| Term | Definition |
|---|
| Automatic Deposits | The "paperless" transfer of funds from an employer or other agency to the account of an employee or beneficiary. Instead of receiving a check on payday, the employee will receive a check stub only. |
| Continuous Inventory Control | The process of managing product inventory where the information is updated instantaneously each time there is an increase or decrease to the stock-in-hand. |
| Cyber-Intermediaries | Individuals who develop Internet-based Intermediary solutions. |
| Direct Distribution Channels | A company produces goods or services and then delivers those goods and services to the consumer without using an intermediary. This is a primary benefit to online shopping as consumers prefer immediate delivery. |
| Distribution Channels | This refers to the movement of products or services from the producer to the consumer. |
| Disintermediation | The process of losing distribution channels when they are no longer needed. The growth of e-commerce has effected the need for retail intermediaries or "middlemen" that exist between the producer and the consumer. |
| Distance Learning | A new trend in education and training whereby courses are offered via the internet from a remote site. This allows for prospective students to access and receive credit for courses without geographical limitations and schedule constraints. |
| E-Checks | An encrypted representation of a paper check. Checks are written and sent electronically. |
| E-Cash | Digital cash that is drawn directly from the consumer's bank account and stored in a digital wallet on a hard drive; e-cash is also known as Scrip, digital cash, or digital coins. |
| Electronic Payments | A payment that is transmitted electronically either over the telephone line, or between Web sites on the Internet. |
| E-Service | The methods that a company uses to provide customer service directly from its web site. |
| Electronic Wallets | A file on a seller's web site that contains buyer information such as buyer name, credit card information, and shipping requirements/preferences. |
| Encryption | A number coded in a way that cannot be understood by anyone who is not supposed to use it. In electronic payments, the online seller does not actually receive your credit card information. Instead your encrypted number is sent to the payment gateway. There the number is decoded and sent to your credit card financial institution for approval of your purchase. |
| Float | The amount of time it takes for electronic transfer of funds; the time spanned from the draft of the payments from the buyers account until it is deposited in the seller's account. |
| Globalization | The process of becoming global or world wide. In e-Commerce this refers to the removal of the geographic boundaries that traditionally exist between the seller and the customer. |
| Indirect Distribution Channels | Channels of distribution that require an intermediary such as a retail distributor to add value between the manufacturer and the consumer. |
| Intermediaries | Companies that assist consumers by giving them additional cost or product information, understanding local markets, carrying a broader product line, or carrying multiple product categories. Similar to the "middleman," they are a business person such as an agent, broker, or sales representative, who negotiates transactions between a business and a consumer. |
| Instantaneous Response | "Right this instant;" the immediate response to buyer inquiry made possible through the interactive nature of the internet. |
| Just-in-Time Inventory | Products are ordered and then manufactured on an as-needed basis to reduce warehousing costs. |
| Manual Inventory Controls | The process of counting and collecting information on current inventory manually. This is done on a periodic basis, unlike Continuous Inventory Control. Therefore, it is not well-suited to online selling as the current inventory status is not regularly updated. |
| Merchant Account Provider | The financial institution that sets up a merchant account for a company. This account enables the company to accept credit card payments from customers. |
| Order Fulfillment | Activities including selecting the merchandise, checking to make sure the order has been filled correctly, packing, shipping, and billing for the merchandise. This is one of the strengths of e-Commerce as it has significantly decreased the amount of time in which this process occurs. |
| Payment Gateways | A company that serves as an intermediary for businesses to provide online payment options to customers. |
| Profitability | The conditions which determine a company's ability to make a profit after their expenses are deducted from their income from sales. Variables include overhead such expenses as facility, equipment, inventory, distribution and wages. |
| Productivity | The amount of output for each hour of work. |
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