Electronic commerce, commonly known as e-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI),inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well.
Block Diagram Of E-Commerece :
Working Of E-Commerce:
Step 1: A customer enters an order on a merchant's website. The transaction information is instantly encrypted and transmitted to the e-Commerce secure server, which is linked via a dedicated, leased data line to the credit card authorization network. A dedicated data line means faster transaction times.
Step 2: The transaction information is sent by the e-Commerce secure server via leased data line to the credit card authorization network where the validity of the card is checked and the availability of funds on that account is verified. An authorization code is returned via leased data line to the e-Commerce secure server. The authorization is encrypted by the e-Commerce server and transmitted in encrypted form back to the web server of the merchant which in turn triggers the fulfillment process of the order.
Step 3: An e-mail receipt is sent to the customer and the merchant (either or both can be disabled at merchant's option). Within 48 - 72 hours the merchant receives the money.