That question picks at so many small and even medium size business owners every day. If the answer was easy to answer, then the criteria for success in a virtual environment would be well defined and on a very short list. As there are so many types of businesses, the questions every merchant has to answer are as different as the businesses that they own or operate. In today's economy, one would think that running an online business is a no-brainer compared to growing costs of traditional brick and mortar businesses.

The first two things to consider are whether the business is product or service based and is this, a spin-off from a walk-in store or going to be solely an online venture. Product based internet businesses naturally flourish in competitive environments when product supply and manufacturer variety is high. Online vendors spring up quickly enough to turn high profits due to high volume sales; some weather the storm, while others diversify, close up shop or struggle to maintain their sales relationships with the customers that they've done business with. For service based businesses, developing a clientele and maintaining a mutual trust is even more important than competitive pricing and service after the sale. Nothing could be more truthful in the ecommerce world that you just don't know who is on the other side of the computer than in the internet-based service industry. It is best to leave it up the individual merchant what if any service-based internet business should be embarked on; however, the risk is lower on the product=based side of the table.

Keeping up with your clients and industry is so much of a gamble. As the internet can propel an individual, website or concept so quickly, every new merchant needs to have a plan in place for an influx of business. Pre-negotiated contracts, pertaining to volume discounts, lead times and actual inventory on hand are all tools that should be a must have going forward from conception and maintained throughout vendor-retailer relationships. Not fulfilling an order is e-suicide. Customer communication, in the event of backordering or out-of-stock items can save your e-life. Have a multi-year plan, not necessarily a five year plan is not an outdated idea. We often like to think of the internet as a structure-less environment; however, failure to plan is a plan in stone for failure in the virtual world. It sounds cliché, but as the pre-eminent ever changing environment not researching, one-upping or tapping in on new ideas, markets or trends will leave you in the dust.

So, now you're successful, your clients are satisfied and the future looks bright. Not bad, right? Commonly overlooked in even the long list of tasks to be completed by virtual merchants is maintaining and optimizing their merchant account. When it comes to getting paid, every merchant follows the money right to their bank; what many overlook is how much they are paying in fees and rates each month. As nearly all internet-based businesses are considered to be a moderate to high risk by banks and processors, many online merchants are turning to merchant service providers to secure them off-shore merchant accounts from international banks that offer secure, timely and inexpensive credit card processing.

As running an online business is as challenging, or even more so than running a traditional brick and mortar business; there are many obstacles and pitfalls to encounter. These were a few that we thought could be helpful. If you have any suggestions or comments, please, feel free to let us know.

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