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Question:

Discuss about the Electronic Commerce Systems.
 
 

Answer:

Introduction

With the rise in more number of e-commerce Websites of various businesses that are considered as major revenue drivers, key retailers are presently identifying their online stores as businesses that are considered to be mission-critical. Moreover, many e-tailers are being able to find that the present e-commerce platform is no longer being able to assist their development or growing needs of business.

Evaluation criteria for building effective e-commerce websites

Scalability        

A major e-commerce website needs to be scalable. An e-commerce website is considered effective by its capability for handling its peak traffic. With the increase in the popularity of the website, there is the requirement for scaling with minimal effort for avoiding acquiring disproportionate expenses relating to infrastructure management (Wang 2014).

The Product Catalogue

The product catalogue of an e-commerce website is the online repository in respect of every item the e-commerce website is selling. It is required to promote in an effective manner, the products that is required to be pushed, as well as simultaneously assist the customers in finding the products they are searching for. But product catalogues that are constructed in a poor manner can be unyielding as well as uncompromising, particularly when the product traits that needs to get stored are not getting aligned naturally with the definitions set within the company’s e-commerce application (Chaudhuri 2016). For making a rigid product catalogue accommodating the realities of business, organizations end up misusing fields of data, duplicating data in various places as well as inventing esoteric codes for accommodating information in an artificial manner that the catalogue does not natively assist.

 


It can be challenging towards predicting what type of products the company will be selling in the future, and what other applications might be required populating the company’s catalogues. The association of a rigid application as well as short-sighted business planning will be resulting in potentially appalling rigidity. Organizations are losing the quickness required for quick adjustment of offers as well as promotions, and to have continuous adaptation to change the e-commerce business requirements (Rajarajeshwari 2016). When e-commerce applications will be getting evaluated, there is the requirement for understanding the degree of flexibility the product catalogue is actually having.

Business User Control

There are different e-commerce applications that are having the requirement for IT resources in respect of daily maintenance. Therefore, the business users of a company are completely disconnected from the daily functioning of the company’s e-commerce site. For instance, the business users send their requests for change to IT, and IT has no alternative but to react. IT faces the difficulty to plan as well as prioritize, as they are dealing with a repeated onslaught of important high-priority updates (Hartono 2014). Hence, business users are interested in taking control, and every task that they can do in a safe manner will be regarded as a less task that needs to be done by the IT. When e-commerce applications will be getting evaluated, the company is required ensuring the applications, which has been selected will be technically as well as architecturally effective with proven capacities (Davi 2015). But, there is also the requirement to look for tools that the business managers will be using themselves.

Search

The search box is mostly considered as the primary tool that is used by an e-commerce customer. In the present scenario, users are expected to search not simply to find but also guiding them regarding the products that they are searching for. A search experience that will really be working in respect of the customers will be having a significant rise in online revenue. External search engines like Yahoo! as well as Google also have the requirement to find the company’s products. When e-commerce applications are evaluated, there is the requirement for looking for business controls that will support a compelling as well as personal search experience (Yoon 2015).

Agility

There occurs frustration among the IT that marketers do not appreciate the difficulty to implement their requests, particularly with their tight time-frame. But this kind of business requirement is precisely what needs to be supported by e-commerce platforms. Ideally speaking, an e-commerce application will be doing the implementation of such types of requests without any changes related to a page, code or database (Zhang 2015). A manager will simply be describing what is to be monitored and what will be happening when the application will be finding the activity that will be fitting the criteria. When e-commerce applications will get evaluated, there is the requirement for searching for solutions that will be monitoring the activities of the customer on the company’s site and will then be taking action depending upon the behavioural aspect that has been identified (Walker 2015). In this regard, certain questions need to be asked such as,

Reporting and Analytics

An organization’s e-commerce website will be storing a huge amount of information regarding the organization’s customers, their behavioural aspects as well as their preferences. But businesses will be in general, struggle in figuring out in what ways the business value will get leveraged, which this data will be holding (Dickinson 2015). There is the requirement to do the site configuration for capturing as well as logging all the information that are available, which can be considered to be a demanding task, particularly when the data is coming from a huge variety of sources. Moreover, the organization might be using the data in various ways over time, and the organization might require new information for driving particular campaigns. When e-commerce applications will get evaluated, it needs to be remembered that the organization will not be able to control which it cannot measure (Hou 2016). To have a rich insight into the functioning of an organization’s online store is essential for the ongoing success of the company. Certain questions is required to be asked in this regard,

 

Standards

E-commerce is no more considered being IT’s renegade outpost. It is basic, mission-critical establishment within the portfolio of the business’ processes. It should be running on a standards-based platform, which standard skill sets will be supporting throughout the company as well as in the broader marketplace. The organization will be interested in having the flexibility for going to a wide selection of agencies as well as integrators of systems in respect of development. In the present aspect regarding enterprise applications, the technological aspect will be focusing upon a Java or Microsoft. NET structural design (Parihar 2015). Moreover, it has been stated that organizational businesses does the adoption of a “buy” approach in comparison to a “build” approach when focusing on e-commerce applications.

