Electronic commerce, commonly known as e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks.

Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market).

Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com.

Ecommerce Benefits

1. The internet is ubiquitous, accessible and low-cost
2. eCommerce can be accessed through diverse froms of technology
3. The time to market is shortened
4. Existing card payment schemes can be adapted
5. Significant opportunities for rationalizing operations and downsizing
6. No Geographical constraints
7. Middleman can be eliminated from the supply chain.
8. Stockholdings can be minimized or eliminated through just-in-time manufacturing processes.

Ecommerce Transactions

1. Information Provision

   Providing pre-sales information on products and services. Typically, this may include on-line catalogues, price lists and product specifications. Information can be tailored to individual needs and previous purchasing history.

2. Agreement

   Agreeing the terms of the purchase. These may include price, discount, method of payment and delivery requirements. This phase should result in a clearly understood contract between buyer and seller.

3. Settlement

   Fulfilling the terms of the contract. These could include exchange of payment and receipt and arranging delivery logistics. For electronic goods, delivery itself may also take place on-line.

4. After-Sales

   Providing post-sales support. This could include technical support such as electronic conferencing, new product information and product upgrades. It can be used to maintain continuous contact with customers and feed back into the information phase.

Ecommerce Security

1. Server-side Security
2. Transaction Security
3. Client-side security
4. Legal and regulatory

Server-side Security

The front and back-end systems support and ecommerce application cab be protected by:

1. Developing application and supporting that are robust.
2. establishing a network environment that protects these systems
3. Introduction essential management practices that ensure security is maintained over time.

Transaction Security

Encryption allows the content of messages to be hidden and so plays a crucial role in maintaining the confidentiality of electronic transactions.

Current Internet technology has an in-built mechanism, known as Secure Sockets Layer (SSL) that can be used to encrypt messages sent between web browsers and web servers.

Digital Signatures

Cryptographic digital signatures provide tow basic capabilities: they allow the source of an electronic message to be confirmed and also permit any changes to the messages to be detected. These capabilities give digital signatures a major role in securing ecommerce.

Secure Electronic Payment

One of the key practical applications of cryptography in securing ecommerce transaction is the settlement phase. Here payment for goods and service often needs to take place on-line in a way that is trusted by business, consumers, banks and regulators.

Client side security

End-user agreements

Organizations should aim to establish binding agreements with users through onscreen terms and conditions.

Legal and Regulatory

Passive monitoring

All organizations should monitor closely the evolution of legislation and regulations affecting ecommerce.