There are many advantages of trading online for a small to medium-size
company. The most obvious and important ones are:
Access to a larger, global market
Lower cost of sales
Accessibility 24 hours a day, 7 days a week
This means that smaller companies can compete directly with much
larger organizations, without incurring excessive expenditure. However,
it is important to be aware that online trading has its own set
of risks associated with information security - particularly with
the collection and storage of personal information and payment details.
When you are implementing an online trading facility for your business,
there are a number of areas to consider at the outset. These include:
Hosting Your Web Site
Once you have a basic structure for your web site, the next stage
is to publish it. To do this you will need some web space - i.e.
an area on the Internet that is reserved to store your site. There
are three main options for obtaining web space:
Use Free Web Space Offered by Your ISP (Internet Service Provider).
Many standard Internet accounts offer a certain amount of free space.
This is usually around 3-5MB, which is enough for a simple web site
with online trading facilities.
Your ISP should provide you with all the information that you need
to publish your web site at this space - you will normally need
an address (URL), a username and a password.
Be aware that the address (URL) of your web site might be complex
and hard to remember. It may be worth speaking to your ISP or a
hosting company to purchase a name that is shorter and more relevant
- these are known as 'domain names'.
Purchase web space and a domain name from a web-hosting company
If you need more than the amount of free web space provided by your
ISP, or if your online trading facilities require more than the
basic technology, this is an option you may wish to consider.
You will be charged an annual or monthly fee which could range from
five to fifty pounds a month, depending on the amount of space and
the technology provided. Also, the amount of information you are
able to display will be limited so it is worth checking this out
before you agree to buy web space.
There are numerous web-hosting companies which offer competitive
prices - a good starting point is to type 'web-hosting' into Google
(or your preferred search engine).
Your chosen host will provide all the information that you need
to publish your web site - typically an address (URL), a username
and a password. They should also provide contracted Service Level
Agreements that specify:
Hours of service
What can be placed on the server
How much bandwidth (communications traffic) is available
Read any terms and conditions carefully and ask for clarification
if you are not sure about any points in the agreement. Keep in mind
that many hosting companies offer specific deals for e-commerce
web sites and may provide preferential rates for hosting if you
implement their security and payment systems as well.
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