Many people don't know this, but "shopping cart abandonment" is a serious problem -- 55% of online shoppers have abandoned carts. And the main reason these folks desert their selections before actually completing their purchases is because they are frustrated with the shopping cart itself. Shoppers abandon carts when...

• They can't browse through your products freely
• They can't find pricing and product information easily
• There are too many forms to fill out and the process takes too long
• The cart loads too slowly

Obviously, if you want to streamline your ordering process by adding a shopping cart to your web site, then it's critical that you choose one that will be user-friendly for shoppers. The "right" shopping cart can result in 55% more shoppers actually completing their purchases! And this means 55% more profits in your pocket!

However, choosing a shopping cart can be an extremely difficult (and confusing!) decision, especially for those of you who are just struggling to understand what one actually is!

So, What Exactly IS a Shopping Cart?

A virtual shopping cart is a lot like the metal one at the grocery store -- with a whole lot of features added on. The virtual cart collects the products that visitors to your site have an interest in purchasing, and shoppers can "add" or "remove" items as they please, just like with a real shopping cart.

But then the virtual cart takes on other duties. It first calculates the total of the customer's order, including taxes and shipping costs. Then, when the customer is ready to make a purchase, the cart passes all of this information over a secure site (a "payment gateway") to your merchant account, where credit cards are approved or rejected.

Once the shopping cart hears back from the merchant account, it...

1) Generates a customer receipt and e-mails it to the customer,

Then

2) Sends you a fax or an encrypted e-mail that contains the customer details and order information.

... And at that point, you can fill the orders.

If you sell only one or two items and don't plan to add more, you don't really need a shopping cart -- you can use a simple order form instead. But if your e-business is just a bit bigger than this, or if you plan to expand at any time in the future, you'll want to have a good shopping cart in place.

Are There Different Kinds of Shopping Carts?

Yes! There are literally hundreds of shopping carts available for you to choose from; however, they all typically fall into one of the following three categories:

1. ASPs (Application Service Providers) provide the shopping cart as a service to you. The ASP hosts the cart on their server and gives you everything you need to run it. Signing up with an ASP is like paying someone to take care of the whole process for you.
   
2. Shopping cart software is just what it sounds like -- software that you pay a flat fee to license. In this case, you are responsible for installing and hosting the application yourself.
   
3. Customized shopping carts are ones that you build yourself. In my opinion, there's no need to write your own shopping cart software unless you have VERY specific needs and TONS of money! The average small business web site doesn't typically need this level of customization. And given the wide-range of cost-effective software and solutions that are now available, there's certainly no need to go through all the trouble and expense. So we'll leave this option out for the rest of our discussion.

Of course, knowing that you can choose between software and ASP shopping carts doesn't really help you select the right one for your business. You still need to understand the fundamental differences between Asps and software (why one might be better for your business than the other), and then you need to know how to choose from the hundreds of shopping carts available in each category!

So to make this decision a bit easier for you, I've developed seven key questions that will help you find the cart that's perfect for your online business -- one that will streamline your ordering process and potentially double your sales!

Seven Questions You MUST Ask Before Choosing a Shopping Cart

1. What do shopping carts come with?

The options that come with your shopping cart can vary widely, based on the package you choose. However, both ASP and software typically include:

• A shopping cart that tracks products selected for purchase by your customers and calculates total purchase price, including tax and shipping costs.
• 
  A maintenance system that allows you to easily add new products, remove old ones, adjust prices, and set up special offers.
• 
  An order-retrieval system that provides you with all the information you need to fulfill orders (like name, mailing address, product ordered, etc.).

On top of these fairly standard features, ASP carts and software packages can also include a variety of other options (some which you may have to pay for, and others which may be included free as part of the package) such as:

• Storage of customer information
• Revenue tracking
• Inventory management
• Advertising capabilities
• Permission marketing

One of the key differences between ASP and software shopping carts is that Asps also come with a merchant account and payment gateway (for which you may be charged additional fees), while software packages typically do not.

2. How much control do I have over how my shopping cart looks and operates?

You want to make sure that you have the option of customizing your shopping cart software to include logos, graphics, and colors that match the overall look and feel of your web site; a shopping cart that looks drastically different from your site may confuse potential customers, causing them to leave before completing their purchases!

Whether you choose an ASP or software, you will be offered at least one (or a combination) of the following three options for customization:

• Web page templates that you can just fill in with your product information, prices, descriptions, etc. You don't need to know (or even see) HTML.
  
• "Copy & Paste" HTML pages that have all the coding in place, so all you have to do is copy and paste the code, then add the details you need to create your web pages (you can usually modify the code if you want)
• 
  An Easy-To-Use Wizard that leads you step-by-step through creating and customizing your cart.

