This week, we have been working on our decision of what type of business model we’re going to be following as we start our businesses. We also started doing research on how to accept payments online for our products.
I have decided to go with the Merchant business model. I have been looking at several different products, and have found a few that I can buy, as a supplier, and be able to sell them at a profit. As I did this research, I have had to look at things, such as a minimum order, in order to be able to qualify as a dealer, and receive the items at a discounted rate.
This has been a great exercise to be working on, as it has enabled me to get to talk to several different companies, and establish relationships that will be beneficial to me for the future.
As I started doing research into accepting credit cards, I was a little overwhelmed by all of the choices. I feel that this is one of the most important parts of this online business that I’m creating, as it has potential to hurt the business if the costs are too high. Accepting payments online has been the one thing that has held me back in the past, since I’ve never taken the time to look into how to do it. I am thankful for the opportunity this week to be able to look into the different choices.
As I start this new business, I’m wanting to keep things as inexpensive as possible. I’ve found many services that will charge a monthly fee, plus a percentage, and a per transaction fee. I’m trying to stay away from these for now. As I’ll be starting small, I don’t want to commit myself to a monthly fee. Doing this could be a drain, if I’m not selling enough to cover that cost. There are plenty of options that don’t have monthly fees, so these are the ones I’ll be focusing on. Everyone charges a percentage and a transaction fee, at least all the ones that I have looked at do. This will just need to be taken into consideration as I calculate the prices I will be charging.
I still haven’t made my final decision on which payment option to use, but I have enjoyed going through the exercises. It has helped me better understand what I need to be looking for, and it has given me a lot of information to be able to look through to give my business the best choice in accepting payments.