E Commerce
E Commerce
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Security: Cyber security helps institutions to protect their data and
other technological assets to be saved from any unauthorized
access.
Technical Support: This is used to fix hardware or software
issues. Technical support primarily ranges from unlocking a laptop
to solving network usage.
Benefits of IT in Business:
1. Productivity: Using Information Technology in business helps bring
productivity to the business. This helps in analyzing the data quickly,
without the need for any human touch, and maintains the equilibrium of
working in the IT sectors.
2. Security: With the help of global connectivity, everything is now in
the first of our hands. The security functions in the field of IT are
gravely looked after by the information technology people to ensure
database security.
3. Communication: Communication infrastructure is a pivotal aspect of
Information Technology and services. This helps in identifying
operational efficiency and resource utilization by establishing a strong
connection between the product handler and the business.
4. Online Recruitment: Online recruitment plays a vital role in the
field of Information Technology. Recruiting technology is often defined
and consists of sourcing, screening, and assessing candidates. With the
advent of Information Technology, it has become easier, and
technology recruitment ensures finding quality technical talent with the
help of a sourcing pipeline to match the requirements of the company.
5. Access to Information: This facilitates gaining huge amounts of
information at a quicker pace with the help of hardware and software
networks and workstations at minimal costs. It is a combination of
technology that enables combinations and configuration of data to
create distinctively new information that helps in making quick
decisions.
6. Better Decision-Making: Information and technology provide a
window to process immense amounts of data to make your business
grow to its full potential. The decisions that will be taken for the
business's sake will be extremely accurate. With the help of some
advanced tools like data analytics and data mining, it makes the
processing of consumer data easier and makes fine computerized
decisions with the help of this data.
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7. Sustainability: They normally pose the question of whether and how
the ICTs contribute to safeguarding and protecting society from facing
any harm, thereby allowing future generations to have a satisfying life.
The Y2K bug scare in the late 1990s further accelerated the industry’s
growth, leading to the outsourcing of various IT services, and making
India a global outsourcing hub. Substantial investments were made in IT
parks and infrastructure, including Electronic City and HITEC City, and
the education system produced a vast talent pool. Indian professionals
working abroad also contributed to the industry’s development.
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adaptable and innovative, ensuring it stays competitive on the global
stage.
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between academia, government, and industry can drive cutting-
edge technological advancements.
3. Data Privacy and Cybersecurity Regulations: Implement
comprehensive data protection and privacy laws that align with
international standards. Enhance cybersecurity measures to protect
sensitive data and build trust with global clients.
4. Infrastructure Improvement: Address infrastructure challenges,
such as power reliability, bandwidth, and physical connectivity.
Investing in robust digital infrastructure is crucial to support the
industry’s growth.
5. Promote Startups: Create a conducive environment for IT startups
by simplifying regulatory procedures, providing access to funding,
and offering incentives for innovation and entrepreneurship.
6. Global Trade Agreements: Negotiate favorable trade agreements
with key markets, reducing the impact of protectionist policies.
Diversify the client base to minimize dependency on specific
regions.
7. Environmental Sustainability: Encourage IT companies to adopt
eco-friendly and energy-efficient practices. Promote sustainability
and green data center initiatives.
8. Government Procurement: Promote the use of domestic IT
solutions and services in government projects, fostering the growth
of indigenous IT companies.
9. Digital Literacy: Invest in digital literacy programs to ensure that
a larger section of the population is tech-savvy and can contribute
to the digital economy.
10. Regulatory Compliance: Simplify and streamline regulatory
compliance for IT companies operating globally. This includes
taxation, intellectual property, and export-import regulations.
11. Collaboration with International Bodies: Collaborate with
international organizations to align Indian IT standards and
practices with global norms, enhancing India’s reputation in the
international IT arena.
12. Industry Associations: Encourage industry associations and
forums to facilitate knowledge sharing, best practices, and
advocacy for the sector.
