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The Real Cost of Owning and Running an E-commerce Website

January 24, 2013

The Real Cost of Owning and Running an E-commerce Website

When starting an eCommerce business or taking a current retail business and expanding it to sell products online, often the only cost considered is the one for the web developer who will create the site. There are however other costs that need to be thought about. Below I have listed the main cost carrying factors associated with online trading:

Site Build

There are many options open to the online trader. You can use a "do it yourself" online site building program or some open source software; pay a web developer to create a site using an open source platform or develop a bespoke site with either in-house staff or an external web developer.

I know it would be expected that I would say this, but the DIY option is really not a good one for the vast majority of people. eCommerce is not a simple process and getting it right requires a fairly high level of skill. The reason to build an eCommerce website is to encourage people to spend money with you.

The question to ask yourself is "would I buy from a site that looks homemade and doesn't function at least as well as other sites from which I am used to buying?", then re-consider whether the home build option is actually going to get you selling.

For most people, the way ahead is for a web developer to build you a site from an open source platform. The reason open source is considered by many as the way to go is that there is often a community of developers adding modules and tuning the platform, meaning you can relatively cheaply keep the site up to date and functioning properly.

We build the majority of our sites on the Magento platform as we feel it gives the best function set (both front and back end) but there are many other options available.

For some companies, a site with bespoke coding is the preferred option. This will normally be the more expensive way to do it. If you are not using in-house developers, the danger is that you fall out with your development company and then it is difficult for a new company to work on the site.

eCommerce Merchant Account

In order to receive credit card payments, your business will need to have a Merchant Account. You are not tied to a bank for this and actually, the market is quite competitive. Your Merchant Account costs are charged as a percentage of each transaction. At the time of writing, the cheapest we know of is Streamline . Streamline also currently have a deal with the  Federation of Small Businesses which can even further reduce the percentage charge. With this deal, you should be able to secure less than 2% of the sale value.

Some Merchant Accounts can restrict the type of goods being sold. For example, we have had clients who have been refused Merchant Facilities for selling adult products and alcohol online.

Please note that you specifically need an eCommerce Merchant Account and not a standard Merchant Account.

Payment Gateway

A Payment Gateway safely passes the credit card data to your Merchant Account. Most Payment Gateways charge a fixed monthly fee based on the number of transactions. Your bank may often try and sell you their own Payment gateway; our advice would be to not use a bank's own Payment Gateway for several reasons:

We advise our customers to use Sagepay which currently has a monthly cost of £25 for up to 1000 transactions. It is also a well-known brand to the consumer and therefore has a high trust factor.

Paypal

An option for some is Paypal .  Paypal is a "pay as you go" payment system which removes the need for a Merchant Account and a Payment Gateway. If your turnover is relatively small, Paypal can be a lower cost option as there are no standing charges. However, the percentage of the sale value they charge is higher than most Merchant Account providers.

There will a breakpoint where turnover increases so that a lower percent and standing charge comes to less than the higher percentage charge from Paypal.

The visitor experience is not as good with PayPal, as it is re-directional and the payment does not take place on the vendor's website.

Hosting and Maintenance

All websites need to be hosted on a server and there is a cost associated with this. Charges can vary depending upon the type of hosting required and can be as low as £50 per year. Often this level of hosting is insufficient and it is worthwhile taking to your developer about the best options for your site.

We offer an optional support contract with our hosting package and for eCommerce sites, this can be essential. Our costs start at £30 per month depending upon the requirements

SSL Security Certificate

Depending on the hosting arrangement you have, there may be an additional annual charge for an SSL certificate. This is for the encryption of data between the user and the server. Annual charges start at around £50.

PCI Compliance

This is something which really can cause both problems and confusion for many site owners. PCI is the set of standards you have to adhere to if you are accepting card payments.

If you use a re-directional payment system like Paypal or Sagepay's "server in low profile" system, your payment process online is likely to be PCI compliant as no card data is stored or held by you and the website, therefore your PCI compliance costs are likely to be just the time to complete the questionnaire and sometimes paying for an evidential certificate from a PCI auditing company (like  Trustwave ).

Many Payment Gateways, however, will store data and then the costs and time to become compliant can be very large. Hence our advise on Payment Gateways to strongly consider the Sagepay option.

Advertising, Marketing and SEO

This can be more expensive than any other part of the above and your budgets should always reflect costs for getting the site found. Some companies will need more budget than others depending upon the current market position and the competitive nature of your product. It is rare that no cost for SEO and marketing is needed.

