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OS Commerce: The True Cost of Free Carts
By Kerry Watson
March 27, 2008

Technical Support ($0 to $100/hr or more)
No matter where you rank on the technical scale, there is always someone who knows more than you, and someone who knows less. Even the most technical types know someone they can call on in a pinch when a question has stumped them. This may surprise non-technical folks, who often feel that if they just tried harder they could find the answer themselves.

In addition to the sometimes raucous, occasionally peevish online bulletin boards or forums, there are also e-mail support groups that can be found on Yahoo Groups or other mailing lists. Each e-mail group will have a different audience and a different charter, but in nearly all cases they are free. Members of the e-mail group can post their questions to the group, and those members who respond also post their replies to everyone. In this way, everyone learns at once, and for free.

When you absolutely, positively cannot wait for free e-mail support from your group, a sympathetic techie is good to have lined up. You may want to just surf the bulletin boards or e-mail groups until you find someone whose posted responses you trust, and contact them off-list. If necessary, and if the bulletin board or e-mail group allows it, post a message asking for a recommendation to a technical support person.

Your Web host may also provide technical support on an hourly basis, or be willing to recommend someone who does.

Credit Card Processor (About $20/month plus per-transaction fees)
Of course the point of selling online is to accept payments via credit cards, and the banks make money whether you are buying or selling. Many credit card processors have upfront fees such as application fees (you do have to apply for a credit card processing account, just like applying for credit), setup fees, monthly fees and statement fees. In addition, for each transaction you will pay a fee ranging from the low two to five percent or more, though the most common fees are in the two-and-a-half-to-three percent range.

Once you have decided on which online store program you want to use, find out what credit card processors they support and select one from that list. Note that many credit card processors will waive some or all of the upfront fees, and the only way to know for sure is to ask them to do it.

If all these fees have your head spinning, you may want to start with a simple, third-party off-site processor like PayPal. With no up-front or monthly fees, their per-transaction fee is a bit heftier, but you have no monthly overhead. Once your sales volume starts getting above say $1,000 a month or more, you will want to research other vendors to see if you can save a little.

A bonus of using the third-party off-site processor is that they provide all the security you need to complete the transaction, as no financial information is gathered on your Web site. This means you can skip the next annual expense, the Secure SSL Certificate.

Security - SSL Secure Certificate ($75-$300/year if needed)
If you accept credit cards in your store as opposed to on a third-party Web site such as PayPal, you will need the files that store that credit card information to be encrypted to prevent hackers from stealing it from you. An SSL or Secure Socket Layer Certificate, indicated by the "S" in the httpS:// that precedes your store's address, tells visitors that the information they enter on that page will be encrypted by the server.

Please note that some Web hosts claim to have a free shared certificate. However, shared certificates will pop up a warning saying the name on the certificate does not match the name of the store, and this is of course because the Web host's domain name is different from your domain name. This stern-looking warning, which appears when customers go to check out, will cause most of your customers to abandon their shopping cart.

Your Web host probably sells and installs secure certificates that are compatible with your store, so contact them about it for the smoothest install. If they don't, ask them for a recommendation. You will need to renew this each year.

Supporting Computer Programs and Upgrades ($0 to $1,000 a year)
If you are a technically-minded person, you may be able to get by just with Microsoft's Notepad program for editing the HTML and PHP files in your store. There are also free editor programs such as Mozilla Seamonkey, which includes the most excellent Netscape Composer (full disclosure: I was once the producer for the Netscape Composer Web site). There are also a number of free and Open Source PHP editor programs for serious programmers. But many moderately technically-oriented store owners will choose an HTML editing program such as Adobe Dreamweaver, which runs hundreds of dollars and must be upgraded every few years, because they have so many useful and time-saving features.

If you will create and/or edit graphics or photos, you will also need a photo editing program. While there are also a number of free graphics editor programs, as well as many low-cost graphics editing programs, most moderately technically-oriented store owners will choose to learn the standard Adobe PhotoShop, which also runs into the hundreds of dollars and likewise has so many useful and time-saving features. Note that Corel's Paint Shop Pro is priced proportionately less and has nearly the same features as PhotoShop.

There are also many smaller programs you can use, ranging from free file transfer programs such as FileZilla, to code comparison programs such as Beyond Compare ($30), to password management programs for the many passwords you will have. Most have a free trial period which can reduce the risk of trying them out.

Your Education ($0 to $1,000 a year)
In order to measure the true costs of running your online store, you must include the cost of your own education. You may consider your previous education a sunk cost, in other words something that you invested long before you decided to get into this venture, in which case you might say the education component of your online store costs you zero.

However, for most folks, you will need to calculate in the cost of purchasing user manuals (full disclosure: I write many of these manuals), tutorials or training manuals if available, and occasional technical manuals such as books on HTML, PHP, e-commerce and/or the Internet to help give you background information. You may also need books on online advertising and/or marketing, search engines, security, and books to help you understand the computer programs you use, the digital camera you use to take photos of your product, photo or graphics editing software, and books on subjects such as video or audio editing if that is part of your store.

Your Own Labor (Priceless)
Last but not least is the value of your own labor running your store. Will you spend one hour every day, five days a week? Will this become your full-time career? How much is your hourly rate worth? Your job satisfaction may be hard to quantify, but investing in the proper software and tools listed above will actually minimize the cost of your labor, and over time your labor will ultimately become your largest single expense.

The Bottom Line
When we consider the full costs of running an online open source e-commerce store, only a few, highly technical people can run a store that is truly free ( the value of their own labor notwithstanding). The rest of us need to be realistic about the true, full costs, because we will invest a good deal of cash into developing the online open source store of our dreams.

 

Kerry Watson is a consultant and author of 10 books in the OSC industry. Her Web sites are osCommerce-Resources.com and osCommerceManuals.com.

Do you have a comment or question about this article or other e-commerce topics in general? Speak out in the SmallBusinessComputing.com E-Commerce Forum. Join the discussion today!
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