So you are thinking of hosting an online store? You’re not alone as you know, and today the competition is getting stiffer. Most people that own and operate successful online retail sites have run the gauntlet of e-education the hard way for as long as online vendors made money the “easy” way. Well it’s not easy as we are trying to elaborate and there are basics that most people have nailed down; however there are the simplest of details that elude many new to the business, that don’t bear there ugly face till it’s too late.

An idea, a concept is not the most difficult of tasks to complete on the road to virtual success, but a necessary one. The question is, “Do you have a valid business plan?” Is your product or service in need by consumers? Most importantly, in starting this new online business, are you infringing on other like businesses or in conflict with a current or previous employer. If you cannot answer these questions, stop here and get them answered. Consulting with an attorney, if even for an hour or two may be sufficient. What you want to know is if your new business name or product is under copyright or contract with other companies and if there are legal restrictions on your industry, product or service. Finding the answers to these questions when it’s too late may prove to be expensive.

Securing suppliers and negotiating contracts is necessary. Shopping around for a manufacturer or supplier that allows you to vary your stock depending on your market needs is optimal; however, minimums and non-compete contracts often leave vendors with a lot of red lollypops when black licorice is all the rage. When starting out, try to negotiate the shortest term contracts you can. It leaves things open-ended, and that always benefits retailers more than their suppliers. Some industries have dominant products or little variety, so the answer is up to you, “Do you play it safe, or become an agent of change?”

My all-time favorite check to mark on the list is payment processing. I’m not talking about cash (which is king) or personal checks (hmmm), but your ability to accept credit cards. First things first, there are a lot more options available than asking the teller at the bank where you do your personal banking about a merchant account. In fact, that’s the last place I’d turn to, but that’s me. Next is what types of cards will you take. I hate it when I walk into a new store and have to look at the door to see what cards they take, if any! Yes, there are stores in my town that don’t take credit cards, some impose fees on each transaction (you can lose your merchant account for that) or require minimums for credit card usage (also a big no-no!) I don’t say much because the one is a deli and I prefer my turkey sandwich without spit and buggers. After basic card acceptance, the ability to accept Amex is definitely a plus. Believe it or not, many retailers don’t take it; number one reason being… Most US domestic banks impose higher fees on it. Quick answer? Go offshore, it’s a big world and internationally, Amex is very popular other places (hmmm, again.)

So now we’ve gone offshore; nothing wrong with it. In fact, it’s so mainstream today, that many merchants are getting paid partially or even in full in foreign currency, due to the weak US dollar. Obtaining a merchant account form a non-domestic bank is every bit as easy as a domestic one, they have proven to just as if not more secure than domestic banks due to enhanced third party fraud scrubbing and in-house processing (not farmed out.) Your tax structure is the same and all funds must be claimed, if you were wondering. A real benefit of an offshore merchant account is that international banks don’t often impose extremely high discount rates and erroneous fees that many domestic banks do. The reason is really simple; non US countries need to depend highly on purchases outside their own markets and that means a lot of credit card transactions. In my opinion, international and offshore banks are years ahead of western banks, but that’s just my opinion. Merchant service providers or merchant service brokers are a pretty good resource while you’re shopping for a merchant account. Touted more as industry insiders, they have relationships with a lot of banks and independent processors out there and can often custom tailor a processing solution just for your business.

In all, it’s a lot of information to take in, thanks for reading along and good luck in your new onluine venture!

About Stradafee:

Stradafee is a leading international payments company based in New York. Stradafee is a retail and ecommerce payment processing provider specializing in global retail and Internet merchant account solutions. Stradafee also offers credit card processing, check processing, high risk merchant accounts and offshore merchant account options. Stradafee can help businesses of all industries and sizes. For more information on credit card processing and check processing please visit http://www.stradafee.com.

Written By: Sager G. Loganathan