Electronic commerce
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Electronic commerce

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E-commerce.

E-commerce.
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  • There is no single definition <br />
  • Brick-and-Mortar organizations are old economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents. <br />

Electronic commerce Electronic commerce Presentation Transcript

  • The cutting edge for business today is electronic commerce (e-commerce). Broadly defined, electronic commerce is a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery. That means of electronic commerce consists of the buying, selling, marketing, and servicing of product (business) or services over computer networks.
  • What is Commerce? Commerce refers to all the activities the purchase and sales of goods or services. Traditional commerce may be defined as: The exchange commodities; merchandise, or buying esp. on a the large and selling exchange scale, of of between different places or communities; extended trade or traffic.
  • What is E-Commerce? Electronic commerce (e-commerce) is a general term for any type transaction of that business, involves or the commercial transfer of information across the Internet. This covers a range of different types of businesses from consumer-based retail sites, like Amazon.com, through auction and music sites like eBay or MP3.com, to business exchanges trading goods or services between corporations.
  • What is E-Commerce?....Contd. Electronic commerce is the use of electronic communication to do business. E-commerce is not about technology. It is not a new business. Ecommerce is a method for companies to create and operate their business in new and efficient ways. Most fundamentally, e-commerce represents the realization of digital, as opposed to paper-based, commercial transactions between businesses, between a business and its consumers, or between a government and its citizens or constituent business.
  • What is E-Commerce?....Contd. E-commerce has prefix ‘E’ to Commerce and ‘E’ is the reason why commerce will be out one day, and ecommerce will come gushing into our lives very rapidly. This prefix does not only add electronic to commerce, but it adds, energy, effectiveness, efficiency, economy, ease, edge, entry into new markets and with a click, the entire world shrinks to a market, where business can be easily done.
  • What is E-Commerce?....Contd. Traditionally, the definition of e-commerce has focused on Electronic Data Interchange (EDI) as the primary means of conducting business electronically between companies having a pre-established contractual relationship. Recently, the definition of e-commerce has broadened to encompass business conducted over the Internet and includes individuals and companies not previously known to each other. E-commerce encompasses the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services purchased by Internet. Electronic commerce systems rely on the resources of the Internet, intranet, extranets, and other computer networks to support every step of this process.
  • What is E-Commerce?....Contd.  According to Bajaj and Nag, “E-commerce refers to the paperless exchange of business information using Electronic Data Interchange, Electronic Mail, Electronic Bulletin Boards, Electronic Funds Transfer and other network-based technologies. It is not only automates manual processes and paper transactions, but also helps organizations move to a fully electronic environment and change the way they operate”.  According to Organization for Economic Cooperation and Development (OECD), "Electronic commerce refers generally to all forms of transactions relating to commercial activities, including both organizations and individuals, that are based upon the processing and transmission of digitized data, including text, sound, and visual images."
  • What is E-Commerce?....Contd. According to European Union, "Electronic is about doing business electronically. It is based on the electronic processing and transmission of data, including text, sound, and video. It encompasses many diverse activities including electronic trading of goods and services, online delivery of digital content, electronic fund transfers, electronic share trading, electronic bills of lading, commercial auctions, collaborative design and engineering, online sourcing, public procurement, direct consumer marketing, and after-sales service. It involves both products (consumer goods, specialized medical equipment) and services (information services, financial and legal services); traditional activities (healthcare, education) and new activities (virtual malls)."
  • What is E-Commerce?....Contd. That means e-commerce is• Business activities running over the Internet and World Wide Web platform • Use of TV and toll-free telephones in business are not usually associated with e-commerce • Depending on the situation, electronic data interchange (EDI) may or may not be associated with e-commerce. EDI is used for business-to-business transactions. Examples of e-commerce: – Buying books on Amazon.com – Promoting cars on Toyota.com – Participating in auctions at eBay.com – Customer support at Fedex.com – Industrial exchanges such as Covisint.com
  •  A market is a network of interactions and relationships where information, products, services, and payments are exchanged.  The market handles all the necessary transactions.  An electronic market is a place where shoppers and sellers meet electronically. ce E l  In electronic markets, sellers and buyers negotiate, submit bids, agree on an order, and finish the execution on-or off-line.
