E-commerce

Electronic commerce or E-commerce is the buying and selling of services and goods on the internet. E-commerce and a newer term e-business are often used interchangeably. E-commerce allows the buyer to purchase anything, anytime at the click of a button right from the precincts of his home. Thus goods and money can be exchanged surpassing the barriers of time and distance.

Working of an E-commerce transaction

A single E-commerce transaction takes place as follows:

The consumer surfs the internet to locate the desired good's web site. Once he decides he wishes to purchase the item from a particular merchant's site, he navigates through the site to the online transaction server, where all the information he gives is encrypted. This information is his order for the item. Once placed the order moves through a private gateway to a Processing Network, where the issuing and acquiring banks complete or deny the transaction. Thus it takes 5 to 7 seconds to complete an Ecommerce transaction.
This form of retail shopping is also termed as E-tailing or the Virtual Mall. Its advantages are

• 24 hour availability
• Global reach
• Multimedia prospects
• Ability to interact and provide custom information and ordering

Besides E-tailing, E-commerce can be divided into the following:

Market Research

With E-commerce, because of the interactive nature of the Internet, companies could gather data about prospects and customers in unprecedented amounts -through site registration, questionnaires, and as part of taking orders.

Electronic Data Interchange (EDI)

EDI involves data exchange among parties that know each other well and make arrangements for one-to-one (or point-to-point) connection, usually dial-up.

E-Mail, Fax, and Internet Telephony

E-commerce is also conducted through the more limited electronic forms of communication called e-mail, facsimile or fax, and the emerging use of telephone calls over the Internet. Business Web sites offer e-mail newsletters for subscribers who voluntarily sign up to receive e-mail about product categories and other such details.

Business-to-Business Buying and Selling

Companies selling products to other companies have found that the Web provides not only a 24-hour-a-day showcase for their products but a quick way to reach the right people in a company for more information.

The Security of Business Transactions

Security includes authenticating business transactions, controlling access to resources such as Web pages for registered or selected users, encrypting communications, and, in general, ensuring the privacy and effectiveness of transactions.

Designing of an E-commerce siteAnyone planning an E-commerce product site should keep the following rules in mind while designing the site:

• navigation should be kept as simple as possible
• check to see if all the links posted on your site work
• name links appropriately
• use simple and easily understood language and graphics
• keep availability of an item early in the navigation process

Similarly some pitfalls that need to be avoided while designing an e-commerce website are

• Do not use only frames for navigation purposes. Many people still use old model computers; they usually will block the frames when navigating sites, because it makes it faster. If all navigations directions are based on frames, then these prospective customers will skip your site.
• Do not use too large pictures on the site; they make the loading very slow.
• Avoid special software requirements to showcase products. People do not usually like to download software just to browse your site. They would rather go elsewhere.

Business through E-commerce depends on word of mouth advertising and a well designed navigation will ensure repeated visits and successes.