What do I need to start?

Obviously you will need a PC, and an internet connection. An entry-level PC is fine for most business functions, but check the requirements of the software you plan to use - including your ecommerce solution. You will need web hosting - some space on an internet server where your web site will be located - and a means of receiving orders and processing payments.

Given these essentials, there are a number of packages from companies such as Actinic that make it relatively easy to create your own online store from scratch, provided you have some basic computer skills. But even if you start out this way, make sure you retain the option to have a professional site makeover at some time in the future. Choose an ecommerce supplier that offers that service, or has partners that do. One very cost-effective solution is to build the site yourself, but purchase a custom template design from a third party.

Internet connection
You can get an internet connection from your phone line supplier, or one of the many Internet Service Providers (ISPs). Check out the latest reviews to find the best ones. Use broadband, not dial-up. It is much faster, and there is no delay before you connect to the Internet. If broadband is not available in your area, then ISDN is the next best thing.

Broadband leaves your PC permanently connected to the internet, so you will need a firewall to prevent unauthorised access. Windows XP and later operating systems include a firewall that is turned on by default.

Web hosting
Free web space is fine for personal use. But for business use you will want a business-oriented hosting package with free telephone technical support, and a feature that allows your ecommerce package to install and run its own scripts (sometimes called a 'user-writeable cgi-bin'). This need not be expensive, and there a number of providers to choose from..

Receiving payments
Most shoppers will want to pay by credit or debit card. In order to receive card payments, you must have either a merchant account with card issuer, or an account with a payment service provider.

You will also need a way of taking card details securely and processing the transactions. If you have your own merchant account, you can do this online or offline. If you use a bureau service, you can only do it online.

Offline payment processing
Card details are stored and downloaded with the order, and payments are processed offline using a PDQ machine. This method is cheaper for the merchant, and also allows for human intervention before each transaction is charged. But each individual payment has to be manually processed, so it is less suitable for large order volumes.

To receive card details in this way, your shopping cart must be able to encrypt them securely to hide them from hackers. Just using a web form or email will deter buyers, because they will be worried about fraud. The addition of Secure Socket Layer (SSL), a universally-recognised security protocol, offers shoppers the visible reassurance of a 'golden padlock' displayed in their browser, and can increase orders on your site. You can implement this by purchasing your own SSL certificate from your web host or from a specialist provider such as Geotrust; or by subscribing to a Shared SSL Service like the one offered by Actinic.

Online payment processing
A third-party Payment Service Provider (PSP) can debit the customer's card at the time of ordering and transfer the payment directly to your bank account - usually after a few days' delay for security reasons. They will charge a monthly fee for this service, or a percentage of each transaction - or a combination of the two. Several companies offer these online card processing services. Actinic's ecommerce products integrate with all the leading systems.

To help you choose, visit www.electronic-payments.co.uk. This UK government-sponsored site will help you identify which provider offers the best value for your particular business. Actinic is fully integrated with all the leading online payment processors .

Processing orders
Your shopping cart system will need to be able to calculate taxation and shipping charges accurately for all the countries you sell to. Once orders are received, you will need to print invoices and packing notes; and maybe deal with back-ordering, and monitor stock levels. Make sure the solution you choose includes these functions, or has a link to a suitable accounting package such as QuickBooks or Sage Line 50.