WHAT ARE THE COMPONENTS OF A TYPICAL E-COMMERCE TRANSACTION?

E-commerce does not refer just to a firm putting up a Web site for the reason of selling goods to buyers over the Internet. For e-commerce to be a viable substitute to conventional commercial transactions and for a firm to take full advantage of the profit of e-commerce, a number of technical as well as enabling issues have to be considered. Unusual e-commerce transaction loop involves the following key players and corresponding requisites:

The Seller should have the following mechanism:

• A corporate intranet so that orders are processed in an efficient manner; and
• IT-literate employees to handle the information flows and keep the e-commerce system.
• A commercial Web site with e-commerce capabilities (e.g., a secure transaction server);

• Transaction partners include:

• Authentication authority that serves as a trusted third party to ensure the security integrity of transactions; and
• International and National freight companies to make possible the movement of physical goods within, around and out of the country. For business-to-consumer (B2C) transactions, the system must suggest a means for cost-efficient transport of small packages (such that purchasing books over the Internet, for instance, is not prohibitively more costly than buying from a local store).
• Consumers (in a business-to-consumer transaction) who:
• Possess a mindset for purchasing goods over the Internet rather than by physically inspecting items; and
• Form a vital mass of the population with access to the Internet and disposable income enabling widespread use of credit cards.

Business/Firms (in a business-to-business transaction) that jointly form a significant group of companies (especially within supply chains) with Internet access and the ability to place and take orders over the Internet.

Government, to establish:

• A official structure governing e-commerce dealings (including electronic documents, signatures, and the like); and
• Official institutions that would put in force the official structure (i.e., laws and regulations) and keep businesses and consumers from fraud, among others.
• And lastly the Internet, the successful use of which depends on the following:
• A reliable and robust Internet infrastructure; and
• A pricing organization that doesn't punish consumers for spending time on and exchange goods over the Internet (e.g., a flat monthly charge for both ISP access and local phone calls).

For e-commerce to rise, the above factors and requisites have to be in place. The smallest amount developed factor is an obstacle to the increased uptake of e-commerce as an entire. For example, a country with an excellent Internet infrastructure will not have high e- commerce figures if banks do not recommend fulfillment and support services to e-commerce transactions. In countries that have significant e-commerce figures, a positive feedback loop reinforces each of these factors.

Posted Date: 10/12/2012 7:02:58 AM | Location : United States

Ask an Expert

Related Discussions:- Components of a typical e-commerce transaction, Assignment Help, Ask Question on Components of a typical e-commerce transaction, Get Answer, Expert's Help, Components of a typical e-commerce transaction Discussions

Write discussion on Components of a typical e-commerce transaction
Your posts are moderated

Write your message here..

Related Questions

Constitutional Rights, The constitutional rights guaranteed in the Bill of ... The constitutional rights guaranteed in the Bill of Rights are most highly protected during the trial stage of a criminal proceeding. This is when the adversarial process, which ch

Chromatography, what is the difference between gel filtration chromatograph... what is the difference between gel filtration chromatography and gel permeation chromatography

Write a long note on the direction of light, Question 1 Write a long note ... Question 1 Write a long note on the direction of light, describing direct and indirect light, frontal lighting, side lighting and back lighting Question 2 Write a long not

Prepare a report that explains director''s views, The Directors of Venus Pl... The Directors of Venus Plc are discussing the importance of the dividend policy on the market value of their firm. The Chairman considers that the dividend is important and does

Supply chian , how much three pages how much three pages

Ethical theories, Compare or Contrast two Ethical theories Write a short ... Compare or Contrast two Ethical theories Write a short (3-5 page) paper comparing and contrasting the theories of two of the following: Aristotle, Machiavelli, Kant, Locke, Mill

Structural determinants of population health - ethnicity, Ethnicity: S... Ethnicity: Social inequalities are not only affected by the gender and social class only but they are also affected by the ethnicity.  Ethnicity also affects our well being an

World cinema, World Cinema: World cinema is a term used primarily in Engli... World Cinema: World cinema is a term used primarily in English language speaking countries to refer to the films and film industries of non-English speaking countries. It is there

Agricultural rum and the golden agricultural rum, Question 1: (a) With ... Question 1: (a) With cut throat competition on the world sugar market and the abolition of the preferential rate it used to benefit from, Mauritius is geared to establish itse

Environment science, what produce does South Carolina trade to other count... what produce does South Carolina trade to other countries or states