Category: Commerce

Company profile

Greater Wilkes-Barre Chamber of Business and industry is known to provide services aimed at economic development. This is done through promotion of new ventures such as Luzerne county area which harbors Pepperjam.com. The organization forms members of communitys economic development service capable of serving community with business opportunities based on partnerships.

The company assists in improving communitys quality of life through strategic planning, programs as well as investments. Greater-Wilkes-Barre works on range of projects starting from business and job creation programs. They also indulge in downtown revitalization, entrepreneurial as well as employee empowerment programs (Camardella 103-107).

Greater Wilkes-Barre Chamber of Business believes that the key to success is based on balancing stakeholders interests through empowerment of community and employees. The company is focused on delivery of quality services capable of sustaining community in the long-run.

This also encourages as well as acts as reminder to employees on their roles of providing satisfactory services to stakeholders. Such focus has since made Greater Wilkes-Barre Chamber to become world leader in supply and delivery of business oriented services. The basis is not only in satisfying customers but in meeting their expectations by providing professional services.

Benefits of the internship

The company is involved in Social entrepreneurship which caters for business activities characterized by numerous charitable activities. This kind of business is tied to primarily social objectives and not profits. In the event that the business makes surplus profits, the excess in reinvested in the business or better still in the community as opposed to profits benefiting the shareholders.

The company indulges in addressing poor peoples needs based on access to better services. This is done through appropriate information and communication channels. Such social enterprises are anchored on key assumption that effective management of information and communication technology leads towards enriched society.

Frameworks and models that support integration of economic development programs best analyzes business model which allows the poor to receive affordable services from various sectors such as healthcare and education offered within their localities. However, the rich members of the society are on the other and charged highly for these services (Camardella 103-107).

All the companys plan focuses on the targeted customers, services offered and appropriate means of delivery. The vision of Greater Wilkes-Barre Chamber is provision of social services capable of providing quality and affordable services to intended population. Their mission is based on timely delivery and profound economic development through business initiation and offering care services with best efficiency and reliability possible.

In addition their strategy is focused on targeting low income earners within the Citys vicinity and at the same time including developing countries. Such services are at times delivered through internet websites and mobile phones, those in remote places are assisted through appropriate channels as prescribed by the companys board (Magretta 86-92).

Importance of the Internship

Within the first days after commencement of internship, there was meeting with the Vice president of the company and other management team members. There was orientation on the kind of work done within the company. This included familiarizing with main points of companys services provided to customers on a daily basis. The organization deals with large population segment. The process involved a lot of desk work including data entry.

Greater Wilkes-Barre Chamber of commerce is involved in variety community programs which demands prior preparation. This requires thorough checking since there are possibilities of confusion caused by large group of customers invited for specific meetings. Such meetings include those of Women Businesses which deals with detailed management of schedules since most venues are within learning institutions.

Theres constant upgrading done within the systems for the purposes of updating current available customers the company is dealing with. To avoid cases on ghost members, the organization uses electronic systems during process on membership renewal. Analysis of results requires application of statistical programs.

The work involved updating some files of memberships as well as adding new files within database. Moreover, organization requires reorganized communications file within system databases. This is accompanied by drawing up-dates from articles and newspaper concerning chamber operations. Such information is considered important when it comes to making decisions from public point of view. All information follows organization protocol and structure since it has to reach the top management organ.

After dealing with membership up-grade, customers are constantly up-dated on companys service provisions. Most of the work involves internet searching which assists in reinforcing proficiency in computer networking processes. Out of various searches fact sheets were obtained on annual basis concerning company operations. The fact sheets indicate trends within the labor market such as employment and employment rates per annum.

Rates on resource consumption per country per annum are calculated for accountability purposes. Included are rate of taxes levied on consumer basic needs as well as salaries. Fast Facts 2012 of Greater Wilkes-Barre, PA and its publication of the Greater Wilkes-Barre Chamber of business and industry are availed in the companys website. Moreover, a reorganized communications file is done by data entry employees. Organization of the database also involves bio-data of various company top officials who are mainly used as referrals.

Part of the work involved sending letters to chamber customers and at the same time doing necessary up-grade. Moreover, there is making of invitation letters to Annual Dinner and sending specified loyal customers of Chamber. Besides sending letters, the company up-dates are sent to customers including successive events.

During event organization, guests are given thorough check and at the same time their names printed on labels for identification purposes. Such process is in line with criminology cause which basically involves dealing with criminal minds and those trying to breach rules of law.

Updating membership files assists in identifying unwanted and wanted customers from chambers database. Such process should be monitored closely based on reorganized communications file basically done within the databases. As discussed earlier meetings such as Chamber Women in business lunch takes place often.

This grants opportunity on familiarizing with gender issues which is of profound help when dealing with criminal cases. Free interaction involved during these meetings enables an individual to benefit much from expansive knowledge brought by individuals from different regional backgrounds. Such up-dates form crucial part of communication channels (Daley 201-214).

Evaluation Processes

The programs undertaken by the Chamber involves investing resources in form of time, information technology for data collection and analysis, funding, work force and partnership as well as operation premises. There is always an expectation producing results in form of data and information.

This presents vital tool used for critical decision making within various institutions. Such information further influences changes in operational procedures within business institutions. The data generated from companys database is used in supporting development of initiatives within required areas of operation (Chan and Lynn 57-87).

Evaluation Design Description

This section intends to describe the flow of activities during evaluation process and determination of relationship existing between relevant entities. This model enables the program to focus on SMART objectives. This implies the objectives must be Specific (S), Measurable (M), Attainable (A), Realistic (R) and Time-bound (T). The model appears in form of tabulated information as follows.

Table 1: Activity Structure for the internship

Organization Chart

Greater Wilkes-Barre Chamber of Business and industry operates in a three tier framework as indicate in the chart below. The first tier reveals organization at international level which included customer orders, Customer support and care, as well as Personnel management. These positions are managed according to categories based on international markets. Such level of categorization assists the organization in commanding larger economies of scale.

Second tier has regional management offices dealing with customer orders and site customer care and support. Third tiers incorporate site specific customers dealing with specified line of business operations. Site managers are endowed with responsibility of providing prompt solutions to remote customers. In case of mismanagement and making decisions, responsibility is given to personnel managers at each tier.

Figure 1: Account Management Chart for Chamber

Works Cited

Camardella, Mathew. Effective Management of the Performance Appraisal Process. Employment Relations Today, 30(2003): 103-107.

Chan, Huang & Lynn, Meek. Performance Evaluation and the Analytic Hierarchy Process. Journal of Management Accounting Research, (1991): 57-87. Print.

Daley, David. Performance Appraisal as an Aid in Personnel Decisions. American Review of Public Administration, 23 (1993): 201-214. Print.

Magretta, Joan. Why business models matter. Harvard Business Review, (2002): 86-92. Print.

How does the user interface impact user decisions?

Through the study of Suh & Chang (2006), it was noted that complications in online user interfaces, especially in the case of E-commerce platforms) lowered the likelihood of application patronage or even the possibility of a user buying an item online. Evidence of such an impact was noted in the evolution of current E-commerce purchasing platforms wherein the account creation requirement that was usually a standard of such platforms was removed in favor of simply allowing users to use purchase items without creating an account with the online company. Thus, Suh & Chang (2006) explain, greatly increasing online sales for specific companies by 60 to 80 percent results in considerable profit increases. One way of explaining the reason behind why this occurred by simply allowing users to buy an item without registering is in part due to the process of interface simplification. Interface simplification can be defined as the process by which user interfaces are designed with the idea that complications are a type of anathema to users wherein the simple is better in terms of allowing them to proceed with a particular process.

Going back to the example of the online E-commerce platforms, Suh & Chang (2006) explain that reducing the number of steps between the users and their end goal with an application (i.e. in this case making an online purchase) creates a greater level of appeal to use and patronize such an application given the decreased level of complication. From the perspective of Viralingam & Ramaiah (2008), a complication in user interfaces is comparable to a Rube Goldberg machine (i.e. an over-engineered and overly complicated machine that accomplishes a simple task in an overly complicated fashion). Viralingam & Ramaiah (2008) state that when it comes to the perception of use, the reverse should be true for user interfaces wherein a simple platform accomplishes a complicated action. This impacts user decisions by making it more likely for them to use such a platform or make an online purchase given the fewer number of steps between what they want and the process they need to accomplish. This is a positive aspect of simplifying the process of online purchases since it allows companies to sell their products to prospective buyers online with very little effort on their part in terms of allocating more space for user info. It should be noted though that the action of registering can be considered annoying given the sheer proliferation of advertisements at the present and, as such, factors into the customer decision process as well.