... Each of these three options is pretty user-friendly; however, if you're not comfortable working directly with HTML code, you should probably stick with the Wizards and templates.

On the other hand, if you plan to customize your cart beyond these standard options (i.e. if you want to integrate other software or alter the cart's functionality to fit your specific needs), you may need access to the source code.

With software, you tend to have more control over customization than you do with an ASP -- you will usually have all the source code you could ever want, and if you're the technical type, you can go nuts!

Asps, however, may not offer you the option of customizing their source code, or they may offer code that is quite complicated. Because Asps host carts for many different clients, it's usually easier for them to maintain control over the way the carts work. This is something to watch for if you are interested in customizing your cart to any great extent.

3. How do I make changes to my shopping cart?

Obviously, your inventory and your offers will never remain exactly the same, so you'll need to make changes from time to time. All shopping carts will provide methods of making changes to pricing and product descriptions, updating your inventory, etc.

You can make the changes using either "browser-based" or "database" maintenance, depending on what your package offers.

Browser-based maintenance is the easiest way to go. With an ASP cart, you'd make changes by logging onto the ASP's web site and going to an administrative options page that allows you to update prices and inventory. With a software package, you'd go through your own "back office."

Database maintenance is a little more difficult. It lets you maintain a database on your desktop computer and upload revisions on a regular basis. While this can be convenient, it's really only needed if you are dealing with hundreds of products.

4. How do I make sure my shopping cart is user-friendly?

Your customers don't care about the behind-the-scenes function of your shopping cart -- they just want quick, easy shopping. Keep in mind that many people are still a bit wary of shopping online, so you'll want to lead the customer by the hand through the buying process, explaining each detail (such as site security when they're entering credit card information, and how billing and shipping will work) along the way.

It is a good idea to keep your cart as simple as possible. The last thing you want to do is confuse your customers or make them waste their time. If your cart has all kinds of fancy images, it will take too long to load; if it has an array of pretty pages, it will take too long for the customer to get through... Net result: you will lose customers. Keep it simple.

Provide plenty of product information and prices up front; in fact, make sure your customers have all the information they need before they even get to your shopping cart. Your web site should offer everything your customers need to know, so that clicking the "Buy Now" button is the very last decision customers make after looking through your site.

But don't stop there! Make sure your shoppers can easily move back and forth between the cart and your web site to browse through your products and add more items to their orders! And when customers are ready to buy, don't limit their payment options! Most will pay by credit card, but other methods are increasingly available. Consider options like virtual debit cards and virtual checks (PayPal is a good place to start).

Lastly, keep in touch with the customer until the product is delivered. If something is out of stock, let the customer know when it will be available and how long delivery will take. Your shopping cart should not only e-mail the customer at the time the order is placed, but also when the product is shipped.

5. What should I be careful of when I choose a shopping cart?

Besides checking out consumer reviews of the shopping cart you're interested in purchasing to make sure that others are satisfied with its capabilities, you'll also want to make sure the cart you choose gives you:

• Control: The level of control you need will depend on your business and your preferences. Make sure the cart you choose offers the level of customization you need and allows you to make changes and adjustments without too much difficulty.
  
• Security: Make sure the customer is always entering credit card information over a secure server (SSL connection). This can happen either in the payment gateway (which is always secure) or in your shopping cart (which means your cart needs to be hosted on a secure server).
  
• Flexibility: Your cart must be compatible not only with your merchant account and payment gateway; it also needs to be flexible enough to accommodate other programs you may wish to run with it in the future. For example, if you have an affiliate program (or are thinking about starting one) you'll want to ensure that your affiliate tracking solution is going to be compatible with your shopping cart.
  
• What You Pay For: You may run into ASP carts that claim to offer total package solutions, but that actually outsource different aspects of their cart to other companies. For example, the cart, merchant account, and payment gateway could all be operated by different vendors, contracted by the ASP. In a situation like this, if anything goes wrong and you need questions answered, you could find yourself getting the run-around.

6. So which is better, an ASP or software?

The shopping cart solution you choose, whether its an ASP or software, must meet the needs of your individual business. Are you selling a handful of products, with no plans for expansion? Are you planning to grow in the near future? Are you comfortable looking after the technical details yourself (like coding your own web pages)? Or would you prefer someone else looked after the design and implementation? These are all questions you need to ask yourself before making your final decision.

ASP shopping carts can be a great solution for those who may not be technically inclined; they typically offer package deals that ensure you never need to worry about issues of compatibility (like whether or not the shopping cart is going to work with your merchant account).

