How E-Commerce Really Works, Part 2: Behind The Scenes

 This is the second article in my series on selling online. Last time we reviewed the online sales process and now we’ll go over how it all works behind the scenes.

Behind The Scenes

Here’s a rundown of what’s happening under the surface when someone buys something online. These are crucial details to stay on top of if you are running an e-commerce website.

• The Payment is Processed
  • Collect the Money
    • It goes through a processor first
    • They collect around 3% fee
  • Pay the Taxes
    • This is very regulated
    • Check with your accountant
  • Pay the Seller
    • That’s you
    • Hooray!
       
• Custom Events
  • Ping Accounting
    • How are you tracking income?
    • Link to QuickBooks or your accountant?
  • Update Inventory
    • At the minimum you want to know how many items you’ve sold
    • Do you want to sell more than you have in stock?
  • Notify Shopper
    • Send an email and/or text message
       
• Products Shipped
  • or downloaded/accessed online
  • Packing
    • Cost per package?
  • Handling
    • How much time are you spending to pack and ship?
    • Is it worth using a 3rd party?
  • Tracking
    • Ensure you and the shopper know where the order is
       

Hopefully this look behind the scenes of an e-commerce transaction has been helpful. At least it should remind you there is more going on between clicking that “BUY” button and getting the confirmation screen. Next time we’ll address some common e-commerce concerns including security, taxes, processing payments, inventory management and more.