WoozaBlog
Feb 25 2010
Online Payments - What are the options?
Thursday, 25 February 2010

One of the most common questions we get asked at Wooza Shop is about online payment options in South Africa. The general consensus is that if you have an online shop, you need to accept credit card payments to do business with the majority of the online shopping market. However, selecting the right option can prove to be a bit daunting for newer shop owners. Thus we have created this article to give a brief explanation and comparison of the various online payment options.


We will discuss two options to consider when choosing an online payment method:


  1. Super merchant account; and

  2. Internet payment gateways.


Super Merchants


A super merchant provides online payment options to customers who do not wish to register for their own merchant account. This is the simplest and quickest way to begin accepting online payments. Of course there are various limitations associated with this service such as a premium fee per transaction and since there is substantial risk due to fraud for the Super Merchant, certain restrictions are placed on payments made to this account.


Popular examples of Super Merchants:


  • 2Checkout.com

  • Payfast.co.za

  • Netcash.co.za


Each service provider offers various products and services, but for credit card payments costs can be broken into three categories:


  1. Setup fee

  2. Monthly fee

  3. Transactional fee


Service Provider

Setup Fee

Monthly Fee

Transactional Fee

2Checkout.com

$49 (~R340)

n/a

5.5% + $0.45

Payfast.co.za

n/a

n/a

4.9% + R2

Netcash.co.za

R425

R160

5% + R1


Discounts do apply to higher transactional volumes.


Internet Payment Gateways


Internet payment gateways provide a secure means of accepting online credit card payments. A merchant account is still required with the bank which can take some time and a substantial amount of paper work to obtain. However, this is generally a cheaper option than a Super Merchant account and typically has a lower transactional fee. There are also less restrictions on payments and the service providers typically assist in obtaining your merchant account from the relevant bank. Some of the more popular internet payment gateways:


 

  • MyGate.co.za

  • VCS.co.za

  • Setcom.co.za


Each service provider also has their own setup, monthly and transactional fees as follows:


Service Provider

Setup Fee

Monthly Fee

Transactional Fee

MyGate.co.za

R250

R250.00 min

R1.80

VCS.co.za

n/a

R145 min

0.5% + R1

Setcom.co.za

R250

R250

1% + R1


Costs for setting up a merchant account with a bank are as follows:


  1. Setup (up to R500.00)

  2. Commission (5 to 7 percent)

  3. Monthly minium charge (up to R300.00)


Some of the monthly fees above are referred to as a minimum. This means that the monthly fee includes your transactional costs. Prices are quoted excluding VAT.


We advise our customers to begin their online experience initially using EFT payments only. From a recent survey conducted by jump.co.za, more and more online shops/customers are using EFT payments as the norm due to the high risk of internet fraud as well as the costs involved with credit card payments. As business increases, it becomes more feesible to invest in different payment methods.


Lastly, one very important note: all prices are negotiable! The more transactions you have, the more negotiating power you will have with your service provider. Try to get an idea of what discounts your service provider is prepared to give you based on increasing transactional volumes before you sign-up. This gives you a greater advantage of achiveing a discounted rate when your transactional volume eventually does increase.


With the various payment options, th ebest choice is often made based on the type of transactions and the volume of transactions you expect to make. If you forecast a steady increase in transactional volume, factor this into your calculations before choosing yoru service provider, as this may reduce your running cost over the long run.


If you have any further queries on ecommerce in South Africa or online payments, please send us a mail at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .



 
Jan 03 2009
Ecommerce Home Page Pitfalls
Sunday, 04 January 2009

Ecommerce homepage pitfalls

It was a typical request: one I've gotten from many e-commerce site owners because the vast majority make the same mistake. An online business owner emailed me last week asking for help with his conversions. His search engine rankings were good, but his conversions were lacking. At his request, I spent some time on his site and compiled a list of my thoughts, a few suggestions and a quote for making it all happen. What I found on this home page was typical of many other e-commerce sites I've worked on. There was a severe lack of benefits-oriented copy.

The website was very well designed and extremely professional looking. With rotating images in the upper-left corner, visitors would quickly get a wonderful idea of the beauty and functionality of the furniture this company manufactured and sells. What they wouldn't get, however, was information about the benefits and the differentiating elements that set this online retailer apart from all the others.

A tag line, the announcement of a sale and text links were the only visible copy on the home page that fell above the fold. Way down at the very bottom of the page, in a font color that was just a few shades darker than the light tan background, was a single paragraph of copy. There – if the visitor ever got that far – he/she would find several benefits.

One of their biggest differentiating factors was that these pieces of furniture were available exclusively from the manufacturer. About 81% percent of consumers look for information on the Web before buying in a brick-and-mortar store, according to the Pew Internet & American Life Project.

Letting site visitors know they won't find these incredible pieces in any other store would have a big impact on their purchasing decision.

Likewise, these cabinets are engineered with ample ventilation to protect the wood and your TV set. Plus, they provide wider and deeper shelves than most others, leaving plenty of room for your television.

