Business

An ecommerce site is a business. Our Management & Finance category addresses online payments, funding needs, employee issues, merchant profiles, key metrics, multichannel and omnichannel strategies, cross-border analyses, inventory management, accounting topics, sales taxes, and much more.

Finance
Does the SEC Fail Small Internet Businesses?

August 5, 2011 • Marcia Kaplan

As retailing migrates online, an increasing number of ecommerce and Internet business will seek to raise public capital. Many of them will be smaller companies. But a growing number of observers believe the U.S. Securities and Exchange Commission is failing smaller businesses and In...
Business
Innovators: 3 Unusual Ecommerce Models

August 4, 2011 • PEC Staff

In the ecommerce business, there are innovators and trendsetters, those companies and individuals who think ahead and produce changes. We've asked an expert ecommerce observer to help us identify some of these companies and individuals. The observer is Harley Finkelstein, chief platform...
Business
Selling on Amazon: Pros and Cons

August 2, 2011 • Charles Nicholls

The Harry Potter franchise of ebooks will not be depending on Amazon. Author J.K. Rowling has teamed up with Sony to launch a direct outlet, called Pottermore. If you’re in the ecommerce business, and have ambition, then perhaps like J.K. Rowling, you shouldn’t rely on Amazon. But if...
Finance
Need Funding for Your Company? Look Online

July 29, 2011 • Marcia Kaplan

It used to be that if you wanted capital for your business, whether a loan or equity investment, you had to prepare lots of Excel spreadsheets, put on a suit and tie or a dress, and spend an uncomfortable amount of time being grilled by potential funders. Today all that is unnecessary t...
Finance
California Joins the Internet Sales Tax Fray; Federal Legislation Coming?

July 21, 2011 • Marcia Kaplan

The Internet sales tax issue continues to roil, with California the most recent state to enact a bill mandating that out-of-state online retailers with affiliates in the state collect state sales tax. Amazon and Overstock immediately responded by cutting off their affiliates in Californ...
Business > Merchant Voice
Mistakes I Wish I Had Never Made

July 20, 2011 • Jamie Salvatori

We all know the saying, “If I knew then what I know now, I’d be much better off”. I was thinking about that the other day and decided to put together a list of mistakes I’ve made during my e-commerce life. I had to shorten the list to just 6 items because there’s only so much room on th...
Business
Miva Merchant President Discusses eBay, Facebook

July 19, 2011 • PEC Staff

Ecommerce executives manage their own companies. But they are also experienced observers of online retailing in general. It's in the latter capacity that we recently spoke with Rick Wilson. He's president of Miva Merchant, the hosted shopping cart. He's also a 12-year veteran of ecomme...
Business
Opportunity vs. Potential while valuing your ecommerce company

July 17, 2011 • Manish Shah

It is interesting to see the wide range of value various buyers will attribute to a same online business. One buyer may find a business as worthless while other is willing to pay hundreds of thousands. Valuation of your ecommerce company is in direct proportion to the amount of opportun...
Finance
Groupon Files for IPO: Rapid Growth, No Profits

July 15, 2011 • Marcia Kaplan

Founded in Chicago in November 2008, Groupon filed to go public last month after reportedly rejecting a $6 billion takeover offer from Google last December. As with other recent filings by ecommerce firms, a few surprises emerged. Groupon is a pioneering marketing company that has achie...
Payments
Understanding Credit Card Fees, Part 3: Punitive Interchange Rates

July 14, 2011 • Phil Hinke

This is the third installment in a series where I help you understand your credit and debit card fees. In last month’s article, "Understanding Credit Card Fees, Part 2: Merchant Account Fees and Charges," I discussed the various monthly and annual fees charged by merchant account provid...
Finance
Zynga Opens the Kimono; We See Facebook

July 8, 2011 • Marcia Kaplan

If you have ever played FarmVille, CityVille or Zynga Poker you're in good company — 148 million other people in 166 countries play Zynga's games monthly. And because people usually play more than one game each month, they account for 232 million monthly visits. All of this is disclosed...
Business
Understanding the New ‘Durbin’ Debit Card Rates; Exec Explains

July 8, 2011 • PEC Staff

The Durbin Amendment to the U.S. Dodd-Frank legislative package affects ecommerce merchants. That's because the Amendment greatly lowers the rate — called interchange — that Visa and MasterCard charge for the processing of debit cards. The final rate, as determined by the U.S. Federal ...
Finance
Our List of Publicly-Traded Ecommerce Companies

June 30, 2011 • Marcia Kaplan

The rise of online retailing has fostered many companies in that industry to become publicly owned, selling shares on major stock exchanges. We've been tracking publicly-traded ecommerce companies, and we've prepared a list of them, together with publicly traded, pure-play Internet com...
Business
Sen. Durbin to Introduce Federal Sales Tax Legislation, Says Affiliate Marketing Exec

June 30, 2011 • PEC Staff

Many states in the U.S. are contemplating — or enacting — changes to their sales tax laws to include online affiliates as establishing a physical nexus. New York, California, Illinois, Texas and other states have passed laws that require Amazon and other online merchants that have affi...
Payments
Understanding Credit Card Fees, Part 2: Merchant Account Fees and Charges

