There's a new buzzword flying around the Internet these days… e-commerce. E-commerce simply refers to the fast-growing trend of businesses and consumers performing their business transactions over the Web. The possibilities are limitless: millions of people able to buy your products at the click of a mouse…but you've just gotten yourself a Web site, should you buy into e-commerce too?

The statistics scream “yes.” The e-commerce marketplace is worth billions of dollars; in the U.S., online purchasing has jumped dramatically over the past year. However, there are a few things to consider before selling your products on the Web.

*Compiled by Yankee Group www.yankeegroup.com

There are two main issues in e-commerce. The first is making it easy for your customers to find and buy your products. Create or implement a system that will display your products, let customers search your inventory, calculate tax and shipping charges and order. Some systems simply display the products and offer a toll-free number; others present a complete “shopping cart” system that tallies the customer's order and final purchase price.

The second issue in e-commerce is ensuring that your customer's transactions are secure. The possibility of transactions being intercepted on the Internet is very small; according to Dr. Ralph F. Wilson, “…crooks that smart aren't out there collecting credit card numbers. They're breaking into Swiss bank accounts.”

However, customers are still wary of sending their credit card numbers over the Internet. On-line businesses have responded with security features to protect these transactions from theft. One of the more popular options involves a Secure Sockets Layer (SSL), which is essentially a secure Web server that encrypts and scrambles the transmitted messages so they cannot be intercepted or decoded.

A second option for securing Web purchases is called Secure Electronic Transaction (SET). This service, which needs to be supported by your shopping cart program, also encrypts a transaction, but only the bank or merchant credit card service can decode it.

A third option that offers added protection for merchants involves financial intermediaries including DigiCash, CyberCash, and First Virtual. These companies perform credit checks on and back a registered customer's online purchase. The only problem with these services is the number of registered customers is small.

These security issues are important, not because the risk of deception is so high but because the need to make customers confident in their purchase is so necessary.

Addressing these two issues is crucial in assuring the success of your online sales and transactions. Choosing the right options will help you provide the services that are important for your customers, and help them act easily and confidently on their buying impulses.

Harrow, Jeffrey R. “Exponential E-Commerce Growth.” TechWeb Voices. www.techweb.com/voices/harrow/0104harrow.html Jan. 4, 1999.

Wilson, Dr. Ralph F. “Getting Customers to Plunk Down Their Credit Card.” Web Commerce Today Apr. 23, 1999.
www.webcommercetoday.com/articles/plunk-down.htm

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