Why is usability important and how can it be improved?

When attempting to examine the sheer proliferation of E-commerce sites on the internet and their ability to attract customers, it becomes evident that the solution is more of a usability issue than it is the content of the site itself. Just as there are hundreds of websites that allow users to perform different types of actions and create content, there are millions if not billions of sites lacking in usability resulting in them being neglected and often going unused. What must be understood is that usability adds some pizzazz to a site resulting in a greater likelihood of use (Seffah & Metzker, 2004). There are just far too many sites, too many internet users and internet technology has become too accessible resulting in no possible way to continue online operations if a site simply is not user friendly. To improve usability, it is important to focus on the concept of best practices namely standards in the development of online user platforms that follow a specific format in terms of user interface solutions (Seffah & Metzker, 2004). By focusing on industry standards of usability, ensures the development of an online platform follows a format that users are used to and above all prefer as compared to developing a unique type of user platform yet one which users cannot use properly and thus would avoid.

Reference List

Seffah, A., & Metzker, E. (2004). The obstacles and myths of usability and software engineering. Communications Of The ACM, 47(12), 71-76.

Suh, K., & Chang, S. (2006). User interfaces and consumer perceptions of online stores: The role of telepresence. Behaviour & Information Technology, 25(2), 99-113.

Viralingam, N., & Ramaiah, C. K. (2008). Comparative Study of HTML and Animated User Interfaces of an Online Exhibition. DESIDOC Journal Of Library & Information Technology, 28(4), 43-54.

Introduction

The new web system for the shop should be supported with specific innovations which are aimed at increasing the business potential of the company in general (Rainer, & Cegielski, 2011) and improving the specific management by means of digital technologies in particular (Turban, & Volonino, 2010). To understand the priority of the new system, the functional and physical features are to be considered along with the description of the particular processes which are to be completed by the members of the renting affair.

A list of functional requirements

1. All users will be able to search for the movies by the movie title, the year of release, and the actors.
2. The system will offer customers to register in order to run statistics and offer more functional opportunities.
3. Registered users will have to log in to see the statistics.
4. The registered uses will be able to check the popularity in accordance with the number of rent movies and in accordance with the rates of the movies present in the store.
5. Registered customers will be able to search for the necessary movie in a particular store and to order a specific movie from one store to another.
6. Registered customers will be able to pay and rent the movie via the Internet with additional charges for delivery.
7. The system will calculate a discount of -5% for the customers who rent each 10^th movie.
8. The system will have the statistics of the movies sold by each shop assistant.
9. The system will be available from any place.

A list of physical requirements

1. Each customer will be able to enter the site and to see the movies present in the shop without a login.
2. To see additional information, people are to register (free of charge) and log in. The procedure will not take more than 1-2 minutes.
3. The registered users who used login for entering will be offered additional priorities.
4. The shop-assistance will have to register when they start working.
5. The number of attracted customers and the number of occurred sales will be presented on the personal page of each shop assistant.
6. Each assistant has access only to a personal profile.
7. The manager will have access to all the statistics at any shop.

The description of the processes

The flowchart

Reference List

Rainer, R. K., & Cegielski, C. G. (2011). Introduction to Information Systems: Supporting and Transforming Business. Hoboken, NJ: John Wiley & Sons.

Turban, E., & Volonino, L. (2010). Information Technology for Management: Improving Performance in the Digital Economy. Hoboken, NJ: John Wiley & Sons.

The main privacy and network security issues affecting online businesses

In this research, I found out that most businessmen store their information online. Hartman (2003) states that online information storage is a convenient method of data storage since the company does not have to manage its own data storage system.

On the other hand, this process is risky and can result into loss of valuable data and subsequent financial loses (Shaw, 2012). In line with this Miller (2002) indicates that even though most organizations want to shift to online data storage, the issue of network security and privacy of the information hinders the companies from using this form of storage.

Miller (2002) claims that for the trader to have confidence in the computers and internet systems there is a need for them to have up-to-date computer protection systems that will prevent unintended transfer of information. Such systems include firewalls, logins prompt among other systems (Garfinkel, 2002).

Hence, it clearly appears that these security systems have been developed to prevent loss of information. Despite the security measures that have been developed, loss of information is still very common. Erbschloe and Vacca (2001) insist that further research and development of better methods of protecting information online should be encouraged.

The other point to be considered is that by use of online data storage system traders obtain their files through the internet and do not have to keep any back up hardcopies. This means that most of the information is only stored online and there are no other physical records. In line with this, Hartman (2003) argues that soft copies are easily retrievable, can be located with ease and occupy less space. By and large, Information can also be compressed making the filling system easy and less tiresome but prone to online attacks.

In spite of this, online databases are prone to attacks by hackers and these result into loss of information. Shaw (2012) indicates that hackers demand payment before releasing the information and this may lead to financial losses. In addition to the mentioned above, Myriam (2008) argues that though many solutions have been developed to curb information theft, the problem is still prevalent as hackers master the current security measures and formulate strategies of overcoming them.

During the review of literature, I came to the fact that most businessmen investing in online data storage methods have to continually update their systems and databases which is costly and expensive in the long run (Shaw, 2001). In spite of the fact that most organizations and individuals monitor their websites to check who visits them, there is a lot of fraud and internet scam cases.

Identity theft is still on increase. It entails the use of personal information or data without the owners knowledge to commit a crime. Identity theft in online business environment takes many forms, for example, credit card information loss and IP address. Hartman (2003) indicates that there are many advantages associated with sharing information online stated in this research but there also exist a large number of unsecured websites that sell stolen credit/debit cards worldwide.

These sites affect sharing information online since a trader may fall a victim of online crime by giving his credit or debit card information to a fraudster. Khosrowpour (2004) indicates that the lost information does not only affect the buyer and the seller, but also the trust that people have in online data transfer and online business in general. Camp (2000) insists that online security and privacy must be improved if traders and customers wish to trust the system.

In terms of this research conducted, I concluded that phishing is another security and privacy issue affecting online traders. It entails the use of fake personal data, which is very similar to the original with the intention of defrauding online traders. The most common form of phishing is fraudsters making automatic bank cards similar to the original ones and requesting customers to change their particulars only to defraud their funds thus affecting their businesses negatively (Khosrowpour, 2004).

Salehnia (2002) indicates that false information is another great security threat found to affect online business environment. It must be stated that giving false information on the internet greatly affects the trust that customers have in the system and this reduces e-commerce activities. Most customers and business persons are prone to this security threat due to the virtue nature of online businesses.

It is impossible for the trading parties to meet physically. In some instances, businessmen and customers give false information with the intention of defrauding the other party (Shaw, 2012). This problem has resulted into increase in the risk of transferring money, which hampers the development of online shopping procedures. In the past, customers and businessmen have incurred heavy financial losses leading to failure of trust in e-commerce.

Shaw (2001) indicates that most traders operating online businesses have no proper business ethics. This fact also increases the risk of e-commerce as well as reduces the trust among trading parties (Shaw, 2001). It is, therefore, important that proper security measures and appropriate strategies are undertaken to ensure that the customers and businessmens information is secure and confidential.

In this research, I came to a conclusion that most of business sites are regularly updated (Martha, 2009). This is a great advantage to the traders since they get very useful information to develop their business. In overall, businessmen receive bulk information via the internet most of which is false and compromised. Moreover, this information is hard to distinguish if it comes from a potential customer or a fraudster. Failure to differentiate a fraudster and a customer results into a huge number of transactions lost.

According to Kloseks (2000), there is a big increase in infringement of personal information since most of online traders have their personal rights violated. Kloseks (2000) indicated that internet has a great negative impact on the intellectual property rights of individual, i.e. patents, copyrights, and other individual rights.

Even though it is possible to protect information in the online environment, there is no enforcing body as the internet spans across many countries. It should be stated that most innovative ideas, songs and literature are propagated around the internet without the consent of the owner. From this point of view of the subject it may be concluded that this discourages the use of online trading methods. Yaniv et al. (2012) indicate that lack of privacy has resulted in infringement of the personal rights of many individuals in the social media.

What are the ethical issues arising from internet security and privacy in the online business environment?

Salehnia (2002) insists that there are several ethical dimensions related to e-commerce privacy and security. Most of business persons agree that security and privacy are major human rights. However, most online companies are infringing on the security and privacy rights through their abusive policies. In addition, Camp (2000) argues that privacy and security of data are important to personal liberty and personal trust.

