So you know you want to sell goods and services over the Web - electronic commerce. But you are not sure what that means. Well electronic commerce, or e-commerce, means different things to different people. We use the term broadly to describe how a company goes about presenting information and selling goods and services through a Web site.

Your e-commerce approach can be as simple as posting a product image or list and a sales e-mail address next to it, or it can be as complex as a fully integrated solution with back-end transaction processing. And there are all types of intermediate steps.

If you decide that an automated form of electronic commerce is for you, you need to be sure to select a Web hosting service that has well-defined services in place and the knowledge and resources to make setting up your site easy.

Without getting into excruciating detail, here are some questions you will want to consider if you decide electronic commerce is for you.

Recently, hosting services have started offering easy-to-use software tools that are available over the Web. These tools allow you to build and manage your online catalog by using only a Web browser. The better services offer merchants pre-formatted store designs into which merchants can load products - allowing the merchant to build an online catalog in minutes.

There are plenty of additional software tools and services available to help you create an online catalog. Web developers tend to use more complex catalog design software packages requiring specialized programming skills and experience. Although difficult to learn up front, these software packages allow a great deal of flexibility in designing how your catalog will look and the sophistication of the shopping experience.

Less expensive software packages are usually targeted at the merchant - you. Although they are easier to learn, they tend to lack the flexibility of the more expensive catalog design software packages. Take advantage of the engineering know-how at the top Web hosting providers and start by taking a look at what they have to offer. You will probably find that you can do it yourself with an online tool a hosting service provides and save thousands.

What is an electronic shopping cart?

An electronic shopping cart works the same way a shopping cart does in the physical world. As you browse through an online store, you can place products in your virtual shopping cart, which keeps track of the products you have placed in it. When you're ready to leave the store, you click a "check out" link which shows you what you've placed in your virtual shopping cart. You can usually remove items that you're no longer interested in purchasing and then enter your shipping and payment information to process your order.

Will my Web host provide me with the shopping cart software that allows my customers to select items and store them in the virtual shopping cart and then view, add to or delete items before proceeding to final checkout?

Many Web hosts say they offer a free shopping cart, but be careful. Usually, these "free" applications are limited in functionality, difficult to install, and poorly supported. You'll do better to look for Web hosts that offer shopping cart functionality as part of a complete online commerce service.

I know that more and more Web sites accept credit cards online, but just how secure is the Web?

Internet technology has matured a great deal in the last few years. It's probably safe to say that, with the proper precautions, you have as much of a chance getting your credit card number stolen online as you do in the physical world. How many times have you given your credit card to someone in a restaurant, only to have them return a few minutes later with your receipt? The reality of the situation is that we all incur a slight risk when we give out our credit card - whether we're at a restaurant or online buying a book. We take the risk with the convenience using a credit card provides. If your credit card number is somehow stolen (on- or offline), your bank will usually limit your liability to under US $100.

How do I convert my existing merchant bank account into an Internet account that can handle real time credit card authorization and delayed settlement processing?

The first thing you want to do is to find out what Internet payment processor(s) your Web host supports. Then check with your bank to see if it offers an Internet payment option that works with the Internet payment processor your Web host supports. If your bank offers this type of account, you may need to provide additional information to prove eligibility. Not all banks offer this type of account, so it may be necessary to open an account with a bank that does. Usually, your Web host will have a relationship with one or two acquiring banks that specialize in these types of accounts.

What kind of services and fee structures can I expect from my Internet merchant bank?

Fee structures vary from one bank to the next, so it pays to shop around. They usually charge a set-up fee when you establish the account and a combination of a flat fee every month, a percentage of the total sales and/or a fee per transaction. Volume discounts may also be available.

How does an Internet Credit Card Processing Service work and what kinds of fees should I expect to pay?

Some Internet payment processors and leading Web hosts don't charge you anything directly. They make their money by taking a percentage of the fees your merchant bank collects. Other processors will charge you a one-time set-up fee plus a fee per transaction with some minimum amount per month. The more advanced Web hosts will have taken the guess work out selecting an Internet payment processor by offering you an automated registration process for setting up the processor account and referring you to one or two banks that specialize in serving Internet merchants.

What other options are available to accept payments over the Internet (such as "virtual cash," online checking account drafts, and so on)?

Leading Internet payment processors and financial institutions are working on the emerging Secure Electronic Transaction (SET) protocol - a global open standard-based processing solution. You can also find a number of micro-payment and smart-card technologies trials around the world, but these solutions haven't yet made it to the mainstream consumer. Over the last several years, a number of "virtual cash" alternatives have come and gone, but none of them have achieved widespread adoption.