E-taller have access to rater opportunities of scale and so lower running costs are maximized. This is much cheaper than retail outlet based organizations. It lends a helping hand to organizations In order to reduce the time which Is taken for delivery, the costs of labor, and the cost incurred in a number of different areas. Some examples are: document preparation, mail preparation, telephone calling, error detection and correction, recalculation, supervision expenses among others. Organizations are capable of reaching more customers.
This means that organizations are able to sell their products and services around the hole globe instead of being restricted to one particular place. Organizations are able to trade full time 2417 as they don’t have to take care of any office or a shop because It is all happening online, anytime and every time. Organizations are able to sell things much cheaper as there are no overheads e. G. No electricity bills, no gas bills etc. Organizations can also sell themselves on the benefits associated with the positive environmental benefits associated with commerce.
However there are risks associated with engaging in e-commerce. The risks of Introducing an e-commerce system These factors need to be considered before introducing an e-commerce system to an organization Lack of Trust It is a danger to the Information of the organization and Intellectual property from internal staff and trading partners. It is very risky to control how information will be there is a lot of lack of trust. Errors Errors can occur in software applications design, technical implementation or system operation due to hackers controlling and getting in to the user areas of staff.
Virus/Fraud The system might get a virus attack which can result in affecting the organization images or web images accidentally. Consequently, this will embarrassment to the business reputation and thus leave a stain on it permanently. People are able to fraud will the credit card payment and the organization could face malicious attacks internally and externally. Technical Failures The business is more open to facing technical and infrastructure failure. Thus the business could pause until the problem has a solution to the problem.
This can be a great risk as the organization is likely to lose customers until the system is back on and going. International Legislation The person who is planning to sell products and services online through an e- amerce system must be aware of the laws of the area the products are being sold. E. G. In the I-J there are specific laws relating to the kind of data the e-commerce business can store (such as customer personal details). If the business is planning to sell products internationally to different countries then it needs to ensure that it is not breaking the laws of those countries.
Different countries have their own laws so the business must be aware and be patient and consider these factors and not make haste other wise the e-commerce business could become illegal. Methods Of Promoting An E-commerce System There are at least 10 alternative ways to promote an e-commerce system. Newspapers Newspapers are an old fashioned way of promoting a business. However it is a very good way as people can explain in detail about their business. The advantages of this method are that every single person can read wherever the newspaper copies are scattered.
Moreover, people are likely to get interested in purchasing newspapers, which can result in extra profit for the business. On top of that, this way of promoting an e-commerce system is exceptionally cheap, compared to a TV, or Radio advert. On the other hand, the disadvantages of promoting using swappers nowadays have become “old school”. Plus, some people do not read, nor have a desire to read newspapers so much, and also it is difficult for the company to promote as there are a lot of pages to fill in. TV’s (Television) are another way to promote an e-commerce system.
The advantages of this are that the organization will get more access to people (I. E. Worldwide instead of local) even though the business being promoted is small. People are able to visit the website of the organization which is picked up from the TV advert. Furthermore, people are able to get contact information in order to main additional information about the business. On the other hand, the disadvantages of promoting an e-commerce business using TV’s are that the costs of advertising through TV adverts are extremely expensive and get repeated as the times the number of seconds the advert plays for.
In addition, TV adverts have a short length to advertise in and thus lacks in giving detailed information. Moreover, it is quite risky to advertise on TV’s because if the advert is not good enough, then this may result in people will not be interested. Furthermore, lots of planning is required with accuracy and perfection in order to advertise on TV’s. Email Another valuable method of promoting an e-commerce business is via Email. It gives the organization a wider and better access to the targeted audience and it is faster.
The advantages of promoting through Email is that it grabs the attention of the user very quickly because whenever an email pops up in the inbox of users, people are eager to open the new message and read. Lots of information can be typed up and given to other people (note that there are millions of users around the globe on emails). However, the disadvantages of promoting an e-commerce system through Emails are that it can be infected with virus and may also cause problems to other user accounts.
Also sometimes internet connection can drop in a certain part of the globe and as a result the email you are sending can be deprived from entering into that cotangent, country, city, or town. Plus, emails need to be clicked on in order to be read and some people might not bother reading their emails. Radio Radio, another alternative way of promoting an e-commerce system, can be done by advertising it on the radio every single day continuously in order to attract people’s attention and to put it into their minds.
