Is HostGator suitable for an e-Commerce site?

[softwarecandy]

I am already a HostGator customer.

However, I am asking my question in the Pre-Sales forum because I am still within the 45-day money-back-guarantee period and, depending on the answers that I receive, I may need to look for a web host that may be more suitable for e-commerce (or online store).

Or... I could be convinced that HostGator is still the better choice, even for an online store.

What prompts my question is a recent problem in HostGator's billing system. The problem is characterized by never sending any notification on payment due (i.e. the day I was billed), but fortunately sending an overdue notice one day after payment due, with a 10-day grace period.

In my case, I paid the amount owed as soon as I received the email and so no interruption occurred. I was puzzled, though, by the fact that my site could have been shut down, simply because of a glitch in the billing system.

The glitch was not in the amount owed, but rather in missing delivery of time-sensitive notifications.

Yes, the 10-day grace period is much appreciable (and it worked well for me this time). However, 10-days could be marginal. Also, no one (at least not at HostGator, as I was told by HG's support) could guarantee that the bugs in the billing system cannot manifest themselves in not sending any notifications. Not even the overdue ones.

Which reminded me of the following thread:

http://forums.hostgator.com/showthread.php?t=33657

In that thread I was surprised to read the following statement from HostGator:

Our billing system will automatically suspend any account that has a past due balance whether it is 10 cents or $1,000.

I can understand HostGator's concerns for not getting paid for its excellent services, but treating 10 cents the same as $1,000 ??? Does that seem right? Sensible?

I mean, if my web site were for blogging purposes only, I would have probably been OK with shutting it down until paying the balance due. But for an online store... this couldn't be possibly acceptable.

Thus I am very interested to know whether I made the right choice in choosing HostGator for my online store.

To clarify: TECHNICALLY speaking, HostGator's service is superb. HostGator's tech support team is so much more competent & responsive than many tech companies with which I have dealt in the past 10 years. But... with the policy of shutting down an business for tiny amounts owed, how can one commit to host his/her online store on HostGator?

I know that HostGator's developers are currently working on a custom billing system that hopefully will eliminate the existing bugs/glitches. But until that bug-free system is launched, why scare away customers that plan on long term relationship with HostGator?

I am still working on building my web site, but I am quickly approaching the point in which I need to make a decision whether HostGator's policies are right for e-commerce based web sites.

Your comments are much appreciated.

I would be even happier to learn that a decision to shutdown a commercially viable web site (that is hosted by HostGator) is made by PEOPLE, not a computer program.

[GvilleRick]

The problem you mention is certainly one of the reasons that HG is working on an updated billing system. The problem is inherent in the current system due to the number of accounts that HG now has. They have simply outgrown the ModernBill program.

The safest solution is to set up your billing to be a recurring payment. I have been with HG for well over a year and moved from a shared account to a dedicated server and I never have had a problem with the billing. I used Paypal on the shared server and it was set up to pay a day or so after the account was invoiced. When I moved to a dedicated I changed billing to a credit card and it has worked fine ever since.

[Serra]

However, I am asking my question in the Pre-Sales forum because I am still within the 45-day money-back-guarantee period and, depending on the answers that I receive, I may need to look for a web host that may be more suitable for e-commerce (or online store).

Hostgator is shared hosting. In general, shared hosting is suitable for only online stores that are not generating the revenue to be able to afford high quality hosting. You would NOT want to run an income generating store from shared hosting.

Hostgator is far better than most hosts.

I can understand HostGator's concerns for not getting paid for its excellent services, but treating 10 cents the same as $1,000 ??? Does that seem right? Sensible?

Is it sensible? Will you allow people to buy things in your store and pay you 10 or 20 cents less? Will you accept anything less than the going price? I think not. I had plenty of problems with HG's billing system, even double invoicing me for a two month spell, but my site never went down for non-payment, it was too important to me.

But for an online store... this couldn't be possibly acceptable.

I suspect you will pay your invoices on time, if it is important to you. Also, I suspect that if it is important to have your store online, YOU'LL pay the full amount.

I would be even happier to learn that a decision to shutdown a commercially viable web site (that is hosted by HostGator) is made by PEOPLE, not a computer program.

Again, its all done by computer. Hostgator couldn't afford to sell hosting at these prices and have the billing done manually.


In the early stages of an e-comm site, HG is totally acceptable for use. When you start making a few hundred a week (profit), then I strong urge you to get off of cheap hosting and on to a dedicated server or on a e-comm account with a specialized e-comm host.

[softwarecandy]

Originally Posted by GvilleRick

The safest solution is to set up your billing to be a recurring payment.

Well, I was certainly planning to do that but I first wanted to make sure that HostGator's entire billing system is reliable enough to handle my credit card on file. Now that I encountered these problems (and read about others' experience) I think that I will wait until the new system is launched and bugs are eliminated.

Originally Posted by GvilleRick

I have been with HG for well over a year and moved from a shared account to a dedicated server and I never have had a problem with the billing. I used Paypal on the shared server and it was set up to pay a day or so after the account was invoiced. When I moved to a dedicated I changed billing to a credit card and it has worked fine ever since.

I am glad to read about your positive experience. It is reassuring and I am likely to do the same, once my online shop starts generating the hopeful income.

I paid for my web hosting 3 years in advance... thinking that this will give me peace of mind for at least 3 years. But since I am definitely a newbie to this world of web hosting, I started discovering that I need additional services that don't cost much but are nevertheless necessary to establish a respectable web presence (e.g. dedicated IP address, private SSL certificate, etc.). I now think that perhaps my best option right now is to pay in advance for the dedicated IP address, as a recurring $2 a month is too much of a nuisance to deal with.

