Ecommerce Explained

Introduction
The object of this page is to give a basic guide to selling on the Internet and some of the options you can use to sell you products and services to a world wide market.

Planning
Planning is a very important part of Ecommerce, as with any business venture. Here are three stages to consider:

• Business Requirements - Make sure you understand the market, and that you understand the business processes that you need to implement. Select a project manager and ensure that project disciplines are in place.
• Technical Requirements - Identify the technical requirements you will need to satisfy. Draw up short lists of products and services. Refine the budget.
• Selection / Procurement - Select the products and services you need to start the project. It is important to procure products and services only after the business and technical investigations have been complete.

Security Issues

Why is the Internet different?
There is a widely perceived risk attached to payments made via the Internet, and this perception is in some circumstances justified. This is not like making a phone call or sending a fax. The information sent from the customer to the Web server may pass through many different stages before being delivered. The information is in digital form, and at any stage an unauthorised individual may scan every message looking for credit card numbers (which are easily identified).

Secure Socket Layer (SSL)
It is therefore essential that traffic be scrambled (or encrypted), and the standard SSL protocol developed by Netscape provides a high level of protection. Browsers that support this technology indicate that a secure session is in progress by showing a dialog box or a blue key on the screen.

Beyond the Blue Key
Even if the customer is protected by SSL technology, it is clearly important that the information remain secure. Once stored on the Web server, and before being passed to the merchant, the information is at risk from someone breaching security on the server and examining the files. Protection from this can be provided by either encrypting the information stored on the server or using a 'firewall' to protect the information. A firewall is a device, which limits access to a server to specific types, such as 'Web traffic only'.

The further stage of sending the information to the credit card processor, and to the merchant must similarly be protected.

Selling on the Web
Most companies with an Internet presence have a straightforward marketing site. The objective of the site is to supplement traditional marketing activities, perhaps give additional information, and generally promote the company. A selling site is very much different, the objective is to close a sale electronically with payment made over the Internet. This type of site will be designed to include comprehensive product information, as visitors will be expected to make a purchasing decision based on the information presented.

Such sites generally have three sections:

1. Marketing and added value information. This is aimed at attracting customers, giving them a feel for the contents, and giving them confidence in the retailer.
2. The catalogue. Detailed information on product benefits, specifications, and pricing.
3. Order processing. This will include a method for specifying and paying for the order. More advanced systems may have a method for the customer to go back into the system to check progress and delivery of the order.

• Because you are delivering the product immediately over the Internet.
• Because you want to bypass the manual effort of keying the information into your bank terminal.
• Because you want to protect yourself from fraud. Much credit card fraud happens at the merchant. If the credit card information is handled by the computer, the chance of in-house fraud is reduced.

Ordering options
Generally speaking, there are a number of different payment services and options.

Commerce Service Providers
The most complex type of service is called a Commerce Service Provider (CSP). A CSP offers a complete shopping cart and back-office environment, which can be used by a catalogue running on their or another server. The CSP uses complex 'industry strength' software which is built into the Web site. When the customer presses the order button, all the product details are passed to the shopping cart software. What is more, they are passed in a fraud-resistant way guaranteed by security keys.

Form-based Services
If you are using a simple order form with no shopping cart then the form can possibly be handled by the gateway operation, eliminating the need for a secure server.

On-line Catalogue
The key to a good Ecommerce site is to provide an environment that makes it easy for the customer to navigate through the catalogue of products and make a purchase.

The Shopping Cart
When the catalogue is small (say less than 20 items), a simple order form will often do the job. However on larger sites the customer will flag products during this browsing session to be added to an electronic 'shopping cart'. At any point the customer can review the contents of the cart, the cost and so on. This makes it easy for the customer to browse the site selecting products as they go. When the shopping session is complete, the customer clicks on a hyperlink, which takes him or her to the checkout page. At this stage the customer is presented with a list of the goods marked for purchase, the total cost, shipping, handling, tax, etc.

Fax
Simply printing an order form and faxing it to the merchant is feasible and reasonably secure. The form can be the secure order form - simply offer this as an option in the text.

Telephone Order
Offer customers the option of calling in their order, using the order form as a prompt. Many will prefer this, and the order form will be useful in confirming product codes and prices.

Cybercash uses an 'electronic wallet' to hold credit card details and to transmit them securely using their own encryption software.

First Virtual uses a system of e-mail messages to confirm the sale.

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