eCommerce

**1. Explain how eCommerce systems work. (Identify the IT systems involved)**
E-commerce combines 3 different systems - A web server that can manage an online storefront and process transactions (making appropriate links to bank computers to check out people's credit card details)

- A database system that can keep a check of the items the store has in stock (constantly updating as people make orders and ideally making new orders with suppliers when stocks run low),

- A dispatch system linked to a warehouse where the goods can be instantly located and sent to the buyer as quickly as possible. Only the first of these three systems is strictly necessary for e-commerce.

**How the payment works.**
1. A consumer places a bid with the Merchant, also known as an e-tailer or retailer.

2. In this case, Authorize.Net detects that an order has been placed and securely encrypts and forwards the Authorization request to the user's credit card issue bank to verify that the credit card is legitimate and to check funds availability.

3. The Authorization response is returned via Authorize.Net to the Merchant which then holds on to the information.

4. Then, when approved, the Merchant fulfills the consumer's order.

5. Then the transaction between consumer and Merchant occur.

**2. Which companies use eCommerce systems?**
Atos Origin - an International Information Technology Services provider. They provide integrated design, build and operate solutions to large multi-national clients in carefully targeted industry sectors.

Elastic Path - provides a flexible Java-based ecommerce platform for enterprises.

Red Hat - is the World's most trusted provider of Linux and open source Technology.

SafeNet, Inc. - has more than 25 years of experience protecting critical data through remote access client software and authentication solutions that eliminate costs with easy-to-forget user names and passwords.

SAP AG - SAP's vision is for companies of all sizes to become best-run businesses. Best-run businesses transform rigid value chains into dynamic business networks of customers, partners, and suppliers.

Tripwire, Inc - is the recognized leader of configuration audit and control solutions, serving over 6,000 enterprises worldwide.

SyberWorks, Inc. - specializes in custom e-Learning solutions, web-based learning management systems, and custom e-Learning development for corporations, governments, and non-profit institutions.

**3. Describe various ecommerce models – B2B. B2C, B2E, C2C etc**
B2B - (Business-to-business), e-commerce is conducted between two separate businesses and has been in affect for many years.

B2C (business-to-consumer) e-commerce is conducted between a business and a retail consumer. B2C e-commerce is still relatively new and is gaining more prominence everyday. later.

Business-to-employee (B2E) with intrabusiness networks, ecommerce allows companies to provide products and/or services to their employees. Typically, companies use B2E networks to automate employee-related corporate processes.

Consumer-to-consumer (C2C) (or citizen-to-citizen) this involves electronically-facilitated transactions between consumers through some third party. Which usually tends to be an online auction. Take Ebay as an example. This is where a consumer posts up an item they would like to sell, and another consumer bids a specific amount of money they are willing to spend in order to purchase the item.

**4. What are the advantages of using eCommerce systems for:**
1. Customers - for the customers there are no check out queues, and the prices are also reduced. There is also a range of different things one can find on the web and it is literally shopping from anywhere in the world 24 hours a day, 7 days a week. 2. Businesses - for businesses, eCommerce helps increase their market share and enables them to access international markets and allows them to achieve greater economies of scale, and after they paid off their main costs, they will be able to increase their productivity.

5. Discuss two social issues which arise from the use of ecommerce.
One social issue which could arise from the use of ecommerce would be Privacy and Anonymity. One must always be careful of online shopping for you are entering your personal contact information and credit card numbers which could lead to credit card theft. On the Internet, Credit Card theft is very famous so one must always be well informed about scarewares and other traps before the enter any personal information.

Also Security plays a major role, especially for those who host these ecommerce sites. It is the consumers which trust them to such an extent that they are willing to enter classified data on their websites. Once these consumers actually end up finding out that the security level of their site is not as high as expected, this could result to heavy complaints and issues. Also, this could also be bad for the consumers which could end up having money being stolen from them due to credit card theft, so it is the responsibility of the hosts to ensure that the site is secure and safe and the responsibility of the consumers to be well educated about internet theft and to be aware of what they are getting into before using ecommerce sites.