  • The Internet’s growth rate has far surpassed the growth rates of any previously introduced electronic information dissemination mediums such as radio, television etc. The Internet is a very unique infrastructure in that it is “owned” by no one. The origin of the Internet has been traced to an experimental networks established first in 1965 with funding from the Advanced Research Project Agency of the US Department of Defense (DoD), to enable the scientists engaged on DoD projects to communicate with one another. The Internet came “on-line” in 1969 as a joint project between the Defense Advanced Research Projects Agency (DARPA) and four university host computers.
  • More computer sites were added to the network, and electronic mail was introduced in 1972. Over the next decade, the National Science Foundation (NSF) became involved, and various standard setting bodies to help structure and develop the Internet were formed. Throughout the 1970s and 1980s, the network expanded as technology became more sophisticated. In the early 1980s, the commercial sector became increasingly interested in the Internet and began to funnel resources into commercial Internet uses. In 1984, the Domain Name System (DNS) was introduced, giving the world domain suffixes, such as edu, com, gov, and org, and a series of country codes. This system made the Internet much more manageable for people to use. Without it, users had to remember the Internet Protocol (IP) address of every Internet site they wanted to visit a long series of numbers, instead of a string of words.
  • The WWW was not prototyped until 1990, when Tim Berners-Lee implemented his groundbreaking concepts and became known as its father. The Web was popularized by 1993 release of a graphical, easy-to-use browser. Throughout the 1990s, personal computer (PCs) became more powerful and less expensive, allowing millions of people to buy them for their homes and offices. Internet service providers (ISPs), such as America Online, CompuServe, and many local providers, began offering affordable dial-up connections to the Internet. The ease of use of the WWW has contributed to the Internet’s exponential growth rates.
  • Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s organizations electronically. and to allowed send business commercial companies and documentation
  • Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols (for example, HTTP) and DSL (Digital Subscriber Line) which allowed rapid access and a persistent connection to the Internet. In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web. At this time the meaning of the word ecommerce was changed. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. By the end of 2001, the largest form of ecommerce, Business-to-Business (B2B) model, had around $700 billion in transactions.
  • History of ecommerce is unthinkable without Amazon and Ebay which were among the first Internet companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most famous worldwide Internet retailers: Amazon, Dell, Staples, Office Depot and Hewlett Packard. According to statistics, the most popular categories of products sold in the World Wide Web are music, books, computers, office supplies and other consumer electronics. History of ecommerce is a history of a new, virtual world which is evolving according to the customer advantage. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations.
  • E-Commerce Trends: The Story of Amazon.com
  • E-Commerce Trends: The Story of Amazon.com.............contd. In 1994, a young financial analyst by the name of Jeff Bezos was full of hope about the potential of doing business on the Internet. He sat down one evening and came u with a list of 20 products he believed would sell well on the Internet. Books were number one. Three years later he formed Amazon.com. Bezoz had never sell book in his life, but he figured that books were small-ticket items that would be easy and inexpensive to ship. They are the type of product customers do not have to inspect before they decide to buy. Bezos figured that there were probably over five million book titles worldwide in a given year, and that no bookstore could conceivably stock more than a fraction of the total. He developed a strategic plan for selling books online.
  • E-Commerce Trends: The Story of Amazon.com.............contd. Rest of the story like this........ Bezos improved on the initial plan of selling books by capturing the comments and recommendations of buyers on the site-like the friendly salesperson in a store offering advice on which books to buy. The Web site tracks customer traffic, the number of visitors who access the site, how long they stay, what pages they click on, and so forth. By carefully evaluating buying patterns, promotion, and selling. Bezos fine-tuned Amazon.com to become a highly respected Internet business.
  • E-Commerce Trends: The Story of Amazon.com.............contd. Surviving the 2001-2003 recession, Amazon.com began to expand beyond books into music, hardware, and electronics. Today, the company has added a wide range of products, including cakes, cheese, and coffee. Amazon’s Web sites list over 200 merchants in its food department alone. Orders for food items are electronically sent to food merchants for delivery. Amazon takes a commission for simply being an intermediary.
  • E-Commerce Trends: The Story of Amazon.com.............contd. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year. The most popular feature of the web site is the review system, i.e. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars. Amazon.com is also well-known for its clear and user-friendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database.
  • E-business and E-commerce Electronic business or e-business is the use of ICT to improve business (from the use of email to facilitate administrative procedures in buying and selling through the Internet). Electronic commerce or e-commerce is where business transactions take place via electronic communication networks, especially the Internet.
