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Electronic Commerce Essay, Research Paper

Introduction:

As the internet grows in popularity every

day, so too does electronic commerce. Electronic commerce,

simply put, is the exchange of money for goods and services via electronic

means. In other words, electronic commerce is usually when you purchase

something off of the internet. Electronic commerce is often referred

to as e-commerce, or e-business. In this paper I will be discussing

the technical side of e-commerce, security, different points of view regarding

e-business, and of course my personal opinion and experiences.

Background Information:

First I would like to discuss the types

of e-business. E-business can be anything from purchasing a toaster

from a department store online to checking your bank statement online.

All are examples of the many aspects of e-business.

There are several aspects of e-business

unique to it. When comparing traditional business to e-business,

one can see several differences between the two. The most obvious

difference when buying standard goods (such as a toaster, a book, or a

new computer) is the store. When dealing with e-business there is

no “real” store or merchandise to look at. It is all presented through

the merchant’s webpage, or by other electronic means. You will not

be able to touch, or inspect potential purchases. All you will have

to go on is perhaps a picture and a brief description of the item in question.

This is obviously a big change from traditional store-based business practices.

Why would any self-respecting consumer buy something via e-business if

they were unable to touch, or inspect a potential purchase, and there is

a real store just done the street? There are several reasons why

e-business is appealing to a growing amount of people. For example,

e-business is based on the internet. If you are using the internet,

you are not bound by geography. You can access any site, anywhere

in the world from the comfort of your computer chair. What does this

mean to the consumer? Now the consumer has access to several things

they didn’t before. The consumer now has diversity. With the

entire internet at your fingers, in a matter of minutes you can browse

several stores in several parts of the world without even leaving your

home. This allows you to compare prices and products. With

e-business you are not restricted to the prices and products of you local

stores. You can easily choose the best price on the best product.

Purchasing goods electronically is becoming

easier by the day. The majority of e-businesses have software set

up on their webpage to take and record your order as well as your credit

card and personal information. The software is set up such that you

can order anything you want without having to interact with anyone what

so ever. You just have to enter your credit card number, address,

and other personal information. Some people are not comfortable with the

concept of sending their credit card number or other personal to a potential

merchant over the internet, but are more comfortable using the telephone.

Most businesses know this and have set up a special number or other means

to talk to a representative from the company to settle any questions, and

to accept credit card numbers or other means of payment. There are

of course several security issues involved in both forms of commerce. I

will discuss security in greater detail later in the paper.

The popularity of e-business is growing

almost as fast as the technology itself. More and more people are

using their computers to buy what ever they want, whenever they want.

Every day there is an increasing number of companies that join the electronic

world of business. Companies spend millions of dollars a year to

setup and maintain a website designed for e-business. Why are they

willing to spend so much? Most business people have a good knowledge

of how and why business works. It is not hard to see that there is

a huge market in e-business. With the price of computers going

down each day, more and more people have the opportunity to get in on their

piece of cyberspace.

A Typical E-business Transaction &

Security Information:

A few methods in which e-business is conducted

are shopping, and online banking. Let’s examine the shopping aspect

of e-business first. When you go to a site to buy something, a site

such as www.amazon.com, there are a few things you should notice.

They have something called a shopping cart. When you finally decide

that you want to buy something, you enter the quantity you wish to purchase,

and then “add to shopping cart”. The shopping cart it a CGI script used

to keep track of the things you want, and how many. This is a way

to keep track of everything while you can continue shopping. When

you are finished adding everything to the shopping cart, then you choose

the option to “check out”. This starts another CGI script that takes

all of your personal data such as your name, address, and phone number,

as well as your credit card number.

When you examine the online banking portion

of e-business, you have a few more things to consider. In order to

use online banking, you will have to have an account with the bank in question.

Once you have your account, you can go to

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