Notes and Study Materials

Different issues of E-Commerce

 

 

Before designing an Internet-based E-commerce application, a developer must consider the various issues that will arise if the problems are not handled on time. Security is a very important aspect of any Web application; therefore, if a developer does not consider points of security, the application might fail to deliver the desired services to its full potential. On the Internet, buyers are always concerned about their social security number and credit card details. Other than E-commerce security, there are some other issues, which are as follows:

1. Security issues

2. General issues

3. Legal issues

 

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Basic Services of Internet

 

 

The Internet today is a large-scale network of millions of computers that allow fast and easy communication between the Internet users across the globe. The basic services or applications that make use of the Internet are as follows.

 

• Electronic mail (E-mail)

• WWW ,

• File Transfer Protocol (FTP)

• Telnet

 

Electronic mail: 

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E-Marketing

 

 

Marketing can be defined as the way in which a product is sold to the customers. In other words, marketing includes a set of activities that are concerned with advertising, distribution, planning, promotion, sales and transportation of goods or services. E-marketing is basically a component of E-commerce. Which includes the use of the Internet to advertise goods and services. It uses Websites and e-mails as a marketing medium to inform the customers about  a product, solicit their questions and accept their orders directly through the Internet.

E-Marketing can be seen in different formats. The most commonly used format is name-your-price Websites such as www.priceline.com. In this format of E-marketing, customers are able to state what price range they wish to pay and then select from the items in the price range. Another commonly used format is find-the-best-price Websites such as www.hotwire.com. These types of Websites allow the Internet users to select the lowest price for a particular item. One more format of E- marketing is auction sites such as www.ebay.com These types of Websites allow Internet users to bid on the listed items Some of the methods that can be used for E-marketing are as follows:

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Electronic Marketplace

 

 

An electronic marketplace, also known as an E-marketplace, can be seen as a Website or a set of linked sites of common interest to specific types of  participants. E-marketplace helps enterprises to do business in several ways, which are described below:

 

• It primarily transacts and. executes purchases on behalf of their participants. The main aim of these E-marketplaces is to improve  purchase order efficiency and help customers by reducing complex, paper-based transactions between buyers and sellers.

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Types of E-market Pla ces

 

 

An electronic marketplace, also known as an E-marketplace, can be seen as a Website or a set of linked sites of common interest to specific types of  participants.

In an E-marketplce, there are three parties, which are as follows:

• Third-party E-marketplace

• Consortia E-marketplace

• Private E marketplace

 

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Electronic Data Interchange

 

 

EDI is defined as a set of standards for configuring the information in a standardized form that can be easily exchanged between and within businesses, organizations and government entities!) Common business papers—such as invoices, selling-purchasing orders and other financial bills, which are sent from one computer to another— represent standard EDI messages. By specifying the characteristics and the order in which the data is sent and received during the transactions, standard EDI messages reduce the manual work and enable the computers to perform the required functions.

 

Advantages of EDI:

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EDI Architecture:

 

 

EDI architecture provides a framework that enables you to standardize the  information which can be easily exchanged between and within business organizations and government entities using electronic channels. The two types of EDI architecture are as follows:

 

• Older EDI architecture

• Web-enabled EDI architecture

 

Older EDI architecture:

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Security Methods for E-commerce

 

 

In 1990. WWW was established to share distributed information amongst individuals. The main technology of Web consists of URLs, HTML and HTTP. URL is a method to identify the location of the information available on the Internet. HTML is the language with which information on the Internet is represented, whereas HTTP is the language used for communication between Web servers and Web browsers.

 

Security is the most important part of E-commerce application for an organization because many Internet users access E-commerce applications. Therefore, an organization should be concerned about the security of its confidential information while conducting its business through E-commerce Developers of an E-commerce application always try to build such an application in a cost-effective manner. There are methods, such as digital signatures and encryption, which can be used to secure the important information in an E-commerce application.

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