The advantages of Radio are that it is a bit cheaper than the TV’s, and Cinema adverts and the message spreads advert. On the other hand, the disadvantages are that it can distract people when they are working or driving. Phone numbers of the company can be forgotten by the people and then they would not bother to wait and listen to the advert again unless they are willing to sacrifice a few hours of their time. Posters Another alternative way of promoting an e-commerce business is by Posters. It can be really attractive if the information on it is laid out and presented in a suitable way.
The advantages of having posters are that it can catch peoples’ eyes very quickly by the colors and the neat presentation it has, in other words it is really catchy. Another advantage is that posters can have quite a lot of information about the e- commerce business and so people can look it up online after looking at the posters. Furthermore, posters can give out some details about the prices and the length of time the product will be delivered. On the other hand the disadvantages of posters are that some people might be going somewhere really urgent and thus do not want to look at the posters.
Another disadvantage is that if the poster is not neat, good looking and well presented enough, and then people will not even bother looking at it. Moreover if the city or town the posters are spread out in have different posters that promote different things then the poster which is shown to the people is not going to make any difference to them, because they have already come across many posters. Forums One other way of promoting an e-commerce system is by Forums. It is a web page where the user can post messages to other users in order to spread the name of the e-commerce business.
The advantages of forums are that it can be used to advertise to a specific type of people wanted. Plus, lots of discussions can take place and other users can get more information and remove doubts and questions they have in their minds. However, the disadvantages of forums are that there are a massive number of spammed around the globe today who spam millions of messages to litter and make mess in the forum when the product is promoted. Search Engines Search Engines, another useful way to promote an e-commerce business.
This can be done on the most commonly used search engines today such as Google, Being, Yahoo, or Ask Sieves. The advantages of search engines are that it appears on almost every search result page when users type in something. Moreover the user would prefer to purchase products online, than to purchase it from shops because it is cheaper. But the disadvantage of search engines is that that sometimes the search engine fails to function properly and this may affect the chances of the e-commerce Flyers/Leaflets Flyers/Leaflets are another useful way of promoting an commerce business.
The advantages of leaflets are that it is quite cheap since it can be copied through the photocopier or printer. The cost of the amount of paper need to be considered but it is a lot cheaper than Radio and TV adverts. Leaflets can be colorful and could attract a lot of people’s attention. Moreover it is extremely neat and looks nice when it gets printed and ready to give out, which adds to the attraction of the people. On the other hand the disadvantages of leaflets are that it annoys people whenever leaflets/ flyers are thrown into their houses through mailboxes and it becomes a hassle for them to pick it up and read it.
It will not reach places that are far away, in other words it will only reach people who are local. Banners/Pop-ups Banners and pop-ups are another effective way to promote an commerce system. A banner is an advert that is displayed on both above, or below, or on either sides of the websites main content and is linked to the advertiser’s own website. Pop ups are basically windows which appear right on the top of the browser window of a website every time whenever a user visits it.
The advantages of banners and pop-ups are that it appears all the time and it is in full access of the user (I. E. Whenever a user chooses to visit and know about the e-commerce business he/she is able to visit the commerce site whenever he/she wishes by simply clicking on a banner/pop up that appears almost every single time). On the other hand, the disadvantages of banners and pop-ups are that it may cause a virus in the users’ system accidental, which might make the user angry and it will repel customers away instead of attracting them.
Another bad thing is that pop ups annoy users whenever they are busy on the computer and thus they will close the window without even taking a look. Spam Spam are electronic Junk mail/Junk newsgroups posting. It is another way of promoting an e-commerce system. The advantage of using spasm is that the business is able to target their message directly to the customer with ease. However the disadvantage of spasm is that people consider it an unwanted email and delete it without even thinking about reading the message. Direct Marketing Another way of promoting an e-commerce system is by Direct Marketing.
