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Contemporary e-commerce

E-commerce (also online transactions) gives an opportunity to use a variety of electronic devices (mobile and landline telephone, fax, Internet, television) in order to conclude a financial transaction. Online shops are the most popular of all. They include transactions between sellers and buyers via the Internet.


E-commerce consists of selling of goods and services, receiving and confirming orders and support of cashless payments.

Kinds of online transactions:
  • Direct - the entire transaction from the time of ordering to payment and delivery of the goods takes place via the network
  • Indirect- looking for goods, services, new customers, sending data and payment is dealt through the Internet, however, the ordered products are delivered in the traditional way
  • Hybrid - various forms of transition are used, which causes deficiencies in practice, network development and telecommunications services




Benefits of e-commerce

There are many advantages of using e-commerce. Some of them include:

  • Economizing on buying the office equipment, small number of employees, easy flow of information, pleasant contact with customers, getting rid of warehouses
  • Individual communication with clients
  • interactive computer systems
  • Flexibility and rapid uploading of information on the Website and low prices of rebuilding it
  • Simplified technical infrastructure and efficient logistics system
  • Saving time while accessing information and making comparisons of goods and services.


Limitations of e-commerce

There are some limitations of e-commerce:
  • lack of opportunities to test or inspect visually the goods purchased (exceptions: 1. Virtual trying (eg. driving a car in the computer games) 2.Selling goods with pictures from the camera or on-line)
  • high costs of delivery
  • lack of law regulations

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Online shops

The online shops are the most common form of e-commerce. Features of e-commerce online shops include: availability 24hours a day, 7 days a week, wide range of products, easy access to information and the possibility of choosing the most convenient payment.


Many goods are available on the Internet: books, CDs, plane tickets, clothes, computer equipment, software, but also food. Often, the range of products is richer than in a regular shop. There are millions of different goods from which everyone can choose something suitable. Thanks to special software we know what is especially needed. It helps to prepare the best offer for our customers.


E-commerce is a safe, reliable place to trade with other people. It enables community members to buy with confidence. Here are a few tips to help you trade safely and enjoyably on the Internet. Buying in already known shops, where address details are visible and regulations is available. When paying by credit card we pay attention to whether the authorization is encrypted.

Bearing in mind the fact that the legislature has provided for the 10-day recovery period without giving any reason. However, on the condition that the goods have not been used and you have original box.


What is new is a partnership program which is being created on the basis of recommendation. So far, similar programs have been established in the traditional market.


New economy

Nowadays the Internet trade is developing very rapidly. Wide spreading of computer equipment but also easy and affordable access to the Internet resulted in popularity of transactions on the Web.   In 1996, the companies’ profits amounted to 800 million dollars, however, in 1997, ten times as many - 8 billion dollars. In 1999, it was about 18 billion dollars (source: Forrester Research).


Customers are not limited by the boarders while buying via the Internet, they can order products from any place in the world.


American analysts argue that new economy will become a new driving force for continuous, rapid economic growth in the next decade.In the United States it will contribute to maintaining the tax exemption on all commercial transactions conducted over the Internet. However, it should be taken into consideration that the research problem may also apply to forms of management on the Internet. The new economy may become a kind of knowledge with a wider, deeper and more precise nature of research of consumer behavior, countries or companies. Therefore, services no longer have to be so extensive and their prior equivalents became useless. Finance will be more protected than ever before, and thus easier to change the formality and the intensification of the transaction agreements.


Safe online shopping

The development of online shopping depends largely on the standards which allow you to conduct transactions online safely.

Safety buying includes:
  • Ability to confirm the identity of both seller and buyer
  • Encrypted transmission between the client and the seller to ensure the confidence of transmitted information, especially credit card numbers. Encryption protocols SSL (Secure Sockets Layer) and SET (Secure Electronic Transaction) are currently used.
  • Securing the server from accessing the private customer data by unauthorized people.
  • Securing the server from attacks both from outside (the Internet) or from inside (the LAN's).