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A lot of people starting up an E-business do not have a marketing strategy, then without it being laid down, you cannot expect the start up to be a success. Examples of the marketing strategy include e-mail announcements of the service or the product; newsletters; register with search engines; display banner ads; and encourage viral marketing. Viral marketing is basically when the people starting up the business tell people to forward the e-mail announcements to their friends as well, in order to make the services popular. (Turban, 2002) E-commerce Applications:

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The E-commerce solutions are set of applications that can be purchased altogether or can be purchased individually. They are as follows: Shopping carts: When the customer opens up the website, the first thing after selecting a product is to look for a shopping cart which will help it buy the product. It helps the customers to surf the entire website and buying your products, not individually but all the desired products together, it is more like the shopping cart we use in shopping malls. The only difference is that it is not a physical shopping cart.

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The system works somewhat like this: the customer will first select the desired product and then it would fill out all the information required to deliver the product to the respective customer. The shopping cart is a means of purchasing a number of items and products from the same website. The technology behind the shopping cart involves placing a cookie in the user’s cookie file which is the customer’s database on the website. This database includes that specific customer’s current shopping spree’s product along with the records of the products that were shopped before.

The old record of the customer is not a part of the shopping spree but remains in the database of the customer’s cookie file. Every time a customer goes to the website and decides to buy a product, he or she puts the product in the shopping cart. After the customer is finished surfing the sites and is now ready to buy the products in the shopping cart, it then pays for the products. After the payment’s transaction takes place, all the products included in the customer’s current shopping cart is deleted and never repeated again in the customer’s cart the next time it signs in to buy something. (Rayport, 2003)

Payments: For the payments to be made, it is important for the customer to input all the necessary information that will help the manager deliver the product on time. For the billing the credit card number of the customer will have to be uploaded and processed to make sure it does not bounce back. This has to be done only once and not to be repeated again and again for every product being bought at the same time. As soon as all this information has been put on the website, the managers of the website process the information and especially the credit card is authorized by the respective credit card clearing house.

This is followed by the money being transferred from the customer’s account first and then the delivery is made to the customer. Now, all the companies and managers that accept credit cards only for the sale of their products, the customers are told to first make an account called CNP that is Card Not Present. This account is a merchant credit card account that every customer has to make the first time it buys a product from the website. But the point here is that when the manager makes a sale to the customer, the card is not present that is he or she cannot see the card there or the consumer.

Hence all the transactions that are made are fairly risky. This risk factor makes the business managers at times revert back to their physical stores in the real world. Because the more riskier it is to get the electronic payments through credit cards from the customer, the more money the managers have to pay in order to get their money from the business bank. This is the same kind of feature that was associated with the telephone orders a couple of years ago and now the same is applied to all the businesses online.

With the growing popularity of the online shopping systems that is E-commerce, managers are coming up with better software of making the security of the transactions tighter. The better the software, the tighter the security and hence the less chances there will be of default by the customer. On the other hand, with the increasing technologies, managers are coming up with better ways for as to reduce the fees they have to pay in order to receive their customer’s respective transactions.

One way to go about it is that the managers can go to the bank that offers the facility of online merchant accounts. It is not necessary for the mangers to go to their own business bank; it can be any bank that facilitates it. Once the managers get a CNP number account, all the credit card transaction can be accepted and put into that very account. That way the managers do not have to pay the high transaction fee. The next thing on the list for the customers is to secure the account.

The managers have to come up with ways to upload software on the website that would support real time payments. In case the managers have a web development firm working for them, the uploading of the software would certainly not be a problem. Electronic Cash: Electronic cash is in the form of micro-payments. These micro-payments are payments ranging from a couple of cents to about a couple of dollars. There are various companies who offer other methods of electronic cash systems: cyber coin electronic cash and E-cash etc.

The need for the digital cash has been raised by quite some companies; the reason behind this new technology is as follows: (Deitel, 2001) When the customers find something on the website that is worth dollar ten or less, and it is the only thing that they are willing to buy, then the idea of making a credit card transaction is fairly a bad idea because the bank charges the company a lot more than just the ten dollars for getting that very transaction into their account.