This is a sales technique in which advertisers go to people (potential customers) face to face, offering them products and services. The most common way of direct marketing used today are catalogues, telephone sales, brochures, leaflets, and coupons. The he business is able to target its audience very easily, saving time and money as a result. Moreover, direct marketing enables the company to build and uphold a strong business link and friendship with customers and this may also help in spreading the name of the business through a customer.
On the other hand, the disadvantage of this method is that there are a massive number of people around the globe today who do not like to receive any ‘Junk mail’ or offered any product of service because it becomes a waste of time to them. Site Name The Site name of the e-commerce business is essential because it gives the business n identity and also it helps the people recognize the company. The advantage is that if the site name is simple, unique and odd, then people will easily be able to remember it and will find ease in searching for whenever they decide to visit the e- commerce website.
But the disadvantage is that if the site name is too long, or hard to pronounce, or has lots of numbers and dashes, hyphens, brackets, arrows (etc… ), then people will find difficulty in remembering it and it doesn’t even attract them towards it, and they wont even bother typing it up if they ever want to visit the e- commerce website. Ensuring an Effective User Interface Effective User Interface is the main part of an e-commerce website.
The advantage of this is that if the user interface is easy and basic, then people will not find any trouble in using the website and may keep returning to the site. However the disadvantage is that is if users find difficulties in navigating around and in using it, then this will repel customers since people will not find any interest in the website and may abandon the website. Establishing Customer Loyalty in a Virtual Environment Establishing customer loyalty in a virtual environment simply means that customers raise and talk good about the company (basically a good word of mouth).
The advantages of establishing customer loyalty in a virtual environment are that customers will spread the word of the business to other people and praise it. Moreover, people will start giving advice to others and recommend the business to them. This will put a good image and impression of the e-commerce business in their mind and will convince them about the business. As a result whenever a person is looking for a product that the e-commerce business sells then the first thing that will come up in their minds will be to follow the advice f his/her companion.
On the other hand, the disadvantage is that there is a risk that the customer could deceive the business by spreading rumors around to others against the business in order to mess up the business reputation since the customer might own a small separate business and wants it to become better than the other alert of customers and to be careful of who the staff befriend. Security Methods That The E-commerce System Can Use For Protection Viruses In order for an e-commerce system to prevent viruses it needs to install a high quality software security system.
This security software is able to scan the computer system and the soft wares every week to check if there are any viruses. It can track viruses easily, inform users about it, and remove it. There are examples of security systems such as ‘Speakeasy, ‘MacAfee’ and other popular software. Prevention Of Hacking There are a number of ways that the e-commerce system can be hacked. The computer systems that are used in the business can be hacked and personal details can be known and stolen.
If the hacker has managed to obtain the password of any of the staff or even the owner, the website of the e-commerce system can be improvised by that password. If a user click on a fraudulent link, the emails of that user can be in danger of hacking, resulting in inaccessibility to retrieve emails and other information that was registered in that user’s account. In order to prevent hackers entering the system, software updates must be made for the operating systems and web browsers. A technician can be employed and appointed to maintain a regular check on the computers to see if there is any danger of hacking.
Rooms can have security facilities such as fingerprint scanning before entering the room, clothes search, bag scanning n order to prevent the hackers from entering the room out of the rest of people Oust as a sieve prevents thick particles from flowing with the liquid). Hackers generally attack the computer system as soon as they see a weakness. Therefore, regular updates should be made on the computer system because a system which hasn’t be updated recently has flaws in it and hackers might take the upper hand of this.
An example of a software security system is Windows Firewall. Identity Theft/ Identity Fraud Identity theft is when the personal details of a user are stolen. Identity theft can lead o identity fraud where those stolen details are used to deceive others and commit fraud. In order for the e-commerce business to protect itself from identity theft and fraud anyone who is involved in the e-commerce business must shred all things which are not needed that has names, financial details, or address and this will prevent others from reading any details.
Bills, credit cards, C.v. and any other personal belongings should not be laying around otherwise Revealing Personal Details Over The Phone Workers, managers, and employees must never reveal personal details on the phone to anyone. Sometimes phone calls may appear to be from the bank and could ask for security details e. G. Password, PIN or account numbers and the people within the commerce system must be alert of the fact that banks would never ask for PIN numbers, passwords or whole security numbers.
