Electronic Commerce (E-Commerce) – Part 3

Electronic Commerce (E-Commerce) – Part 3

Electronic Commerce (E-Commerce)

Most browsers characterized by a padlock and protected sites. Today, it is certainly the most used, because it is supported by most browsers (Mozilla Firefox, Internet Explorer, Safari, Opera,…) and does not require any special software or password. Pages protected by this protocol are easily recognizable, as the inscription “https” before the address of the protected site and its pages are marked with a padlock displayed at the bottom of your browser.

* Secure Electronic Transaction (SET). This protocol is a collaboration of Visa and MasterCard in order to make transactions more secure online payment, ensuring greater privacy and authenticity of data.

To use this protocol it is necessary that the seller has some software on its servers and PCs that the buyer holds a wallet and a PIN was issued by the company that issued your credit card.

The big news of the SET protocol is the authentication system of the seller and the buyer: the “contractors” have, namely, the ability to identify with certainty before any transaction begins. This is done through the use of digital certificates that are issued to both parties from their bank.

In this way, the buyer can verify the identity of the seller, thereby acquiring greater assurance about the goods or services they receive and the seller can in turn verify the identity of the buyer, acquiring more guarantees about the payment.

In order, therefore, e-commerce can develop is that users (the buyer on the one hand, the seller on the other) to perform their transactions in peace, without fear of external interference. In this sense, takes on great importance with the “user authentication”. Generally, this procedure is done through the request from the server a username which is associated with a password.

However, it was demonstrated that this system can not be considered completely safe, as the time of detection of the password by third parties are increasingly smaller. For this reason, this is increasingly being recommended to the user change their password periodically. This is predominantly for home banking systems, which require their users must change their password with a fixed basis or which makes use of a password “throwaway” (one-time password) that is replaced each time you log onto service.

Although the rules regarding e-commerce are particularly aimed at protecting consumers, we must not forget the equal rights of the Seller to operate in the online marketplace so serene. One of the main issues affecting the person who decides to offer a good or service online is definitely non-repudiation by the buyer. In this direction by the use of digital signature that makes a digitally signed contract can not be disregarded by those who have subscribed.

Initially, the transfer of data between the e-commerce and the customer was done in the clear. This was a possible safety issue, especially when there was a payment by credit card. With the advent of the Secure Socket Layer this risk was reduced, but then other problems emerged as the emergence of phishing and Trojan viruses that try to steal information used for sinister purposes.

With the spread of e-commerce have spread ever more insidious scams that mainly affect buyers. The main cases are:

* Sales of products from sites: Once the payment is not sent the goods, or is only simulated shipping. Problem also exists on eBay with listings scam.

* Construction sites cloned with the purpose of stealing information such as the code of the credit card.

* Companies that accumulate bankruptcy orders, and income, with no possibility of escape.

Italian law requires that all e-commerce sites on the home page bring back the VAT and the name of the company. The most important sites of e-commerce have a digital certificate that verifies the authenticity of the site visited.

The main problem from the point of view of companies is the order management simulation, where they are false or incorrect specification of the dispatch. To reduce the problem, many companies only accept advance payments.

The security problem also relates to the technology used for access to e-commerce. The phone is half unsafe to navigate the sites of e-commerce, and to make payments in kind.

Some types of products or services are best suited to online sales, while others are more suited to conventional trade. The electronic businesses that have achieved the best performance, whilst being entirely virtual entity (without physically opening of shops) usually sell goods such as computer storage media, data retrieval and processing them, the sale of music, films, courses and teaching materials, communication systems, software, photography and the activities of financial intermediation. Among these firms indicates an example: Schwab, Google, eBay, PayPal, Egghead, and Morpheus.

The online business is a direct alternative to the purchase of underwear, for example, at a market stall.

The on-line merchants are able to collect some success even if they also sell products and real services, not as software or digital images on-line. The non-digital products that lend themselves to being sold online may be those that create embarrassment (e.g., underwear) and / or those products that have “standard” and that need not be tested or evaluated “live” (i.e., the books).

Also spare parts for both end users (e.g., dishwashers, washing machines) and for the needs of industrial activity (e.g., centrifugal pumps) may be considered good examples of traded goods over the Internet. Since retailers do not accumulate spare parts at the point-retail, often have then ordered, in which case the competition is not between electronic commerce and traditional trade but with the order system to the supplier and / or wholesaler. A key to success in this niche is the ability to offer customers accurate and reliable on the product you need, for example listing the available spare parts along with their identification code.

Therefore it is not surprising to note that, for the characteristics of virtuality (or if tangible, high value-added) and possible embarrassment, purchases of pornography and sexual activities related to it are the sector with the highest profit margin of Electronic Commerce.

Conversely, products that are not fit for the Electronic Commerce are those with low value / weight of items that have a significant element in regard to their smell, taste or touch, the assets that need to be tested (e.g., shirts) and even if it is relevant to see it to grasp all the nuances of color.

E-Commerce Hosting

Consumers have embraced the e-commerce business model with little enthusiasm than its proponents had expected. Electronic shopping has only slowly evolved even in the categories that are suited only to the internet selling rather than the offline market selling. This is due to many reasons, including:

* Concerns about safety. Many people do not use the credit card on the Internet for fear of theft and fraud.

* The issue of access to trade online, especially for poor families and nations in the developing world. The low diffusion of internet access in these areas greatly reduces the potential for electronic commerce.

* The social aspect of shopping. Many people like to talk to the sales personnel, other customers, or their friends: the social side of the attractiveness of retail therapy there with the same amplitude in shopping on the Internet.

Study: Thanks to Wikipedia, the free encyclopedia.

Text is available under  the Creative Commons

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