Creating a pre-build cost plan for site marketing should always be done. I will in the future write an article specifically about how to go about this.

10 Tips on How to Choose a Web Designer

By Andy Devereux • August 14, 2024
Choosing the right web designer is a crucial decision for any business or individual looking to establish or improve their online presence. Your website is often the first point of contact for potential customers, so it needs to be well-designed, user-friendly, and aligned with your brand. With so many options available, it can be overwhelming to find the right fit. Here's a step-by-step guide to help you choose a web designer that meets your needs. 1. Define Your Goals and Needs Before you start looking for a web designer, it's essential to have a clear understanding of what you want your website to achieve. Are you looking to sell products, generate leads, showcase a portfolio, or provide information? Knowing your goals will help you communicate your needs effectively to potential designers and ensure they understand the scope of your project. 2. Set a Budget Web design costs can vary significantly depending on the complexity of the site, the designer's experience, and the level of customisation you require. Setting a budget beforehand will help you narrow down your options and prevent you from overspending. Be clear about what you can afford, but also remember that you often get what you pay for in terms of quality. 3. Look at Portfolios One of the best ways to assess a web designer's capabilities is by reviewing their portfolio. Most designers showcase their previous work on their websites, allowing you to see the range of their skills and the types of projects they've worked on. Look for diversity in design styles, creativity, and attention to detail. Pay special attention to websites they've designed for businesses similar to yours. 4. Check Client Testimonials and Reviews Client testimonials and online reviews provide valuable insights into a designer’s reliability, professionalism, and ability to deliver on promises. Look for feedback that highlights the designer’s communication skills, adherence to deadlines, and overall client satisfaction. Don’t hesitate to reach out to past clients to ask about their experiences. 5. Assess Their Technical Expertise Web design isn't just about aesthetics; it's also about functionality. A good web designer should have a solid understanding of web development, including coding languages like HTML, CSS, and JavaScript, as well as experience with content management systems (CMS) like WordPress, Silverstripe, Shopify, or any SaaS (Software as a Service) platforms.. Ask about their technical skills and ensure they’re capable of building a site that meets your technical requirements. 6. Evaluate Their Design Process A well-defined design process is a sign of a professional web designer. Ask potential designers about how they approach a project, from the initial consultation to the final launch. Understanding their process will give you insight into how they work, how they handle revisions, and how they ensure the final product aligns with your vision. 7. Consider Their Communication Skills Don't underestimate this one. Effective communication is key to a successful web design project. You want to work with someone who listens to your ideas, understands your goals, and keeps you informed throughout the process. During initial discussions, assess how well the designer communicates, how responsive they are to your inquiries, and how comfortable you feel discussing your project with them. 8. Ensure They Understand SEO A beautiful website is of little use if it doesn’t attract visitors. Search engine optimization (SEO) is crucial for driving organic traffic to your site. Make sure your web designer understands the basics of SEO, such as optimizing page load speeds, using proper header tags, and creating SEO-friendly URLs. While they may not be SEO experts, they should at least build a site that’s easy for search engines to crawl and index. 9. Ask About Ongoing Support and Maintenance Websites require ongoing maintenance to ensure they remain secure, up-to-date, and functional. Ask potential designers if they offer ongoing support and maintenance services after the site goes live. Some designers provide this as part of their package, while others may charge extra. Clarify what’s included in their services and whether they’ll be available to make updates or fix issues in the future. 10. Trust Your Instincts Finally, trust your instincts. The relationship between you and your web designer is essential for the success of the project. Choose someone who not only has the skills and experience but also someone you feel comfortable working with. If something feels off during the initial interactions, it might be a sign to look elsewhere. Conclusion Choosing the right web designer is a critical step in creating a website that represents your brand and meets your business objectives. By clearly defining your needs, setting a realistic budget, and carefully evaluating potential designers based on their portfolios, technical skills, and communication, you can find the right partner to bring your vision to life. Remember, a well-designed website is an investment in your business’s future, so take the time to choose wisely.

