E- Commerce

Electronic commerce, commonly known as E-commerce, is the buying and selling of products or services over an electronic system such as the Internet and other computing networks and devices. E-commerce includes the use of such technologies like using electronic funds transfers, supplying chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data collection systems. Modern e- commerce around today uses the World Wide Web at least at one point in the transaction.

Online Shopping

Recently shopping online has become popular because of vast arability of internet. Online shopping is one kind of E-business where any consumer can directly shop using the internet. Most people around today use such advanced technology and are familiar with online shopping. 

Online shopping is the process or purchasing goods or a service from selective merchants on the internet. The world wide web had emerged quite  recently, therefore merchants have become open to the idea of  selling products online, this is now an easier option for shopping to those who surf the internet frequently.

These consumers buy a variation of products through the internet since this has become available; in fact they can purchase just about anything ranging from household appliances to food groceries. It is also now possible to purchase many forms of insurance.

The reason many people choose to conduct online shopping is purely because of the convenience. My parents are a prime example, they dislike having to go to food super markets every week, therefore they make use of online shopping on a regular basis. The reason they choose to shop in this manner is to save driving to an actual super market and going through the process of parking, walking around the whole shop to locate every individual item they require.

When shopping online it requires a consumer to log into their account, add the needed items into their virtual shopping cart and then resume purchasing when ready. The biggest advantage to online shopping websites is that they are available 24 hours a day.

There may be a great convenience to online shopping, but some people actually enjoy the experience of the shopping process and the physicality of visiting a store. This means there is a small amount of disadvantages to shopping online for some people, consumers like to touch the merchandise, try on clothes and being around other people. Additionally the merchandise is not always delivered on that same day the order went through, the consumer has to wait a certain amount of days. This is not a problem when purchasing items from food super markets; you have the option whether you need it delivered for that particular day.

Shopping online does require you to enter in personal details in order to make a purchase. Some people worry about identity theft because of their fear of credit card information being compromised. This discourages the participation of some consumers involving online shopping.

There are a number of advantages for the customer when shopping online the three main reasons being it saves time money and there is no need to travel anywhere. There is always a much larger range of options to choose from as the website can hold more items then an actually store can fit. You have the opportunity to make comparison in prices between products on other websites to just and find the best deal. There are usually search bars on a transactional website so it is much easier and quicker to find what you are looking for. On most websites there is usually a section to leave you own personal review on products, this means to are able to see what other people make of the products you are interested in. On any music website there is the option to listen to sample of music to get an idea if you want to purchase that particular song, this is encouraging to potential customers.

The seller and company also benefits from having a transactional website. The automatically open their selves to a wider customer base. Which means the profit will rise as more and more people with purchase their items because it is more convenient. Setting up a website is inexpensive and well worth it because that company with gain customers and the company will become better known. A website can hold many more products which equalizes into a higher volume of sales. A website does not require staff to operate daily and it’s cheaper than buying a store as you have to pay for the space in a store and still cont advertise all you products this is known as reduced over heads.

Amazon

 

Amazon.com is an e-commerce company based in Seattle, WA. Amazon was one of the first big companies to sell goods over the Internet and is now the world’s largest online retailer. The company was founded by Jeff Bezos in 1994, and then launched in 1995. They started out as an online bookstore and then quickly diversified by adding other items, such as VHS tapes and DVDs, music CD's, software, video games, electronics, MP3s, clothing, furniture, toys and even food items.  It is now a multinational electronic commerce company. The massive technology core that keeps Amazon running is entirely Linux-based. Amazon is a transactional website that allows customers to purchase their products and is continuing to progress with their business, it has four software development centers worldwide. These centers are constantly creating new features for their business, and developing technology to help support them.

Amazon.co.uk is the same but a slightly better website than Amazon.com, it was launched in 1998. Since then Amazon has continued to provide different services for their customers. Today the site provides a fast and effective service, for the customers in the UK, Ireland, Germany, France, Japan, China and Canada.