I also found out that privacy is an essential necessity for any business or company because it protects businesses from violations of business autonomy and independence. Having control of ones business information and the right to reveal it to specific people only is essential to any developing business. This could be helpful in reducing identity theft, credit or debit cards theft and increase traders trust in online systems.

Moreover, the lack of proper information privacy and security hinders beneficial relation between different firms. This is caused by the fact that the increased number of internet fraudsters claim to be legitimate traders. According to Salehnia (2000), most businessmen find it unethical when their data is displayed during negotiations. They especially fear the threat of correction, poor judgments, criticisms and plagiarism. Most of them are also afraid that this display of information will lead to patents developed being brought back for implication resulting in loss of individuality.

In this study, I discovered that most businesses are located in different regions worldwide with different cultural values. Most businesses from these diverse cultures value information privacy and security. These regions with varying cultures have different methods of ensuring that their information is not tempered with. Salehnia (2002) states that cultural values play an important role in the determination of business view on security and privacy.

It was made clear that capitalism ethics was another factor affecting online trading. Traders campaign for decreased privacy and security can access their site and buy from them so as to ensure that customers. They do not take into consideration the privacy and security issues affecting most of the business persons in their day-to-day activities. According to Keenan (2005), there should be registered laws regulating security and privacy on these sites to protect the users.

It is worth mentioning that social media push for less privacy and security. This is harmful in the business society because it sometimes leads to psychological harm. For example, a business plan meant to be shared to one particular group only is displayed for all to view. On the other hand, some companies view this as a reward. Hartman (2003) argues that professions like journalism use public sharing in building personal brand and advertising their products.

Myriam (2008) states that due to the increased online privacy and security threats, there are many legal arguments concerning the rights to privacy and security. Business persons, in particular, strive to have the right to privacy and security on their business data to protect business ability to make important personal information without unwanted disclosure.

The solutions to network security threats and privacy

I found out that there are many technological developments that have evolved to minimize the problem of information privacy and security in business-related internet activities, e.g. ordering purchases, browsing business information and responding to orders. In addition, it is possible to disassociate the identity of the business persons from the information/data revealed in the rest of the information. This would decrease identity theft and other related crimes as stated by Erbschloe and Vacca (2001).

Garfinkel (2002) indicates that web-based redirector is one of the modern technologies used to minimize chances of data security and privacy. He argued that redirector allows one to hide his IP address. This helps in cutting the possibilities of sensitive information theft, and is best suited for the businessmen who browse rarely (Garfinkel, 2002).

Another solution is the use of a proxy which is a very common protocol dependent method of protecting business information and security. The most common type of proxies used are web proxy which assists traders when browsing, remailer proxy which helps when emailing, and socks proxy which are more universal and allow business persons to work with many internet protocols.

I clarified that secure connectivity enables companies and business persons to protect their confidential information from eavesdropping. This is achieved by implementation of Virtual Private Network (VPN). Encryption ensures that any unauthorized person cannot access information passing across VPN by the use of mathematical algorithms.

Business persons should also monitor their network system for attacks and regularly test the security infrastructures. This can be achieved by the use of network vulnerability computer scanners which identifiy weaknesses. Intrusion detection systems can be used to minimize chances of security threats that may occur. Identity mechanisms also help in ensuring that only authorized users access the companies information system, this is achieved though accurate identification and authorization of network users.

Conclusion

In conclusion, internet security and privacy are the most serious threats affecting e-commerce. These threats have many negative impacts which discourage traders and consumers from online transaction. There are many cases of privacy breach, stolen credit card details and many other security issues.

These issues must be addressed for the e-commerce to thrive. There are many solutions that have been developed to curb internet security threats which include the use of third parties to store credit card details, firewalls, antivirus, and the use of authentication when logging into websites and databases. There are also many ethical issues surrounding regulations and strategies used to curb online security and privacy threats. It is imperative that these ethical issues are addressed properly.

References

Baase, S. (2013). A Gift of Fire: Social, Legal, and Ethical Issues for Computing and the Internet. Upper Saddle River, NJ: Pearson Education.

Camp, L.J. (2000). Trust and Risk in Internet Commerce. Cambridge, MA: MIT Press.

Erbschloe, M., & Vacca, J.R. (2001). Net Privacy: A Guide to Developing and Implementing an Ironclad Ebusiness Privacy Plan. New York, NY: McGraw-Hill.

Garfinkel, S. (2002). Web Security, Privacy and Commerce, 2nd Edition. Cambridge, MA: OReilly Media.

Hartman, B. (2003). Mastering Web Services Security. Indianapolis, IN: Wiley Technology Publications.

Keenan, K.M. (2005). Invasion of Privacy: A Reference Handbook. Santa Barbara, CA: ABC-CLIO.

Klosek, J. (2000). Data Privacy in the Information Age. Westport, CT: Quorum Books.

Khosrowpour, M. (2004). E-commerce Security : Advice From Experts. Hershey, PA: CyberTech Publishers.

Mather, T., Kumaraswamy, S., & Shahed, L. (2009). Cloud Security and Privacy: An Enterprise Perspective on Risks and Compliance (Theory in Practice). Sebastopol, CA: OReilly Media.

Miller, M. (2002). Absolute PC Security and Privacy: Defend Your Computer Against Outside Intruders. San Francisco, CA: Sybex.

Myriam, D.C. (2008). Cyber-security and Threat Politics: US Efforts to Secure the Information Age. Oxford, England: Routledge.

Salehnia, A. (2002). Ethical Issues of Information Systems. Hershey, PA: IRM Press.

Introduction

The coming of the internet has given rise to e-commerce. In electronic commerce, buyers and sellers do not meet physically as all transactions are done online. Today, customers can access various products online (Chaffey 15). But for them to purchase, customers need to have the right information.

Customers expect to find all the necessary information within a central place with little effort and minimal time. This creates the need for a portal. A portal is an information entry which assists customers in searching and locating information while online (Turban and King 56).

Some of the needs for portals in Electronic Commerce (EC)

The success of e-commerce depends on customers capability to search for relevant information about an online product. To cater for this, a business should create a simple portal which customers can easily use (Reynolds 61). Portals play a significant role in promoting business and customer relationships. According to Turban and King (67), portals help customers in searching and navigating the website. Hence, a well-developed portal should help customers in efficiently searching for relevant information.

Portals assist in integrating information from various quarters (Turban and King 89). A portal can go a long way in helping a business make optimal use of information. This can be achieved by making use of innovative techniques such as Unified Content Application Programming Interface (API), and using common programing languages such as Java or C++. Through such, businesses can pool together information from various sources and make it available at a central location easily accessible to the customer.

Portals help in notification and customization (Schneider 84). Notification, also known as push technology, is a technique which allows users to automatically receive alerts such as new promotions or any kind of news without requesting for it.

Customization, which occurs based on users preference, helps in delivering relevant information to the users of the portal. In the end, users only get the content which is specifically meant for their needs. There are several kinds of customization: customization of navigation, customization of material content, and customization of layout (Turban and King 263-65).

Laudon and Traver (68) have observed that portals assist in managing tasks and workflows. Business can use portals in undertaking or managing organizational processes. The function of workflows is to make it possible to automate organizational processes (Turban and King 69).

Therefore, as part and parcel of workflow-automated organizational processes, a portal can notify the user when the user is meant to undertake a certain task. For instance, it can notify the user when a newly launched product has been posted in the companys website.

Portals are equally important in the area of collaboration and groupware. Groupware ensures that the needed content is availed in the appropriate place in the appropriate mode (Turban and King 268-69). This implies that the users are given the right information they need. Groupware promotes business-client interaction. They can equally assist in promoting informal interactions between a customer and a supplier in business-to-business (B2B) engagements.

Portals assist in integrating business applications. Such applications include application service provider (ASP), and business intelligence (BI) (Turban and King 91). Finally, portals are needed in EC because they provide infrastructural support (Laudon and Traver 118). Experts believe that the infrastructural role is the bedrock of portals and that the other needs merely add onto it. In other words, a good portal will be manageable, scalable, secure, and available.

Conclusion

This study has established that in e-commerce, customers only require a portal from where they can easily acquire relevant information about products with little effort and minimal time. The need for portals in electronic commerce arises because of various reasons. Portals help in searching and navigating information, as well as in integrating information from various quarters (Turban and King 89).

Other than notifying a customer and in customizing certain information based on customer preferences, portals assist in managing tasks and workflows. Portals also help in collaboration and groupware management, in integrating applications, and in business intelligence. Finally, portals provide infrastructural support (Laudon and Traver 118).

Works Cited

Chaffey, Dave. E-Business and E-Commerce Management. 3rd ed. New Jersey: Pearson Education, 2008. Print.

