'World's largest online merchant network' launched

By Steve Thompson

Shopster.com -- an online storefront and merchant account provider -- has just launched "the world's largest online merchant network," according to Canadone.com. Reviewed by publications like Forbes and Entrepreneur, Shopster is certainly generating a buzz about its new line of services.

Company cofounder Sarath Samarasekera has compared Shopster to social networking sites like Facebook and LinkedIn, but she claims that Shopster provides a better foundation for monetizing social media. Not only can you spread the word about your business, but you can also actually sell your products and services through the network itself.

What does it cost?
Taking a bold step in what might prove to be a profitable direction, Shopster.com has made its basic merchant account completely free. However, to become a "power merchant," you'll need to cough up $69.95 per month or pay for an entire year in advance and get four months free.

The differences between the basic free merchant account and the power merchant option are considerable. When you pay to use Shopster, you get bonuses like complete payment gateways, a store product limit of 5,000 (versus 25 with a free account) and customizable store templates. Additionally, the transaction fees are lowered from 5 percent to 1 percent.

Why is it different?
If you've been selling products on the Web for long, perhaps using other merchant account providers and credit card processing solutions, you know that there are many e-commerce options on the market. So why is this merchant account getting so much attention?

Shopster.com is a network of merchants, rather than a solution for many individual sellers. When you set up a merchant account at Shopster, you can set a network price and a merchant price, depending on your goals. Furthermore, networking is encouraged within the community, perhaps increasing the chances that your business will receive additional exposure to potential customers.

Will I save money?
Whether you save money with a merchant account provider like Shopster.com depends largely on your existing business model. One of the major benefits of using this credit card processing service is the ability to eliminate excess inventory. You don't pay for products until they've sold.

It also takes care of things like order management, Web hosting and additional selling tools. Business owners that don't have access to these things already (or who are paying an arm and a leg for them) might find financial relief at Shopster.com, even with a power merchant account.

Before you choose any merchant account provider, it is important to examine your existing service. How much are you paying for credit card processing and what features are included in your current package?

Article by Steve Thompson

Published: July 27, 2009