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WHAT IS AN INTERNET STOREFRONT?

By Nicole Wiegand

i Chad Baker/Photodisc/Getty Images

For businesses, the Internet presents a previously untapped source of potential
customers. In the past, stores had to rely on their brick-and-mortar locations
or catalog mailings for sales. Today, merchants can use an Internet storefront
to find new customers and entice them to purchase their products or services. An
Internet storefront can refer to any website that offers goods or services for
sale; shoppers can visit this virtual store at any time of the day and from any
location.






ADVANTAGES

Using an Internet storefront offers multiple advantages to businesses. An
effective online storefront can expand a business's geographic reach; even a
small local business can attract a national or international customer base. For
businesses without a physical store, there's no need to maintain a large
inventory and overhead costs are reduced. Marketing using online promotions
costs less than traditional media initiatives, and online marketing can often be
more precisely tailored toward potential customers.


INVENTORY AND ORDER FULFILLMENT

Unlike brick-and-mortar stores, Internet storefronts don't need to maintain a
physical inventory. In fact, many online retailers use drop-ship services as an
alternative to storing inventory in a warehouse. In a drop-ship arrangement,
when a customer places an online order with a drop-ship retailer, the retailer
passes that order on to the product’s manufacturer or distributor. That
manufacturer or distributor then ships the product directly to the customer.
This system greatly reduces the need to hold inventory or make major financial
investments to start an online store.


PAYMENT METHODS

Online vendors are unable to accept cash during transactions; however, many
other forms of payment are available to customers. Shopping cart software is
available to enable retailers to accept credit cards on their websites. Many
online storefronts provide customers with an alternative to using credit cards.
The most common alternative payment option is PayPal, which allows customers to
bypass a store's website and make secure payments. Other payment systems include
Amazon Checkout and Google Wallet.




CONSIDERATIONS

Operating an online storefront can be challenging. Shipping and handling can
become expensive, and competition on the Web is fierce. Security also needs to
be a priority whenever financial information or other user data is transmitted
during an online transaction. Business owners typically use secure sockets layer
technology to encrypt user information transmitted through their website.
Multiple checks are conducted to confirm the identity of a business before an
SSL certificate is issued, so using SSL to secure your transactions will also
let your customers know that your business is legitimate and trustworthy.



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References

 * Women in E-Commerce: Top 4 Benefits of a Business Selling Online vs. a
   Physical Store
 * Practical E-Commerce: 3 Tips for Starting a Drop-Ship Online Store
 * Practical E-Commerce: Adding Alternative Payment Methods to Your Online Store
 * DigiCert: What Is SSL (Secure Sockets Layer)?

Writer Bio

Nicole Wiegand is a writer living in the New York City area. With degrees in
computer science and professional experience as a computer programmer, she
specializes in topics relating to technology and the internet. She's appeared on
two game shows in her life, but never won a thing!






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