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imaginable product and service is available through e-commerce
transactions, including books, music, plane tickets, and financial
services such as stock investing and online banking. As such, it is
considered a very disruptive technology.
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All these function are without human intervention, which is termed as
real ‘E-Commerce’. E-Commerce is a range of online business activities
that include explaining products or service and providing a mechanism
for customers to buy those products and services from a websites or
internet and it encompasses online shopping and online purchasing.
Definition of E-commerce:
The term e-commerce (Electronic Commerce) refers to all types of
business operations and transactions that are executed through Internet
and other electronic technologies.
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According to P.T. Joseph: "E-Commerce comprises core business
processes of buying and selling, goods, services and information over the
internet".
Types of E-Commerce:
Much of the world's business today is carried out over digital networks
that connect people and companies. Several types of e-commerce models
are in use today. The major online marketing domains are given below:
1) B2C (Business to Consumer): In B2C model of e-commerce,
businesses sell products and services to individual consumers directly. All
the products and services are offered online through electronic channels
in e-commerce which supplements the traditional commerce. Internet acts
as an electronic channel.
E-Commerce Examples: www.flipkart.com, www.infibeam.com,
www.amazon.in, www.homeshop18.com are websites that comes under
this category. Through these websites individual can purchase clothes,
mobiles and electronic products etc.
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Some of advantages of this model are as follows:
i) Provides better way to deal with suppliers
ii) Provides customer service centres that are physically located
iii) Provides opportunity to return purchase item
iv) Eliminates middlemen
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For example: when a customer writes reviews for new product or gives a
useful idea for new product development then he/she is creating value for
the company if the company adopts the review or idea. Company can
facilitate C2B model by setting discussions forums on their websites.
For example: the websites such as www.mobshop.com,
www.pazaryerim.com and www.priceline.com are organizers of C2B
transactions.
Features of E-Commerce:
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4) Interactivity: E-commerce technologies permits two-way
communication between customer and sellers which makes it interactive.
It proves as significant feature of e-commerce technology over the
commercial traditional technologies of the 20th century.
Advantages of E-commerce:
1. Convenience: E-commerce can occur 24 hours a day, seven days a
week. Although eCommerce may take a lot of work, it is still
possible to generate sales as you sleep or earn revenue while you
are away from your store.
2. Increased Selection: Many stores offer a wider array of products
online than they carry in their brick-and-mortar counterparts. And
many stores that solely exist online may offer consumers exclusive
inventory that is unavailable elsewhere.
3. Potentially Lower Start-up Cost: E-commerce companies may
require a warehouse or manufacturing site, but they usually don't
need a physical storefront. The cost to operate digitally is often less
expensive than needing to pay rent, insurance, building
maintenance, and property taxes.
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4. International Sales: As long as an e-commerce store can ship to
the customer, an e-commerce company can sell to anyone in the
world and isn't limited by physical geography.
5. Easier to Retarget Customers: As customers browse a digital
storefront, it is easier to entice their attention towards placed
advertisements, directed marketing campaigns, or pop-ups
specifically aimed at a purpose.
Disadvantages of E-commerce:
1. Limited Customer Service: If you shop online for a computer,
you cannot simply ask an employee to demonstrate a particular
model's features in person. And although some websites let you
chat online with a staff member, this is not a typical practice.
2. Lack of Instant Gratification: When you buy an item online, you
must wait for it to be shipped to your home or office. However, e-
tailers like Amazon make the waiting game a little bit less painful
by offering same-day delivery as a premium option for select
products.
3. Inability to Touch Products: Online images do not necessarily
convey the whole story about an item, and so e-commerce
purchases can be unsatisfying when the products received do not
match consumer expectations. Case in point: an item of clothing
may be made from shoddier fabric than its online image indicates.
4. Reliance on Technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken
down for any reason, your business is effectively closed until the e-
commerce storefront is back.