  • E-business and E-commerce E-business goes beyond a Web Site on the Internet to affect all aspects of business, from strategy and process to trading partners and the ultimate consumer. It combines the resources of traditional information systems with the global reach of the Web. In e-business, organizations have several goals in mind: •Reach new markets •Create new products or services. •Build customer loyalty. •Enrich •Make human capital. the best use of existing and emerging technologies. •Achieve market leadership and competitive advantage.
  • E-business and E-commerce In contrast, e-commerce is selling goods and services on the retail level with anyone, anywhere, via the Internet. It includes new business opportunities that result in greater efficiency and more effective exchange of goods and services. E-commerce has broken ground in several ways: •Companies •Suppliers •Corporate share information with competitors. share information with buyers. procurement is no longer determined solely on price. •Financial transactions occur with the involvement of banks.
  • E-business vs. E-commerce The main difference between them is that e-commerce defines interaction between organizations and their customers, clients, or constituents. On the other hand, e-business is broader term that also encompasses an organization’s internal operations. Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet, broadest definition of EC. where e-Business describes the It includes buying and selling of products and services, servicing customers, collaborating with business partners, and conducting other intra-business tasks.
  • E-business and e-commerce Three alternative definitions of the relationship between e-business and e-commerce
  • E-Business concepts E-business defined from the following perspectives:  Communications: delivery of goods, services, information, or payments over computer networks or any other electronic means.  Commercial (trading): buying selling and provides products, capability services, of and information on the Internet and via other online services.
  • E-Business concepts (cont.)  Business process: doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes.  Service: a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery.
  • E-Business concepts (cont.)  Learning: an enabler of online training and education in schools, universities, and other organizations, including businesses.  Collaborative: the framework for inter- and intra-organizational collaboration.  Community: provides a gathering place for community members to learn, transact, and collaborate.
  • Sophisticated technology of the computers and value added network services are essential for the development of ecommerce network. Key technologies and procedures that are needed to e-commerce are Internet, e-mail, electronic document management, electronic data interchange, electronic fund transfer, security, credit card, workflow processing, imaging, networking and interconnectivity between them. The Internet access system requires a personal computer that is connected by telephone to the Internet or Internet access can be cable based.
  • e-commerce depends on a series of underlying infrastructures as outlined below:  Network Infrastructure covers the media required for moving information, and thus includes the Internet as well as cable television, telecommunication networks, and private corporate networks, internet and extranet etc.  Production Infrastructure focuses on a company’s products (soft goods and hard goods) and what it takes to create them. Some of the concerned items are databases, multimedia authoring, manufacturing etc. information production,
  •  Distribution Infrastructure that helps customers to get products and services like e-mail, on-line catalogs, databases, networked communities, and shipping infrastructure.  Delivery Infrastructure, that needed for delivery of goods like efficient courier service system.  Service Infrastructure handles such processes as payments, customer support and security; and the associated items are EDI, credit cards, digital cash, ecash, digital signature etc.
  • Browse Web Sites Find product(s) from online catalog on the merchant’s Web page Select item(s) to be purchased Merchant provides an order form electronically Customers fill the form and select the electronic payment instrument Send the form to the merchant electronically Merchant validates and confirms financial information Merchant sends the confirmation of the order and payment Merchant sends the product or service through the Net or Courier Merchant requests payment from the consumer’s financial institute
  • Selling or purchasing over e-commerce results in savings of time, energy and costs, because the merchants provide detailed information about the products or services on the Web sites and the buyer will just click the product to get the same before his or her door within a very short period after placing purchase order through the Net. E-commerce is not just a matter of reducing costs as well as reaching out new efficiencies, performing tasks with greater speed and convenience, replacing existing commercial paper based transactions with electronic transactions and not doing any thing physically or manually that will assure longterm competitive advantages of a business.
  • There are benefits of electronic commerce to all involved parties. A bank benefits from reduced cash handling charges, and from a new attractive service form they can provide their customers. Customer behavior can be adapted to, due to interactivity in electronic commerce. It is also easy to keep information up-to-date. Retailers also benefit from reduced cash handling charges and they do not need to store large amounts of money in their store. At the end of the day they can transfer the money to the bank with one transaction. This also results in a benefit of less robbery. Consumers will notice how easily one can withdraw cash from home and how prices will go down due to reduced service and order costs.
