I have a question. -Mm-hmm. -How does
ecommerce work? -S,o you’re thinking about launching a website or wanting to make
money on the internet? Well, you want to know these 6B steps to e-commerce so
they understand that with… -I have a question. -Yes. -How does ecommerce work? -We’re going to answer that. How does the e-commerce work? Alright. Let’s start
with the basics. If you want to make a sell online, let’s just start with the
website. -Alright. But even more basic than that. Ecommerce is what you just
said, making a sale online. -Yeah. -From your own domain whatever that is, right? Okay.
-Yeah. So, we’re just talking about like Commerce has trade and exchange money on
the Internet. So, how does it all work? How can you make a sell or get paid money?
-Okay. -Through a website through the internet. -Love it.
So, you have a website but your website needs to have that purchase capability.
We call that a shopping cart. -Oh, yes. -Pretty good name? -Yeah. -So, you can get a
software or a tool… -Is that a plug-in? Is that what that is? -Yeah,
typically a plug-in but it’s… You can do it a few ways. -Okay. -If yeah… A lot
of a lot of people want to have a custom one and it’s like all these complicated
steps. I’m going to tell you a simple hack. A simple solution after I tell you
what these steps are. -Okay. -So, once you have a shopping cart on your website,
which can be a plug-in, you need an SSL certificate. And does it have to be the
actual little shopping cart icon like Amazon uses? It just has to be something
where you’re going to add this product or service to your… -Of course. Okay, I mean,
you know, it seems like it’s always an actual cart. You know? -They make sense. -And
by the way, I love the way we treat shopping carts. It’s just funny like
they’re absolutely indestructible. No one respects shopping carts. Have you ever seen
anyone actually put a shopping cart back like gently? It’s always just, “Get away
from me! Get in there!” Or if there isn’t a thing
slamming into the curb, what do we care? -So, that’s an analogy for how people are
going to treat our online shopping carts? -No it was just a deviation from what its
going to be sure to be really exciting stuff.
Alright. So shopping cart. -Kind of exciting but important. -Okay. -Somewhat
boring but important. SSL certificate, have you heard of that? -Sizzle? Secure
Socket Layer? -I was going to say I don’t even know what that means. But that’s
right. -Yeah, okay. -What does that even mean? Yeah. It’s… You have to have financial data encrypted. People are going to be
entering in their credit card info, their confidential information. -Okay. -So, you
have to have this SSL certificate there. Kind of complicated to set up and it is
a bit of a pain even from a guy that used to own a web design company. It was
a pain. And so, I’ll tell you a shortcut or a hack you can avoid the pain of that.
But… So, you have a shopping cart, you have an SSL certificate that will encrypt it.
Keep things safe and secure and then it needs to go through a payment gateway.
There’s actual services out there that have the authority to pull funds from a credit card. -Like PayPal or something, right? -We’ll get to that. PayPal is more
than just a payment gateway. You could like… There’s different companies like
First Data. There’s… -I’ve heard of that one. -I can’t think… But either merchant service providers, right? That give you, that allow you to have the payment? Gateway. -Yeah. -Yeah. -So, that the payment gateway is what…-Fiserv? -Uh-huh. They’re the ones that are
authorized to grab funds from a credit or debit card and give it to you. -Okay.
-But before it goes to you, it has to go into a merchant account. So, when you
talked about merchant services, typically, those two things come together. They
provide that payment gateway and they provide you a merchant account. So, if a
customer makes a purchase, let’s say they’re paying you $100. The payment
gateway will grab that $100 and put it in your merchant account. -Okay.
-But then one more step after that, you’ve got to have a business bank account. So
you go to your bank and you say, “Hey, I need a business bank account.” They’ll
check that you’ve got a business set up. And then you link your business bank
account to your merchant account and funds will typically, they’ll like… It’ll
automatically deposit into your bank account a couple days later. -Nice, okay. So,
that’s what you got to have. Those are the things you have to have? -I just made
sure. I said 6. I wanted to make sure that those are 6 things. So, you start
with your website. Shopping cart, SSL certificate, payment gateway, merchant
account and then to your business bank account. That’s
really the 6 steps of e-commerce. Now, you mentioned PayPal. PayPal covers the
shopping cart if they take care of the SSL certificate for you. They take care
of the payment gateway and the merchant account. So, all you need is a website. -All you need is
a website and a bank account. Right. -And and they’ll take care of the other 4.
And it’s free. It’s free. -I mean, I know that I’ve used PayPal in the sense of,
“Hey, send us to me via PayPal or I can take PayPal off my phone or register
or square.” Or one of those things. But I’ve never been able or I don’t know how
to like add that, put it on a website so that I can do the Commerce from the
website. -It’s actually pretty straightforward. You’ll log into your
account and you can add a product, you can create a button. And it will give you
the code that you can just paste on your website. -Oh, so it’s that simple. -Another…
Here’s even simpler. In your website, you can add a PayPal purchase plug-in and
then it will just say what’s your PayPal ID or your PayPal email address and it
will just automatically link it to your… -Plug-in. I’m not smart but I know I’ve heard that
term plug-in before. I used it earlier and there’s an actual that… He stole that
from me. -I did. -Love that. -So, hopefully that’s helpful and understanding how
Ecommerce works. -But you said you were going to give us some hacks like a shortcut?
-PayPal. -That’s the hack. Oh, I ruined the whole thing when I said
PayPal early. -No, you’re good. So, I threw the whole surprise off. -There’s
one limitation to PayPal. The limitation is you don’t actually get the billing
information from your client. It’s kept confidential. The client sends money
to PayPal. PayPal puts money in your PayPal account. So, if you’re going to
have recurring billing or you want to manually be able to build them like they
authorize it and then you just charge it, you can’t do that with PayPal. So, there
are other shopping carts that you know, that I’ve actually talked about at that
in other episodes. But PayPal is a great… You know, I’ll tell you about one other
options. I love actually using QuickBooks Online. They have a service that’s $10 a month. You can send them an invoice and then they’ll just pay it
and send it back and then they’ll deposit it into your your business bank
account. Now, the great advantage to that is, I can turn off the credit card
option. And only accept bank transfers. And I do this for large dollar amounts.
When somebody’s going to pay me $3,000 or $6,000. Or something though. I’ll send
them the invoice that allows bank transfer option only. I don’t select the
box for credit cards. And what it does is it eliminates all merchant fees except
for $0.50. -Okay. -So, on $6,000 payment, if they were paying me
through a credit card, typically that’s $210 that I would
pay in merchant fees. And by using QuickBooks Online invoice, I only pay
$0.50. -But you’re paying 10 bucks a month. But if you have enough of those,
-Oh yeah. -Obviously, it’s not going to be a hundred, 200, 300 dollar.
-So, through PayPal, I said PayPal was free. -Yeah, I was going to
say. -But you pay $0.30 plus like three and a half worth or is a
three percent something. You pay a few percent of the purchase price.
-Right. Yeah, to get a payout, is you’re going to… You pay a small percentage.
Yeah, yeah. -Okay, yeah. So, basically what you’re saying is, this entire video, you
could have just turned on the camera and said if you need ecommerce go to PayPal? -Okay. We’ll see you tomorrow.
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