I have a question. -Mm-hmm. -How does
ecommerce work? -S,o you're thinking aboutlaunching a website or wanting to make
money on the internet? Well, you want toknow these 6B steps to e-commerce so
they understand that with… -I have aquestion. -Yes. -How does ecommerce work? -We're going to answer that. How does thee-commerce work? Alright. Let's start
with the basics. If you want to make asell online, let's just start with the
website. -Alright. But even more basicthan that. Ecommerce is what you just
said, making a sale online. -Yeah. -From yourown domain whatever that is, right? Okay.
-Yeah. So, we're just talking about likeCommerce has trade and exchange money on
the Internet. So, how does it all work? Howcan you make a sell or get paid money?
-Okay. -Through a website through theinternet. -Love it.
So, you have a website but your websiteneeds 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? Isthat what that is? -Yeah,
typically a plug-in but it's… Youcan do it a few ways. -Okay. -If yeah… A lot
of a lot of people want to have a customone and it's like all these complicated
steps. I'm going to tell you a simplehack. A simple solution after I tell you
what these steps are. -Okay. -So, once youhave a shopping cart on your website,
which can be a plug-in, you need an SSLcertificate. And does it have to be the
actual little shopping cart icon likeAmazon uses? It just has to be something
where you're going to add this productor service to your… -Of course. Okay, I mean,
you know, it seems like it's always anactual cart. You know? -They make sense. -And
by the way, I love the way we treatshopping carts. It's just funny like
they're absolutely indestructible. No onerespects shopping carts. Have you ever seen
anyone actually put a shopping cart backlike gently? It's always just, “Get away
from me! Get in there!” Or if there isn't athing
slamming into the curb, what do we care?-So, that's an analogy for how people are
going to treat our online shopping carts? -Noit was just a deviation from what its
going to be sure to be really excitingstuff.
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'teven know what that means. But that's
right. -Yeah, okay. -What does that evenmean? Yeah. It's… You have to have financialdata encrypted. People are going to be
entering in their credit card info, theirconfidential 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 thatused to own a web design company. It was
a pain. And so, I'll tell you a shortcutor a hack you can avoid the pain of that.
But… So, you have a shopping cart, you havean SSL certificate that will encrypt it.
Keep things safe and secure and then itneeds to go through a payment gateway.
There's actual services out there thathave 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 couldlike… There's different companies like
First Data. There's… -I've heard of thatone. -I can't think… But either merchant service providers, right? That give you, that allow you tohave 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 creditor debit card and give it to you. -Okay.
-But before it goes to you, it has to gointo a merchant account. So, when you
talked about merchant services, typically,those two things come together. They
provide that payment gateway and theyprovide you a merchant account. So, if a
customer makes a purchase, let's saythey're paying you $100. The payment
gateway will grab that $100and put it in your merchant account. -Okay.
-But then one more step after that, you'vegot to have a business bank account. So
you go to your bank and you say, “Hey, Ineed 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 andfunds will typically, they'll like… It'll
automatically deposit into your bankaccount a couple days later. -Nice, okay. So,
that's what you got to have. Those are thethings you have to have? -I just made
sure. I said 6. I wanted to make surethat those are 6 things. So, you start
with your website. Shopping cart, SSLcertificate, payment gateway, merchant
account and thento 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 theSSL certificate for you. They take care
of the payment gateway and the merchantaccount. So, all you need is a website. -All you need is
a website and a bank account. Right. -Andand they'll take care of the other 4.
And it's free. It's free. -I mean, I knowthat I've used PayPal in the sense of,
“Hey, send us to me via PayPal or I cantake PayPal off my phone or register
or square.” Or one of those things. ButI've never been able or I don't know how
to like add that, put it on a website sothat I can do the Commerce from the
website. -It's actually prettystraightforward. You'll log into your
account and you can add a product, youcan create a button. And it will give you
the code that you can just paste on yourwebsite. -Oh, so it's that simple. -Another…
Here's even simpler. In your website, youcan add a PayPal purchase plug-in and
then it will just say what's your PayPalID 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 earlierand there's an actual that… He stole that
from me. -I did. -Love that. -So, hopefullythat's helpful and understanding how
Ecommerce works. -But you said you weregoing 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 threwthe whole surprise off. -There's
one limitation to PayPal. The limitationis you don't actually get the billing
information from your client. It'skept confidential. The client sends money
to PayPal. PayPal puts money in yourPayPal account. So, if you're going to
have recurring billing or you want tomanually 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 QuickBooksOnline. They have a service that's $10 a month. You can send them aninvoice and then they'll just pay it
and send it back and then they'lldeposit it into your your business bank
account. Now, the great advantageto 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 banktransfer option only. I don't select the
box for credit cards. And what it does isit eliminates all merchant fees except
for $0.50. -Okay. -So, on $6,000payment, if they were paying me
through a credit card, typically that's$210 that I would
pay in merchant fees. And by usingQuickBooks Online invoice, I only pay
$0.50. -But you're paying 10 bucksa month. But if you have enough of those,
-Oh yeah. -Obviously, it's not going to be ahundred, 200, 300 dollar.
-So, through PayPal,I said PayPal was free. -Yeah, I was going to
say. -But you pay $0.30plus like three and a half worth or is a
three percent something. You paya few percent of the purchase price.
-Right. Yeah, to get a payout, is you'regoing to… You pay a small percentage.
Yeah, yeah. -Okay, yeah. So, basically whatyou're saying is, this entire video, you
could have just turned on the camera andsaid if you need ecommerce go to PayPal?-Okay. We'll see you tomorrow.
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