E-Commerce

E-commerce is a multi tier system with client, web server, application server, database server and data management system as its components starting with client as Tier 1. Two way communications exists between all the tiers and the smooth functioning of E-commerce relies on technologies such as internet, World Wide Web, web architecture, system components, application components, security, cryptography etc.

E-commerce works on the key processes adopted by the organization for customer attraction, customer interaction, order management, and organization reaction to customers. The first process of customer attraction is achieved through advertisement and marketing. Customer attraction is followed by customer interaction. It happens through catalog presentation and deal negotiations. Order management works on order capture, payments, transactions and order fulfillment. Once an order is fulfilled, the organization reacts by following up with customer service and order tracking.

E-commerce benefits Consumers by providing the convenience of buying from home, making it easier to compare similar products and prices, and choice of wider selection. Risks to consumers involve possible security issues, trespassing privacy, purchases on the basis of pictures and descriptions with more emphasis son difficulty encountered in product returns.

Business benefit by introduction of e-commerce through reduced cost of operation, improvement in customer satisfaction, more focused data management resulting in higher earning possibilities. Risks run by business include the need for a robust and reliable website, fraudulent sales or purchase transactions, customer defiance in executing a purchase online and increased competition due to ease of procedures of online business establishment.