It is the purchasing of products or services over the Internet. An on-line shop, Internet shop, web shop or online store can be used for the process. It is an electronic commerce (e-commerce) application used between businesses (B2B) or business to consumer (B2C). On-line shopping is popular mainly because of its speed ease of use. Where the purchase involves obtaining goods from another country, issues can be fluctuating: exchange rates for foreign currencies, local and international laws and delivery methods.
Advantages: Price comparison Being able to use the power of the internet to seek out the best deals available for items or services. For example if one is buying a mobile phone he/she should enter &quot;mobile phone&quot; into a search engine or a price search engine such as Fone-Shaq . Most price comparison services have the advantage of store ratings and reviews. Consumers can shop anytime they wish to. N.B. The differences between the online prices and local store prices also relies on the shipping cost and tax.
Steps when shopping on-line Browsing product categories, Putting items into a virtual shopping cart. Going to the ‘checkout’ to confirm the order and logging out Means of payment Debit Card Cheque Delivery on payment (wire transfer) Postal money order Via mobile phones (reverse sms billing) Other concerns which will be dealt later: Security issues User and payment data is encrypted by SSL when it is transferred via the Internet. Quality seals can be placed on the Shop webpage. The ability of the online merchant to determine the identity of the purchaser is still the major security issue. Privacy of personal information is a big issue
Selling goods Businesses can operate on-line shopping by setting up a shopping cart system in which : Simple systems allow the offline administration of products and categories. The shop is then generated as HTML files and graphics that can be uploaded to a webspace. These systems do not use an online database. A high end solution can be bought or rented as a standalone. It is usually installed on the company's own webserver and may integrate very well into the existing supply chain so that ordering, payment, delivery, accounting and warehousing can be automated to a large extent. Other solutions allow the user to register and create an online shop on a portal that hosts multiple shops at the same time. Open Source solutions can be adapted and installed on a webspace. There exist commercial systems that can be tailored to ones needs so that the shop does not have to be created from scratch. By using a framework already existing, software modules for different functionalities required by a webshop can be adapted and combined. Individuals can sell goods via online auction business models through which : Participants bid for products and services over the Internet . The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. eBay is one of the best examples of an online auction business model
On-line transaction services These are now available in many ways. In the UK people can pay their car tax, their council tax, parking fines and many more. For examples: http://www.direct.gov.uk/Homepage/fs/en One such service is Paypal. Though Paypal is an excellent example as an online transaction service, students should know Paypal is a brand name and therefore cannot be mentioned in their examination. However, the services provided by it and other online transaction services like it have to be studied. General services include: Buyer Protection Policy: If the buyer used a credit card, they might get a refund via charge back from their credit card company. Seller Protection Policy: intended to protect the seller from certain kinds of chargebacks or complaints if seller meets certain conditions including proof of delivery to the buyer For a detailed look on the policies, go to http://en.wikipedia.org/wiki/Paypal#Safety_.26_Protection_Policies
On-line banking Description: Online banking (or Internet banking) is a term used for performing transactions, payments etc. over the Internet through a bank , credit union or building society 's secure website. This allows customers to do their banking outside of bank hours and from anywhere where Internet access is available. In most cases a web browser is utilized and any normal Internet connection is suitable. No special software or hardware is usually needed. Online banking usually offers such features as: Bank statements , with the possibility to import data in a personal finance program such as Quicken or Microsoft Money Electronic bill payment Funds transfer between a customer's own checking and savings accounts , or to another customer's account Investment purchase or sale Loan applications and transactions, such as repayments Account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions. There are a growing number of so-called virtual banks that operate exclusively online. These online banks have low costs compared to traditional banks and so they often offer higher interest rates .
Advantages of online banking Convenience: Unlike your corner bank, online banking sites never close; they're available 24 hours a day, seven days a week, and they're only a mouse click away. Ubiquity (the state of being everywhere at once or seeming to be everywhere at once) : If you're out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of business, 24/7. Transaction speed: Online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds. Efficiency: You can access and manage all of your bank accounts, including IRAs, CDs, even securities, from one secure site. Effectiveness: Many online banking sites now offer sophisticated tools, including account aggregation, stock quotes, rate alerts and portfolio managing programs to help you manage all of your assets more effectively. Most are also compatible with money managing programs such as Quicken and Microsoft Money.
Start-up may take time: In order to register for your bank's online program, you will probably have to provide ID and sign a form at a bank branch. Learning curve: Banking sites can be difficult to navigate at first. Bank site changes: Even the largest banks periodically upgrade their online programs, adding new features in unfamiliar places. In some cases, user may have to re-enter account information. The trust thing: For many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice?
3a - Online Services
Online Services Mr Powell
On Line Shopping <ul><li>On-line shopping- is the process consumers go through to purchase products or services over the Internet . </li></ul><ul><li>Popular because: </li></ul><ul><ul><li>Quick processing </li></ul></ul><ul><ul><li>Easy to use </li></ul></ul><ul><ul><li>Benifical for international trading , particularly on a personal level </li></ul></ul>
Purchasing goods <ul><li>Price comparison sites </li></ul><ul><li>Finding good prices on the internet via comparison sites </li></ul><ul><li>Comparison sites often have ratings and reviews </li></ul><ul><li>Can be done at any time </li></ul><ul><li>Examples – kelkoo.com </li></ul>
Process of shopping online <ul><li>Online shopping system: </li></ul><ul><ul><li>Browsing </li></ul></ul><ul><ul><li>Adding items </li></ul></ul><ul><ul><li>Checkout </li></ul></ul><ul><ul><li>Payment – debit/cheque/on delivery/sms </li></ul></ul>
Selling goods online <ul><li>Shopping carts systems (amazon) </li></ul><ul><li>Portal hosts (cafepress) </li></ul><ul><li>Online auction business models (ebay) </li></ul>
Online transaction services <ul><li>Utility services can be paid on line – such as: </li></ul><ul><ul><li>Car tax / congestion charge </li></ul></ul><ul><ul><li>Council tax </li></ul></ul><ul><ul><li>Parking fines </li></ul></ul><ul><li>Example – PAYPAL.COM </li></ul><ul><ul><li>Buyer Protection Policy </li></ul></ul><ul><ul><li>Seller Protection Policy </li></ul></ul><ul><ul><li>Latest electronic security procedures </li></ul></ul>
Online banking <ul><li>Transactions and payments done via a secure website </li></ul><ul><li>Via standard web browser using normal internet connection </li></ul><ul><li>Virtual Banks </li></ul><ul><ul><li>Bank statement – MS money & quicken compatible </li></ul></ul><ul><ul><li>Electronic bill payment ( DD in the UK) </li></ul></ul><ul><ul><li>Funds Transfer </li></ul></ul><ul><ul><li>Loan Applications </li></ul></ul><ul><ul><li>Account Aggregation (www.if.com) </li></ul></ul>