Another vital point is that this online store offers free shipping and in-home setup. While that was stated on the home page, the mentions were located on infrequently viewed parts of the page.

Will Copy Ruin My Design?

One concern with e-commerce sites is that copy will ruin the graphical design of the page. After all, buying online means shoppers want to see what they are getting. That's perfectly understandable. But, with a little creativity, it is quite simple to add copy. Remember: Not all the copy has to appear in the same place. There is no need for 200 words of text right in the middle of your home page.

You can simply put a sentence or two here and a sentence or two there. The goal is to provide the visitor with the information he/she needs to answer the most pressing question of all: "Why should I buy from your site instead of the other 21,000 I've found online?"

A headline up top, a strategically placed paragraph and a caption under a photo are sometimes all it takes to communicate to your customers why they should choose you. In addition, you'll get a boost with the engines from placing keyword-optimized copy on the page.

The next time you decide to take an ax to the copy on the home page of your e-commerce site, remember that customers aren't mind readers. If you can't make it easy – right off the bat – for them to grace you with their business, your conversion rate will likely never reach the level you desire.

By: Karon Thackston

Article Directory: http://www.articledashboard.com

 

See Karon live at a half-day SEO & copywriting workshop in the Boston area April 2-3, 2009. Keyword research, social media and analytics also offered. Get details and register today at www.highrankings.com/seo-workshops. © 2008, All Rights Reserved

 
Nov 11 2008
The Recession - Ecommerce Is Thriving
Tuesday, 11 November 2008

Recession and ecommerce

We are all hearing conversations around the water cooler at work, on televisions, while driving to work, or from shoppers at the grocery store - talk about how we're currently in a recession. The slowing of our economy is very real and effects everything in our daily lives, but is it a little misleading to say that we're all in a recession and are doomed?

Well, when it comes to making a living and earning money, I think it depends on how you look at things. As unemployment rates continue to rise, petrol prices soar into the stratosphere, and home values drop like crazy it's easy for us to be depressed about our countries' current state and feel like we're trapped. For the lucky rich, they are hardly bothered by all of this and have found new ways to continue making money.

So, what's this resource that is largely untapped by the general population? Ecommerce! This secret recession killer isn't anything new, you've used it yourself, and know tons of people who've done the same. The Entrepreneurs and independent research firms of the world have tracked eCommerce results for numerous years now and have shown a huge increase in money being exchanged for tangible or information products on the Internet. Not only that, but sales over the Internet are expected to keep growing at stunning rates for years to come.

The appeal of malls and stores is declining because of the extra costs incurred in fuel and time. The world is a hectic place and most of us are tired of dealing with annoying sales messages or salespeople all vying for our attention. Nowadays, the consumer has more power and control than ever when researching a product and doesn't even have to leave home to do it.

This is why there are so many opportunities online. There are countless product sourcing websites out there to find things to sell. In addition, you can find products that are made by other people and can sell them through what's known as affiliate links. Everyone has some form of information they're an expert on and, in that case, you can greatly benefit by writing your own eBook.

Don't think that just because talk of the recession is all over the news and pop up everywhere in our daily lives, that there aren't ways to become a part of the emerging market that understands the online world of commerce. If you get out there and do some research, you too can join the club of entrepreneurs working for themselves.

By: Jeff Przybylski

Article Directory:http://www.articledashboard.com

Check out my Let's Earn Extra Money on the Internet blog for Internet Marketing news, training, articles, and more.

 

 

 
Oct 11 2008
Relevance and brand-name keys to success
Saturday, 11 October 2008

Eric SchmidtAccording to Eric Schmidt, Google CEO, the Internet is a veritable "Cesspool". Schmidt said this in reference to the quality of content and the amount of false information residing on the web.

Issues that he highlighted that are key to online success are relevance and brand-name recognition. He also mentioned community involvement and trust as crucial factors.

This article gives crucial insights to the nature of online business as it currently stands - a must read for any person trying to achieve success online, and particularly online shop owners: This Cesspool We Call the Internet

 

 
Oct 07 2008
The importance of website analytics
Tuesday, 07 October 2008

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You cannot improve what you cannot measure. This is especially true for website traffic and conversions.

As an ecommerce shop owner, website analytics is one of your most important tools in operating a successful business. One of the biggest advantages of the Internet is that all interactions are measurable. In a brick and mortar store, it would be impossible to accurately measure how many customers enter your store every month. It would be even more ridiculous to try to determine where they heard about your store, or why they have decided to buy something or leave without anything, or where they are going when they leave your store.

However, this information is available to the online shop owner. But only if you make use of a good analytics system. There are numerous systems available online, with some offering amazing functionality and stats. Google offers a very good entry level analytics in Google Analytics. This system is ideal for small to medium size site, and it generates the most important user stats.

Wooza Shop owners can follow this guide to set up Google Analytics on their Wooza Shop - Google Analytics Setup

 

 
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