Integration

The e-commerce Website, once a detached silo, is presently a highly integrated application that does the touching of various other methods as well as processes. The team that will be developing as well as supporting it will be containing a mix of technical as well as business professionals who are driving a significant part regarding the corporate strategic aspect. Most of the components of an e-commerce application might be either self-sufficient or driven by other processes (Huang 2013). When e-commerce applications will get evaluated, there is the need to look for modularity that will assist the organization in customizing or tweaking every single aspect of the application for meeting the distinct business requirements of the organization. Moreover, with a modular solution, the organization will not be compromising the reliability of the rest of the organizational site within the method (Chen 2016).

Interoperability

Various progressive businesses have the requirement for their various applications in having the ability for functioning collectively so that new merged applications as well as business methods can be quickly accumulated for increasing the competitiveness of the market. Service-oriented architecture as well as the capability for wiring applications collectively depending on a Web services backbone will be significant components to improve the ability of a business for responding to changing circumstances of the business (Turban 2015). The e-commerce application of an organization might be an integral part of any such structural design. This is considered correct in respect of the data regarding the organization’s e-commerce application stores as well as in respect of the business methods it will be supporting (Smith 2013). When the e-commerce applications will get assessed, there is the need to search out flexible enterprise structural designs and to have a careful thought regarding the ways by which the application will interoperate with other processes.

Synergy

IT companies in all the places are trying to search for all the scopes for maximizing the investment of their technologies throughout their organization. Some are identifying the resemblance within the solutions in respect of various channels of business including B2C Websites, various brand sites, small business e-commerce sites, enterprise account portals as well as channel partner portals. When e-commerce applications will be getting evaluated, it is expected that an organization will in due course what to do the leveraging of the e-commerce application investment in different parts of the business (Huster 2014).

Comparisons between different e-commerce website groups

E-commerce Website Groups

E-Tailer

Content Provider

Community Provider

Market Creator

Transaction Broker

1.

Successful e-tailing is having the requirement of effective branding. The websites are required being attractive, and updated in a regular manner for meeting the changing demands of the customers.

There should be availability of original contents. Every website page needs to be original. For ensuring that the content is original, online services like Copyscape can be used.

Even though, the community will be generating much of the content within it, the company needs ensuring that pertinent content is being offered.

They are required building digital environment, in which buyers and sellers will be meeting, searching for the products, displaying the products as well as establishing the product prices.

The transaction broker’s job is assisting both the buyer as well as the seller by bringing them together with the essential platform offered where the trading of products and services are done in respect of value.

2.

E-tailers require strong distribution effectiveness and therefore, customers do not wait for longer time-periods in respect of the products or services they are purchasing.

The content provider website should ensure that the contents are having  well-researched, as well as well-written products.

For ensuring a sense of culture, there is the requirement for publishing community guidelines and publicly correct members.

Market creators will be serving the B2B and B2C that will do the generation of revenues from transaction fees.

The transaction broker websites makes it possible in respect of customers for contacting them at any time of the day at the convenience of the customer.

Major strengths and weaknesses of sites

E-Tailer

Strengths

The items can get reviewed easily, and there is limitless scope of choices. Most of the time, it is also considered to be cheaper to purchase online and there also occurs quick as well as easy shipping as well as returns (Reistad 2013).

Weaknesses

The weaknesses are that the things cannot be tried on, then there is the risk of privacy as well as security, and there are also different fake products that are sold online.

Content Provider

Strengths

It assists in standardization of data sharing. It also helps in providing a platform-wide model. When data needs to be accessed regarding an installed application, then there is a single interface against which queries as well as manipulations can get performed.

 

Weaknesses

The weakness is that content providers are only using SQLite as mechanism storage.

Community Provider

Strengths

As because, efficient logistics is the key regarding an e-commerce business to be successful, the capability for triggering as well as monitoring logistics online is an expensive tool in respect of the e-commerce business.

Weaknesses

There is still less clarity for the regulators regarding the implications of tax regarding e-commerce transactions.

Market Creator

Strengths

The marker creators are having the ability for scaling up easier in comparison to the physical retailers since they are not bound by physical constraints. In addition, with the choice of appropriate 3rd party logistics provider, the market creators can do the scaling up of one’s logistics as well.

Weaknesses

As because the overall supply chain can be interconnected with business-to-business ecommerce processes, there occurs faster, transparent as well as low-priced procurements.

 

Transaction Broker

Strengths

It is considered being very much convenient, since the transaction brokers are able to make their business mobile, constantly moving no matter where the customers are. The customers are also having the ability for finding the information that are considered being appropriate.