The Importance of Upgrading to the Latest Version of Magento: Lessons from the Comic Sting Vulnerability

By Andy Devereux • August 5, 2024
In the world of e-commerce, security is a paramount concern for both businesses and customers. With the rise of sophisticated cyber threats, ensuring that an online store is secure is not just an option; it’s a necessity. One recent example highlighting the critical need for robust security measures is the Comic Sting vulnerability in Magento, a widely-used open-source e-commerce platform. This article explores the importance of upgrading to the latest version of Magento, with a specific focus on addressing vulnerabilities like Comic Sting. Understanding the Comic Sting Vulnerability Comic Sting is a recently identified vulnerability in older versions of Magento. It allows attackers to exploit weaknesses in the system, potentially gaining unauthorized access to sensitive customer information, payment details, and even administrative control of the online store. Such a breach could result in significant financial loss, reputational damage, and legal repercussions for the affected business. The vulnerability exploits a flaw in Magento’s backend that was not adequately secured. Attackers can inject malicious code through this flaw, leading to data breaches and other security compromises. The risks associated with Comic Sting highlight the broader dangers of running outdated software, especially in environments handling sensitive data like e-commerce platforms. The Imperative to Upgrade Enhanced Security Features: Each new release of Magento comes with critical security updates that address known vulnerabilities. Upgrading to the latest version ensures that the platform is protected against the most recent threats, including those like Comic Sting. Developers continually work on identifying and patching security loopholes, making new versions significantly more secure. Improved Performance and Functionality: Besides security enhancements, newer Magento versions often include performance improvements and new features. These updates can streamline operations, enhance user experience, and provide better tools for managing the online store. A faster, more efficient website not only improves customer satisfaction but also positively impacts SEO rankings. Compliance with Industry Standards: The e-commerce landscape is governed by various regulations and standards, such as the Payment Card Industry Data Security Standard (PCI DSS). Keeping software up-to-date is crucial for compliance with these standards. Running an outdated version of Magento might not meet the necessary security requirements, potentially leading to fines and penalties. Reduced Maintenance Costs: While upgrading may involve some initial investment, it reduces the long-term costs associated with maintaining outdated software. Older versions are more prone to bugs and security vulnerabilities, requiring frequent patches and custom fixes. Up-to-date systems are more stable and easier to support, leading to lower maintenance costs. Access to Official Support: Magento, like many other platforms, typically provides support for only the latest versions of their software. Using an outdated version means missing out on official support and resources, which can be crucial when facing technical issues or security incidents. Overcoming Common Challenges in Upgrading Many businesses hesitate to upgrade their Magento installations due to concerns about compatibility with existing extensions, customisations, and themes. However, the risks of not upgrading far outweigh these challenges. It is advisable to work with experienced Magento developers or agencies who can ensure a smooth transition. Testing the new version in a staging environment before going live can also help identify and resolve potential issues. Conclusion The Comic Sting vulnerability serves as a stark reminder of the importance of keeping software up-to-date. For Magento users, upgrading to the latest version is not just about accessing new features and better performance; it’s a crucial step in safeguarding their online stores against emerging threats. By prioritizing regular updates and following best practices in security, businesses can protect themselves and their customers from the potentially devastating consequences of cyberattacks. In the ever-evolving digital landscape, staying current with technology is an ongoing responsibility. For Magento store owners, this means being proactive about upgrades and maintaining a vigilant approach to security. The investment in upgrading to the latest version is a small price to pay compared to the potential losses from a security breach.

