Introduction to e-commerce. Benefits, risks and legislation.

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Introduction to e-commerce


What is an internet?

Internet is a global connection of computer networks communicating with each other to exchange data and share information in range of forms. The internet is a system to connect easily through PC and local phone numbers. Internet allows users to exchange email between each other via Hotmail or other internet account.

Different technologies that is required for an e-commerce system:

Networking (e.g. TCP/IP)

  • TCP/IP: It is the network protocol used for connecting on computer to another. Also used for routing information across the internet.
  • POP3 and SMTP servers: These are used for exchanging emails. If your SMTP server is down then everyone who is sending you email will receive an error, declaring that your mail server is down and cannot receive incoming email. This error could leave bad impression on customers. If your POP3 server is down, you will be unable to retrieve email from your mailbox. Only external monitoring will prevent such a problem.
  • Internet connections: It is important to make sure that your connection achieves good performance for each user. Different users access your network from multiple backbones, depending on the company they use to connect to the Internet and their location. A remote monitoring service can ping your networks from multiple locations around the world, accordingly testing major routes to your web server or network.
  • DNS servers: DNS servers are used to translate your site name, for eg-www.myspace.com, to the numbers called "IP addresses" that computers understand. If DNS servers are not working properly, then end-users will not be able to find your site and will get an error. Usually only an external or remote monitoring service will detect such a problem.
  • Hardware ( e.g Web Servers): A  web server  with appropriate software is solution to successful e-commerce. The total storage space and electronic power required for the Web server depends on two things mainly, which are: the software that must run on the server and the volume of e-commerce transactions that must be processed. Hardware devices  and how they support e-commerce business:

- Mobile devices: It gives the ability to manage commerce using a mobile device, such as a mobile phone, a Personal Digital Assistant (PDA) and a smartphone. Mobile devices have become a part of ecommerce since new applications have been introduced. For eg- Now, anyone can shop and order online via mobile as well. It allows you to open browser from a mobile device.

-  Computers: Computers has the largest impact on ecommerce because when users want to shop online then they need a computer to view products. Computers support ecommerce business by giving the ability for users to shop online, moreover users can check the product they like if it is not available in store. You can make online payments and transactions via online. Also, banks such as HSBC, Barclays provide internet banking where users can check their balance online instead of having to go outside.

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- Printers: Printers allow users to print images they like from the internet. It is also used to provide receipt for customers after transaction.

- Ipads: Ipads has all the facilities that the users need. Such as, they can shop online from ipads too as it has internet browser in it. They can use social websites and connect with everyone globally as well as it supports Skype and face time to make a video call. Ipads are lightweight therefore easy to carry around anywhere.  

- QR Readers: QR Readers are a barcode scanner to scan barcodes on products, check prices via ...

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