Laudon, Kenneth C., and Carol, Guercio Traver. E-Commerce: Business, Technology, Society. Rev. ed. Boston: Addison-Wesley, 2002. Print.

Reynolds, Janice. The Complete E-Commerce Book: Design, Build & Maintain a Successful Web-Based Business. NW: CRC Press, 2004. Print.

Schneider, Gary. Electronic Commerce. 10th ed. Stamford: Cengage Learning, 2012. Print.

Turban, Efraim., and David King. Electronic Commerce 2012: Managerial and Social Networks Perspectives. 7th ed. New Jersey: Prentice Hall, 2011. Print.

Abstract

Trust is an important factor when people are engaging in various transactions over the internet. If this is not met, customers are likely to go back to the traditional methods of transaction as far as business is concerned. Security issues in e-commerce must be addressed so that e-commerce transactions are not compromised.

E-commerce is a simplified and an important avenue for online business but with increasing network insecurity, internet operations may slow down. The author of this paper is going to discuss some pertinent issues surrounding e-commerce as far as security is concerned.

The issues will include insecurity in both network and computer services which is a threat to customers as well as the e-commerce itself. The perpetrators are believed to be hackers and the biggest concern is that insecurity originates from the e-commerce itself. This development may make customers shy away.

The author will also touch on the weaknesses of the security systems in place. Privacy becomes an important factor in e-commerce. Various controversies surrounding e- commerce will be analyzed in this paper. In conclusion, the author will give recommendations arising from the discussions in this paper.

Introduction

Electronic commerce involves buying and selling of goods and services over electronic systems such as the internet and other computer applications. Transactions conducted electronically include electronic funds transfer, online transaction processing among many others. Trust at this juncture becomes an important factor in this business.

If trust is not established, customers are likely to revert to traditional methods of trading (Craig & Mihajlo, 2011). Trust is being destroyed by frequent reports of hackers that attack e-commerce web sites compromising consumer security. Recently, viral attacks were launched against the Microsoft Outlook in the name of code red worms. To avert such scenarios, there is need to address insecurity (Mayor, 2009).

History of E-Commerce

Back in the 1970s, e-commerce was used by companies to forward transaction documents such as purchase orders and invoices. The rise of e-commerce in the 1980s was marked by the use of telephones, credit cards and most interesting booking for reservations in airlines. This was especially so in USA and the United Kingdom (Eisingerich, Andreas & Kretschmer, 2008).

A decade later, e-commerce added value to its services by including an enterprise resource planning system as well as data mining which resulted in data warehousing. This was the period during which the famous World Wide Web came into being. The person behind this important achievement was Tim Berners-Lee (Chan & Kwok, 2001).

There were major improvements in e-commerce but unfortunately, the founders were unable to use the internet until the year 1995. This was due to the fact that there were no security protocols as far as privacy was concerned. The introduction of security protocols was a big boost to the internet usage since privacy was guaranteed for most transactions.

Current Security Issues in E-Commerce

Currently, e-commerce has grown tremendously and this is observed when increasing numbers of people are reported to use online services. Online shopping goes up each holiday season due to the fact that people are interested in new and unique things and e-commerce is the only platform that they can realize this (Graham, 2008). People gain experience as they familiarize themselves with online services.

A study done by Comscore (a consultant in this field) states that when shoppers are experienced and comfortable with the services offered, spending shoots up increasing the use of internet services (Kotler, 2009).

Unfortunately as the transactions are taking place, many inconveniences arise. Many issues affect online transactions and e-commerce in general. Security is one of these issues that sometimes make users shy away from internet services

Security concerns in e-commerce occur when data is exposed to or accessed by unauthorized persons leading to compromised information that is rendered invalid (Kevin, 2005).

This is for example when hackers access personal information such as bank account details during a wire transfer. This is where privacy issues come in. Privacy involves having control over personal data without the interference of a third party. This issue affects all stakeholders in the e-commerce industry.

Electronic commerce security issues can be categorized under system availability, data integrity as well as information confidentiality (Chan & Kwok, 2001). For instance, system availability implies that relevant elements are in place to offer support to particular users communication needs.

On the other hand, data integrity provides that all messages that are sent over the network are received as they are without any alterations that could make them invalid. For example, hackers may alter the information sent via a Short Message Service (SMS) such that the receiver gets a message that is totally different from that which was sent.

Information confidentiality implies that messages are only viewed by the intended users only (Rowley, 2006). It is always necessary to continuously review network security at both the electronic commerce and consumer sites and put in place suitable counter- strategies.

These are for example passwords for emails and other accounts as stated above. This is because the security of internal systems and the external networks rely mostly on the security of the site.

Electronic commerce has grown tremendously leading to fast and effective ways of exchanging goods and services both locally and internationally.

This has been accompanied by an equal rise in the number of attacks as analyzed above putting at risk the security of online payment. Some of these attacks have increased vulnerabilities that have been published in reusable third party elements used by websites such as shopping cart software.

Security can be conceptualized from two perspectives in the software business (Sam, 2001). First, the software development community illustrates the security aspects of a system. In this case, safety strategy provides for secret codes that are sophisticated so as to reduce vulnerability during encrypting.

The second perspective entails protection against attacks and spywares which threatens internet usage. This is for example the use of firewalls and such other measures to protect data.

Security Problems in E-commerce Development

In the e-commerce arena, there exist threats that are likely to bring down the industry if no instant measures are put into account. Efforts to develop e-commerce are always affected by attacks that target the three systems. These are the network system, client system and the server system.

The inability to protect the integrity of the business data system is a major problem in the e- commerce industry. This problem extends to transaction security between the customers and the business (Bruce & Kok, 2008)

Viruses are considered to be the most serious and common threats surrounding e-commerce. All data and windows are prone to viral attacks. Sophisticated software and hardware are not fully dependable when it comes to protecting the system. For example, viruses such as Melissa and Resume affect at least part of the operating system if not the entire system (Ralph, 2000).

Another huge problem is the invention of hacking tools by those who develop operating systems. This is for example the Trojan horses which are so sophisticated in that they can operate a targeted computer system. The virus can send information anywhere posing as the legitimate user of the computer.

Other tools like VNCviewer normally used commercially can hack the systems and other web sites. Other hacking web sites are also playing a role in e- commerce insecurity. This is for example www.rootshell.com and many others which are the problem in development of the e-commerce security systems (Xiaoming, 2008).

The customers have their privacy affected. This is a problem that is developing roots and is drawing global attention. This is especially so given the fact that international governments are concerned with this issue. The initiation of Distributed Denial of Services Attacks (herein referred to as DDOS) is a form of software that can be used to compromise security during transactions between the business and the client.

They pose as the legitimate client and transacts with the online business operator. It is only much later that the organization realizes that a wrong transaction has been made. Both the business and the customer loses since the customer information has been hacked into and lose of money to both parties is exhibited. (Mauricio, 2010)

Electronic Commerce Security and Legal Issues

One of the parties addressing legal issues in e-commerce is the Electronic Commerce Working Group (ECWG). This group meets regularly to discuss security matters arising. Resolutions are then forwarded to other federal agencies for rectifications (Jeng, 2004).

Advice is normally given to the companies involved in e-commerce transaction process so as to address the issues effectively. Government regulations make it mandatory to provide public confidence through reliability in all transactions. Consumer protection has also been taken care of but some fraud cases are still being reported.

Government Regulations and Security in E- commerce

Some e- commerce activities in USA are controlled by the Federal Trade Commission (FTC). E-commerce activities such as business e-mails privacy and advertising are watched keenly to safeguard internet rights. Like other businesses, e-commerce operates under rules and regulations. E-commerce transcends international boundaries and hence there is need to comply with the regulations.

The economy and the national security depend highly on information technology which is a reliable infrastructure that targets large numbers of people at the same time (Ralph, 2000). It is noted that these computer networks also manage physical installations such as electricity transformers, stock markets, trains as well as radars. Hackers can attack such installations jeopardizing national security and the economy. This is why government regulation is crucial. To this end, the federal and local governments have major roles to play in order to maintain security as far as e-commerce is concerned (George, 2005).

The main problem is that the tools and methodologies currently used in these attacks on e- commerce are readily available. The technical capability and sophistication of tools used in attacks reduce the effectiveness of strategies used to fight insecurity. It is noted that relevant agencies, federal and local governments are best equipped to respond to an evolving internet threat (Ndou, 2004).

Controversies and Challenges Facing E-commerce

There are various challenges and problems facing e-commerce. For instance, most infrastructures and the internet on which they depend are owned and operated privately. This implies that it is difficult for the government to provide the needed security for electronic commerce (Xiaoming, 2008).