Choosing a Website Host: Key Factors to Consider

By Andy Devereux • July 22, 2024
Selecting a website host is a crucial decision for anyone looking to establish an online presence, whether for a personal blog, an e-commerce store, or a business website. The hosting service you choose can significantly impact your site's performance, security, and reliability. Here are the key factors to consider when choosing a website host. 1. Type of Hosting There are several types of hosting services, each catering to different needs: Shared Hosting: This is the most economical option, where multiple websites share a single server's resources. It's ideal for small websites or blogs with low traffic. VPS Hosting: Virtual Private Server (VPS) hosting offers more resources and better performance by partitioning a single server into multiple virtual servers. It’s suitable for medium-sized websites. Dedicated Hosting: With dedicated hosting, you have an entire server to yourself, providing maximum performance and security. This is best for large websites with high traffic. Cloud Hosting: This hosting uses a network of servers to ensure high availability and scalability. It’s great for websites that experience fluctuating traffic. Managed Hosting: This service includes technical management of your server, which is ideal for those who lack the technical expertise to manage their servers. 2. Reliability and Uptime Uptime refers to the amount of time your website is operational and accessible to users. Look for a host that guarantees at least 99.9% uptime. Reviews and uptime monitoring tools can help verify these claims. A reliable host ensures your website is available whenever users try to access it. 3. Performance and Speed Website loading speed is critical for user experience and SEO. Consider hosts that offer SSD storage, high-speed data transfer, and content delivery networks (CDNs) to ensure fast load times. Performance can also be influenced by the server location; choose a host with data centers close to your target audience. 4. Security Features Security should be a top priority. Look for hosts that offer robust security features, such as SSL certificates, DDoS protection, malware scanning, and automated backups. Regular updates and security patches are also essential to protect your website from vulnerabilities. 5. Scalability As your website grows, your hosting needs may change. Choose a host that offers scalable solutions, allowing you to upgrade your plan seamlessly as your traffic and resource requirements increase. 6. Customer Support Good customer support is invaluable, especially if you encounter technical issues. Opt for hosts that provide 24/7 support through various channels, such as live chat, phone, and email. Check reviews for responsiveness and effectiveness of their support team. 7. Pricing and Value for Money While cost shouldn't be the sole deciding factor, it’s important to find a hosting plan that offers good value for money. Compare what’s included in the price, such as storage, bandwidth, and additional features. Be wary of hidden fees and understand the renewal rates, as they can sometimes be significantly higher than the initial offer. 8. Control Panel and Ease of Use A user-friendly control panel, like cPanel or Plesk, makes managing your website easier, especially for beginners. It should provide intuitive tools for managing files, emails, databases, and other aspects of your hosting environment. 9. Reputation and Reviews Research the host’s reputation by reading reviews from current and past customers. Independent review sites and forums can provide insights into the reliability, performance, and customer service of various hosting providers. 10. Additional Features Consider any additional features that may be important to you, such as one-click installations for CMS platforms (like WordPress), email hosting, domain registration, and e-commerce capabilities.  Conclusion Choosing the right website host requires careful consideration of various factors. By evaluating your specific needs and comparing different hosting providers based on the criteria outlined above, you can make an informed decision that will provide a solid foundation for your website’s success. Remember, the right host not only ensures a smooth and secure operation of your website but also enhances the overall user experience, contributing to the growth and reputation of your online presence.

10 Ways To Keep Your Website Secure: Best Practices and Essential Tips

By Andy Devereux • July 19, 2024
In today's digital age, having a secure website is paramount. With the increasing sophistication of cyber-attacks, website security is not just a technical issue but a critical business concern. A breach can lead to severe consequences, including loss of sensitive data, damaged reputation, and financial losses. To safeguard your website, it's essential to implement robust security measures. Here’s a comprehensive guide on how to keep your website secure. 1. Keep Your Software Up to Date One of the simplest yet most crucial steps in website security is ensuring that all software is up to date. This includes the content management system (CMS), plugins, themes, and server software. Developers regularly release updates to patch security vulnerabilities. Ignoring these updates can leave your site exposed to attacks. 2. Use Strong Passwords and Two-Factor Authentication Weak passwords are an easy target for hackers. Ensure that all passwords are strong, unique, and regularly updated. Implementing two-factor authentication (2FA) adds an extra layer of security by requiring a second form of verification, making it significantly harder for unauthorized users to gain access. 3. Secure Your Website with HTTPS HTTPS (HyperText Transfer Protocol Secure) encrypts the data transferred between the user’s browser and your website. This encryption helps protect sensitive information such as login credentials and credit card details. Obtain an SSL certificate and ensure your website is accessible via HTTPS to build trust with your users and improve your search engine ranking. 4. Regularly Back Up Your Data Regular backups are essential in the event of a security breach or data loss. Ensure that backups are stored in a secure location and that they include all critical data. Automated backup solutions can help maintain regularity without manual intervention. Test your backups periodically to ensure they can be restored successfully. 5. Implement Web Application Firewalls (WAF) A Web Application Firewall (WAF) helps filter and monitor HTTP traffic between a web application and the Internet. It protects against various types of attacks, including SQL injection, cross-site scripting (XSS), and more. By blocking malicious traffic, a WAF serves as a critical defense layer for your website. 6. Limit User Access and Permissions Not all users need full access to your website. Implement the principle of least privilege, where users are given the minimum level of access necessary to perform their tasks. Regularly review user permissions and remove access for individuals who no longer need it. 7. Protect Against SQL Injection SQL injection attacks are a common method hackers use to gain unauthorized access to your database. To protect against SQL injection, use prepared statements and parameterized queries. This approach ensures that SQL code is separated from data inputs, preventing attackers from injecting malicious SQL code. 8. Monitor and Audit Your Website Continuous monitoring and regular security audits are essential to identify and address vulnerabilities promptly. Use security tools to scan your website for potential threats and review security logs regularly. Keeping an eye on your website’s activity can help you detect and respond to suspicious behavior quickly. 9. Educate Your Team Security is a collective responsibility. Educate your team about the latest security threats and best practices. Regular training sessions can help ensure that everyone understands their role in maintaining website security.  10. Use Security Plugins For websites built on popular CMS platforms like WordPress, there are numerous security plugins available. These plugins can provide various security features such as malware scanning, brute force protection, and more. Choose reputable plugins with good reviews and regular updates. Conclusion Website security is an ongoing process that requires vigilance and proactive measures. By implementing these best practices, you can significantly reduce the risk of cyber-attacks and ensure that your website remains a safe and secure environment for your users. Remember, the cost of a security breach far outweighs the investment in preventive measures. Stay informed, stay updated, and prioritize security to protect your digital presence.
Web designer

Do You Need a Web Designer or a Web Developer?

