E-Commerce
The buying and selling of products and
services by businesses and consumers over the internet.
Such a practice has exploded in the past year alone,
as security issues have improved, and more and more
consumers are buying goods and services online also
called ecommerce. Typically there are three types of
ecommerce transactions: business to business (Cisco),
business to consumer (ie etailers), and consumer to
consumer (eBay), also called ecommerce.
The consumer moves through the
internet to the merchant's web site. From there, he
decides that he wants to purchase something, so he is
moved to the online transaction server, where all of
the information he gives is encrypted. Once he has placed
his order, the information moves through a private gateway
to a Processing Network, where the issuing and acquiring
banks complete or deny the transaction. This generally
takes place in no more than 5-7 seconds. There are many
different payment systems available to accommodate the
varied processing needs of merchants, from those who
have a few orders a day to those who process thousands
of transactions daily. With the addition of Secure Socket
Layer technology, eCommerce is also a very safe way
to complete transactions.
The Levels of an Online Store
So what's involved with building
an e-commerce business? While there are vast differences
between a consumer and business-to-business site, the
similarities are prevalent. All of the software will create
a store operation. This consists of a product catalog
(where the online customers select what they want to order),
a shopping cart (where product selections are collected),
transaction security (credit authorization and other payment
schemes), and order processing (shipping, taxes, inventory,
etc.). All of these elements combined give the store a
personality and the end users a true shopping experience.
The
All-Important Catalog
Whether browsing or buying, from the
customer's perspective the online catalog is the most
important part of e-commerce. It's similar to the printed
mail-order catalog with respect to the basics: products,
pictures, and prices. However, a Web catalog can be
a fully interactive shopping experience, including video,
sound, and a lot more.
Processing
Orders
As a customer shops in your online store,
catalog selections are usually put into a "shopping
cart." Cart selections are then stored in a database
so the customer can review what has been selected before
check out. Again, this is not much different from ordering
in a regular store, but there can be some wrinkles.
Security
and Payment
Because they're impersonal, Internet
transactions can get downright touchy. You need to establish
a sense of security without creating the feeling of
Fort Knox. Customers must be able to select a mode of
payment and the software must verify their ability to
pay. This can involve credit cards, electronic cash,
or purchase orders. Most e-payment solution providers
will require that your company establish a special bank
account to handle the online transactions. For more
information about setting up merchant accounts, click
here.
Minding
the Store
Managing customer information is a crucial
part of an e-commerce operation. More sophisticated
packages maintain a great deal of customer data, including
where people go in the site, and make this information
available in the form of analytical reports. A nice
feature to look for in an e-commerce package is the
ability to use the customer's information to customize
the page contents to their tastes.
For more information on how we
can implement E-Commerce Solution for your business,
please contact us at sales@webfocus.ph
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