  • Benefits of Business Enterprises •Entering •Benefits •Lower Global Market over EDI Procurement Processing Costs •Keeping Lower Inventory •Enhanced •Increase Customer Service Sales •Easier Money Transaction •Lower Advertising Cost •Reduce Distribution Cost •Marketing •Strong of Product More Quickly Customer-Business Relationship •Diminishing •Cost •An the Importance of the “Middleman” of Acquiring, Serving and Retaining Customers is Cheap Extended Enterprise is Easy to Build
  • Benefits of Business Enterprises Entering Global Market: There is an opportunity for small and medium business/companies, apart from the big ones to enter into global market through Internet with a minimum entry cost. Internet creates an opportunity for small and medium enterprises to make information on its products and services available to the potential customers in the worldwide market. E-commerce also helps to breaks the social and political obstacles of entering world market and business growth, especially in the developed countries.
  • Benefits of Business Enterprises Benefits Over EDI: Business through electronic commerce is more beneficial than tradition EDI commerce. The cost and installation of EDI systems is generally quite high, and is has typically only been beneficial to large firms that have enough sales volume to justify the costs of developing their own networks or subscribing to a valueadded network. On the other hand, because of the low cost of connecting to the Internet, medium and small business can now afford the connection cost. Further, because of software developments that allow web-based EDI systems to interface with traditional EDI systems, business of all sizes can now transact with one another. This vastly expands the number of potential electronic business partners, some of which may be a substantial, geographical distance away. The Internet offers a greater choice of global partners with which to conduct electronic commerce.
  • Benefits of Business Enterprises Lower Procurement Processing Costs: Procurement costs can be lowered by consolidating purchases, developing relationships with key suppliers, negotiating volume discounts, and greater integration of the manufacturing process. Procurement costs can be lowered for all companies, regardless of size, due to the increased ability to transact electronically with one another. A wider net can be cast when searching for suppliers. Options for partnering with other firms increase. For example, small and midsize companies benefit because they are now able to conduct business with the larger firms that are casting the wider nets. The smaller firms also have the opportunity to reduce their processing costs by using integrated electronic processing systems.
  • Benefits of Business Enterprises Keeping Lower Inventory: A reduction in inventory is desirable because of the associate reduction on storage, handling, insurance and commerce can administrative help firms to costs. more Internet optimally electronic order the inventories by electronically linking suppliers and purchases together and allowing them to share updated production forecasts and projected inventory levels in order to allow both parties to collaboratively “fine-tune” their production and delivery schedules. Business can also use the Internet to “upload” unwanted inventory or sell excess capacity very quickly and with extremely low marketing costs.
  • Benefits of Business Enterprises Enhanced Customer Service: Customer service can be enhanced using Internet electronic commerce by helping the customer to access information before, during, and after the sale. Before the sale is made, customers can electronically retrieve product specifications, quantity, and pricing information. During the product/service fulfillment cycle, customers can electronically check on the status of the order. Support services for customers are also enhanced by electronic services, such as electronic notification of returned items and the ability to download and print the necessary documentation and shipping costs result for both the buyer and seller.
  • Benefits of Business Enterprises Increase Sales: E-commerce is a new channel of selling goods and services over the Net. With the help of a Web site, a company can automatically enter in to a global market and become a global provider of goods and services. On the other hand, the smaller sellers get a chance to compete against largest competitors in almost every field. In this way, a business or company can increase sales.
  • Benefits of Business Enterprises Easier Money Transaction: In e-commerce, transaction of money is easier than traditional way of transaction, because transactions of money are processed at faster speeds, more easily and it is less expensive. There are some benefits of transaction of money electronically as follows•Retailers’ benefits from reduce cash handling charges and they do not need to store large amount of money in their cash box, and this brings benefits retailers from robberies. •A bank benefits from reduced cash handling charges, and from a new attractive service that can provide to their customers. •Customers get more security by not carrying cash, which someone can steal.
  • Benefits of Business Enterprises Lower Advertising Cost: Without advertising it is hard to sell products, unless the product is an essential one and the only available in the market and e-commerce reduce advertising cost than other media like magazine, television etc. Companies can use web sites as their billboard for interactive advertisements, and reach huge an international audience. Small companies can afford this kind of advertising and can easily enter into world markets electronically.
