KEY CONCEPTS FOR E-COMMERCE

KEY CONCEPTS FOR E-COMMERCE

Before get into the detail of e-commerce business and site development, it’s important that you understand some of the lingo.

COMMERCE

Commerce is the exchange of goods and services for money. This definition of commerce holds true for any type of commerce as well as any type of money. The following three key capabilities need to be provided by a merchant in any type of commerce.

·         COMMUNICATION: This is the method of transferring information from the buyer to the seller. For example when a shopper makes a purchase from a real world bookstore the shopper presents the books he or she wishes to buy and a method of payment such as cash, check or a credit card.

·         DATE MANAGEMENT: This dictates the exchange format of the information. In the case of check your account number is preprinted on the check. When it’s processed by the business bank the business uses the number to request the funds from your bank. With a credit card the transaction is more immediate. Your credit card number is submitted for approval over a private digital network (PDN) and an almost instant response is received.

·         SECURITY: The private digital network provides the necessary security for the transaction. You are also given the customer copy of your receipt and any other duplicates thus providing security for your credit card information. The cashier provides security for check purchase by storing the check in a secure area of the register until it’s taken to the back office to be processed.