Amazon uses technology to improve the efficiency and competitiveness in comparison to the average high-street store in several ways such as being an online service only which therefore means that Amazon don’t require to rent shop flooring and staff, being an online service also means that customers have the opportunity to buy as many products as they wish relying on the delivery only. This is beneficial because caring bags of shopping is no longer needed as everything is delivered straight to your door. Being an transactional website only means that Amazon can have direct access to their customers via email which gives them a competitive edge. Being online also helps Amazon by easy advertising across the web to people which automatically means there gain a much larger customer base.

Amazon warehouses operate by direct link from the internet and the millions of customers that Amazon process. There are 7 Amazon warehouses allocated in the UK.

Amazon has 5 delivery options these including, free super saver delivery, first class, scheduled evening and Amazon prime delivery. When using Amazon prime the customer pays £49.99 a year to receive any product throughout the year delivered the next day, this can work out to be much cheaper than paying delivery charges on each item and is much more convenient as you are aware as a customer as to when your purchases with arrive at your doorstep.

Customers can purchase products from Amazon even if they are not in stock from the nearest warehouse, Amazon then informs the customer that there will be additional amount of time needed for the item to be delivered.

Amazon enforces a large computing system in each warehouse to make sure easy location of each product on each shelf on each row of the vast warehouses that Amazon hold. Amazon does not give any sort of order to their products on the shelves in the warehouse. As soon as the product gets put onto the shelf in Amazon the exact point on the shelf and unit it was placed in within the warehouse is added to the warehouse database, therefore whenever a product is requested the products code is simply entered and the exact shelf and the exact unit for this item is located.

Online Banking

Online banking is the practice of conducting bank transactions or paying your bills through the internet. Online banks are banks that you primarily use on the Internet. Online banks allow you to have more choice and flexibility. You can compare difference banking site offers on a computer, and you often get more competitive rates from online banks. They often claim that they do not have the expenses associated with brick-and-mortar banks, so they can pass the savings on to you.

Online banks allow you make various commands such as opening an account or funding an account. Transferring money between accounts is available. If you require paying a bill then this can be done through and online banking system using the bill paying service. If you are struggling with money then online banks allow you to take out a loan that of course has a fixed amount of interest. Overdraft lines of credit are accessible.

What are the advantages of online banking?
 

For the online customer the convenience rates are high.  No longer do they have to sit around waiting for the post to arrive with their bank statement in to be able to check their account balance to see if there has been an issue. Account information can be accessed anytime, day or night, and can be done from any place. A few online banks update information in real-time, whereas others do it daily. Once information has been entered, it doesn't need to be re-entered for similar subsequent checks, and future payments can be scheduled to occur automatically. Many banks allow for file transfers between their program and popular accounting software packages, this is to simplify record keeping.

Since bills can now be paid through the internet this automatically eliminates writing checks and posting the payment in the mail.

Since the cost of operating an online banking service is minimal, this is also the same for the customer which is another positive reason for using the online service; there are no extra costs for items such as stamps.

Online banking also eliminates paper waste which is not just beneficial for the service and the customer but the environment as well.

There are also a number of disadvantages to online banking. By now having this available on the internet there is a huge reduction of customer personal interaction within the bank, since all the transactions are handled by the customer over their internet account. There is no personalized banking service which allows the customer to interact with the bank.

When you are entering your personal details into the online banking set up process there are usually instructions you have to follow to ensure the safety of your personal details. But there is always the chance of you account being hacked and your confidential information being shared and exposed. But most banking websites have good security systems to ensure such guard thefts are avoided. If you account does get hacked it is the banks problem and responsibility to sort it out. You can access your online banking account by entering your personal identification and your password. You have to be sure not to tell anyone your password and make sure you don’t use an obvious one that is easy to guess or your account is open to a series of risks such as transferring funds or causing financial problems. Whereas when you are visit the bank personally your account is handled by the bank staff which means your confidential information cannot be viewed by anyone. All your instructions are given in writing which requires your personal signature; therefore there are less chances of fraud.

The advantages of online banking outnumber its disadvantages and therefore this form of banking has become very popular with the customers as it is extremely beneficial and offers a lot of convenient.