This calls for partnerships between the government, industry, academia, as well as non- governmental groups to provide security to electronic commerce. Very few if any of the organizations are willing to come out or even associate with others in order to offer the security needed in electronic commerce (Xiaoming, 2008).

Furthermore, it is not easy to identify all of the groups dealing with electronic business because some have not registered their businesses with the government. As a result, it becomes hard for such private businesses to come out and share their problems due to the fear of being prosecuted (Xiaoming, 2008).

Another challenge includes the lack of agreement in developing a national strategy in order to offer protection to the electronic commerce industry. This is because there is need to gather views from both the public and private sectors (Sheth, 2007).

This as a result leads to varying opinions that require time to scrutinize in order to come up with the best solution to achieve the objective of having a safe electronic commerce in all sectors in the country and the world as a whole. In some cases, the redrafting process may incorporate the suggestions made, but not everyone will accept each component of the national strategy to (Bruce & Kok, 2008).

This is because a significant number of issues may not be addressed and others are not yet ready for national policy. The approach is not absolute because events are bound to evolve (Kevin, 2005). Technological advance leads to more threats and increased vulnerability and thus improves peoples understanding of electronic commerce.

Impact of Security on E-commerce

Security is a significant challenge facing electronic commerce (Zeithaml, 2002). This is because without the assurance of privacy and safety, people are not willing to participate in electronic commerce. Burning issues on safety include the theft of personal data from the credit card by hackers. This makes the authorities question the suitability of providing public services online.

As a result of such cases of insecurity, the effectiveness of e-commerce as a driver of the economy is greatly reduced. This may lead to the deterioration of the services provided through electronic commerce thus affecting the production cost of goods and services. Security concerns are the biggest challenge in expanding the reach of electronic commerce (Zeithaml, 2002)

The attacks from hackers and web page vandals makes the general public and the government to be more cautious when carrying out sensitive transactions that may comprise personal or financial information via the internet (Xin, 2011). Every person desires to feel secure when conducting online businesses and hopes that their information will be safe and confidential.

Recommendations

To enhance security, most service providers try to make sure that only authorized users can send and receive information over the internet or over the phone. This is one of the reasons why e-mails have passwords and phones require the use of security codes and Personal Identification Numbers (PIN).

However, it is these safety protocols which are circumvented by hackers and other unauthorized third parties. This affects e-commerce that is conducted via such channels.

Electronic commerce providers have made efforts to address the security issues in their internal networks. A number of guidelines have been put in place to secure systems making networking available for the electronic commerce personnel to study and implement.

Training and educating the consumer on security issues is still in progress. For instance, Trojan horse programs initiated against customers systems become a risk to electronic commerce mainly because they can circumvent or undermine most of the verification and approval procedures used in electronic commerce (Luarn, 2003).

E-commerce requires the provision of security for the internet users. To achieve this, measures need to be put in place so as to win trust of the customers. This is for example video- hosting services on every website to speak to the customer directly if there is need to clarify on some issues (Luarn, 2003). Many people are not well informed on e-commerce mechanisms and how it works.

There should be efforts to create awareness about e-commerce so that everyone is knowledgeable about internet services (Sam, 2001). Consumer protection is an important area which should be addressed due to increased insecurity.

The consumer is the party most affected by online insecurities. To this end, there should be measures to safeguard the rights of the consumers. As much as there are new innovations on thefts and attacks software, there should also be innovations that track down any online offenders.

There should be customer oriented privacy practices to improve consumer satisfaction. This should include a system capable of showing how e-commerce organizations sites gather, handles, and uses personal information.

Private and non- governmental organizations with significant computing resources should be encouraged to take active roles in information sharing (Ndou, 2004). This is because colleges, corporations and universities have a vital role in identifying and reporting internet attacks.

Conclusion

The aim of this paper was to analyze security issues in e-commerce. The author started by looking at the historical background of e-commerce. The author also looked at several issues such as controversies revolving around e-commerce, problems encountered in e-commerce among others.

It was found that stakeholders such as federal and local governments have important roles to play in e-commerce. The author found that security is a major concern in e-commerce.

References

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Chan, M., & Kwok, L. (2001). Integrating security design into the software development process for e-commerce systems. Chicago: Free Press.

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George, S. (2005). Rethinking e-commerce security. Harvard: Harvard University Press.

Graham, M. (2008). Warped geographies of development: The internet and theories of economic development. Geography Compass, 2(3): 771.

Jeng, C. (2004). Trust and privacy in electronic commerce. Boston: IEEE.

Kevin, K. (2005). We are the web. Managing Service Quality, 3(2), 23-39.

Kotler, P. (2009). Marketing management. Pearson: Prentice-Hall.

Luarn, P. (2003). A customer loyalty model for e-service context. Journal of Electronic Commerce Research, 4(4): 20-23.

Mauricio, S. (2010). Reducing online privacy risk to facilitate e-service adoption: The influence of perceived ease of use and corporate credibility. Journal of Services Marketing, 24(3): 219-229.

Mayor, S. (2009). E-commerce policies and customer privacy: Information Management and computer security. Boston: Cengage Learning.

Ndou, V. (2004). E-Government for developing countries: Opportunities and Challenges. New York: Free Press.

Ralph, T. (2000). IT security in electronic commerce: From cost to value driver. International Workshop on Database and Expert Systems Applications,16: 23-29.

Rowley, J. (2006). An analysis of the e-service literature: Towards a research agenda. Internet Research, 16 (3): 339-359.

Sam, R (2001). A framework for analyzing e-commerce security: Information Management and computer security. New York: Routledge.

Sheth, J. (2007). E-services: A framework for growth. Journal of Value Chain Management, 1(1/2): 1-20.

Xiaoming, M. (2008). Analyze and prevent the security risks of e-commerce privacy. Chicago: John and Wiley Publishing Company.

Xin, W. (2011). Study on information management and security of e-commerce system. California: LEE.

Zeithaml, V. A. (2002). Service excellence in electronic channels. Managing Service Quality, 12(3): 135-138.

Summary of the Article by Lei Pouwan and Wang Jia

Lei and Wang indicate that the mobile commerce (m-commerce) has grown and developed considerably in the recent past. This has been influenced by emergent mobile phone makers like India, China, as well as Brazil.

People using m-commerce in China are already more than conventional bankers. Also, there is an outburst of both mobile and wireless services in Korea and Japan. In the U.S., the number of subscribers also increased tremendously in 2005 (to 207.9 million users).

Flexibility of trade is now a reality owing to mobile e-commerce. The mobile phone subscribers are able to use internet anywhere at any time using simple handheld gargets or laptops. For instance, an individual can be able to send and get e-mails and make restaurant reservations at any time.

In addition, a person can also confirm actual moments in time, explore digital maps, surf the internet, and download various songs and games. Both mobile and wireless services vary from movable communications to local area networks. The services offered by these technologies have realized numerous achievements. In this essay, m-commerce services are studied in regard to mobile phones and other emerging wireless technologies.

From the article, it is evident that E-commerce has branded various markets. This includes online public sale systems that link purchasers and vendors. Currently, it has developed into a social network where the subscribers can manipulate their demands. There are several new business models that continue to develop through the application of e-commerce.

The major features of mobile devices include mobility, cheap and more privatization. Other features also include Global positioning and voice systems. Some of the new business models that have been developed consist of micro payments, commercial services and content sharing services. In addition, there are also private entertainment services.

According to Lei and Wang, mobile phone operators remain the most preferred service providers due to their technical expertise, large customer base as well as their acquaintance with billing provisions. A micro payment service is compost of small purchases like selling and other services.

Distribution of contents involves actual time data, statements and the usage of positioning schemes for quick sharing of private information according to various places and time. Internet can hasten sharing of actual time data such as weather reports, traffic news, Forex reports and news can be shared using mobile phones and internet. Mobile e-commerce devices can successfully distribute private information according to the interests of the operator.

There are several benefits attainable from the mobile network. Besides having strong customer connection, they also have billing association with their clients. In addition, they can be able to find the actual location of the user. In this regard, they are the most trusted service providers.

Mobile phones and other wireless network devices have also turned out to be very important entertainment center. For instance an individual can download his preferred movies, music and games from the internet. Games clips can also be viewed directly online. Mobile phone services are amongst the fastest growing services.

Lei and Wang agrees that E-commerce has also had a great influence on corporate applications worldwide particularly in corporations with distant employees. Extending the available business systems for planning of resources with portable functionality will offer provide necessary data to distant employees. This reduces time and place limitations of workers and improves their ability to work as flexibly.

