Auctiva Commerce Blog

Editor’s Note: Please note that while we have put every effort into providing the most accurate information possible for this post, we are not tax professionals. We, therefore, encourage you to consult a tax professional.

April 17 is coming fast, meaning taxes are due in just a few weeks. We know this can be a stressful time for anyone, especially those running their own business. And for some online sellers, this year will mean dealing with a little form that may have come in the mail: the1099-K form.

This was the first time payment processors like PayPal, Amazon and credit card processors like Authorize.Net sent out these forms, which are meant to close the tax gap, or the difference between what people report on their income taxes and what they should report, says Steven Aldrich, the CEO of Outright.com, a bookkeeping tool for small businesses.

Credit card and payment processors sent these forms out beginning in January to sellers who had $20,000  or more processed through them and made at least 200 online sales. Those who sold on multiple marketplaces during 2011, or used multiple payment processors, will have received multiple 1099-K forms, Aldrich adds.

If you got one of these forms, you’ll want to pay attention to it. You see, payment processors sent out two copies of each form: one to sellers who qualified and one to the IRS. And yes, the agency will compare what sellers report on their income tax with what’s on the form. However, there is no need to panic, Aldrich assures us, even though you’ll likely notice a discrepancy between what you’re reporting and what’s on the 1099-K forms.

You see, the forms reflect the gross dollar amount processed for a seller. They don’t include listing fees, expenses or other deductions that lower sellers’ tax liabilities. The IRS knows this, so while it will compare what is reported to what’s on the forms, no one’s going to be knocking on your door if your number is different from what’s on the form.

“The IRS came out with a statement and said, ‘We won’t expect you to validate that number, we just want a fair number,’” Aldrich notes.

When you’re preparing your taxes, you’ll likely use a Schedule C form, which will be attached to your regular personal tax return form. Aldrich advises that “the important thing is to ensure that Line 1D on this form is the same or more than the sum” of the totals on your 1099-K forms.

As long as you have receipts for your deductions and consult a tax professional, you should be in good shape. As you’re trying to reduce your tax liability, remember that you can use expenses like supplies, boxes, packing peanuts and postage as deductions. You can also write off mileage you may have used to drop off your shipments or pick up inventory, even listing or processing fees you may have incurred during 2011 that were part of your business. Also note marketing expenses you had like Google AdWords, and, of course, what you spend on tax preparation.

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Social networking is exploding—and with it, the technique of viral marketing, or using social networks and word-of-mouth advertising to create buzz about new products or brands.

To read the complete article, check out our Auctiva Education Section.

DID YOU KNOW?
Nielson Online reports that YouTube is the No. 1 entertainment site for consumer product advertising. Videos provide great advertising—and they can be very entertaining.

Micro-blogging site Twitter can also be a great tool for promoting specials and discounts. Many businesses are already using “tweets” to promote their enterprises. According to one survey, 66 percent of respondents said Twitter was “somewhat” or “extremely” important to their business.

WHAT CAN YOU DO?

• FaceBook: Connect with Groups that could be interested in your products; if you sell dog-care products, find an animal-lovers group.
• YouTube: Create a fun “how-to” using your products. Become an expert within your line of products.
• Twitter: Tweet about Sales and Specials. Provide a special discount to your followers.

Now go start connecting with others. Your Auctiva Commerce Store will greatly benefit from the exposure. Post links to your store in your social-network accounts, and link to any videos you make in your store’s “About Us” page. Remember, when it comes to spreading the word about your store, it’s all about going viral.

Remember, Auctiva Commerce has a complete Help Section, replete with step-by-step tutorials and video guides.

If you have questions or comments, please visit our Community Forums.
And don’t forget to follow us on Twitter!

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Add keyword and content description Meta Tags to your Auctiva Commerce Store’s Home page to provide useful information about your Store to search engines.  This simple step helps to increase traffic from organic searches.

A content description Meta Tag for your Home page is a critical component to how Google indexes your Store.  Here’s an example of a content description Meta Tag for a Home page: 

<meta name=”description” content=”Shop Women’s Clothing, Jewelry, Earrings, Accessories, Handbags, Shoes ”>
A keyword Meta Tag is also important for search engine optimization.  Here is an example of a keyword Meta Tag: 

<meta name=”keywords” content=”Women’s Clothing, Designer, Gucci, Coach, Handbag, Jewelry”>

Check out our Meta Tag Tutorial for step-by-step instructions and tips on how to optimize your Store for increased search results.

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Providing a good buyer experience is key for every Store. It will mean the difference between completing or missing a sale. That’s why it’s important to test your checkout process from a customer’s perspective to ensure you’re Store is set-up to handle the transactions. We’ve come up with guidelines to help you do just that.