Online catalogues
 

An online catalogue is a direct alternative to a physical product catalogue on a transactional website. Rather than being made of paper and distributed to your customers by mail, your customers can view your products online by visiting your internet based webpage. An advantage for the company is they don’t have to worry about distributing new catalogues every season or when a price changes, websites are much easily obtained, allowing for

online catalogue's are far easier to maintain than a paper back catalogue as you can update ‘sales’ add new models and products at any time of the day, this removes the need to the produce a new catalogue as you take the base of the old one and add and remove products as they arrive or depart, this also saves a lot of money on printing costs due to not having print a new catalogue with each new product or selection of products.

However disadvantages are that companies cannot send round an online catalogue to people’s houses as a form of advertising, as it is only a virtual copy, vs a paper copy, as well as this unless a company decides to show costumers new, updated, or reduced products on the site product awareness of said products will not as high thus possible sales won’t be at a maximum. This for say clothes sales people would prefer to have a paper catalogue so as to be able to point something out to a shop assistant without the need to try and describe the product if they were unable to find it in a store.
lastly one other disadvantage of an online catalogue is that for older generations those where using a computer is not a common daily occurrence and technical knowledge is limit navigating an online catalogue is going to be a far more perplexing <!--[if !vml]--><!--[endif]-->task than flicking through a paper copy of a the same catalogue.

This is an example of a selection of online catalogue's available to anyone.

Credit cards

A card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made and borrowing limits are pre-set according to the individual's credit rating.

 

How is a Debit Card different to a Credit Card?

 

A Debit Card works using the money you have in your bank or building society account. So when you spend using a Debit Card it comes straight out of your account. You'll see the details on your bank account statement.

An advantage of owning a credit card is you can use it worldwide as they are accepted in millions of places at home and abroad, so they are very handy in any language. There are often fees or charges for using your credit card overseas, so check your credit card agreement before you go.

Fraud

Fraud happens when somebody lies or deceives you in order to cause you harm, usually by costing you money. Millions of people fall victim every year. Fraud is a complex kind of theft. Fraud is sometimes called a 'con'. You can be defrauded if somebody steals your credit card, and uses it to buy items, or if someone hacks into your bank account and takes your money. Other types of fraud include fake investment projects, when you give money for something that never happens such as when you purchase an item form a transactional website but you never physically receive your purchase. And identity fraud which is when somebody pretends to be you in order to buy things that they never intend to pay for.

Fact: Fraud costs the country at least £14 billion each year; nearly £265 for every person.

Identity theft

Identity theft, also know n as identity fraud is when multiple types of information about you such as your name, National Insurance number or address are stolen and used by somebody else to get credit or cash illegally.

Although you with most likely will be oblivious to this and therefore might not find out this has happened to you until your credit report shows credit cards you do not have, or if you receive bills for accounts that you do not own.

You should always take action right away if you think you may have been a victim of identity theft. If debit or credit cards, online banking or cheques are involved, your first step should be to contact your bank or credit card company immediately.

How to protect yourself from becoming a victim of fraud:

Be alert when using your debit card or credit card and make sure nobody stands close enough to see your pin-code when being entered to purchase items in store.
 

Refrain from keeping your pin-code written down in the same place you keep your cards, make sure you keep it in your personal diary and keep it in a safe place somewhere at home.Never send money in response to unrequested letters, emails or phone calls.

Always shred or burn any documents that have your name, address, and other personal information to ensure no one has any possible way of getting hold of them.

PayPal

PayPal acts like you personal digital wallet where you can securely store all your chosen payment options, such as your bank account and credit card. When you want to make a payment, you don't have to pull out your credit card or type your billing info every time.

How to use PayPal?
 

It requires you to click on the PayPal checkout button, log in to your PayPal account, and select your preferred payment method. It will then complete the payment process without sharing and of your personal information with merchants and sellers.

There are several advantages to using PayPal instead of other commonly used transaction methods; one of these being any payment is sent directly from one recognized bank account to another account. Another, being able to use PayPal makes actions immediate and convenient as the Payment is deposited directly into the seller's account. However, a down side to using PayPal could be, if by any chance PayPal does become unreliable and any person has attempted and succeeded to hack your account along with your personal details, it is extremely difficult to recover the payment in any case of fraud.