Guest post by Nick Grant, co-founder of ZippyCart

Rough economic conditions over the past couple years have resulted in more people wanting to start an online business to create an additional source of income. However many people do not know how to get started with the process of creating an e-commerce store, nor do they completely know what they want out of an e-commerce software solution. There are so many things to consider when looking for the right e-commerce solution, that it can often be very difficult and frustrating. Therefore it is best to take a step back and determine the exact vision of your online store, so that you can better understand what you truly need with regards to e-commerce software. For instance, if you want to sell a variety of products and expect a large audience, you should consider using a hosted shopping cart that can handle your inventory and traffic. Most hosted shopping carts don’t require any knowledge of code, which is one reason why they are so popular among merchants. If you plan on selling a small number of products, or maybe you are experienced with PHP, you may consider using one of the many free shopping carts available. Just know that many free carts require an in-depth knowledge of PHP and other development languages to get them off the ground.

Development Knowledge: One of the most critical things that you need to ascertain before choosing an e-commerce solution, is your level of development knowledge. Many small e-commerce sites are one or two person companies, and if one person is not a developer, then the company needs to outsource or choose an e-commerce solution where programming is not necessary. It is vital for a merchant to do this, so they can figure out which shopping cart software options are viable contenders for creating an online store. If your development knowledge is limited, consider an e-commerce solution that has easy design tools and a WYSIWYG editor (WYSIWYG = What You See is What You Get). If you do have development knowledge, then look for a solution that lets you access the raw HTML, CSS, and PHP code so that you can use your e-commerce tools to their full potential.

Great Pricing: There are a lot of e-commerce software companies competing for your business, which is beneficial as it has created an abundance of solutions with very affordable price points. Pricing models are very different from each solution provider, so it is best to compare them against each other so you can get a better idea of how they stack up. One of the first things to note on pricing, is whether you want to pay for your e-commerce software outright with a one time license fee or pick a monthly hosted package. If you choose to pay for a license you will have to invest a bit more money up front, but can save in the long run if you have a solid web host and do not foresee needing much support. Licensed solutions typically have the same set of features as monthly hosted packages, but merchants are on their own for the most part to figure out everything about the e-commerce software and generally need some knowledge of PHP to move forward. Monthly hosted solutions require less upfront investment, and most include almost everything you need to run your online business. Plus it is easier for the solution to scale with you and support you as your online business grows. This option is great for someone who does not have extensive programming knowledge and wants to have the luxury to get free support when needed.

Additionally you should review all the other fees that the e-commerce software company may charge, plus any extra costs you will incur from features or services not included by your solution provider. Some fees to watch out for include bandwidth overages and transaction fees. For the most part, a hosted solution will charge either bandwidth fees or transaction fees and rarely both. Consider the amount of traffic you are expecting to your site. If it is quite a lot, then you might want to choose a solution that has a minimal transaction fee with unlimited bandwidth. If you plan on having under 10,000 customers, then you will probably find an affordable hosted solution with limited monthly bandwidth. As long as you stay around 10,000 visitors, you won’t get charged for bandwidth overages or transaction fees.

Robust Feature List: A great feature list is essential to all quality e-commerce solutions, and while you might not use 100% of the features available, you will still have them at your disposal to try out whenever you have time. Most merchants have a core set of features which they desire, and if multiple e-commerce software companies provide this, then a merchant should really look at who offers the most robust set of features for the best price. Some of the newest features that merchants are expecting to see in their e-commerce solution are social commerce tools. Social media has been a hot topic for the past few years, and merchants are continually trying to figure out how to generate a return on investment from the time they spend on sites like Facebook and Twitter. Look for an ecommerce solution that lets you sell directly on Facebook, as this is becoming a great venue for online sales and customer management.

Other features to consider include the following:

* Shipping tools like FedEx, UPS, and USPS integration, ability to set shipping rules, printable shipping labels, and drop shipping
* Marketing tools like upsell/cross sell tools, coupons and gift certificates, mobile commerce tools, email marketing, customer groups, and affiliate marketing
* SEO tools like the ability to edit URLs, meta tags, alt text, and static HTML
* View a full list of features to compare the best e-commerce software

Excellent Customer Service: In a perfect world, your e-commerce solution would be so easy to use that you would never get stuck and need the help of customer service. Unfortunately creating and running an online store is not a no-brainer, as it takes proper knowledge to know how to operate things correctly so that you have a strong chance to succeed. This is where excellent customer service can come in handy, as solution providers have the answers you need to help overcome the obstacles you may encounter in the creation or day to day operations of your online store. Make sure and review how much customer service the e-commerce solution provider gives merchants, and how often it is available. Some e-commerce software solutions have 24/7/365 phone or email service, whereas others just have a forum or only give you a fixed amount of time to use customer service.

Free Trial Options: Very few people run out and buy a new car without test driving it first, and paying for a new e-commerce solution should not be any different. Merchants should have an easy way to get into a free trial for the e-commerce software to review first hand what they have to offer. Ideally the shopping cart free trial should not require a credit card, as the company should make it easy to test out the software, so that merchants can see why their solution is the best.

Take the time to consider the factors above. Building an online store is a breeze with the right e-commerce solution, but it’s sometimes very hard to move solutions if you choose the wrong one initially. If you take the time to research your options and sign up for a few free trials, you will definitely make a confident decision on a solution that will bring you success for years to come!

About the Author: Nick Grant is the co-founder of ZippyCart.com, the Internet’s leading ecommerce software review website. Merchants in search of a shopping cart to power their online store turn to ZippyCart to compare the best ecommerce solutions in the industry and determine which option is best for their needs.

Image thanks to http://www.flickr.com/photos/63614902@N00/2270904158/