To read the complete article, check out our Auctiva Education Section.

1. Read your description – Double-check that descriptions are accurate, catchy and don’t have any glaring spelling mistakes—a sign of a less-than-serious seller.
2. Test your shipping calculator – Not only will the calculator provide estimated shipping costs; it will also identify if you have a shipping method associated with the product you’re trying to buy. Try the calculator a few times, using different zip codes, to make sure all of your customers can order your goods, or at least those in the shipping zones where you wish to do business.
3. Make a payment – If you offer more than one payment option, test all of them to make sure the methods are integrated properly. Most customers will expect you to accept credit cards, so you may want to offer that payment option and test it first.
4. Capture the cash – When a customer places an order, you have to go through a process known as ‘payment capture’ in order to actually receive the funds. To do this go into the order’s Summary tab. Become familiar with this page. It tells you how much customers owe, their shipping and mailing addresses as well as the contents of their shipments and their preferred shipping method.
5. Deliver goods – Shipping items is essential to good business. Be sure to use Auctiva Commerce’s automated e-mail feature to keep your customers informed about the status of their orders when you ship products. It’s important to test those messages to fully understand your buyers’ experience.
6. Refund, cancel and void – After making sure payments work properly, you’ll want to give yourself a refund and cancel and void your order(s). A refund is straightforward: It’s simply the act of returning part or all of your buyer’s money after a transaction has been completed. Canceling, on the other hand, marks an order as having been called off. But it doesn’t prevent payment from being captured on that order. A voided order cancels the order and prevents a payment from being captured.

As a final confirmation, it’s helpful to go through the complete purchasing process a few times to test out every aspect and ensure you don’t miss anything that would leave customers in the lurch. If you don’t have any problems, neither should your buyers. The combination of quality products paired with a wholly functioning site will create a positive customer experience; driving sales and fostering long-term customer relationships and repeat business.

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As you know, putting together a store requires a lot of attention to detail. We’ve come up with a checklist you can use to make sure you’ve got the bases covered, and that your buyers have a good shopping experience. Remember, a happy buyer is a loyal customer. Follow these guidelines and you should be all set to sell, sell, sell!

To read the complete article, check out our Auctiva Education Section.

1. Select an appropriate Theme – Auctiva Commerce has 70 theme options in its growing Theme File Manager. Customize your theme and change it whenever you want.
2. Check your categories and products – First select a category then add your products. Make sure your store has enough categories—and that it has the right ones.
3. Select at least one payment method – Auctiva Commerce allows you to accept checks, credit cards, purchase orders and PayPal.
4. Create a Warehouse – You need a warehouse to set up shipping methods for your goods. Forgetting to associate a warehouse with a product will mean restricted shipping methods for that product—and more important—it could mean customers can’t buy that item.
5. Set up at least one Shipping Method – or integrate with at least one Integrated Shipping provider. Shipping is an essential part of any online business. This potentially complex aspect of your business is made easier with Commerce’s integrated shipping carriers.
6. Provide your contact information – Make sure your customers can contact you. All stores come with default contact information to let you know where to input yours. Don’t forget to enter your actual information.
7. Don’t forget about taxes. – Since tax laws vary from state to state, and change often, it’s best to consult a tax expert to determine the right approach for your business.
8. Update your “About Me” pages – More than ever, customers want to know who they’re buying from. Offering your customers good prices is a good start to building buyer loyalty, but in this age of social networking, connecting with your customers on a more personal level could prove profitable.
9. Set your e-mail templates – Auctiva Commerce provides automated e-mails that can keep buyers informed while you tend to other aspects of your business. At a minimum, you should have e-mail templates to notify buyers when an order has been placed, when their payment has been received and when an order has been shipped.
10. Add products to Google Base – Google Base allows your products to be easily searchable by attaching attributes—or keywords or phrases—that describe your product.
11. Set up Google Analytics – Making sales is about getting people to your store; it’s all about traffic. And it’s a good idea to know where that traffic is coming from, and how they’re interacting with your store, so you know where to devote your efforts. Utilize Google’s free Google Analytics to capture data.
12. Be your own first customer – Finally, be sure to triple-check that everything is in place to provide a good buying experience. The best way to do this is to make a test purchase from your store. You can always go back into your dashboard and cancel your fake order later.

As a final confirmation it is helpful to go through the complete purchasing process, from start to finish. Repeat the process using several different addresses to make sure you get the expected results. If you don’t have any problems, neither will your buyers. And that will make buyers happy—and keep them coming back!

Remember, Auctiva Commerce has a complete Help Section, replete with step-by-step tutorials and video guides.

If you have questions or comments, please visit our Community Forums.
And don’t forget to follow us on Twitter!

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