first 2 products

[jbroder]

Hi,
I am about to take delivery on some for my site. I haven't sold anything over the web before. I plan to sell these two products for a few months, and possibly expand into 10 products over the course of the year. I don't expect to do more than $1000/month in sales for the first few months at least.

It seems to me that since I have only two products, I should just use kagi and not bother with shopping carts and merchant accounts.

I really apprciate the wisdom of the FQ boards. So I would like get some opinions on whether Kagi is the right solution for my needs. What do you think? The sub-$400 carts mentioned in the last post seem reasonable. But do I need a cart if I can put both products on the same page and send the items as cgi variables to kagi?

Also, it seems like a merchant account is kind of expensive when just starting out and experimenting with sales. Am I missing something there?

Thanks for any help.

Jon
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guitartricks.com

[Rich]

If you are only starting with 1 or 2 products, you will not need a shopping cart. In fact, even if you have 10-20 products you don't need one if each product is ordered on its own merit with its own sales page, etc. The ONLY time you need a cart is when the customer needs to[nbsp][nbsp]select multiple products at one time to purchase. Introduction of product attributes (color/size/shape, etc.) also makes the cart easier for the shopper.

As for a merchant account, the thing to keep in mind here is that you will ALWAYS generate more sales by having an integrated merchant account & gateway interface. However, you can always start off with a service like Kagi or iBill and get your own account once you find you are making a few sales each month. Your own account will also cost less, also, so that your profit margin is greater. Again, if you are only making 1-2 sales per month this doesn't matter a great deal. But once you are making 1000-2000 sales per month this will make a significant difference to your "bottom line."

Rich

[Stephen]

i think it depends a lot on what type of product you're selling. physical as opposed to digitable. unique as opposed to "better than the other N brands out there". top of the line as opposed to affordable.

the best case scenario, i think, is when you have something that few or no other merchants are hawking, and you make it affordable. better still, of course, is when it's digital (makes the handling and distribution problem simpler). this is the model i'm pursuing. and because it's a software business, i was in the position to design my own cart. but that was hard work. believe me, if you find a cart out there that does exactly the job you want the $400 is probably well spent. but make sure it IS the one you want and test it out before handing the money over.

as for merchant accounts, mine ends up costing me about $50/month when there's no sales. i made the mistake of acquiring my merchant account long before i was ready to publicize the product. so if i had to do it again i'd say don't sign up until you're 100% confident that you will have something to ship within 2 months.

from what you've said, i would say that Kagi is probably a good way to go to begin. when you're starting your business off, simpler is better when possible. on the other hand, i do get to manage the transactions myself and fiddle with the process when i think of a possible improvement. still, it represents a lot of work...

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Stephen Carter, Random Mouse Software
Putting Customer Reviews On Your Site
U R L:[nbsp][nbsp]www.randommouse.com (http://www.randommouse.com)

[Tatu]

Wow! Good advice, Rich! :) I should take notes for future reference heheh

This is so definately your turf...
-Tatu

--
Secret! Aaaagent Maaan! Secret! Aaagent Maaan!
[This message has been edited by Tatu (edited 09-15-00@1:04 pm)]

[jbroder]

thanks for the replies. I am going to start with some logo tshirts (users actually asked me to make logo merchandise, which is awfully flattering considering my low graphics skills) and stickers. So, I will have multiple sizes. But the replies confirm what I was thinking, which is that a cart is for 'carrying' items from page to page. There won't really be anywhere else to carry items to (no other sales page) so it does seem I can remain cartless for a while.

But Rich's comment that having a merchant account will ALWAYS increase sales caught my ear.

Can anyone recommend an inexpensive merchant account? Of course, then I will still need a payment processor. I was thinking of Yahoo Store... Can anyone recommend a payment processor, too?

Thanks,
Jon

[Rich]

Can anyone recommend an inexpensive merchant account?
Although pricing for merchant accounts are "all over the map" so are the services you recieve with them. You should expect to pay $500-$1500 for the setup of a merchant account, depending on your business conditions and your product services sold.

<Shameless Plug>
If you drop me an email off-list, I'll be glad to give you a quote. :)
</Shameless Plug>

Rich
rich@rsmarketing.com
RS Marketing
www.rsmarketing.com (http://www.rsmarketing.com)

[This message has been edited by Rich (edited 09-17-00@1:18 pm)]