Challenges Faced by M-commerce

Lei and Wang note that there are several challenges facing M-commerce. These are categorized into economic, social, and technological aspects. The evolution of M-commerce is influenced by the progress and advancements in modern M-commerce applications.

Also, progression of main substructure constituents like fast wireless data networks like 3G plus mobile communication devices with multiple applications contribute immensely to improvements in the M-commerce. M-commerce has also lots of benefits as already outlined in the above summary. The major factors that drive attractiveness to the M-commerce include easy usage, accessibility and it can be used anywhere at any given time.

Economic Aspect

As evident from the article, there has been a delay in the implementation of the system by the 3G mobile network operators. For instance, the idea of free internet changed and people were forced to pay for internet services in Japan. The Mobile network operators, who are the main provider of applications, expect lots of returns creating excessively high anticipations from the services.

Most European corporations like DeutscheTelecomand Vodafone in the UK used up billions of US dollars to obtain 3G warrants.There is gradual phasing out of 3G in Europe in the year 2004. After campaigns to reduce prices greatly, the number of operators also subsided. Thus, the mobile network operators are hesitant to develop their 3G substructure.

Social Aspect

Lei and Wang argue that the attractiveness in 3G mobile phones has greatly reduced in most places. The ownership levels of mobile phones in Western Europe countries are at maximum, therefore the market is saturated. Again, most mobile phone operators are hesitant to the advancement of their phones. In addition, the M-commerce inclined much to image messaging requiring new costly mobile phones. However, the reaction is quite low. Lots of returns are obtained majorly from SMS messaging and voice calls.

Standard Aspect

The market for laptops is rather not the same as market for other handheld gadgets. Some corporations like Nokia manufacture handheld devices and also produces Symbian software, which is an operational system for mobile phones. These corporations have cut their links to mobile network operators. However, the operating standards are closely controlled by both companies that manufacture handheld devices and mobile network operators.

Technological Aspects

In this context, the major challenge is security. Mobile communication devices provide their operators with numerous benefits such as mobility, flexibility, as well as improved production. Unlike wired networks, the airwave is completely open to intruders in mobile networks.

Through the use of improved mobile device, an intruder is able to meddle on the signals and data networks that are related to other operators. Since mobile phones are smaller in size, they are vulnerable to theft or getting lost. Thus, there is need for private information like private key.

In addition, mobile devices have a number of essential restrictions. Advancements in technology will boost the computing ability and storage in mobile devices. Nonetheless, inadequate battery life as well as power usage will limit the probable developments of M-commerce even though 3G is extensively accessible.

Future Trends

The authors recognize that new and advanced technologies such as WI-FI offer very fast and steady connection. The rate of data transfer is much quicker compared to 3G. This technology can be a predicament to all other investments in M-commerce by telecom as well as content providers within the intervention of mobile network. The mobile phone builder Nokia and Cisco, wireless network creator, are already adopting this technology to make the Wi-Fi phone.

WiMax is another good technology that will help new mobile phone users to get into the industry at cheaper cost. This is a wireless connectivity system that enables two operators to have an uninterrupted communication with no routing over a central switch. Besides sending data, the operator on the other end can also act as a repeater or a router. Lastly is the Power line broadband technology. It provides fast internet connection through electrical grids. All these technologies are appropriate for mobile network operators.

Even though there are limitations of M-commerce, most modern mobile communication has tracking capabilities. This is very useful in getting the actual location of targets or other developed services. Such services include travelling directions and locations of places. However, this extra expediency also has got its shortcoming particularly with regard to its being invasive in nature. Tracking tools invades into the privacy of an individual obstructing his capability to move easily.

In conclusion, M-communication has several benefits that have attracted many subscribers. There are also its shortcomings discussed in the summary. However, these shortcomings can be solved with technological advancements and development of standards.

Critique of the Article

Critically, the article provides credible information in regard to how the lives of individuals have been influenced positively by mobile phone infrastructures.

Nonetheless, some of its provisions can be subjected to criticism. Currently mobile phone communications is applied everywhere from businesses to government institutions and private entertainments. Arguably, the applications are not only limited to elementary calls rather; different products and services are provided. In all the applications, M-commerce has become very vital.

Nevertheless, the major barrier in using e-commerce is users fear of deceit. Successful application of M-commerce calls for some trust as well as good relation amongst the people using the networks. Wrong and confidential information can be obtained from the networks with multiple users.

This is not mentioned in the essay summary. Another weakness that is rightly pointed at is loss or stealing of the mobile communication devices. Thus security is very important for proper distribution of M-commerce services. To ensure security, a payment validation is required to confirm that only the official user is making the contract. Also, systems that employ wireless payment methods are important. These will not only help to boost the trust of the users but will also increase the number of subscribers using M-commerce applications.

Critically, there are technologies that mobile phone operators can implement to help in the validation of payments that are not discussed in the summary. First is the use of SIM, which is subscriber Identification Module. In this module, validation as well as communication functionality are both incorporated in a single chip.

Second is the dual slot. Here, the validation purpose is built in a detachable card that is distinct from the mobile phone device. Communication between the card and the mobile phone is facilitated by either an interior or peripheral card reader.

As rightly discussed in the summary, there are business standards that have been established. These include Wireless Identity Module and WAP. In addition, there is also wireless transport layer security (WTLS) and many others. Specifically, with respect to validation of users, several security firms have now improved their advancement exertions in wireless security solutions.

Some of these solutions include public key infrastructure (PKI) and digital licenses. Others include security software, technology that employs smart cards and digital signatures.Smart card technologies let the network managers to rightly ascertain operators positively and authorize an operators right to use internet and his or her privileges.

While Chinas rapidly growing economy has facilitated wholesale purchases using credit cards via B2B transactions and platforms, a majority of the population still has limited access to credit cards that can facilitate international and, in some cases, domestic purchases (Xinsheng and Qi 33).

This is in part due to the restrictions placed by the Chinese government on its internal financial systems due to its desire to have greater control and limit foreign volatility from affecting local markets.

However, with the increase in internet usage, higher demand for smartphones and greater consumer interest in owning a PC, this has created an ever increasing level of localized demand for EC (Electronic Commerce) transactions as more local consumers within China realize the advantage of online purchasing. To meet this demand, it is recommended that an online purchasing gateway be created that allows local Chinese buyers to purchase products online yet make payments locally via a payment center or a bank using a product code.

China has experienced an exponential growth in internet subscribers with more than 18 million being added on a yearly basis. Combined with greater purchasing power as a result of Chinas booming production based economy, this has resulted in more local consumers developing consumption habits outside of merely subsistence (Liu 266).

Convenience, novelty and, in some cases, luxury have become the factors by which local consumers within the country base their purchases (Stanworth, Warden and Hsu 461). The ability to accommodate these factors via EC has been at the forefront of the developing online marketplace within China and, as such; requires immediate attention in order to take advantage of this opportunity.

It is recommended that an internet portal be created that allows online transactions to be funneled via this gateway. All local consumers within China would have to do is create their own account and use this as a means of paying for all online transactions with merchants that also have accounts via the same gateway.

In order to process payments, a barcode or a serial number is sent to the clients email account once a transaction has been initially processed online (Yali, Yang, and Beixin 24). The client would then take that serial number and barcode to the nearest authorized payment center or bank, have them scan the barcode and pay the amount indicated on the transaction.

Once the amount has been paid, the transaction is then completed with the item being sent to the address indicate on the internet portal account. If the customer has a credit card, the internet portal can process the transaction via agreements with the local bank that the card belongs to.

The advantage of this method is that it allows individuals without credit cards to make online transactions. Also, customers that do have credit cards yet are unable to use them to purchase goods internationally can use the merchant portal as a middle man in order to process the transaction for them (Chang, Chen, and Dobbs 73).

Given the sheer size of Chinas economy and the number of consumers within it, it is likely that many online merchants, both local and international, would have very few reservations about opening their own online accounts via the payment portal in order to make their goods and services more accessible to local buyers in China.

(Zhang, Bian and Zhu 304)

What this data shows is that the number of internet users increases at almost the same pace as the number of credit cards available within China. This shows that as more people have credit cards and access to the internet, they need a reliable method of online payment processing for the local and international goods that they want.

