In a basic definition, it's a series of scripts that keep track of items a visitor picks to buy from your site until they proceed to the "checkout". A popular misconception is that shopping carts handle the whole financial transaction, but they only really act as a front end which passes information via a secure connection (another service) to a payment gateway - a separate service altogether.
The payment gateway service then channels the requests and transfers throughout relevant financial networks, including the Internet merchant account with your bank. It then sends back confirmation or denial back to the shopping cart software. For further information on the "back-end" aspects of ecommerce; read our guide to payment gateways and merchant accounts.
Free or premium shopping carts?
It's very important before you begin reviewing software and services to be to be very specific in what you actually want the cart to be able to do. It may be that you really don't require all the bells and buzzers offered by high end packages - if this is the case, then a good package will cost around the $US150 mark.
Free ecommerce solutions
One of the best free ecommerce solutions around is Paypal, which integrates basic shopping cart functions with a payment gateway and merchant account - funds are paid to you via check or through direct deposit.
What other features do shopping carts have?
Shopping cart software has come a long way in recent years, and many packages are so advanced that they are in effect entire store fronts. Some integrated elements of benefit to your online business you may wish to consider include:
Suggest sell/cross selling functions
Just as in the physical world, impulse buying via the Internet is quite common. Some shopping carts will suggest another product to complement a customers current selection. If offered at a discount rate, this strategy proves quite successful.
Autoresponders
If you follow up all your clients with regular email offers, you may want to consider shopping cart software that has integrated autoresponder capabilities - this will streamline your operations and can be used for maintaining other contact lists as well.
Affiliate modules
One of the most effective, low cost ways to advertise your product is through an affiliate program. Your outlay is minimal if you only pay on performance; i.e. sales generated. An affiliate module can handle the signup process, provide statistics, streamline communications and keep track of payments to be made to affiliates.
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