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The Main Components of E-Commerce
Some experts in the field would consider all business transactions and activities that are conducted using modern methods of telecommunication and information technology as electronic commerce. The World Wide Web, cell phones, fax and television are some of the methods people use to do business today. However, this article will mainly focus on the components of e-commerce for internet business, which is the most popular platform for e-commerce activities.
All eCommerce sites have three folders. The first is some type catalog. The catalog can vary from a few items to a comprehensive presentation of thousands of products. The nature of the company’s activity determines the type of catalog required. In any case, customers should be able to find the products they are interested in. Photos and product information are important in creating attractive online catalogs.
Second, every site must have some type shopping cart assist consumers in choosing products. Again, a shopping cart can range from simply ticking a circle for an item when only a few products are offered, to more complex shopping carts that keep track of multiple purchases.
Third, every site must create some way for customers to create it Payments for the things they buy. For consumers, this is usually a credit card system. For business-to-business transactions, payments are usually made through a voucher system. In other situations, an invoice is generated or a computerized invoicing system is used so that the invoice goes directly to the buyer. In more trusted relationships, the invoice is added to the customer’s records without ever sending a physical invoice.
Despite the fact that such systems are already in place, many consumers are still afraid of buying products over the Internet. There are two reasons for this reluctance: (1) Security concerns and (2) Shopping habits.
(1) Security issues:
Consumers’ security concerns are based on fears of credit card number theft. Others worry about fraud where the retailer takes the money but doesn’t ship the goods. Both can make people reluctant to shop online.
To solve these problems, it can be useful to look back. When mail-order companies first supported phone orders, people were hesitant about giving out their phone number or credit card to a stranger they hadn’t seen. Now almost everyone is willing to provide information when placing orders over the phone. It wasn’t that many years ago that credit card holders expressed concern about various store employees stealing these numbers. Originally, customers were instructed to — take carbon – – from a credit card purchase to make sure it’s torn up so the employee can’t use the credit card number later.
The same pattern is likely to follow with online shopping. As consumers become more accustomed to using the Web, concerns about providing credit card information will be no greater than when ordering or selling credit cards over the phone. IBM and Master Card have created a series of independent television commercials designed to reassure and reassure people about the quality of their Internet security program; however, these efforts are halted every time a major virus is released. The Verified by Visa program is also designed to create additional security for online credit card purchases.
(2) Shopping habits:
The second issue has strong implications for the ultimate success of e-commerce. Nowadays, it is most convenient for many customers to shop at retail stores. Some people also like buying through catalogs. It will take time to change these habits, especially the preference for retail shopping.
In a retail store, consumers can see and touch the goods. They can inspect it for defects and compare brands. Clothes can be tried on to make sure they fit. In addition, the customer can see how the garment looks when worn. Changing these habits requires the right kinds of incentives. Consumers and businesses must have compelling reasons to switch to e-commerce purchases instead of traditional methods (in retail or after a phone call from a salesperson). To overcome this handicap, many e-commerce companies are trying to develop incentives to attract customers to buy in this new format.
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