Works Cited

Chang, Elsie, Yougang Chen, and Richard Dobbs. Chinas E-Tail Revolution. Mckinsey Quarterly 3 (2013): 70-77. Print

Liu, Ying. Online Purchaser Segmentation And Promotion Strategy Selection: Evidence From Chinese E-Commerce Market. Annals Of Operations Research 233.1 (2015): 263-279. Print

Stanworth, James O., Clyde A. Warden, and Ryan Shuwei Hsu. The Voice Of The Chinese Customer. International Journal Of Market Research 57.3 (2015): 459- 481. Print

Xinsheng, Ke, and Sun Qi. Study Of CSF In Chinas B2C E-Commerce Based On Expert Evaluation. Journal Of Electronic Commerce In Organizations 12.2 (2014): 31-45. Print

Yali, Shen, James G.S. Yang, and Lin Beixin. Current Status Of Internet Commerce And Taxation Problem In China. International Tax Journal 40.2 (2014): 17-47. Print

Zhang, Yu, Jing Bian, and Weixiang Zhu. Trust Fraud: A Crucial Challenge For Chinas E-Commerce Market. Electronic Commerce Research & Applications 12.5 (2013): 299-308. Print

Introduction

Websites, such as Alibaba.com, create a great opportunity for SMEs to expand their sales and production. Alibaba.com and Trade-india.com have similar features on selecting products and suppliers. The usefulness of the information to a buyer is that it offers a wide range of companies and products that an individual can select. The websites lower the cost of marketing, labor, and retailing.

The three sites offer a simple path of registering a seller. A single click is enough to put the seller on a page where he can begin the registration process. Fraud can come from the ordering procedures that require customers to make payment before goods are delivered.

Fraud can be reduced by using a third party to hold money on behalf of customers. The third party can release the money once all the terms of trade have been met by the supplier. In the short run, the problem caused by lack of infrastructure can be solved by convenience stores.

Ease, usefulness and potential value of the website

The product I would like to purchase is genuine leather. I type genuine leather on the advanced search field and look if there are categories that match my search. I click on search, since there are no direct matches. Most of the categories are about finished goods.

I want genuine leather material that I can use in the fashion industry to make items such as jackets, wallets, belts, and shoes. I choose suppliers and the gold standard criteria. The list of companies that qualify is large. The selection shifts to lower prices, and suppliers with a wide range of colors. There are about 38 companies per page, and there are 90 pages. Most companies are located in Asia.

There is a large of number of suppliers, which may increase the difficulty in choosing one supplier. The two companies that I select are Jinjiang King Lion Garment Trading Co., in China Mainland, and E.F.A International (SMC-Private) Ltd., in Pakistan.

I select Jinjiang King Lion Garment Trading Co. because of its low prices. The material costs US$ 2.5  US$ 4.5 per square meter of genuine leather (Alibaba fig. 1).

The material can be used for making handbags and shoes. The delivery time is also a factor in the selection. Jinjiang King Lion Garment Trading Company delivers a package between 10 and 15 days. It offers a wide variety of colors, which makes it easier for a fashion designer (Alibaba fig. 1).

E.F.A International is selected because it offers a wide range of genuine leather with a light weight that can be used for apparel. It offers a wide variety of colors. It is chosen for sheep, goat and pig leather. The price is higher than the price offered by companies operating in China.

The price ranges from US$ 1.99 to US$ 2.75 per square foot (Alibaba fig. 2). The goods are delivered in a period of 30 days. Selecting a product and a company, based on price and ratings given to the supplier, is an easy process.

The usefulness of the information to a buyer is that it offers a wide range of companies and products to select. One can choose a company based on the years that it has retained membership. Some of the companies have been verified by Alibaba.com.

Potential value comes from the information obtained without physically visiting stores to make selections. The potential value is also created when the supplier makes arrangements using existing logistics companies that are more efficient through specialization.

Benefits and costs of using sites such as Alibaba

An SME, such as SpinCent, has an opportunity to grow at a higher rate by satisfying needs of customers in a larger market. SpinCent manufactures laboratory and industrial centrifugal devices that experience a slower growth rate. Slower economic growth rate has its effects on the domestic market.

SMEs will need to be verified and gain membership of the website to increase its ratings. Customers are likely to base their selection on the ratings given to an SME by the firm that manages the website. SMEs are likely to use less on advertisement to market their products. They have the advantage of choosing a popular website.

Comparing the three websites

Alibaba.com and Trade-india.com have similar features on selecting products and suppliers. Only their location on the home page differs. Both have categories to speed up the search for a product. Both websites offer chargeable marketing services. Both of them show the length of time that a firm has engaged in online business, in years.

One of the main differences is that Trade-india.com serves products manufactured in India. It features catalogues from different manufacturers. A search on Trade-india.com results in products (Trade-india par. 1). A search on Alibaba.com offers a possibility of selecting either products or companies.

The main difference in Europages.com is the language selection option that enriches the websites content. A search on Europages.com results in a list of companies. It will take more time for a buyer to select a product on Europages.com than on Alibaba.com (Europages par. 1). The images on Alibaba.com and Trade-india.com are better than the ones found on Europages.com.

When trying to find the same genuine leather material, as in Alibaba.com, Europages.com and Trade-india.com do not provide the same simplicity of choice as Alibaba.com.

The three sites offer a simple path of registering for a seller. One click is enough to put the seller on a page where he can begin the registration process.

Trade between countries will eventually take place through websites like Alibaba

Trade will eventually take place through websites once the barriers that limit trade have been removed. One of the barriers is logistical infrastructure. As emerging markets develop more sophisticated logistical infrastructure, the cost of delivery will be lower increasing demand for online purchases.

Governments in emerging markets are investing in infrastructure that supports logistics, such as roads and local addresses. Most emerging markets lack location addresses that can be easily identified by suppliers without confirmation through a phone call (Gupta and Bijlani 3).

Another barrier is the method of payment. Unlike developed countries, most emerging markets rely on physical cash for transactions. Most people have no access to electronic methods of making payment. Some people also distrust them because they are prone to fraud. As the online money transfer services, such as Paypal and credit cards, become more frequently used, websites will become a major shopping channel in most countries.

Fraud

Online payments create a situation where personal information may be captured by hackers. Individuals may lose money. Fraud can also come from the ordering procedures that require customers to make payment before goods are delivered.

In some cases, payment may be made, but goods may never be delivered. Alibaba.com has a system for making complaints, but fraudsters may register using different names. It may require tracking of IP addresses and verification of companies to reduce fraud.

Alternatives

Fraud can be reduced by using a third party to hold money on behalf of all customers and ensure that supplier meets all the terms of trade. Gupta and Bijlani (4) discuss about Alipay that Alibaba uses as a means of payment. If the customer returns the goods, the supplier may be entitled to deduct the cost of shipping from the refund. Refunds will also become easier if a third party acts as an arbitrator in managing payment.

The problem caused by lack of infrastructure to support logistics can be solved by convenience stores. Firms such as Alibaba can hold goods, in warehouses located in central locations, until they are picked by customers. They can charge the supplier or the customer.

Conclusion

The websites offer SMEs an opportunity to grow at a higher rate by satisfying needs of customers in a larger market. Trade will eventually take place through websites once the barriers that limit trade have been removed. SMEs will need to be verified and gain membership of the websites to increase their ratings. Alibaba.com and trade-india.com have similar features on selecting products and suppliers.

The main difference in Europages.com is the language selection option that enriches the websites content. Alipay acts as a third party to reduce the level of fraud. The problem caused by lack of infrastructure to support logistics can be solved by convenience stores.

Works Cited

Alibaba. n.d. Leather Journal, Brand Leather Factory, Genuine Leather with Pu Purse. n.d. Web.

Europages. n.d. Find, select, contact companies. n.d. Web.

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Abstract

Electronic commerce (E-commerce) is a form of trade which depends mostly on communication technology. The trade is carried out through the electronic medium (the internet) without any paper related documents.

Compared to other available markets, the net is the biggest since it has no conditions for entry and can be joined by anybody. This benefit everyone unlike other commercial online services, which have specified clients to access their services. The technology adoption has increased ability in the development of a country and as such earns most of the countries interest.

E-commerce also provides lots of benefits to consumers including the availability of products at a low cost. The aspect of ordering goods online also saves time and is much faster and preferred by many customers. Above all, E-commerce has helped a lot in the customer relation management, production and internal management.

E- Commerce in India

The growth of e-commerce in India has been largely determined by enhanced convenience and client choice. Besides, high use of internet and its accessibility have also contributed to the growth and development of e-commerce in India. The diffusion of electronic commerce has been slow among the enterprises, however, with increased globalization in money transfer and communication, the adoption of e-commerce has accelerated (Sharma & Rawat, 2014).

Majority of the Indian firms are now using e-commerce facilities to enhance their operations and increase customers relationships. Most of the shopping is done online by the customers due to their busy lifestyles. In 2011, e-commerce market in India was valued at 50,000 Rs. Approximately 80% of it is based on travelling. Online transactions in India cover about 15% of general money transfers (Gangeshwer, 2013).