Hence, the fee that they will be paying to get their payment from the bank will be actually greater than the payment of the customer. To avoid this from happening, the new technology of electronic cash comes into picture. As described earlier, the two new technologies of electronic cash introduced by some of the companies are CyberCoin and E-cash, is explained in detail below. CyberCoin: In order to use the Cyber Coin system, the money of the customer is taking out directly from the checking accounts creating advances on the credit card.

This process is termed as binding. Now once the customer has cyber coins in its electronic wallet, it can take money out of it whenever it wants to and can use it with any E-business that uses the software of CyberCoin. (Lauden, 2008) When the customer buys a product from the website and pays for the product, the customer holds an electronic wallet from which the digital cash is withdrawn or added etc. Firstly the customer has to put in some cash in its electronic wallet, this process is termed as binding.

As soon as the customer has cash in its electronic wallet, he or she pays through is technology of CyberCoin to any company website that has software to accept the transaction in this form. It is essential to note here that the money does not move anywhere, it is just a phrase that the electronic money will move from one account to the other, it is a matter of the information that will be moving from the customer’s account to the manager’s account. This information from the customer’s account carries the money units.

This system of information flow from one account to the other is a notational system called CyberCoin. This makes a note of the number of dollars (or any other currency) of money that the transaction is made of, and the money that is in the customer’s wallet and the amount that is actually spent to buy various products. This kind of system is fairly secure because the money is not in any kind of physical form, instead its electronic cash that cannot be stolen; hence there is no point in breaking into the banking system.

In order for a bank to accept CyberCoins, they have to make an account of the company with them that would allow acceptance of this form of electronic cash. People usually buy products from their credit cards, hence the credit card numbers on the Merchant ID are corresponded with the CyberCoin system. Every customer who is then making a transaction from their credit card would receive an email to install the CyberCoin software on their respective servers. E-cash: The Ecash system is fairly different than that of the CyberCoin. The money can be transferred through emails as well.

All the customer has to do is paste the amount from the computer to the email because the money is saved in the computer. For such customers, after filling out the application form requiring the basic information for the shipment, the money must be deposited in the customer accounts just like the money is deposited in the bank account. As soon as the money value is realized, the customer is given a password for its account for security purposes. This password should not be given out to anyone because it carries a certain specified amount of money which can be in cashed any time.

(Brown, 2006) Online Banking: Online banking is also called internet banking or electronic banking which facilitates the customers to make financial transactions over the internet. The online banking applications also allow the users to have varying levels of authority on the basis of which the transactions are made. The online banking systems also have the software for personal financial management support which facilitates the import of information to a program called Microsoft Money and there are many others too.

Some other E-banking systems also back up the account aggregation systems as well, which allows the users to keep a track of their accounts at all times with any bank they want. All the accounts can hence be monitored whether they are registered with the one bank or many banks. These transactions taking place over the internet include some of the following features: Transactional: ? Electronic Bill presentment and payment ? Funds Transfer ( which is usually between two accounts of either the same customer or a different customer )

? Investment (this includes purchases and sales of stocks etc ) ? Loans ( these loan applications are responsible for making financial transactions like repayments etc ) Non-transactional: ? Statements available online ? Check linkages ? Interconnected browsing ? Online Chat ? Bank statements ? Wire transfer Electronic Funds Transfer: The EFT that is the electronic funds transfer its users to transfer the money from one bank to the other without any physical involvement. The widely used EFT programs include Direct Deposit.

Direct deposit is the system through which the employee’s salary is directly deposited in the bank account. This system is used for: ? credit transfers (such as salary payments) ? debit transfers (such as mortgage payments) The financial transactions taking place through the EFT are first processed by the bank’s clearing house. This clearing house is called Automated Clearing House where all the financial institutions are connected together to this transfer system. When payments are made, they are transferred from one bank to the other bank online in less than day.

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Kylie Garcia

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