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Welcome to A-level ICT
Requirements needed to set up an online shopping system.
Requirements needed to set up an online shopping system.
Many businesses use the Internet for commercial activity. Besides hardware, a company would have to put in place a number of facilities in order to turn its web site into an e-commerce operation. These are outlined below:-
Secure method of Payment - Methods of secure payment e.g. shopping trolley facility so customers have peace of mind that the website is using encryption to protect their personal details. Customers may look for the pad lock symbol in the browser and HTTPS in the URL.
Catalogue of stock for sale - Keeping stock database containing all the details prices descriptions etc of the products for sale . A catalogue of stock, stock database/table is needed so that one can immediately see if something is available or whether there will be a delay.
Database of customer orders - As a customer enters the goods he want into his shopping basket the system must store these details in a customer’s orders database. This is beneficial because if a customer has a query with their order the company will be able to quickly search the customer details to answer the query.
Track progress - Order/bid tracking / email confirmation. Some sites allow you to keep track of the progress of your order and/or send you email confirmation. Examples include confirming product has been dispatched, estimated delivery date etc.
Maintenance - Maintaining a company web site and keeping prices etc up to date, advising on out of stock products. / need for trained staff.
REASONS WHY COMPANIES HAVE E-COMMERCE
• They can advertise. It enables people to find out what they do and what they sell. A newspaper advertisement will need to be sized to fit into the space
available and has to use text and pictures to attract the reader. The Internet advertisement could include animation and/or sound to attract the reader.
• People can email them with enquiries; orders; requests.
• They can reach an international audience.
• Technology has advanced and now made a lot more possible. Smaller businesses will find it hard to compete unless they take on board these technology changes.
SERVICES AVAILABLE
• Companies can advertise goods and services only
• Companies sell goods and services e.g. Tesco home shopping, buying music, flowers, e-books, making customised t-shirts
• Subscription services which sell information e.g. MetOffice weather data, research papers, legal cases database
• Interactive sites which encourage feedback on products
• Online learning courses e.g. Open University
• Auction sites such as Ebay
E-Commerce Customer Advantages
E-Commerce Customer Advantages
It enables people to find out what they do and what they sell / searches.
There is no travelling – it can be done from home so saving time delivered to the door.
Allows disabled people to do more shopping.
Can find obscure goods not available locally / some goods only available online.
Much quicker to do a price comparison.
See other customer reviews.
Order tracking.
Avoid wasting time in queues (must be qualified) e.g. at peak/sales time.
Can be done 24/7*.
E-Commerce Company Advantages/Benefits
E-Commerce Company Advantages/Benefits
Can sell 24/7 (but not if given as an advantage for customers)*.
People can email them with enquiries, orders, requests.
Technology has advanced and now made a lot more possible.
Wider customer base / can reach an international audience.
More efficient customer targeting.
Can target sales because you can see rivals prices on their website and alter your prices#.
E-Commerce Drawbacks
E-Commerce Drawbacks
Competitors can see your prices and target your company#.
Credit card fraud.
Fake websites - goods do not exist.
Copycat websites to extract bank account info.
Fewer shops on the High Street NOT less staff needed.
Lack of social interaction.
Increase in delivery vans (but please note do not accept having to rely on delivery companies or any issues with delivery lorries other than environmental ones).
Need to maintain more secure network.
Need for trained staff.
Can’t fully assess the quality of the goods / can’t try it on.
Hidden charges (if qualified) e.g. import duty on goods being bought from abroad.
E-Commerce - Other Effects
E-Commerce - Other Effects
Security issues e.g. hackers stealing bank account details
NOT problem with sending goods back
NOT problems with delivery companies
NOT lose/have no internet connection
VALIDATION/VERIFICATION PROCEDURES
Many bank customers have online bank accounts. Customers can complete online forms to pay bills and transfer money between their accounts using the Internet. Verification or validation procedures are used to reduce data entry errors.
VALIDATION Procedures (Bank).
Range checks;
presence checks;
check digits;
format checks;
input masks etc
VERIFICATION Procedures (Customer)
Read data in forms carefully before submitting e.g. when purchasing online
Double entry keying e.g. when creating passwords for accounts
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