The basic requirements for an e-commerce site are not onerous and many companies will be able to run pilot schemes without significant investment. However, a strategic approach is essential. If you launch a website that disappoints your customers or, conversely, is overwhelmed by traffic, you risk damaging your reputation and losing sales. You have three options when building a site:

	Basic
	Intermediate
	Sophisticated

The options

BASIC

Facilities

At the most simple level, all you need for an e-commerce website is a computer, internet access, e-mail, a website and hosting services.

You will be able to handle a small range of products - with photos, descriptions and prices - and accept online orders.

COSTS

DIY - using web authoring software like FrontPage or Dreamweaver, you can build the electronic equivalent of a mail order form for nothing. Customers e-mail their order and payment details to you, you process these details offline like a normal credit card payment and then e-mail confirmation to them.

PROS

Low cost. Simple to set up.

Fine for a small range of products.

CONS

Design and functionality will look slightly limited.

Payment information will be e-mailed to you - this can worry some customers.

Concerns about security as most e-mail does not use protective encryption.

INTERMEDIATE

Facilities

These will vary from package to package, but you can expect catalogue management, enhanced order processing, encryption for secure ordering, and a broader range of design templates. Others will offer a degree of back-end systems integration, ie they will connect to your product database and accounts systems streamlining the order process and keeping the website up-to-date. This software should be more straightforward to use.

COSTS

Using Something like Actinic will offer all of the above features from around £650 for the first year including hosting and support..

If you have a broadband connection, you will be able to receive orders in real time and update your website automatically. Broadband costs from around £20 a month upwards. Some ISPs offer web hosting and software packages all-in-one from about £1,000.

PROS

Full e-commerce and payments functionality.

Professional-looking design.

Value-added features like account information, customer references and mechanisms to alert customers when goods are available.

CONS

Products such as technical equipment that require sophisticated options or user configuration may be too complex for this type of off-the-shelf system.

SOPHISTICATED

Facilities

The range of options is huge and limited only by your budget and your ability to maintain the site. On the site itself, you could have a product configurator allowing users to specify their exact needs. Intelligent cross-selling features can select and promote related products. Personalised pages can recognize previous visitors and display content, like product news, that they are most interested in. . Back-end systems can be integrated to trigger order confirmations, and to automatically dispatch goods and replenish stocks.

COSTS

At this level of sophistication, you will certainly need professional assistance from a development company to scope your technical requirements and build a website that integrates your existing systems. You may also want the services of a professional design agency. To custom design and build a sophisticated e-commerce website will cost well over £10,000.

PROS

Cutting-edge design and functionality.

Site can be built to integrate with your existing systems.

Provides a rich, interactive shopping experience for your customers.

CONS

Takes longer to create than buying off-the-shelf.

Bespoke software can lock you into one service provider.

Cost can be prohibitive for smaller businesses.