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Chapter 15: The elements of e-Commerce

Search Company Customer P e r f o r m a n c e E a s e o f U s e Product Negotiation Order Payment Delivery After-sales Community A e s t h e t I c E f f e c t

I n n o v a t i o n

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Elements
 The basic eleme ts:  e-Sho o a Server  User (customer) with a web Browser  I ter et co ectio  dditio al issues:  Visibility  Ease of Use  rder rocessi  li e ayme ts  Security  Delivery Systems  fter-Sales
E-Commerce David Whiteley/McGraw-Hill, 2000

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E-Commerce David Whiteley/McGraw-Hill, 2000

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Elements
Customer Search Browser Delivery After Sales Internet Orders Payment Store Systems e-Shop

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e-Visibility
 Getti visiti

the site oticed a d the o li e customers the store.

 Ways of advertisi a web rese ce a d etti customers i throu h the door i clude:  Site ame  Co ve tio al dvertisi  ortals  Malls  Search Engines  Links  ersonal Recommendations
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e-Visibility site name

 The surest way of finding a site is the url.  If the url is memorable then the site is made:  amazon.com 

sensible sim le site name can be guessed by users:  britishairways.com

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e-Visibility conventional advertising

 An irony of e-Commerce sites is the a arent urge to advertise them through conventional media.  Conventional advertising of Internet addresses has a threefold effect:  It boosts the image of the organisation it gives an air of modernity and high-tech;  It lets the customer know that the organisation has Internet facilities;  It can give users access via the url.

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e-Visibility portals
 The first age a user sees is the ortal.  An advert on a o ular ortal is the web equivalent of a TV advert at half time in the cu final or in a break during the Su erbowl it is seen by millions.  An advert on a o ular web search engine is a similar iece of ro erty.  Adverts on the ortal can be:  Banners  Little boxes  Menu of services

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e-Visibility malls
 An Internet sho ing mall models itself on the American sho ing mall, a lot of sho s, under one roof with a leasant sho ing atmos here.  The intention is to generate interest and thus trade for all the sho s.  An Internet mall can rovide common services. include:  Shared advertising.  Common facilities.  e-Cash.  Common customer files. ossibilities

 The drawback of joining a mall is that, as for any good retail location, the rents can be high.
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e-Visibility search engines

 A search engine is a standard way to find any Internet site and that includes e-Sho s.  Finding a s ecific e-Commerce site may or may not be easy - a successful e-Sho could do with a earing in that to ten list of hits.  The search engines index the web by:  Manual indexing;  Automatic Indexing (web crawlers).  Crawlers look at:  The <TITLE> tag is a rime target.  The <META> is also checked and many other as ects of the site and its use,  Also one can ask the search engine to list the site.  ote, the best of the search engines list only about 15% of internet sites.
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e-Visibility links
 Online adverts on the web are also links to the site hy ertext links.  Links are included on a variety of other sites with a variety of deals being done.

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e-Visibility personal recommendations

 Satisfied customers will bookmark the site, come back to the site again and recommend it to their friends ossibly the best way of getting business.

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 The full service e-Store needs: an extensive range of facilities; these include:  Com any information  Customer registration electronic  Dynamic web ages commerce  Site indexes and search facilities strategy  Online order entry and ayment systems technologies  So histicated security rotection systems and  After sales service and su ort applications  Feedback systems
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The e-Shop
 e-Sho s come in all sha es and sizes. They range from:  A few sim le web ages for a local craftsman  Com lex sites offering services that include online ordering and ayment

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The e-Shop online information

 Trust is an issue on the Internet and it is not an issue that is likely to go away.  Trust can be engendered by:  Brand name and trading record.  A site that gives a rofessional image.  The inclusion of com any information.  All of this does not rove that a site is genuine but it can reassure otential customers.

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The e-Shop customer registration

 e-Commerce customers have to give their su liers details about themselves. It is less information than would be required to o en a bank account but more than is normally needed to buy some cornflakes.  roviding this information raises rivacy issues:  Will the information be ut to other uses?  Will the e-Vendor com ile a customer rofile?  Is the information secure?  The context in which the e-Commerce vendor asks for this information is also im ortant:  Customer registration rior to using the site  Customer details only when an order is laced.
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The e-Shop site navigation

if a site is not designed with usability in mind, people will be frustrated with the site. People that are frustrated with the site dont bookmark, dont buy, dont revisit, and wont tell other people about the site. (Rhodoes, 1999)
 Site navigation is aided by:  A site index;  A site search engine;  Logical sequencing of facilities with clear links to the next stage in any rocess.