If plastic cards are lost or stolen then they should be cancelled as soon as possible. If card details are being given to someone over the phone, it should be ensured that no one else is able to see or hear the personal details. Personal Documents Personal documents should be kept in a safe place, such as a SAFE, locker, drawer hat is lockable. Bills, receipts, bank statements, unwanted posts, credit card slips, or debit card slips should never ever be thrown away in the person’s name.
It is important to destroy all unwanted documents by burning it, or by using a paper shredder. Passwords A password should never be used in more than one account; different passwords must be used for different accounts as it increases security and protection. A password that is used in a bank should never be used for any other account because if the person becomes a victim of fraud, then it is likely that other accounts might be stolen by the same password. Passwords which are strong and lengthy are more protective and less likely to be discovered by other users.
SSL SSL (Secure Sockets Layer) is protocol that is used with the aim of protecting data that is being sent between a web site and a web browser. The e-commerce system can be protected from unauthorized parties that are trying to gain access to confidential, sensitive, or personal information through the use of SSL. Examples of these types of information are phone numbers, addresses, or Credit Card details. When the e-commerce system is gaining information from clients in any way (such as a web form), safe and secure inspections are essential and it should be ensured that third party access is prevented in this process.
In order to encrypt form data whenever a user submits the form, the form must be put in a safe and protected directory. As a result, the clients personal information and data is protected. HTTPS HTTPS (HyperText Transport Protocol Secure) transmits and receives data using a Secure Socket Layer (SSL). If security is not involved with the problems. Third party users might be taking away personal details of the e- commerce business as the user or client enters the website. RASA Certificates
RASA certificates are important as it shows the clients and other people that the e- commerce website is highly secure by the testing of security and as a result, they will start trusting the site and are more likely to visit it. If the e-commerce website does not have an RASA Certificate then clients are less likely to visit it as they will not trust it. Legislations That The E-commerce System Need To Consider The 1998 Data Protection Act The e-commerce system will have lots of clients to deal with, and thus will have to store confidential information about them.
These information can be personal data such as: Names Addresses Medical details Banking details Other information could be sensitive data such as: Political Opinions Religion Membership of a trade union Criminal Activity Racial/ ethnic origin Health If anything happens to these kinds of data, the e-commerce system could go through a lot of difficulties, such as court cases, the closing of business or suing.
In order for the commerce business to stay away from such dangers and from breaking the law it needs to be aware of the 8 Principles of Data Protection. 1 . Sensitive, private or confidential data must be used within the law . The business must be allowed to use and hold it only for the reasons that were given to it. 3. Data can only be used the purposes of why it was registered. The people who are mentioned in the register entry are the only one allowed to have the information disclosed to.
The data can not be given away or be sold unless it is informed. 4. The data must be held as much is required and relevant. Information that has nothing to do with the purpose of holding it is not allowed to be stored. The information must be kept up to date and precise. It is places, change bank passwords etc… . Any information that is longer than required for the registered purposes must be removed and it is not permissible to keep data forever about past customers (only for certain lengths of time). 7.
The data should always be kept protected, secure, and safe and backed up all the time. It must be kept far away from unauthorized access. 8. The files of data cannot be transferred outside of the European Economic Area unless it is ensured that the country has a good and suitable data protection law. 5. If the e-commerce system is unaware of these 8 principles then it might break the awe of the country unknowingly and unintentionally, which is why these factors need to be considered before running an e-commerce system.
Computer Misuse Act 1990 Before the e-commerce system starts it run its business online and starts dealing with customers, it needs to be aware of the different dangers which may lead to breaking the law. Computers that the commerce business uses can easily be used to mess about with the data stored. There are several types of misuse and these are: Abusing on Email, Chat rooms, and other Social Networking Sites – people can pretend to have a different identity, spread rumors about famous/ well known/ good people.
Illegal email spam are increasing year by year advertising illegal products and services Financial/ Identity abuses – this includes the using of computers in financial frauds, misusing stolen credit card numbers in order to gain access to goods and services through the internet, or the use of color printers in order to print fake money. There are many ways financial and identity abuses can happen, from simple like color printers to complex such as computer user accounts. Pornography – indecent materials and other bad materials are illegal to store on computers. If these materials are found