E-Commerce: tools and techniques

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<p>E-COMMERCE RESEARCH</p> <p>Prepared by: awad elsayed awad ibrahim</p> <p>Contents Chapter one :overall view of e-commerce .definitions 1.1 . terminology 1.2 . applications 1.3 . forms 1.4 . types 1.5 . operations 1.6 . history 1.7 chapter two : the way to e-commerce.development of e-commerce website 2.1</p> <p>.chapter three : advantages and disadvantages of E-commerce . advantages of e-commerce 3.1 .drawbacks of e-commerce 3.2</p> <p>Chapter four : E-commerce benefits and limitations benefits of e-commerce 4.1 limitations of e-commerce 4.2</p> <p>. references</p> <p>Chapter one Definitions of E-commerce</p> <p>definitions 1.1There does not exist a simple definition of E-Commerce that adequately describes the coverage of its operations, functions and underlying technologies. One common view is: E-Commerce is online shopping via the Internet. Although this is correct, online shopping is only one of many types of ECommerce activities. In broader terms: E-Commerce is any commercial activity conducted electronically, particularly via private or open networks, such as the Internet. The key point of this definition is that E-Commerce is a confluence of business operations with electronic and network technologies. Telephony and non-networked technologies such as CD-ROM media may integrate into operations, but the core of E-Commerce is network technologies and especially open networks such as the Internet. Electronic Commerce or e-commerce is the trade of products and services by means of the Internet or other computer networks. Ecommerce follows the same basic principles as traditional commerce that is, buyers and sellers come together to swap commodities for money. But rather than conducting business in the traditional way in shopping stores or through mail order catalogs and telephone operators</p> <p> in e-commerce buyers and sellers transact business over networked computers. eCommerce, is a shortened IT term for Electric Commerce. ECommerce is the conducting of business communication and transactions over computer networks and through individual computers linked to the Word Wide Web. also eCommerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. It is also true to say, however, that eCommerce also includes all intercompany and intra-company functions (such as sales, marketing, accounts, logistics, manufacturing, and negotiation) that enable commerce and use electronic mail, EDI (Electronic Data Interchange), file transfer, digital fax, video conferencing, workflow, or interaction with a remote computer. e-Commerce also includes buying and selling over the World-Wide Web and the Internet, electronic funds transfer, smart cards, digital cash, and all other methods of completing business transactions over digital networks. Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well. A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-</p> <p>tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web. Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Electronic commerce is generally considered to be the sales aspect of ebusiness. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions. At it's most simplistic level; eCommerce is simply the buying and selling of goods, services or information via the World Wide Web, email or other pathways on the Internet. Ecommerce and Ebusiness are interchangeable terms. As with any other industry, ecommerce has introduce new terms into our language. __________________________________________________ 1.2 terminology</p> <p>The following are more widely used terminology relating to ecommerce and their definitions : B2B (Business to Business) The exchange of goods and services between business. B2C (Business to Consumer) The exchange of goods and services with the end consumer being the target market. Chargeback</p> <p>Where a transaction is debited against a merchant account in cases of refunds and fraud. Chargebacks usually attract a fee that is debited against the merchant.</p> <p>Certificate Authority A third party company that issues digital certificates that confirms a company or individuals' identification. A digital certificate is a crucial part of secure ecommerce Cobranding Where two companies identify a partnership between them through one company displaying their logos, color schemes etc on another companies application. Cookies Small text files stored on your computer when visiting a site that record preference for that particular site's usage. Cookies are also common in shopping cart applications in order to remember visitors as they move throughout product pages. CRM - Customer Relationship Management. The entire process of a pre-sales, sales and service relationship with a customer. Many software applications are now available that permit you to record this relationship from the time the clients asks their first question. Good CRM software is much more efficient than fragmented records as it can save time in tracking communications and transactions with a particular person. EDI (Electronic Data Interchange) This is the business to business (b2b) flow of information between companies or within a company itself. The 90's saw the concept of</p> <p>information equaling power. Whatever creates power also generates money and therefore creates new enterprises to supply this information. Encryption Process of transforming data into a type that prevents casual observers from deciphering. Etailing These are mainly "virtual" storefronts which act as a catalogue of products of merchants and usually include a "shopping cart" system to enable consumers to purchase online with the use of credit cards. Firewall Software/hardware used to prevent unauthorized access from a computer system or network of computer systems. Gateway Computer that allows communications between networks one network with another. Used in ecommerce to act as an interface between a merchant and a bank; i.e, a Payment Gateway. Infomediary An infomediary is an online resources that collates data from a variety of sources and acts as a middleman between those distributing the information and people who want the information. Luhn algorithm The LUHN algorith is used for credit card number generation and validation. eCheck An E-Check is a form of payment that deducts funds directly from your own standard checking account. eCheck services are usually managed by third party companies that interface with a number of different banks.