5. Higher Competition: Although the low barrier to entry regarding
low cost is an advantage, this means other competitors can easily
enter the market. E-commerce companies must have mindful
marketing strategies and remain diligent on SEO optimization to
ensure they maintain a digital presence.
Scope in E-Commerce:
1. Exchange of digitized information: The digitized information
exchange can represent communications between two parties,
coordination of the flow of goods and service, or transmission of
electronic orders. These exchange can be between organizations or
individuals.
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2.Technology-enabled: E-Commerce is about technology-enabled
transactions. Web browsers are perhaps the best Know of these
technology-enabled customer interfaces. However, other interfaces
including automated teller machines (ATMs) also fall in the general
category of e-commerce. Business once managed transactions with
customers and markets strictly through human interaction; In e-
commerce, such transitions can be managed using technology.
E-Marketing:
Types of E-Marketing:
E-marketing can be broken down into eight main categories:
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2. Pay-Per-Click (PPC): Pay-per-click advertising is a digital method
where an advertiser pays a publisher every time the ad is clicked. What
differentiates pay-per-click from SEO is that you have to pay for the
results.
Ensure that every piece of content you publish serves a distinct purpose
or solves a specific problem for your social media marketing efforts to be
effective.
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4. Content Marketing: Content marketing is a type of e-marketing that
focuses on creating, publishing, and distributing content for an online
targeted audience.
Sending out mass emails that “fit all” to your contacts is easy but no
longer effective. Modern email marketing focuses on consent,
segmentation, and personalization. It can build a community around the
brand through a well-designed email marketing strategy.
Mobile marketing can help drive brand value and demand for your
products or services by connecting with more consumers in real time at
any point in the customer lifecycle.
It doesn’t necessarily need to reach out to the influencer with the largest
following. It can actually be more beneficial to find an influencer within
the niche with a high engagement rate.
Features of E-marketing:
2. Tangible ROI: Small business owners can now check the turnover
rate with the help of Keep. It explores numerous things like views
of videos, the number of emails opened, and per click on the link.
Most importantly, it notifies that how much sales the business has
made due to e-marketing.
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3. 24/7 Approach: It works 24 hours a day, seven days a week, and
365 days a year. Whether its homesick, sleeping, or attending
casual meetings, it doesn’t matter, but e-marketing is always hard
at work.
Advantages of E-marketing:
3. Less Risky: What does one have to lose when your cost is zero,
and the instant rate is high? No risk at all.
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Disadvantages of E-marketing:
3. Privacy & Security Issues: Privacy and security issues are very
high because your information is open to everyone; therefore, one
has to be very careful about what goes online.
With increased accuracy and speed of data transfer, businesses can access
important customer information more quickly and accurately than ever
before.
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EDI transactions consist of both hardware and software components that
are used to send messages between computers. The most common form
of EDI is based on standard documents such as purchase orders, invoices,
and shipping notifications.
The use of EDI standards helps ensure the security and reliability of data
exchanges across different systems, networks, and eCommerce platforms.
Additionally, these standards provide a framework for establishing
uniform practices for exchanging information within an organization or
between business partners.
EDI formats also define how data elements within messages must be
organized, formatted, and validated.
The EDI process involves sending electronic messages from one system
to another via an EDI network. An EDI network acts as an intermediary
between business partners and provides them with secure links for
exchanging data.
After the message has been sent, it must be processed by each trading
partner’s system before it can be used for further actions or decisions.
Once the message has been processed, both parties can take appropriate
action based on the information contained in the message.
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5. Improved Order Fulfilment: EDI automates the exchange of
order data between business partners, reducing processing times
and improving accuracy, leading to faster and more accurate order
fulfilment.
6. Cost Savings: EDI eliminates the need for manual processing of
paper-based documents, reducing labour costs and improving
efficiency, leading to cost savings and improved profitability.
7. Competitive Advantage: The use of EDI in eCommerce can
provide a competitive advantage by improving operational
efficiency and enhancing the customer experience.