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The e-Shop product database

 The use of a roduct database facilitates:  U dating of roducts and their attributes  Common data for e-Sho and back office  and requires the construction of the web age on the fly.  Exam les are:  The Online Booksho  The Airline Website (integrated with the airline booking system)

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The e-Shop online orders

 The most common analogy is a sho ing basket in the UK and a sho ing cart in the US.

 Tangible goods are (electronically) laced in the basket and checked-out when sho ing is com lete.  For services, such as an airline booking, the search rocess is also the sho ing rocess and the customer acce ts or rejects the resulting ro osal(s).
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Online payments
 Options for online payment are:  Credit Cards  Debit Cards  Stored Value Cards  e-Cash  Delayed ayments  ote, in a shop there is an exchange of value online it is pay now and hope that the goods arrive later.

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Online Payments credit cards

 Options for online payment:  The most common way of paying for an e-Commerce transaction is with a credit card.  The online use of credit cards is an extension of the customer not present (CNP) protocol which is intrinsically less secure than the conventional use.  Potential problems include:  Fraudulent Use of Credit Cards  Interception of Credit Card Details  Remote Storage of Credit Card Details

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Online Payments
 Debit Cards  Similar to Credit Cards but less secure.  Stored Value Cards  Not widely used fraud limited to value on card requires a card reader.  e-Cash  Suitable for small payments as yet no generally accepted scheme.  Delayed Payments  Off-line payments - limited acceptance normally delays transaction.
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Delivery of goods (e- fulfilment)

 Internet e-Commerce allows users to order what they want, when they want but then they have to wait until the postman arrives.  Delivery depends on the size, nature, urgency and value. Options include:  Post. (You can sell anything online provided it will fit through a letter box.)  Packet/parcel delivery service.  Local Delivery. (Perishable goods often require such a service.)  Collect your Own.  Electronic Delivery.  No delivery. (Intangibles such as an e-Ticket.)
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Delivery of Goods (e- fulfilment)

 For the delivery stage of the trade cycle the task of delivery is transferred from the retail customer to the vendor and the vendor generally finds it necessary to recoup those costs as delivery charges.  Delivery issues:  cost picking, posting and packaging  trust will the right goods be sent?  security does someone have to be at home to accept delivery?  Online grocery deliveries work to booked delivery slots often a day or two later.
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After Sales
 Advantages:  Online manuals and diagnostics  Online Support  Problem areas:  Return of goods

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Internet e-Commerce Security

 Security breaches can occur on:  The customer side impersonation.  The Internet hacking, etc.  The vendor side inappropriate or dishonest trade.

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Internet e-Commerce Security

The four pillars of secure e-Commerce:  Authentication:  The sender of a document must be identified precisely and without any possibility of fraud;  Confidentiality:  The contents of a message may not be scanned by unauthorised parties;  Integrity:  Changes made in messages without according remarks must be impossible;  Non-Repudiation:  The sender of a message is directly connected to the contents of the message (and the recipient cannot deny that the message was received).
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Security - encryption
 Encryption is the conversion of data into a code so that it cannot be read by unauthorised users.  The data is converted into the code by the sender and then decoded by the receiver.  Modern encryption methods use an encryption algorithm and a binary number that is the key. The main options are:  Secret key system  Public key / private key system.  Encryption should be used for transmission but also for customer data on the e-Vendors server.
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Security Secure Sockets Layer (SSL)

 The stages are:  The vendor transmits the public key (ka) to the intending customer's web browser.  The customers browser generates a secret key (kc) for the session.  The customers browser encrypts the secret key (kc), using the public key (ka) and transmits it to the vendor.  The vendor decodes the message using a private key (kb) and now has the secret key (kc).  Further interchanges between the customers browser and the vendors server can now be encoded and decoded using the secret key (kc).
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Security digital signatures

 A digital signature is used to authenticate the sender of the message and to check the integrity of the message, i.e. that it has not been altered in transit.

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Security trusted third parties

 This addresses non-repudiation a copy of the transaction is transmitted to a third party and the record of the transaction can be used to settle any disputes.

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A Web Site Evaluation Model

S C Cust P r f r f n c U s P li E s Pr uct rc p n r A s t t I c E f f c t t i n I n n

N g ti ti n Or r nt r

Aft r-s l s C
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Chapter 15 Exercise 1
 Select two categories of goods, for example groceries and books, and list the advantages and disadvantages to you of ordering these products online. The lists can be compared across a group of students and the differences analysed.

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Chapter 15 Exercise 2
 Use the Web Site Evaluation Model and the associated questions from Section 15.7 to evaluate a couple of web sites.

For this evaluation use two web sites from the same sector, possibly one of the sectors used in Exercise 1. Compare the results of the two evaluations and compute an overall score for each of the sites.

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