Then again, stories like the one in this link, are scary... I did notice that it was resolved but I would prefer seeing such cases resolved before shutting down a viable web site, not after.

[softwarecandy]

Originally Posted by Serra

Will you allow people to buy things in your store and pay you 10 or 20 cents less? Will you accept anything less than the going price?

Actually my answer is Yes.

In my ebaY store, I already sold quite a few items for $9 less than the going price.

http://stores.ebay.com/softwarecandy

However, I do not expect this kind of "discount" from HostGator. I was probably expecting something similar to what a telephone company does before shutting down service.

Originally Posted by Serra

In the early stages of an e-comm site, HG is totally acceptable for use. When you start making a few hundred a week (profit), then I strong urge you to get off of cheap hosting and on to a dedicated server or on a e-comm account with a specialized e-comm host.

I agree and that is exactly what I am planning to do.

[alemcherry]

If you are doing a serious business, it is important to remember the billing dates! I think the 10 day grace period is more than enough. If I was in your position, I would have paid anually and added a reminder for myself for next year.

To be frank, running an ecommerce site on a shared server is not ideal. Atleast you should manage to get a VPS. I wont risk saving my customers credit card info on a shared server used by 100s of people I dont know. Spending a $50 per month is probably the risk you need to take if you are serious about what you are doing.

Just my 2cents, not meant to offend anyone.

[Goddess Dix]

Originally Posted by softwarecandy

Then again, stories like the one in this link, are scary... I did notice that it was resolved but I would prefer seeing such cases resolved before shutting down a viable web site, not after.

Well, what scares you more: the thought of a site that is bringing down the server getting shut down before the site owner has responded, or the thought of all your sites going down because you share that same server?

The needs of the many, man.

[softwarecandy]

Originally Posted by alemcherry

If you are doing a serious business, it is important to remember the billing dates! I think the 10 day grace period is more than enough. If I was in your position, I would have paid anually and added a reminder for myself for next year.

To be frank, running an ecommerce site on a shared server is not ideal. Atleast you should manage to get a VPS. I wont risk saving my customers credit card info on a shared server used by 100s of people I dont know. Spending a $50 per month is probably the risk you need to take if you are serious about what you are doing.

Just my 2cents, not meant to offend anyone.

No need to put a disclaimer - I agree with everything you said.
Yes, this is serious business, but like many other serious businesses, it must start small.

Originally Posted by Goddess Dix

Well, what scares you more: the thought of a site that is bringing down the server getting shut down before the site owner has responded, or the thought of all your sites going down because you share that same server?

Good point. I am glad to have started this thread: I am learning a lot through this.

[gwyneth]

Originally Posted by alemcherry

Atleast you should manage to get a VPS.

Originally Posted by softwarecandy

No need to put a disclaimer

...except about the fact that HG does not offer VPS accounts.

[numberone_4ever]

I won't start an e-Commerce on a shared, only if you are looking for something small. And based on your words, I think you are not chasing a big dream..

[softwarecandy]

Originally Posted by numberone_4ever

I won't start an e-Commerce on a shared, only if you are looking for something small.

Why? Why not start on a shared, when income is still very low, then upgrade to a dedicated server when needed?

I am curious to know the rational for your inclination since neither HostGator's Sales nor others here whom opinion I respect (Serra, for example) think so. On the contrary, I was advised to start small - and so far this has proving itself for me (it takes time to thoroughly build a good online store with solid foundations and there is no reason for me to pay dedicated server fees when all I need is much less than that).

Anyway my original question was referring to HostGator, not shared hosting in general. So far, my experience with HostGator is EXCELLENT and it seems that the concerns that prompted me to start this thread had to do with my inexperience in the hosting market, not with amateurish practices.

So far, I am glad that I chose HostGator. Its technical support and response time is superb. I don't like the fact that HostGator is emailing my password every time I open a ticket (despite me not requesting it), but as long as this is only the ticketing password (i.e. not billing or cPanel), I guess that I can live with that.

I assume now that with the level of professionalism that HostGator demonstrated so far, it surely has a plan/program for smooth transition when upgrading from shared hosting to a dedicated server.

[ghpk]

Originally Posted by softwarecandy

I assume now that with the level of professionalism that HostGator demonstrated so far, it surely has a plan/program for smooth transition when upgrading from shared hosting to a dedicated server.

Yes, I've seen smooth transition to many of my customers in past.
There are now much more happy with excellent uptime and great support.

[Pazeh]

I would say that HG will even extend the 10 day grace period too.

About a year ago, my CC did expire. During the grace period I was in a scout camp & since I had it in recurring mod, I have never thought about it.

On my way back from the camp, I remembered about the hosting!! And to be honest, I was petrified. Not just because of my account, but because of the clients on my account.

As soon as I came back, I checked & I still had about 3 4 days of the grace period, but the problem was, as said, the CC was expired which was my own fault. ( I wonder why the bank didn't call me before a month to ask me if I want to renew it, as they usually do).

I do believe we were @ a start of the weekend & wasn't sure if I will be able to get a new CC in time, so I contacted sales & told them about the problem & said that I would pay 100USD via Western Union if its needed.

They replied with an email telling that, IF NEEDED, they would extend my 10 day grace period for another 5 days till I get the CC, which will save me about 25$ (transfer fee of WU).

Now this is a customer care/service, that I wont forget!!

Thanks HG!!

[gwyneth]

Originally Posted by chinchillables

Very true. I haven't experienced any problems monitoring my friend's ecommerce site which is hosted on H.G. neither.

So you've really experienced the transition from a shared server here to a dedi, which is what you were responding to? And not just taking the opportunity to stick a hidden image in the quoted text?