</p> <p>An echeck provides a more fraud resistant option in terms of ecommerce transactions. Merchant account A special account account where money from credit card sales is first routed to and held before transfer to your own business account. This process is usually fully automated in ecommerce transactions. Money may be transferred into your standard business account in real-time or during various points in a 24 hour period. A merchant account is a crucial part of ecommerce. Merchant Identification Number (MIDS) Unique merchant identification number that is used in conjunction with all transactions. Out of the box Refers to an applications suitability to be rapidly integrated into an existing system P2P (Peer-to-Peer) Process whereby computers can trade information between each other directly without the assistance of a third party network. Payment threshold The minimum accumulated commission an affiliate must earn to trigger payment from an affiliate program. Privacy policy A Web site's official statement on the type of information collected on a site, how the information will be used, how the person can access this data and the steps for having the data removed. A privacy statement will also usually include information regarding systems that are in place to protect the information of web site visitors.</p> <p>Privacy seal programs Independent organizations that verify if an online companies' Privacy Statement is verifiable and accurate. Scalability The ability and flexibility of an application to meet growth requirements of an organization Secure servers Special servers that utilize encryption to prevent unauthorized users from intercepting and reading a message that passes through its system.. Session cookie Temporary cookie stored in a computers memory for remembering preferences during a web site visit that is flushed on leaving the site. Shareware Software that is distributed at no cost that can be used for free for a specific period of time or under certain circumstances to allow evaluation. Shopping cart Software that keeps track of items a visitor picks to buy from your site until they proceed to the "checkout". SLA (Service Level Agreement) Used in many merchant/institution and merchant/consumer transactions to define the boundaries of what the service is committed to deliver and under what circumstances. SSL (Secure Socket Layer) A secure protocol that ensures the integrity of information that is transmitted via this means.</p> <p>Uptime The amount of time a web site is available. The industry benchmark at this point in time for availability is 99.99%. SOHO Stands for Small Office/Home Office and refers to a specific group of people who work from home or very small companies. Turnkey Refers to an application that with very few adjustments is ready for use, such as a remotely hosted shopping cart service. User session Each visit to a web site by one person. The session is usually "ended" when all pages have been closed or after a specific time of inactivity. Vortals (vertical industry portals) Online resources that are gateways to specific industry related information. WYSIWYG What You See Is What You Get. An application that displays how the resulting page will look as it is being developed by the user in which the screen displays what the end result will look like, while the document is being created or modified. 1.3 e-commerce applications Some common applications related to electronic commerce are the following: </p> <p>Email Enterprise content management Instant messaging Newsgroups Online shopping and order tracking</p> <p>Online banking Online office suites Domestic and international payment systems Shopping cart software Teleconferencing Electronic tickets</p> <p>1.4 forms</p> <p>Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce. On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books or groceries, to expensive items like real estate. Another example would be online banking, i.e. online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All of these activities can be done with a few strokes of the keyboard. On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce today. 1.5 e-commerce types there are different types of today e-commerce such as : 1- Business to Business (B2B) Business-to-Business e-commerce has been around for some time. Over 90% of all e-commerce transactions on the Internet are B2B. B2B enables automating transactions between trading partners for business efficiency. B2B is also known to be Electronic Data Interchange (EDI).</p> <p>2- Business to Consumer (B2C) Business-to-Consumer is considered to be one of the best things to happen for e-commerce and the Internet. It continues to grow by leaps and bounds with every passing day. Popular websites such as Amazon and like have cashed in over the rise of purchases that happen over the Internet. B2C involves direct selling to the consumer over the Internet. The service or product that is being sold does not necessarily be virtual or intangible, but as a matter of fact most transactions that happen are related to tangible goods. 3- Consumer to Business (C2B) Consumer-to-Business model is a complete reversal of Business-toConsumer model. In a Consumer-to-Business Model a consumer offers goods or services to companies and the companies pay for them. We can see examples of C2B in forms of affiliate marketing, answering online polls for companies, being a free lance developer, etc. 4- Business to Employee (B2E) In a Business-to-Employee e-commerce, companies offer products or services to their employees in an intranet environment. B2E typically is used for automating employee related work processes. Examples of B2E applications can be seen in online insurance policy management for employees, offers and rewards program for employees, etc. 5- Consumer to Consumer (C2C) In Consumer-to-Consumer e-commerce a third party builds a transaction bridge between two or more consumers involved. Online Auctioning can be considered to be a good form of Consumer to Consumer e-commerce model where consumers set up sale of goods and services for other consumers where other consumers have to bid and win the specific good or service. The third party which connects consumers charges a nominal</p> <p>fee for their services. They are in no way related to the goods and services being sold or bought and they are not responsible for QA and other such factors.</p> <p>1.6 operations of e-commerce An E-Commerce operation is an integration of Intern...</p>