Challenges of EDI:
Initial Setup: Setting up an EDI system may require a significant
financial investment for software purchase and implementation, which
can be prohibitive for smaller companies.
Maintenance: An EDI system needs regular maintenance and updates
to keep up with changing technologies, which adds to the cost burden.
Training: Employees need to be trained on how to use an EDI system,
which may require significant time and resources.
Software Incompatibility: Different organizations may have different
versions of software or standards that can cause data entry errors if
they do not match exactly.
Human Error: Manual data entry is more prone to mistakes than
automated processes. Also, employees need to understand the rules of
data entry in order for it to be accurate and successful.
Technology Failure: If there is a technology failure, such as a power
outage or server crash, any data that has not been backed up or saved
could be lost.
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Increased Accuracy: Automation reduces errors due to manual
inputting of data into various systems which results in fewer
discrepancies between parties involved in transactions.
Reduced Cost: Reducing time spent manually entering data saves on
labour costs associated with manual processes. Additionally,
automating document transmissions eliminates printing costs
associated with physical documents.
Reduced Risk: Automating data transfers increases accuracy while
reducing errors associated with manual entry of data across multiple
systems which reduces risk for all involved parties.
Types of EDI:
EDI can happen in various ways depending on the business use case and
the parties exchanging the information (usually financial data and related
documents).
Internet Commerce:
Internet Commerce is the use of the Internet for all phases of creating and
completing business transactions. Various surveys suggest that the
amount of business conducted online will increase ten-fold over the next
few years, from around $500 million in 1996 to over $6 billion in 2000.
However, this still represents less than 10 per cent of the business
conducted by mail order.
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In our view too much focus of electronic commerce to date has been put
on carrying out the final transactional phases - the ordering and payment.
While such a perspective is all right when there are established supply
chains for regular and routine purposes, this overlooks the wider
perspective. It is often said, that the formal placement of an order is
preceded by as many as 30 previous information exchanges. Thus, in its
broadest sense we view Internet Commerce as also including:
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Opportunities and Benefits:
Those who trade via the Internet cite the following benefits:
They define:
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processes keywords and help you to get precise effect over search
and into sales too.
• Content management system: It is the system which makes your
website unique in searches across the global markets. This is one of
the features which highly impact over the website as speed key to
efficiency.
• Multi-channel functionality: In current retail market and
environment, it is highly considered that the business is spread all
across global and though it is possible to get done through
managing products, listing and orders in a multi-channel
environment.
• Mobile supported E-Commerce: The fact is that everyone is
looking forward to have easy browsing on mobile than to go for
getting an efficacious platform, which will surely help to grow user
and customer’s attraction.
• Third party system and plug-ins: It must have ability to use the
third party plug-ins which is meant to provide adaptability,
customization and innovation. These features can be used while
developing a website and though some may not be the part of the
standard package.
• Business intelligence: When it comes to managing the data, it is
mandatory to get precise and accurate details over the data. The
tempo should be maintained while managing the data, business
intelligence helps to get that done on the website because only
through the tempo and flow, will be able to analyses the depth of
transactions and then take advantages of the opportunities that
comes up.
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To sell and buy the goods and services we have to develop a system that
helps the seller to connect with customers or customers can connect with
multiple sellers. For this, we developed different E-Commerce
architectures. E-commerce architectures have evolved from simple
client-server models to sophisticated multi-tier architectures in order to
support the massive growth in online transactions and demands for
scalability. The separation of concerns between presentation, business
logic and data tiers enables E-commerce platforms to be highly robust,
secure and extensible.Key architectural patterns like service-oriented
architecture (SOA), microservices and the use of cloud computing have
further increased flexibility and scalability of modern E-commerce
platforms. Companies can now quickly provision or deprovision
computing resources from the cloud to handle changes in traffic.