  • Benefits of Business Enterprises Reduce Distribution Cost: By using electronic commerce, distribution cost can be minimize up to 50 to 80 percent of consumer products, because of shrinking existing distribution chains. Therefore, using of e-commerce can achieve substantial savings and the prices of a product can be reduced. Marketing of Product More Quickly: E-commerce provides very easy way to get in touch with the customer at worldwide market. By taking the entire product design process online-drawing partners and customers in to the process and removing the traditional communication barriers that prevent rapid product design and creation- companies can bring products and services to market far more quickly
  • Benefits of Business Enterprises Strong Customer-Business commerce, business can interactive relationship Relationship: engage that By customers result in using in a customers e- direct getting precisely what they want and when they want and everything from purchase orders to fund transfer can be handled faster and more efficiently and even easier payment processing, resulting in reduced costs. stronger customer relationships with much
  • Benefits of Business Enterprises Diminishing the Importance of the “Middleman”: E-commerce is capable of eliminating intermediaries. If the vendor wants to be successful in global marketing with Internet, he will have to figure out how to replace some of the functions that distributor used to fulfill. By eliminating distributors, the price becomes considerably less, the vendor’s margin will be increase, and the company becomes more efficient, producing better financial results. Therefore, by using ecommerce, a vendor can avoid extra cost of doing business. Cost of Acquiring, Serving and Retaining Customers is Cheap: It is relatively cheaper to acquire new customers over the net; because of round the clock operation and reach global customer is relatively easy on the net. Through innovative tools of ‘push’ technology, it is also possible to retain customers’ loyalty with minimal investments
  • Benefits of Business Enterprises An Extended Enterprise is Easy to Build: In today’s world every enterprise is a part of the ‘connected economy’; as such you need to extended your enterprise all the way to your suppliers and business partners like distributors, retailers and ultimately your end-customers. Internet provides an effective (often less expensive) way to extend your enterprise beyond the narrow confines of your own organization. Tools like enterprise resource planning (ERP), supply chain management (SCM) and customer relationship management (CRM), can easily be deployed over the net, permitting amazing efficiency in time needed to market, customer loyalty, on-time delivery and eventually profitability
  • Benefits of Customers Some benefits that customers may expect to receive from e-commerce are: •High Satisfaction of Customer •Shorter •Choice Time to Shopping of Vendors •Convenience •Price of Shopping Comparisons
  • Benefits of Customers High Satisfaction of Customer: By e-commerce it is possible to increase satisfy customer, because the Internet being always open, 24 hours a day, 7 days a week and 365 days a year that makes the business consequently always open and companies always keeps information up-to-date. Internet has no boundaries so a customer can shop from home, working place, or anywhere they can make a connection with Net. On the other hand, by connecting the e-commerce and shipping systems, it would be possible to ship products faster for less money. On the other hand easy to purchase, wider choice, lower price, flexibility of time, and distance to enter into buying and selling goods makes customs more satisfied
  • Benefits of Customers Shorter Time to Shopping: Nowadays, people become so busy and it is difficult to manage time to go shopping, to deal in business transactions, to go to bank to deposit or withdrew amount from the bank, to transmit data, and to exchange views. To make easy of these things, they are increasingly use electronic media and telecommunicationsbased tools
  • Benefits of Customers Choice of Vendors: Customers have an increased choice of vendors because they are no longer geographically constrained by a reasonable walking or driving distance. Customers have a greater choice of services they can receive from global Internet companies. For example, a foreign-born resident of the U.S. may subscribe to an electronic news service from his/her home country and receive an electronic “newspaper” on a daily basis that is sent directly from his/her home country’s news service
  • Benefits of Customers Convenience of Shopping: The convenience of shopping at home allows customers to shop when it is convenient for them and not during the store hours. For handicapped or ill consumers, the ability to shop from home opens up new shopping opportunities and offers greater convenience. For busy employees that work long-hours, the ability to take care of some errands may ease their tension and allow them to actually devote more time is of better quality to their tasks. For example, busy workers facing overtime may need to complete some personal errands, including grocery shopping, buying and mailing a birthday present, and retrieving some income tax forms to complete their tax return. While these errands may require a total time of two hours if done physically, they may all be conducted on the Internet in 15-20 minutes total. Thus, if employees can perform these tasks during their lunch hour, they may still have time to eat, reduce stress regarding their personal life, and feel better prepared to face the rest of the day’s workload
  • Benefits of Customers Price Comparisons: Search engines and intelligent agents, are making the process of sorting through information and conducting price comparisons increasingly easier. Information is buying power to consumers, and the Internet is unleashing access to vast amount of information. How will Internet vendors compete if price comparison is so easy? They are quickly learning that service and reliability are also important. Amazon.com does not just sell books and music, it provides book and music reviews, suggest other books that may be of interest based on the books being examined, and provides sound clips for many of the music titles. It also provides inventory status and expected shipping time
  • Disadvantages of E-commerce Online selling is not so easy. It needs aggressive pricing, and customer service; logistics, infrastructure investments and marketing; thus, for those looking for short-term profits, it may a big disappointment. On the other hand, e-commerce is possible only when the customers can provide his credit-card number. But there is no guarantee that it will be confidential. Disadvantages that hinder e-commerce can be listed below as: •Lack •A of proper security. customer cannot select of a product through personal inspection. •The •It assessment of all leveled taxes cannot be done properly. needs strong infrastructure and huge investments.