June 29, 2011 • Phil Hinke

In “Understanding Credit Card Fees, Part 1: The Basics,” I outlined the information you need to know to receive the best rates from your merchant account provider. This article is "Part 2" of that series where I help you understand your credit card fees. In this installment, I address...
Payments
Increase Conversions with Alternate Payment Methods

June 24, 2011 • Pamela Hazelton

Ten years ago, PayPal was the ideal solution for small businesses that couldn’t justify the high costs of a merchant account. In its infancy, the growth of PayPal user accounts came from smaller merchants. PayPal later became the norm for eBay and large etailers because it allowed peo...
Finance
How LinkedIn Makes Money; Behind the IPO Numbers

June 23, 2011 • Marcia Kaplan

In May, LinkedIn went public. To much fanfare, the business-oriented social networking site sold common shares at $45 each, for a total offering of $352.8 million and an overall valuation — public and private shares — of $4.3 billion. It was the biggest Internet initial public offering ...
Payments
Durbin Amendment May Foster Deceptive Credit, Debit Processing Fees

June 21, 2011 • Phil Hinke

The Durbin Amendment to the Dodd-Frank Wall Street Reform Act takes effect on July 21, 2011. One of the key points in the Amendment requires large financial institutions to cap their debit card interchange fees. Currently, the scheduled cap is 12 cents per transaction. However, that ...
Business
Durbin Amendment to Lower Debit Card Processing Rates

June 16, 2011 • PEC Staff

Debit card processing rates are soon to be dramatically lower for all U.S. merchants. That’s because of the “Durbin Amendment” to the massive Dodd-Frank financial reform legislation, enacted last year.
Finance
13 Crowdfunding Websites to Fund Your Business

June 15, 2011 • Sig Ueland

Who needs banks? Crowdfunding websites can help you find a community of small investors to fund your business, without the risks of traditional financing. Here is a list of crowdfunding sites. Some sites focus on funding creative projects, others sites focus on meeting specific needs ...
Business > Merchant Voice
Top 7 Reasons Why You Shouldn’t Outsource Fulfillment

June 10, 2011 • Jamie Salvatori

The allure of outsourced fulfillment (such as Amazon’s FBA program) is strong. But, don’t get sucked in by the hype! In any business, you never outsource anything that you can do better or more efficiently yourself. If you don’t think you can make your fulfillment operation more effic...
Payments
Google Wallet to Impact Ecommerce Merchants?

May 31, 2011 • Armando Roggio

Google has partnered with MasterCard, FirstData, Citi, and Sprint to demonstrate a new payment technology that could — in theory — change consumer payment behavior, payment security, and even PCI ...
Business
eCommerce Business Valuation

May 24, 2011 • Manish Shah

eCommerce entrepreneurs often ask me what profit multiple they should use to calculate their business value. Profit multiples are a valuable tool to find a direction or a range of selling price but you can’t rely on them to determine exact value of your business. You will regret if you ...
Business
Affiliate Marketer on Sales Tax ‘Nexus’ Legislation

May 23, 2011 • PEC Staff

The efforts by state governments to collect online sales taxes is impacting affiliate marketers. Several states are attempting to expand the nexus definition to include Internet affiliates in those states, and thereby force retailers with those affiliates to pay state sales taxes. To ...
Finance
19 Tools for Online Bookkeeping and Invoicing

May 20, 2011 • Sig Ueland

Keeping the books is essential to the health of any company, helping you keep track of your business. With online accounting tools, you can ensure that you won’t miss a beat. Here is a list of online bookkeeping and invoicing tools. Some are complete accounting platforms; others are sp...
Shipping & Fulfillment
Using the Return Policy to Convert Shoppers into Customers

May 19, 2011 • Pamela Hazelton

It’s common practice to focus on trends, design and shopability to (hopefully) increase and maintain sales. For the most part, these topics play a major role in a site’s sell-through rate. Let’s not, however, overlook the less obvious reasons shoppers may be abandoning your online store...
Business > Merchant Voice
8 ways to uncover hidden money in your business

May 18, 2011 • Jamie Salvatori

Increasing the “top line” of your business is always critical, especially for small businesses that might still be struggling to reach that magical break even point. But even if you’re making a nice profit, cutting expenses or finding ways to save money should be a monthly exercise. S...
Amazon & Marketplaces
10 Deal Sites to Drive Ecommerce Traffic

May 17, 2011 • Armando Roggio

Although deal and coupon sites appear to have focused on services or brick-and-mortar retailers, online sellers can still use these services to drive additional traffic and find new customers. The rise in popularity of Groupon, Living Social, and other deal sites has created a new adve...
Payments
Understanding Credit-Card Fees, Part 1: The Basics

May 10, 2011 • Phil Hinke

I had a few merchants contact me after my last article. They wanted my advice because they could not understand their merchant statements, much less know the best way to ...
Amazon & Marketplaces
Amazon Versus States: A Sales Tax Roundup

May 4, 2011 • Sig Ueland

For years states have fought Amazon.com to force the ecommerce giant to collect sales tax — the states, desperately looking for cash, versus Amazon, vehemently defending its practices as well ...