eCommerce

If you're going to sell widgets or services, you'll need to be familiar with the details of the sales process. You'll probably need some of the following:

• DBA (fictitious name statement)
  “Doing Business As” … The DBA document is necessary to open a business checking account. Fill out a form and pay a fee, then your Fictitious Name Statement is published in the newspaper (a small local one is fine) for six consecutive weeks. After that, you receive an official stamped copy.
  DBA application
  More info: www.valleynewsgroup.com
  

• Business checking account
  A Business checking account is the central account through which your business funds flow. A DBA is required to open this type of account. You need this to open a merchant account or Verified PayPal Seller’s account.

• Merchant account with gateway
  A merchant account allows you to take payments using credit cards. You will pay a small monthly fee to keep it open, plus a transaction fee plus a percentage of each sale. Percentages are in the 2% range, depending on your volume and what you are selling. Cleared funds are transferred into your business checking account. You CAN just use a PayPal account and have them accept credit cards for you, but their fees are more than 5%. We recommend using both for the best customer experience.
  
  Our favorite provider is Century Bankcard Services at (818) 702-0024. Ask for Bob Israel.
  Internet: www.centurybankcard.com

• PayPal seller's account
  This is set up at www.paypal.com using a credit card and business checking account. While your business may or may not actually sell items on eBay (which owns PayPal), PayPal is a widely used, trusted and popular form of payment.

• Shopping cart (several options)
  Your choice in shopping carts will depend on several factors, including the number of products and the frequency with which you intend to make changes. We can guide you towards the appropriate product so your eCommerce store meets your needs.

• Reseller's Permit
  This is a critical item if you are selling tangible goods. Provided by the state, a reseller’s permit allows you to buy goods for resale without paying sales tax. You are then required to collect the sales tax from your customers and pass it on to the state.
  California Seller's Permit Application:

• Incorporation
  Incorporation serves several important business purposes. Incorporating can reduce your personal liability lower your payable taxes. It also adds credibility to your business.
  
  Our favorite provider is IncPlan (USA). They can incorporate your business in any state and offer exceptional customer service. Ask for Jacques or Caroline at (302) 428-1200.
  Internet: www.incplan.net

Think about the experiences you've had as a customer online, both good and bad. Be ready to handle customer service calls and email. Your website should be clear about what the customer can expect, before AND after the sale. For example, your website should include your refund/return policy, shipping method, how quickly you ship, etc.