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Two-Tier Architecture
The two-tier architecture have consist of mainly two components:
1. Client layer: It consists of the web browser, mobile application, or the
other UI that user interacts with.This front-end client makes requests
to the server.
2. Server layer: It handels both the application logic and data
storage/management.This single back-end server acts as a both the
application server and the database server.
Advantages:
It is simple to develop and deploy
The client only communicates with one backend system
All data logic and validation is handled on the server
Disadvantages:
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The server has to handle client requests, business logic and data
storage. This can result in performance bottlenecks.
Scalability is limited since it is not easy to scale client and data tiers
independently.
Less flexibility since presentation and data logic are coupled on the
server side.
Three-Tier Architecture
The three-tier architecture is best architecture to develop a good E-
commerce site. In three-tier architecture we seprates database and server
that eliminate the problems we found in two-tier architecture. Three-tier
architecture separates the presentation(UI), business logic and data
storage layer into three distinct tiers.
Client tier: Client tier is frontend layer consisting of components like
a web browser, mobile application or other interfaces. This layer sends
the users request and displays the response of server.
Middel tier: This application server layer handles all the business
logic and computational tasks. It receives requests from the client,
communicates with the database to get or update data,performs
calculations and other application specific tasks, and passes results
back to the client.
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Data tier: This backend layer consists of the database servers that
store and manage data. It can be a relational database like Oracle or a
NoSQL database like MongoDB. The application server uses
protocols like JDBC, ODBC to interact with this database tier.
Advantages:
Separation of concerns between tiers makes application modular,
flexible and easier to maintain.
Each tier can scale independently to handle increasing loads.
Web server can connect to multiple app servers, which in turn can
connect to multiple database servers, allowing high scalability.
Supports redundancy and failover capabilities for high availability.
Disadvantages:
It can introduce complexity into a project. Managing three separate
layers (presentation, application, and data) can be challenging,
especially for small-scale applications, and it might lead to increased
development and maintenance costs
The additional layers can introduce performance overhead. Each
request or transaction has to pass through the different tiers, which can
slow down the system, particularly if there’s a lot of data to be
transferred between layers
Scaling can be more challenging in a three-tier architecture. While it’s
possible to scale each layer independently, it often requires significant
effort and resources to ensure that the system scales seamlessly
Communication between layers can introduce latency in the system.
When requests and responses need to traverse multiple layers, it can
result in slower response times
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The web server tier handles HTTP requests from clients:
Web servers like Apache, Nginx serve the website pages and assets.
Application servers like Tomcat, JBoss host the backend application
logic.
Reverse proxy servers provide security, load balancing, and caching.
Application Tier
This middleware tier implements the core business logic:
Components for catalog management, order processing, inventory
management.
Application middleware and services.
Authentication, authorization and accounting systems.
Database Tier
This back-end tier stores and manages all data:
Relational databases like MySQL, Oracle, and SQL Server.
NoSQL databases like MongoDB for big data storage.
Caching systems like Redis and Memcached.
Data analytics systems.
Advantages of E-Commerce Architecture
Scalability: The architecture allows each component like web servers,
app servers and databases to scale up or out independently to handle
increasing traffic and load.
Availability: E-commerce architectures often incorporate redundancy
and failover to ensure high uptime. For example, multiple web servers
can be provisioned behind a load balancer for redundancy.
Performance: Caching mechanisms like Redis and CDNs help boost
performance by reducing load on the databases. Asynchronous
processing and message queues also improve response times.
Security: Firewalls, SSL encryption, access control and other security
mechanisms can be incorporated in the architecture. Segregation of
components also limits damage in case of breaches.
Maintainability: Modular tiers and well-defined interfaces between
components allow easier maintenance and upgrades. Individual tiers
can be modified without affecting others.
Flexibility: Components can be provisioned and scaled dynamically
to account for traffic fluctuations. Cloud infrastructure provides
flexibility to spin resources up and down.
