eCommerce Shopping Sites

Today’s world is the world of internet, from gathering some information to buying any product everything can be done by internet. eCommerce is one of the most important facets of the Internet to have emerged in the recent times. eCommerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks. Electronic commerce is commonly referred to as online commerce, Web commerce, eBusiness, eRetail, eTailing, e-tailing, or EC. eCommerce or electronic commerce has opened up new vistas of doing business anytime, anywhere.

At any given time, there are approximately 8 million consumers worldwide that actively shop and buy through Web based stores or retailers (nearly one tenth of our world population). Online studies have claimed that online retail revenues will surpass the quarter-trillion-dollar mark by 2011.

How It Works

The three main components of eCommerce are the Merchant Account, the Gateway, and the merchant’s Shopping Cart.

– Customer logs on to Internet to shop and connects to Merchant’s site.

– Customer elects to purchase a service or goods from merchant site.

– Merchants site connects to their Transaction Server (Gateway) through the Internet.

– Transaction Server connects to the Processing Network (ACH) to determine if Customers funds are available.

– Processing Network approves or disapproves transaction.

– If approved, Processing Network tells Transaction Server to proceed with sale.

1. Processing Network authorizes transfer of funds from Customer Bank to Merchant Bank.

2. Transaction Server confirms sale to Merchant’s site

3. Merchants site confirms sale to Customer

4. Depending on setup, Merchant delivers service or goods to Customer.

– If disapproved, Processing Network tells Transaction Server to decline sale.

1. Transaction Server relays decline notice to Merchant’s site.

2. Merchant’s site declines sale to customer.

There are multiple layers of security for both the merchant and customer, both at the site level and in the transaction server/processing network, as well as at the banks. All sensitive information, especially the credit card number, is encrypted before transmission.

It is imperative that an eCommerce website offers absolute security for the transactions that are carried out using credit cards. For the success of any eCommerce website it is necessary that a proper choice of payment gateway is made. A payment gateway is a separate service and acts as an intermediary between the website’s shopping cart and all the financial networks involved with the transaction, including the customers’ credit card issuer and the eCommerce website. If the eCommerce website has already purchased a shopping cart software, it needs to ensure that the payment gateway service is compatible with that shopping cart.

The benefits of eCommerce:

– Purchases can be made 24 hours a day, 7 days a week.

– Ease of purchasing goods.

– Your marketplace is larger and can increase your sales potential.

– Payment for your goods or services can be make immediately.

– Lower Startup Costs Increase Efficiency and Profitability.

– More convenient for customers.

– Reduces your overheads.

– The direct cost-of-sale for an order taken from a website is lower than through traditional means (retail, paper-based), as there is no human interaction during the online electronic purchase order process.

– Transactions can be processed quicker.

– Selling Online allows merchants to target and reach audiences, even on a limited budget. This creates the potential for anyone to sell anything Online.

– You can quickly update prices.

– Easier to Maintain Over Time. If an eCommerce design is done correctly from the very beginning, it will make the task of design maintenance much easier over time.

The Benefits of Ecommerce

Electronic commerce or e-commerce, are business transactions that involves purchasing and selling of products or services that is carried through Internet and other computer networks. When did e-commerce actually started? E-commerce was instituted in the year 1970; where for the electronic data interchange or EDI, and electronic fund transfer were introduced for the very first time. Since then, there was a rapid growth of e-commerce that passes through in every other aspects of business.

Similar to the traditional business, e-commerce is as well characterized by some advantages and inherent drawbacks. Let us take a look of some of the advantages and disadvantages of e-commerce. The furthermost advantage of e-commerce is that permits the businesses to reach the global market. It accommodates the needs of different markets locally or internationally, as business activities are no hindered by geographical boundaries. E-commerce helps a lot of businesses including small enterprise. They can easily access the global market for purchasing and selling products or services. Moreover, the time restriction basically does not exist anymore since you can access the business transactions using
e-commerce anytime you want 24 hours a day.

E-commerce opens opportunity for the customers to take a look at cheaper and quality products. Through e-commerce, consumers can easily find and search for new products that may not be offered from shopping malls and stores. There are times that consumers can find products from the original manufacturers that are way cheaper than those charged by wholesalers. Thus, shopping online is more convenient and time saving than the traditional shopping of products. Moreover, it also can help the consumers to decide on what to buy because of the reviews posted by other customers.

E-commerce significantly cuts down costs associated with marketing and sales, customer care, and inventory management especially for business concerns. It also reduces the time involved for modifying products to meet the demands of the customers. Electronic commerce also minimizes the burden of building infrastructures to conduct business. Moreover, it enables to have a strong relationship with customers for having an efficient customer care services.

Electronic commerce is also characterized by some technological and inherent limitations, which may hamper a number of people from using the system. One of the considered limitations of e-commerce is that there are still a lot of people who were not touched by Internet, either due to lack of knowledge and lack of trust. There are people who prefer not to use Internet for any kind of financial transactions. At times, the legality and authenticity of some e-commerce sites have been questioned.

An additional limitation of e-commerce is that there are items, which are not suitable like perishable items. Most people prefer to shop in a very conventional way especially for purchasing food products. Furthermore, the time that will be spent for delivering a perishable item can be quite significant for e-commerce.

As we go through the evaluation of the pros and cons of e-commerce, we can see that the pros can overweigh the drawbacks of e-commerce. The scenario can be change through a proper strategy for addressing some issues and to build the trust of customers to help the world easily adapt to the changing needs of the world.

The Benefits Of Ecommerce

You have a product or service that you can offer to the general public but you do not know how to reach out to prospective clients at the least possible cost. There is a new service that offers a wide clientèle base and with a vast array of support systems to assist in the marketing and sales of your product. This online service is called e-commerce and it features many services that would provide much benefit for you as a supplier.

1. Marketing Arm

The first benefit from the engagement of the service would be a far reaching marketing arm aimed to promote your product for website visitors. Your product would be included in the product catalogue of inventoried items. With this, your product would be offered for sale and be given adequate space online within the site for the online shopper with the opportunity to purchase the product. This avoids the need for the supplier to spend on marketing and advertising.

2. Administrative matters

As a supplier, there are a thousand and one aspects of the product and the business that needs to be addressed. And if an additional task of overseeing the sales and supply is added, you may end up with too much on your plate. E-commerce answers the administrative matters concerning the site and its business processes. This is one aspect of your business that would be answered by experts in the field.

3. Profit Realization

With the use of the site services, with the expanded marketing coverage and administrative task handling, you would realize productivity and profit would be earned. The simple engagement of e-commerce can make this a reality and make your business flourish on the Internet.