indicate that consumers prefer to browse the Internet to research major products, but when it comes to actual shopping, about half of retailers (46%) say they prefer to do it in person, in stores). More than a third say customers do research and purchase online. Only 18% say customers do both in-store. “
In addition to opening up a new revenue stream in the form of online shopping, accepting online payments can also increase a business’s in-store sales by establishing an all-channel presence.