Weaknesses

The upfront costs regarding the implementation of the website can be astounding particularly for a start-up organization. There is also no guarantee for the return on investment. There are also security worries such as customer fraud as well as hackers.

Conclusion

Even though, there are various e-commerce applications that seem to have similar set of functions as well as characteristics, there also exist certain major differences amongst them as well. The various e-commerce sites are having their advantages as well as disadvantages as well. Therefore, after considering all the aspects an organization can make the preparations for investing in an e-commerce platform that will assist the organizational business to become successful within a competitive market.

Recommendation

According to me, the selection of the correct e-commerce application for a longer period can be considered as a challenging task. It is not easy basing a decision on the present needs as well as an indistinct, undecided set of future requirements that still haven’t hit the stages of planning. There is the requirement for a set of capabilities that are needed to maintain excellent Web stores appealing, better performance and responsiveness at high transaction volumes over the longer period

 

References

Chaudhry, S.A., Farash, M.S., Naqvi, H. and Sher, M., 2016. A secure and efficient authenticated encryption for electronic payment systems using elliptic curve cryptography. Electronic Commerce Research, 16(1), pp.113-139.

Chen, J.V., Rungruengsamrit, D., Rajkumar, T.M. and Yen, D.C., 2013. Success of electronic commerce Web sites: A comparative study in two countries. Information & management, 50(6), pp.344-355.

Chen, M., FuelStation Inc., 2016. Electronic commerce system capable of automatically recording and updating information stored in wearable electronic device by cloud end. U.S. Patent Application 15/073,918.

Davi, G. and Madison, M., Imagine Universe, Inc., 2015. User interface using tagged media, 3d indexed virtual reality images, and global positioning system locations, for electronic commerce. U.S. Patent Application 15/322,091.

Dickinson, A.G., Ohare, M.S., Rohrbach, M.D., Zoccoli, J.G., Orsini, R.L., Brooks, A.A., Davenport, R.S., Clough, P.W., Clayton, R.F., Stark, G.H. and Ferrante, M., 2015. Electronic commerce with cryptographic authentication. U.S. Patent 9,189,777.

Hartono, E., Holsapple, C.W., Kim, K.Y., Na, K.S. and Simpson, J.T., 2014. Measuring perceived security in B2C electronic commerce website usage: A respecification and validation. Decision Support Systems, 62, pp.11-21.

Hou, Y., Liu, D. and Yang, S., 2016. Construction of E-Commerce Entrepreneurship Curriculum System for College Students: An Information Entrepreneurship Perspective. International Journal of u-and e-Service, Science and Technology, 9(11), pp.251-262.

Huang, Z. and Benyoucef, M., 2013. From e-commerce to social commerce: A close look at design features. Electronic Commerce Research and Applications, 12(4), pp.246-259.

Huster, P.A., 2014. Electronic commerce system. U.S. Patent Application 14/331,052.

Parihar, S.S., Haney, S.M., Weldele, T.J., Hristov, A., Darrow, J.E., Hobbie, S.R. and Nooney, D., Amazon Technologies, Inc., 2015. Adaptive information regions displaying content associated with an electronic commerce system. U.S. Patent 9,070,158.

Rajarajeswari, P., Vasumathi, D. and Ramamohanreddy, A., 2016. Alternative Design Space Analysis for Electronic Commerce System. In Proceedings of the Second International Conference on Computer and Communication Technologies (pp. 793-803). Springer India.

Reistad, B.J., Priyadarshan, E., Mitchell, M.P., O'toole, J.W., Payne, A.C., Vieira, D.M. and Stewart, L.C., Soverain Software Llc, 2013. Electronic commerce system. U.S. Patent 8,554,591.

Sherif, M.H., 2016. Protocols for secure electronic commerce. CRC press.

Sherif, M.H., 2016. Protocols for secure electronic commerce. CRC press.

Smith, B.M., Graves, E.C., Honig, S.T. and Evans, B.A., NewTide Commerce, Inc., 2013. Electronic commerce system. U.S. Patent Application 14/058,588.

Turban, E., King, D., Lee, J.K., Liang, T.P. and Turban, D.C., 2015. Electronic commerce: A managerial and social networks perspective. Springer.

Walker, R.A. and Salvo, A.C., 2015. Electronic commerce system and method. U.S. Patent Application 14/591,266.

Wang, Y., Ou, H.Y. and Zhang, J.M., 2014. Design and implementation of e-commerce recommendation system based on ontology technology. In Advanced Materials Research (Vol. 978, pp. 244-247). Trans Tech Publications.

Yoon, H.S. and Occeña, L.G., 2015. Influencing factors of trust in consumer-to-consumer electronic commerce with gender and age. International Journal of Information Management, 35(3), pp.352-363.

Zhang, S., Sun, Z.J. and Lee, L.H., 2015. Discussion on the establishment and improvement of the electronic commerce logistics distribution system. ?????? ????, pp.75-91.

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