By Andy Devereux • July 18, 2024
Learn the key differences between web designers and web developers to determine which professional you need for your website project. This guide helps you decide based on your focus on aesthetics, functionality, or both.

The Benefits of Having a Business in Derby

By Andy Devereux • July 12, 2024
We started our business in 2006 from a Director's house between Derby and Burton on Trent in the East Midlands. A few years later, we expanded and moved to an office in Derby city centre. In 2019 we relocated to Pride Park, Derby's main business park. Whilst our team spend much of their time working from home, and in fact, post-covid some of our people live in different parts of the UK, we maintain our office in Derby and are proud to be a Derby business servicing customers in the city and across the country. Derby is nestled in the East Midlands of England where it offers a vibrant and strategic location for businesses of all sizes. With its rich industrial heritage, modern infrastructure, and a supportive business environment, Derby presents numerous advantages for entrepreneurs and established enterprises alike. Here are some key benefits of why we set up a business in Derby, and if you are thinking of relocating, maybe you should too. 1. Strategic Location and Connectivity Derby’s central location makes it an ideal hub for businesses looking to reach markets across the UK and beyond. The city is well-connected by road, rail, and air: Road: Situated near the M1 motorway, Derby provides easy access to major cities such as London, Birmingham, and Manchester. Rail: Derby is a major railway centre with direct links to London St Pancras in under 90 minutes, as well as connections to key cities like Nottingham, Leicester, and Sheffield. Air: East Midlands Airport, located just 20 minutes away, offers both domestic and international flights, facilitating global business connections. 2. Thriving Industrial and Business Sectors Derby is renowned for its strong industrial base, particularly in advanced manufacturing, aerospace, and rail industries. The city is home to global giants like Rolls-Royce, Bombardier, and Toyota: Aerospace: Rolls-Royce’s aerospace division is a major employer and a driver of innovation in the city. Rail: Bombardier’s UK headquarters and primary production facility are located in Derby, making it a key player in the rail industry. Automotive: Toyota Manufacturing UK has its car production plant nearby in Burnaston, reinforcing Derby’s automotive sector. 3. Skilled Workforce and Education Derby boasts a highly skilled workforce, thanks to its strong educational institutions and training programs: University of Derby: The university offers a range of business, engineering, and technology courses, producing graduates who are ready to meet the needs of local industries. Apprenticeship Programs: Numerous apprenticeship schemes, often in partnership with leading companies, help develop specialized skills tailored to industry requirements. 4. Supportive Business Environment Derby offers a supportive environment for businesses through various initiatives and organizations: Marketing Derby: This public-private partnership promotes Derby as a business destination and offers support to investors. D2N2 Local Enterprise Partnership: The partnership works to drive economic growth and create jobs in the Derbyshire and Nottinghamshire area. Business Parks and Incubators: There are several business parks and incubators, such as the Derby Business Park and Connect Derby, providing flexible office spaces and support services. 5. Quality of Life Beyond business, Derby offers a high quality of life for residents and employees: Cost of Living: Compared to larger UK cities, Derby has a more affordable cost of living, including housing and amenities. Cultural and Recreational Activities: The city boasts a rich cultural scene with museums, theatres, and sports facilities. The nearby Peak District National Park provides opportunities for outdoor activities and relaxation. 6. Innovation and Research Derby is at the forefront of innovation, driven by collaboration between industry and academia: Derby Innovation Centre: A hub for start-ups and innovators, offering resources and networking opportunities. Collaborative Projects: Partnerships between the University of Derby and local industries foster research and development, particularly in engineering and technology. Conclusion Derby’s strategic location, thriving industrial sectors, skilled workforce, and supportive business environment make it an attractive destination for businesses. Coupled with a high quality of life and a focus on innovation, Derby offers a compelling proposition for entrepreneurs and established enterprises looking to grow and succeed in the UK market. Whether you're a start-up or a multinational corporation, Derby provides the resources and opportunities to thrive. 
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