Cost efficiency: Scalable architecture implemented on cloud
infrastructure allows paying only for required resources reducing
overall costs.
Reliability: The architecture can incorporate redundancies and
failover to deliver reliable services with minimal downtime.
Compliance: Architecture can be designed to comply with regulations
related to data security, privacy etc.
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Applications of E-Commerce Architecture
Online retail: E-commerce architectures are most commonly used to
build online retail stores and shopping websites like Amazon,
Walmart, eBay etc.
Travel portals: Airlines, hotels, car rentals, and travel aggregators
like Expedia use E-commerce architectures for their booking
platforms.
Food delivery: Food ordering and delivery platforms like Grubhub,
Seamless leverage these architectures.
Media streaming: Netflix, Hulu and other video/music streaming
applications are built using E-commerce architectures.
Marketplaces: Architectures power multi-vendor marketplaces like
Etsy, Craigslist.
On-demand services: Uber, Lyft, UrbanClap and other on-demand
platforms use these architectures.
Crowdfunding: Crowdfunding sites like Kickstarter and GoFundMe
are also built on similar models.
SaaS delivery: SaaS services leverage E-commerce architectures with
payment gateways integrated to support subscription billing.
Gaming: In-app purchases in games rely on E-commerce flows in the
game’s architecture.
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2. Understanding the roles of buyers and sellers.
3. Analyzing the requirements of buyers and sellers.
4. Resolving the issues in Web-based E-commerce.
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Roles of a seller: On the other side of Web-based E-commerce, the
sellers also have many roles on the basis of the responsibility assigned to
the person in the company. The most important business roles are as
follows:
a. Business manager: They are responsible for all the business
approaches such as deciding on-line products and services,
determining pricing and establishing business relationships. The
success of on-line business mostly depends on this role.
b. Internet commerce architect and the systems analyst: They create
and manage the contents of the transaction process, the technical
needs of the
buyer and all the outer business requirements into a system design.
c. Content designer: They are concerned about the look and feel of
the Web-based E-commerce system such as graphic designs, page
layout and user experience.
d. Content author: They work within the design of the content
designer by creating and adapting the product information to a
form.
e. Implementer: An implementer implements the software and the
program, which are used to work with the Web-based E-commerce
system.
f. Database administrator: They are responsible for maintaining the
correctness, consistency and integrity of data stored in t database.
g. Sales and marketing team: They focus on all the efforts to promote
Inter-net-based E-commerce.
h. Buyer service representative: Buyer service representatives handle
all the buyer dealings.
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about the transactions. A payment gateway is the computer system that
controls the financial networks—for example, authorization and
settlement of credit cards used by the buyers.
Requirements of a buyer: The Web-based E-commerce architecture is
influenced by the structure and presentation of the Website and the
facilities provided by the Web browsers that are commonly used by
buyers to deal with sellers. Client wallets are used for different payment
methods—such as cash and E-payment—by keeping track of the
transactions. These payment methods require additional processing such
as cryptographic operations. This application is used by only a few
buyers, so they are irrelevant for most of the Web-based E-commerce
systems. Some buyers use third-party systems such as server-side wallets
that are Websites used for buyer payment credential registration for the
sellers without using special client software.
Requirements of a seller: In a Web-based E-commerce architecture, the
seller is involved in all the stages of E-commerce sales life cycle. Two
things are common for every Web- based E-commerce architecture: one,
creative presentation of products and two, payment service. Some of the
seller requirements are stated as follows:
• Content management system is responsible for the creation and
management of dynamic updated contents of the Website and the whole
Web presentation.
• Transaction processing system is used to track the transaction
information such as item, buyer, cost of item, type of the payment and
status of the service.
• Payment processors control the money movement. For example, in the
credit card payment system, the seller connects to a credit card processor
for the authorization.
• Fulfillment systems are used to handle the packing and the shipping
orders of the deliverable products.
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1. Security issues
2. General issues
3. Legal issues
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