BACK TO BASICS: WHAT IS ECOMMERCE FOR DIGITAL GOODS? Upclick Blog SuperUser Account Jun 03 2015 E-commerce NewsUpclick News banksdigitalecommercefundsgoodspaymentprocessorservicesoftware Ecommerce is a blanket term that refers, really, to any kind of trade of goods or services in exchange of money that occurs online. More specifically, these transactions also require some sort of payment gateway to process a credit card or bank transfer of funds to the seller.Keep in mind that if you are selling a physical product, there is a whole different list of concerns including packaging, shipping etc. Since we at Upclick are experts in ecommerce for digital goods, we understand your needs and we provide the most efficient and profitable solution to process digital goods and services.First, let’s define a digital good and digital service. A digital good is also known as an intangible good meaning that they are products that you cannot touch. There is no need for packaging or shipping, (although a backup CD can be ordered) because the purchaser can download the product.There are many types of digital goods, but the most well known include security programs like antivirus and firewalls, pdf editor and creator, computer maintenance programs and multimedia. Gaming and gambling are considered digital goods or services too! Some payment processors will not work with high-risk products like gambling or adult content.For example, the App Store from Apple inclusively offers downloadable content that is moderated.A digital service is different in that it is a form of labor rather than a product. For example, many people work in the field of online technical support. They provide a service remotely to repair, clean and enhance their client’s computer from wherever they are. Payment for this type of service is also been done through an online payment processor via credit card or bank transfer. Interestingly, gambling is also considered a service, along with music and gaming (which are considered both services AND digital goods).We call this a digital media service (DMS). Netflix’s movie streaming concept is great example of how a digital product (a movie) is used as part of a digital service.Now that you are familiar with the actual digital products, we can talk about payment processing. This is a vital part of the whole ecommerce process since it is essential for accepting payment.Payment processing is the way to process a payment via credit cards, PayPal accounts or any other payment methods in order to buy a product or a service. Basically, it is how the funds are transferred between two individuals.A payment processor handles credit card transactions while increasing security controls around data. What is important to understand is the fact that any online transactions go through a payment gateway.It means that when a transaction is initiated, payments are instantly routing to find the best payment gateway to complete the transaction. The payment can be approved or rejected by the bank in order to protect the customer or to avoid fraud... Every steps of the process is under high security standards.The ecommerce platform (otherwise known as the interface or what you can see) has several functions do not include processing the funds. You can use it to set up products, coupons, discount, checkout designs, checkout links...More than just a payment processor, Upclick provides all the marketing tools you need to customize and optimize your entire purchase funnel in order to increase your bottom line. As a merchant, you can also use the platform to keep records of your sales, display the product and distribute the license keys and installers to the final customers.You can see all your data into the platform and build your strategy based on it. Basically, for software developer who has a useful product that can be sold online, Upclick remains the best solution.If you are looking for a safe, secure payment processor for your digital goods check out how to get started page. You can test out Upclick right now and see how we can help you increase your ARO (Average Revenue per Order) and CR (Conversion Rate) by turning operational costs into revenue. We don’t just help you sell your product online; we help you increase your revenue globally. Find out how here.