Electronic Commerce
Definition
Electronic
Commerce, also known as e-commerce, is the buying and selling of goods over the
Internet. This area of applications is growing rapidly and is expected by
some observers to exceed traditional way of shopping.
Web Storefronts
- Storefronts are virtual stores where
shoppers can go to inspect and purchase merchandises from the Internet.
- Web storefront creation packages & commerce
servers has recently evolved to help businesses create virtual
stores. These packages can:
- Help visitors register, browse, place products into
virtual shopping carts, and purchase goods and services.
- Calculate taxes and shipping costs.
- Update and replenish inventories.
- Ensure reliable and safe communication.
- Collect data on visitors.
- Generate reports to evaluate the site's profitability.
- Examples:
Electronic Payment
Payment for Internet purchases can be made in three different
methods:
- Checks
- After items are purchased, a check for payment is sent
in the mail.
- Upon receipt of check, the seller ship purchased items
- Disadvantage: take longer time
- Credit Cards
- Credit card number is sent over the Internet at time
of purchase.
- Advantages: faster and convenient
- Disadvantages: less secure, credit card fraud
- Electronic Cash (e-cash, cyber cash, digital cash)
- Internet equivalent to traditional cash.
- Buyers purchase e-cash from a third party (such as a
bank) that specializes in electronic currency.
- Buyer can then purchase goods using e-cash.
- Advantages: more secure than credit cards.
< Previous Page
Next Page >