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. This saves the employee the inconvenience of a trip to the bank to make the deposit F2F.
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. This is the type of inventory management that is necessary to e-Commerce businesses as it enables the seller to provide customers with product availability information that is current.
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.
This refers to the movement of products or services from the producer to the consumer.
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. One example would be the effect that Online Ticket Purchases has had on Travel Agencies. Consumers are learning that the ability to buy directly from the producer saves money as the cost markup that occurs with the "middleman" has been eliminated.
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. Both secondary and post-secondary institutions have been able to increase their profitability through additional programs and enrollment with minimal overhead costs.
An encrypted representation of a paper check. Checks are written and sent electronically.
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.
A payment that is transmitted electronically either over the telephone line, or between Web sites on the Internet. Four types of electronic payments are:
The methods that a company uses to provide customer service directly from its web site.
A file on a seller's web site that contains buyer information such as buyer name, credit card information, and shipping requirements/preferences.
An encrypted number is 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.
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. "The Float" benefits e-check services during this time as the money earns interest for them.
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. The ability to buy online directly from the manufacturer has eliminated the need for Indirect Distribution Channels.
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.
"Right this instant;" the immediate response to buyer inquiry made possible through the interactive nature of the internet.
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 (MAP)
The financial institution that sets up a merchant account for a company. This account enables the company to accept credit card payments from customers.
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.
A company that serves as an intermediary for businesses to provide online payment options to customers. Payment gateways handle the technical steps involved in allowing customers to pay for purchases online. Cybercash and ExciteStores are examples.
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. E-Commerce businesses have improved their overall profitability through the increased productivity achieved through the speed of the internet and the ability to eliminate intermediary costs.
The amount of output for each hour of work. Productivity has a direct effect on the profitability of a business. Increased productivity results in a stronger economy because it deters inflation of prices and wages. Economists attribute the strong growth of productivity in the US to the speed of technological advances such as the Internet. (Oelkers, E-Commerce, p. 13.)
A term that refers to immediate processing of an online purchase.
The process of adding of a level of the distribution system. In e-Commerce this refers to the new type of intermediation being pursued by Web entrepreneurs who are exploiting markets that could not have existed before the Internet. Web sites that assist people in comparison shopping are an example of re-intermediation in e-Commerce. E-Check service providers are another example as they facilitate the online payment for goods and services.
The amount of time it takes a seller to respond to a customer's inquiry for purchase or service.
Sets of rules and standards that allow computers to exchange information such that the information is not visible to those who are not allowed to view it.
A common feature of an electronic commerce site that keeps track of the items a customer has selected to purchase and that lets the customer view and update the contents of the cart, add new items to it, or remove items from it.
The use of sophisticated phone systems to conduct meetings with multiple persons at remote locations.
The ability to have face-to-face interaction with business counterparts, clients, customers, etc, at remote locations via the internet and computer video capture devices. As the speed of internet connections become faster, the use of video-conferencing is expected to have a major influence on the way we do business. It allows for international "virtual meetings" to occur without the inconvenience of time and travel.
the act of becoming worldwide in scope or application
the customary beliefs, social forms, and material traits of a racial, religious, or social group.
the computers and software connected to the Internet and the communications networks over which the message packets travel.
the ability of a government to exert control over a person or corporation
Permanent Establishment (PE)
physical location of an organization or business for taxation purposes.
an organization or business which conducts electronic commerce with nations around the globe; any business that has a storefront on the Web and has the mechanisms in place to sell and ship to countries other than its own.
taxes that are levied by national, state, and local governments on the net income generated by business activities; one of the greatest taxation concerns faced by international e-businesses.
include sales taxes, use taxes, and excise taxes, are levied on the products or services that the business sells; the sales tax issue is probably one of the most immediate concerns of e-businesses today.
a schedule of duties (taxes) imposed by a government on imported goods or in some countries exported goods
the ratio at which the principal unit of two currencies may be traded; international businesses offer this information as a customer service.
The process of using a financial formula (incorporating current exchange rates) to convert a given amount of one currency to its equivalent value in another currency.
digital communication (as between users) in which there is no timing requirement for transmission of messages; time is not a constraint for the person sending or the person receiving the message.
a web address; locates an organization or other entity on the Internet. Domain names are used in URLs to identify particular Web pages. For example, in the URL-- http://www.stewsnews.com/actors/bradpitt.html, the domain name is stewsnews.com.
Every domain name has a suffix that indicates which top level domain (TLD) it belongs to. These are often indicative of the origin or type of site to which the domain name points. Example: in the URL--