However, the drawbacks are that (a) ASPs generally offer you less control over the look and functionality of your shopping cart, and (b) they may also limit your growth to a certain size, which can be a real problem if your business suddenly starts to take off. As well, if you already have your own merchant account, you'll be limited to the ASPs that your provider is compatible with.

Shopping cart software, on the other hand, typically gives you more control over the look and functionality of your cart and gives you greater flexibility to grow. However, because you won't usually be getting a package deal, you'll need to deal with issues of compatibility. You'll need to make sure that your shopping cart, merchant account, and payment gateway will all work together (so be sure to do your homework!).

Of course, while software may not be as convenient as an ASP, it's actually less expensive in the long run as you pay a one-time flat fee for the software as opposed to a monthly fee for an ASP.

7. How much do shopping carts cost, anyway?

Doesn't the old adage say that nothing in life is free? Well, there are carts out there that are offered for free by various online organizations, but beware! Freeware carts can be surprisingly expensive in the long run. You'll likely spend a fortune on programmers to make your cart usable in the first place -- then, you'll lose out on the documentation and periodic upgrades that are offered by established carts. Plus, freeware shopping carts will limit you quite severely in size, and switching to a new cart can be quite a hassle.

With an ASP, you'll pay a monthly fee of somewhere between $30 and $60, and sometimes an initial or annual fee. You may have to pay for your merchant account and payment gateway, but you'll get a slightly lower price through the ASP (you can get both for $150 to $200).

A software license will cost between $200 and $600. You can also lease the software for about $40 a month (typically with a two-year lease). You'll have to pay the payment gateway fee (usually between $20 and $60 per month) and you'll need to set up a merchant account (usually $300 or more).

Resources to Get You Started:

Have a look at a variety of carts and think about your specific requirements. The fanciest of carts can be impressive, but you might not need every option that's out there. Focus on the needs of your particular business and potential customers.

Think about whether you want to have everything included in one package or want to put the components together yourself. If you want to have more control and a high level of customization, then software might be your best option. If you're not as technically inclined and would prefer that someone else host your cart and take care of compatibility issues, then an ASP might be a better choice.

The following list of shopping carts covers a range of options and includes the best I've found for compatibility issues:

• Securenetshop is an ASP that uses HTML pages for set up and offers a variety of options, including customer tracking. Cost: $229 per year plus $149 for a merchant account and payment gateway.
  
• Goemerchant is another ASP that will look after everything for you. The merchant account is included as part of the package, and they provide custom "copy & paste" tools that make set up relatively painless. Cost: $59.95 per month plus $29.95 annual fee.
  
• Miva Merchant is a software package that can be hosted either on your server or on a remote server. It offers browser-based administration, a wizard set up, and pre-configured payment processing. Miva Merchant provides plenty of room for expansion, and sells a variety of compatible business-management programs. Cost: $595
  
• Quikstore is a software package that must be hosted on your server. It's a solid product for a low price. It offers a wizard set up, a configuration editor, a catalog wizard, and more. You'll have to pay extra for the payment gateway, but Quikstore suggests a compatible one. Cost: $199.95

Of course, if you're looking for a total package solution that includes everything from your merchant account and payment gateway to a flexible, easy-to-use shopping cart, I would personally recommend the provider that we've been using for years with great success.

They'll look after all the compatibility issues and make sure that you have everything you need to get your cart up and running immediately -- and they provide great customer service! We have been extremely satisfied with them as have our customers who have taken our advice and implemented this cart, so if you'd like to check them out, just visit http://www.marketingtips.com/creditcards.html and fill out the form provided. They'll get back to you right away with all the details.

Final Thoughts:

Finding the shopping cart that has the potential to double your sales shouldn't be too difficult now that you're aware of the compatibility issues that you need to be on the lookout for. And now that you know what your options are, you'll be better equipped to choose a cart that suits the needs of your particular business... and budget!

With the right system, you can set up your shopping cart so that it blends into your web site almost seamlessly in a way that makes sense for your business and your products. Not only will this make it easier for you to manage your cart, it will also make it easier for your shoppers to purchase from you.

Don't forget that for the online buyer, the shopping cart stands in place of face-to-face interaction with a salesperson or customer service representative. So make sure your cart represents you in a way that welcomes buyers and promotes your business… and keep that 55% shopping!

ABOUT THE AUTHOR: Derek Gehl specializes in teaching real people how to start profitable Internet businesses that make $100,000 to $2.5 Million (or more) per year. To get instant access to all his most profitable marketing campaigns, strategies, tools, and resources that he's used to grow $25 into over $60 Million in online sales, visit: http://www.marketingtips.com/t.cgi/892189

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