E Commerce

What is E-Commerce?

E-Commerce refers to the exchange of goods and services over the Internet. All major retail brands have an online presence, and many brands have no associated bricks and mortar presence. However, e-Commerce also applies to business to business transactions, for example, between manufacturers and suppliers or distributors.

In the online retail space, there are a number of models that retailers can adopt. Traditionally, the Web presence has been kept distinct from the bricks and mortar presence, so transactions were limited to buying online and delivering the goods or services. The online presence is also important for researching a product that a customer can purchase later in the store. Recently, there has been a trend towards multi-channel retail, allowing new models such as purchasing online and picking up in store.

E-Commerce systems are also relevant for the services industry. For example, online banking and brokerage services allow customers to retrieve bank statements online, transfer funds, pay credit card bills, apply for and receive approval for a new mortgage, buy and sell securities, and get financial guidance and information.

Security features

While security features do not guarantee a secure system, they are necessary to build a secure system. Security features have four categories:

* Authentication: Verifies who you say you are. It enforces that you are the only one allowed to logon to your Internet banking account.

* Authorization: Allows only you to manipulate your resources in specific ways. This prevents you from increasing the balance of your account or deleting a bill.

* Encryption: Deals with information hiding. It ensures you cannot spy on others during Internet banking transactions.

* Auditing: Keeps a record of operations. Merchants use auditing to prove that you bought specific merchandise.

Principles of Security

Having discussed some of the attacks that have occurred in real life, let us...