  • •It needs the electronic payment (credit-card, e-cash etc.) system which is now just on the swing. •Difficulties •High •It in ensuring secure digital transfers via the Internet. initial cost of introducing online payments mechanisms. needs high awareness in the field of computers. •There is no security for the reliability of the available data on the computer. •Inability to sell some products (e.g. high cost jewelry and ai D s perishable foods etc.)
  • Issues and Constraints of E-commerce i. The Cost Factor ii. Security iii. System and Data Integrity iv. System Scalability v. E-commerce is Not Free vi. Fulfillment and Customer Relations Problems vii. Culture, Language, and Trust Issues viii. Corporate Vulnerability
  • The Cost Factor: infrastructure, sophisticated you To set need interactive up an cash. Web site, e-commerce Beyond you a need networks, servers, terminals, software, staffing, and training. Transaction costs are another issue. The electronic marketplace appears to be a perfect market, where worldwide sellers and buyers share ussI information and trade without intermediaries.
  • Security: With spamming, spying, file corruption, and malicious misuse, no company can afford to do business online without protection via firewalls, specialized, antivirus products, and the like. For millions of potential cyber-customers, the fear of credit theft and identity theft continues to be a concern. The goal of an online merchant is to assure customers secure lines and secure sites that will protect their ussI privacy, whatever the transaction.
  • System and Data Integrity: Data protection and the integrity of the system that handles the data are serious concerns. Computer viruses are rampant, with new viruses discovered every day. Viruses cause unnecessary delays, file backups, storage problems, and like. The danger of hackers accessing files and corrupting accounts adds more stress to an already complex ussI operation.
  • System and Data Integrity: Data protection and the integrity of the system that handles the data are serious concerns. Computer viruses are rampant, with new viruses discovered every day. Viruses cause unnecessary delays, file backups, storage problems, and like. The danger of hackers accessing files and corrupting accounts ussI adds more stress to an already complex operation.
  • System Scalability: A business develops an interactive interface with customers via a Web site. After a while, statistical analysis determines whether visitors to the site are one-time or recurring customers. If the company expects two million customers and six million shows up, Web site performance is bound to experience degradation, slowdown, and eventually loss of customers. To keep ussI this problem from happening, a Web site must be scalable or upgradable on a regular basis
  • E-commerce is Not Free: For a long time, success stories in e-commerce have favored large businesses with deep pockets and smart funding. Small retailers that go headto-head with e-commerce giants could be in for a surprise. As in the brick-and-mortar environment, they ussI simply cannot compete on price or product offering.
  • Fulfillment and Customer Relations Problems: Tales of shipping delays, merchandise mix-ups, and Web sites crashing under pressure continue to be problems in etailing. Customer confidence in e-commerce’s ability to deliver during heavy shopping seasons continues to be a concern. Even happy customers say the experience could be improved. Customer relations management (CRM) is taking on high priority as more and more e-merchants have found that without prompt delivery of products and quick ussI response to customer complaints, they are not going to make any headway in the e-industry.
  • Culture, Language, and Trust Issues: In addition to these generic problems and drawbacks, there are global issues as well. When e-commerce and the Internet went global, there was an obvious pressure to adapt e-marketing, e-products, and interfaces to culture expectations and constraints. Culture is the set of norms and innate values of a community, a society, or a region.. A firm launching a business in a new country must be aware of the culture as well as the language of that culture. Trust is another issue that needs to be addresses. When the Internet is perceived to be an unreliable environment with a ussI great number of anonymous users, customers are cautious in communicating via the Internet.
  • Corporate Vulnerability: The availability of product details, catalogs, and other information about a business through its Web site makes it vulnerable to access by the competition. The idea of extracting business intelligence ussI from the competitor’s Web pages is called Web farming.