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E-Commerce

E-Commerce. Web Hosting Options Jerry Post Westgate Management Development Center Eberhardt School of Business University of the Pacific. Retail Business Basics. Government. Marketing. Taxes. Shipping. Analysis. Registration. Sales. Receipts. Purchases. Create business. Accounting.

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E-Commerce

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  1. E-Commerce Web Hosting Options Jerry Post Westgate Management Development Center Eberhardt School of Business University of the Pacific

  2. Retail Business Basics Government Marketing Taxes Shipping Analysis Registration Sales Receipts Purchases Create business Accounting Payments

  3. Credit Card Processing Settlement Processor Merchant Bank Acquiring Bank Transactions Transactions Issuing Bank Card Validation Card Information Amount Retail Account Card Number And Expiration Retail Store/Site Customer

  4. Credit Card Processing Fees • Transaction fee Usually less than $0.50 • Percent of charges From 2 to 5 percent • Monthly minimum $25 to $35 per month • Setup fees Variable depending on bank and technologies used

  5. Web Site Basics Log file Page Program Code Database Images Server HTML Page URL/page request Consumer

  6. Browser Cookies Consumer Server First page/login Display page Save cookie file New page request Send cookie Validate user Create cookie (ID) Generate page Use cookie ID to identify user Generate new page Note: cookies can only be returned to one site/domain. Companies Never even see cookies generated by other sites.

  7. Internet Connections Network service provider (NSP) OC3: 155.52 Mbps OC12: 655 Mbps T1: 1.544 Mbps T3: 44.736 Mbps Backbone network Internet service provider (ISP) T1: 1.544 Mbps T3: 44.736 Mbps Phone company Phone company Cable company Dial-up: 33.3 - 56 Kbps ISDN: 128 Kbps DSL: 256 Kbps - 6 Mbps Cable: 1 to 10 Mbps Company Web site Individual

  8. Capacity Calculations T1 1.544 mbps $1600/month $1000/mbps T3 45 mbps $10,000/month $222/mbps T1: 1.544 mbps T3:45 mbps OC-12:655 mbps

  9. Bandwidth Business connection bandwidth sets number of users. Web Server

  10. Economies of Scale

  11. Backbone providers AT&T GTE Worldcom/MCI Sprint Qwest Network service providers 1998: 39 AGIS AT&T Cable & Wireless IBM MCI/Worldcom Qwest Sprint UUNet Phone companies Regional Bell operating companies (RBOCs) (6) Competitive local exchange carriers (CLECs) (new) Cable companies Intermedia TCI/AT&T Regional. Satellite Direct Satellite Internet service providers 1998: over 5000 Internet Connections

  12. Frequency Spectrum AM: 550K - 1650 KHz TV: 54M - 216 MHz TV: 220M - 500 MHz FM: 88M - 108 MHz Navy/submarines ELF VLF LF MF HF VHF UHF Microwave Optical Hertz 100 30K 300K 3M 30M 300M 3G 10G Public Safety: 150M - 160 MHz Public Safety: 460M - 500 MHz Cordless phones (some): 900 MHz Cellular phones: 800 MHz PCS ET: 2 GHz Pers. Com. Sys (PCS): 1.85 G - 2.2 GHz http://www.fcc.gov/oet/info/database/spectrum/Welcome.html

  13. Simple HTML Pages Main Web Page Categories … Category 1 Product photo … … Category 2 Product photo … … Category 3 Product photo … … Product 1 Description Price Photo Product 2 Description Price Photo Product 3 Description Price Photo Product n Description Price Photo

  14. Buy-Me Button Merchant Web site Product Description Price Card Processor Site Buy Me Shopping Cart Item Price … … Total Credit Card Data Name Address Phone Card Number Check Out Submit Notify merchant Customer Notification (Accept/Reject) http://www.goemerchant.com/buymebutton.htm

  15. Auctions • Uncertain price • Can set reserve price • Good for unique items • Efficiency depends on • Full information • Adequate number of participants

  16. Amazon.com zShops zShop Products Cameras, Digital, Brand Vendor 1 Vendor 2 Vendor 3 Vendor Transfer Description Price Scanned image Contact info Consumer Product search Choose vendor Pay for item Transaction Processing Amazon.com handles credit Sends order info to merchant Merchant ships item to consumer

  17. Virtual Malls • Essentially a marketing agreement • The “mall” provides a directory to merchants • The merchant site runs on a different server Directory of Shops Product category Vendor 1 Vendor 2 Merchant Site Products Sales

  18. Web Commerce Servers Your Web site Products Shopping cart Sales Customers Merchants Commerce Server Shell Load database Images Descriptions Prices Customize site Database Web servers Web/Commerce Hosting Company

  19. Application Service Provider Business Application e.g., Accounting Store data Analyze data Facilitate company interaction Businesses that lease the use of the application

  20. Web Server Platforms • Linux/UNIX clone • Microsoft Windows NT/2000 • Sun Microsystems + Oracle 8i • IBM WebSphere

  21. Database support Crucial for e-commerce Integration with Web server Microsoft ODBC and ASP PERL Database connector Java database connector Database system choices Microsoft Access Microsoft SQL Server Oracle 8, 8i IBM DB2 Scalability Increase speed and capacity without rewriting the Web application. Two primary methods Faster server Distributed processing Transaction processing Crucial for integrated online systems to prevent loss of data. Web Server Criteria

  22. Database Management System (DBMS) • Store data • Support queries (SQL) • Provide backup and recovery • Support multi-user access and prevent concurrency problems • Share data across servers • Microsoft Open Database connectivity (ODBC) • Oracle network

  23. Scalability • Increase usage rates without rewriting the application. • Run on bigger, faster servers • Requires wide range of hardware platforms • Support distributed processing on multiple servers • Easy to expand • Requires advanced software support • Application must be designed carefully • Handles failures easily through redundancy

  24. Transactions and Message Queues • Transactions are a set of changes that must succeed or fail together. • Example: transfer money from savings to checking account. • Advanced systems and databases handle transactions almost automatically (just specify start and end points). • Message queues are used in distributed systems to store messages (e.g., transactions) in case a machine or a link goes down.

  25. Platform Database Scalability Scripting Linux Limited Limited PERL Windows 2000 Good, ODBC integrates most DBMSs Distributed, transactions, message queuing ASP Sun/Oracle Good within Oracle Server size Java, PERL IBM WebSphere Good, IBM, Oracle Distributed, transactions, message queuing Java Platform Comparison

  26. Windows 2000 Web page request Enterprise Web Server cluster Requests handled by available server Web page built from HTML Images Data ODBC + ASP Database Server cluster

  27. Sun/Oracle 8i Web page request Sun Server Oracle DBMS Software Data Images HTML pages Java code to link together Transactions and connectivity handled by Oracle Scalability provided mostly with bigger server.

  28. IBM WebSphere Web page request WebSphere software Hardware can be IBM, Sun, or Intel. • Traditional IBM machine • Database • Transactions • Message Queue • Scalability IBM S/390

  29. Hosting on Shared Servers Your customer ISP Server Transfer to ISP You design the site. • Server is shared by other firms • Performance outside your control • Capacity is limited • Data transfer is limited Hundreds of customers for other businesses

  30. Server Co-Location Customer Development • You purchase or lease a server solely for your use that is installed at the ISP location. • You usually have physical access. • Pay space and data transfer charges to ISP ISP location

  31. Run Your Own Server ISP Customer Development and Web site management router T1: monthly lease • You have total control • You pay monthly lease to phone company and ISP • You can connect to internal computers router Connect to your other computers.

  32. Summary: Costs

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