For this reason, India has earned lots of interest from other markets as the best e-commerce market. E-commerce is not only utilized in advertising but also in enhancing business transactions. Merchandize ranging from groceries to movie tickets exchanged online. Besides, the online stock exchange has made e-commerce successful in India.

The provision of debit and credit cards by banks has also facilitated the growth of e-commerce. Banks have also availed phone banking and net banking whereby customers are able to make their bill payments instantly. Net banking is characterized by the special services including foreign exchange services and stock exchange services.

With the increased diffusion of online services, the traditional couriers have been found to be inefficient and unreliable, unlike online couriers. Besides, the advancements in computer technology has been significant in countering security setbacks experienced in the e-commerce transactions. With necessary systems and infrastructures put in place, India will be one of the major global players in e-commerce industry (Gangeshwer, 2013).

However, the growth of the industry is not uniform across the sub-continent. The industry is more developed in the south compared with the northern region. Many factors explain this variation including the internet accessibility, the level of economic growth, enterprise participation and the government policy.

The economic infrastructures as well as the internet accessibility in the southern cities have contributed to the increased growth and expansion of e-commerce industry. In fact, southern and western cities, such as Delhi have the largest share in terms of e-commerce market (Gangeshwer, 2013).

E-commerce Issues and influences in India

Consumers choice of product is very important in any trade. E-commerce brings changes that significantly reduce the time taken by a trader to choose products. Since e-commerce eliminates paper-based transactions, it increases business efficiency and reduces the cost of operations.

A business that embraces e-commerce has an upper hand on other market competitors. Additionally, the high efficiency brought about by e-commerce in India leads to the creation of other new distribution channels which could bring about new electronic markets. The new developed electronic markets raise competition policies. Due to this, many e-commerce companies in India face the over pricing which reduces the profits made from the transactions (Gangeshwer, 2013).

Privacy is a major concern for e-commerce customers. In fact, Indian customers may prefer having some of their possessions or information not to be shared online. The attribute has been an issue that was not curbed fully in the e-commerce industry in India. Another issue arising in the industry is the online competition between the intermediaries and the manufacturers (Lowry, Vance, Moody, Backman & Read, 2008).

The establishing of websites where customers can order their goods directly is an indication that an effort is made to eliminate the intermediaries. The access provided by the internet creation of the new websites itself is a competition. The new intermediaries are bound to sign agreements which could be restricted directly to their online buyers and sellers.

The internet cost of searching products online is relatively low in India. As a result, this restricts customers to an identified site. Such a feature leads to the switching of suppliers which will lead to a greater bargaining power (Gangeshwer, 2013).

E commerce in China

While ecommerce has been successful in other countries, China lagged behind. However, the government has made several steps in ensuring that e-commerce easily diffuses into the commercial activities. Despite the government effort in promoting the e-commerce industry and faster enterprise adoption, the industry is still facing a tremendous regional imbalance.

Regional imbalance for the growth of Ecommerce industry is common in most developing countries. However, the reasons for the imbalance may vary depending on current level of economic development of the country.

Various factors have been identified as the main cause of this imbalance in China including the government policy, economic level and the levels of customers attitude. Other factors include internet penetration, credit systems, logistics, enterprise participation and talent. The factors remain critical in influencing the growth of E-commerce industry in China (Cai, Song & Zhao, 2012).

Internet penetration

The quantity and quality of the available internet determines the content usability of the websites. The accessibility to the websites remains significant in the success of the industry. As such, the success of e-commerce depends on the level of network development. The availability of network in China varies.

Besides, the online population also continues to grow differently. For instance, in the eastern region, the network infrastructure is well-developed making the great population access the internet. In Beijing, the internet penetration approximated to be about 83.3% in 2010 compared with Yunnan and Guizhou, which approximated at 45% and 45.8% internet penetration respectively.

The government policy

The government policy determines the diffusion of e-commerce. The local government policy support for the internet adoption, accessibility and usage has been diverse across the country. Such policies are the backbone of the e-commerce industry (Cai et all., 2012).

For instance, the eastern region has experienced increased local government support in planning, conducting and development of e-commerce through various policies. As such, the growth of the industry in the eastern cities is higher compared with western and central regions.

Credit system

The credibility of the system remains a determining factor for its growth and development. With increased expansion of the industry, the imperfections in the credit instruments pose a greater risk. Currently, the lapses in the security system are a major risk for online transactions.

In China, four credit models of e-commerce have been developed ranging from network ID card to third party guarantee. The development of these models also differs depending on the region. The third party systems are majorly consumed by banks that originate from eastern and central regions (Cai et al., 2012).

Enterprise participation

Enterprises are the major consumers of e-commerce. The reason is that e-commerce results in increased revenue, enhance efficiency in operations and encourage advancements in the respective industry. The number of firms participating in e-commerce determines the quantity of the market. In fact, in China, the business to business (B2B) transactions involving e-commerce vary across the country. Higher number of such transactions is found among firms from eastern regions.

For instance, the Alibaba Company in China is one of the homegrown B2B firms from the eastern region. The participation of this firm in the industry has been greater compared with foreign firms that are found in the western region of the country. The future expectation of the firm is to overtake large international retail chains and be the leader in the network retail globally (Gupta, 2013).

There are no charges in this site on transactions but the advertising brings reasonable income. The other Alibabas Company site is B2C which provides mall experiences for its users who have the interest to set up their own mall websites. The site earns commissions on the transactions made per individual. These two sites boom in Chinas market as they deal with the sale of many products and services including shoe laces.

E-commerce Issues and influences in China

The companies in China provide the largest investors in equipment of internet infrastructure as they increase business and the flow of information through the internet. Due to the availability of the internet, it makes China the fastest growing internet economy. Besides, having access to the World Trade Organization has made Chinas corporations operations expand massively in other countries (Qin, 2010).

There are also challenges that the country (China) faces in the e-commerce development. Many customers in China usually take orders of what they need online, but the payments are done offline using cash on delivery. Moreover, most of their websites have relations with incompetent distributors and suppliers.

On the other hand, security issues are also a problem in China. The Chinese government lacks confidence in the internet operation and the state appears to be very slow to create information resources. Besides, consumers sometimes have doubts on the electronic payment mode due to lack of automatic system of recovery. The problem gives them the reason to opt for making their payments in cash or buing things in person (Cai et all, 2012).

Chinas services are not up to standard. They have incompetent prices and a small percentage of their online buyers are satisfied with their services. As a result, this lowers the e-commerce in the country as compared to other countries whose services are more exclusive.

Consumers feel the convenience of speed and the aspect of getting goods instantly. Purchases made via mobile phones and tablets have been proven to be much faster than those made on computers. Business partners found communication process without necessarily meeting in person easier. The communication is majorly done in the chatting rooms which are public or private. Not all of these rooms are easy to monitor around (Cai et all., 2012). As such, privacy is minimal and most important information included in the chats can be easily deleted.

Conclusion

Even though e-commerce has become the number one connection medium worldwide, it has its advantages and disadvantages that come along with its adoption. The creation of new business opportunities and education is a major development brought about by e-commerce. New products and services are gradually brought out by the fast growing and changing technology. Identifying these new ways soon enough can be advantageous in the selling of the newly emerging products.

One the other hand, security is being a major issue in e-commerce, better ways to improve the same should be identified and put into practice. Just as the online transaction was identified, so should the technological advancement be propped up and properly managed to warrant IT security to consumers. When the issue is solved amicably, it will also help in reducing the reluctance of online shoppers to conduct their shopping online.

References

Cai, W., Song, W., & Zhao, S. (2012). Analysis of regional imbalance of e-commerce in China. International Journal of Business and Social Research (IJBSR), 2(4), 322- 336. Web.

Gangeshwer, D. (2013). E-commerce or internet marketing: A business review from Indian context. International Journal of U- and E Services Technology, 6(6), 187-194. Web.

Gupta, S. (2013). E-commerce in Asia: Challenges and opportunities. Boston, Massachusetts: Harvard Business School Press. Web.

Lowry, P.B, Vance, A., Moody, G., Backman, B. & Read, A. (2008). Explaining and predicting the impact of branding alliances and web site quality on the initial consumer trust of e-commerce web sites. Journal of Management Information Systems, 24(4), 19922.

Qin, Z. (2010). Introduction to e-commerce. Springer, New York: Springer Science & Business Media. Web.

Sharma, M. & Rawat, D. (2014). Evolution of e-commerce in India: Creating the bricks behind the clicks. Web.