Table of Contents
Definition and types of E-commerce
E-commerce payment systems
Importance of E-commerce in modern business
E-Commerce refers to the buying and selling of products and services over electronic systems like the internet and other computer networks. This system depends on technologies like electronic funds transfer, supply chain management, internet marketing, online transactions, electronic data interchange and automated data collection systems.
E-commerce is divided into three major categories which include; Consumer to consumer: electronic commerce which involves consumers selling directly to consumers. Like eBay (the giant web auction site) which allows people to sell their goods to other consumers by auctioning the products off to the highest bidder.
Business to consumer: electronic commerce involves retailing products and services to individual shoppers. Like Noble.com which sells books, software and music to individual consumers.
Business to business: electronic commerce refers to the selling of goods and services among businesses. For example, Milpro.com (web site) for selling cutting tools and grinding wheels to small businesses.
There are various ways through which electronic commerce payments are made and these include; Credit cards are a bank issued card that allows people to purchase goods or services from a merchant on credit. This type of system is commonly used in the USA and UK where 95 percent of the population uses online payments. A digital wallet is a soft ware application, usually for smart phones that serve as an electronic version of a physical wallet. This type of payment securely stores credit card and the owners’ identification information which also provides the information at the electronic commerce site’s checkout counters.
Digital credit card payment systems are those equipped with miniature computer...
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