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Electronic commerce, commonly known as (electronic marketing) 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. The amount of trade
conducted electronically has grown extraordinarily with widespread Internet usage. The
use of commerce is conducted in this way, spurring and drawing on innovations in
electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management
systems, and automated data collection systems. Modern electronic commerce typically
uses the World Wide Web at least at some point in the transaction's lifecycle, although it
can encompass a wider range of technologies such as e-mail as well.

A large percentage of electronic commerce is conducted entirely electronically for virtual

items such as access to premium content on a website, but most electronic commerce
involves the transportation of physical items in some way. Online retailers are sometimes
known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers
have electronic commerce presence on the World Wide Web.

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.

Electronic commerce is generally considered to be the sales aspect of e-business. It also

consists of the exchange of data to facilitate the financing and payment aspects of the
business transactions.

eCommerce, which is short for electronic commerce, is the process used to distribute, buy,
sell or market goods and services, and the transfer of funds online, through electronic
communications or networks. Electronic commerce is commonly referred to as Online
commerce, Web commerce, eBusiness, eRetail, eTailing, e-tailing, ecommerce, eCommerce, e-
commerce, ecom or EC.

Network infrastructure:
Network infrastructure is required for e-commerce to transport content. I-way is a high-
capacity, interactive electronic pipeline used to transfer content in case of e-commerce. I-
way can transfer any type of context like, text, graphics, audio, video. In other words,
multimedia contents are easily transported through I-way.

Components of I-way: - Consumer access equipment. - Local on-ramps,and - Global

information distribution networks.
Consumer access equipment are devices used by consumers to access the multimedia
interactive contents of e-commerce. In this segment, hardware and software vendors are
also included.

Local or access road, or on-ramps: This segment of I-way simplify linkages between
businesses, universities, and homes to the communications backbone. There are four
different types of provider of access ramps: - telecom-based - cable TV-based - wireless-
based and - computer-based online information services. These providers link users and
e-commerce application providers.

Global information distribution networks are the infrastructure that are connecting
countries and continents.

There are seven major issues to be discussed about I-way: cost, subsidies, allocation of
scarce resources, regulation, universal access, privacy and social issues. Cost: Who will
pay for constructing the I-way? Subsidies: Who are to be given subsidies? Allocation of
scarce resources: Investment of the allocation of different scarce resources would be
wasted or not. Regulation: Who will fund for the highway and who will write and enforce
the rules to use the highway? Universal access: who can access and at what cost?
Privacy: Is using online activities secure? Social and religious barriers: In cyberspace,
everybody has right to write anything or publish.

IP Protocol Overview

IP is the Internet's most basic protocol. In order to function in a TCP/IP network, a

network segment's only requirement is to forward IP packets. In fact, a TCP/IP network
can be defined as a communication medium that can transport IP packets. Almost all
other TCP/IP functions are constructed by layering atop IP. IP is documented in RFC
791, and IP broadcasting procedures are discussed in RFC 919. The Encyclopedia's
Programmed Instruction Course includes an IP Section.

IP is a datagram-oriented protocol, treating each packet independently. This means each

packet must contain complete addressing information. Also, IP makes no attempt to
determine if packets reach their destination or to take corrective action if they do not. Nor
does IP checksum the contents of a packet, only the IP header.

IP provides several services:

• Addressing. IP headers contain 32-bit addresses which identify the sending and
receiving hosts. These addresses are used by intermediate routers to select a path
through the network for the packet.
• Fragmentation. IP packets may be split, or fragmented, into smaller packets.
This permits a large packet to travel across a network which can only handle
smaller packets. IP fragments and reassembles packets transparently.
• Packet timeouts. Each IP packet contains a Time To Live (TTL) field, which is
decremented every time a router handles the packet. If TTL reaches zero, the
packet is discarded, preventing packets from running in circles forever and
flooding a network.
• Type of Service. IP supports traffic prioritization by allowing packets to be
labeled with an abstract type of service.
• Options. IP provides several optional features, allowing a packet's sender to set
requirements on the path it takes through the network (source routing), trace the
route a packet takes (record route), and label packets with security features.

3. The TCP/IP Protocol Architecture

TCP/IP is most commonly associated with the Unix operating system. While developed
separately, they have been historically tied, as mentioned above, since 4.2BSD Unix
started bundling TCP/IP protocols with the operating system. Nevertheless, TCP/IP
protocols are available for all widely-used operating systems today and native TCP/IP
support is provided in OS/2, OS/400, and Windows 9x/NT/2000, as well as most Unix

Figure 2 shows the TCP/IP protocol architecture; this diagram is by no means exhaustive,
but shows the major protocol and application components common to most commercial
TCP/IP software packages and their relationship.


Application POP3/IMAP SMTP Gopher RADIUS
Layer BGP Archie
Time/NTP Whois TACACS+ Traceroute
SSL tftp

Layer IP ARP

Ethernet/802.3 Token Ring (802.5) SNAP/802.2 X.25 FDDI

Frame Relay SMDS ATM Wireless (WAP, CDPD, 802.11)
Fibre Channel DDS/DS0/T-carrier/E-carrier SONET/SDH

FIGURE 2. Abbreviated TCP/IP protocol stack.

The sections below will provide a brief overview of each of the layers in the TCP/IP suite
and the protocols that compose those layers. A large number of books and papers have
been written that describe all aspects of TCP/IP as a protocol suite, including detailed
information about use and implementation of the protocols. Some good TCP/IP
references are:

• TCP/IP Illustrated, Volume I: The Protocols by W.R. Stevens (Addison-Wesley,

• Troubleshooting TCP/IP by Mark Miller (John Wiley & Sons, 1999)
• Guide to TCP/IP, 2/e by Laura A. Cappell and Ed Tittel (Thomson Course
Technology, 2004)
• TCP/IP: Architecture, Protocols, and Implementation with IPv6 and IP Security
by S. Feit (McGraw-Hill, 2000)
• Internetworking with TCP/IP, Vol. I: Principles, Protocols, and Architecture, 2/e,
by D. Comer (Prentice-Hall, 1991)
• "TCP/IP Tutorial" by T.J. Socolofsky and C.J. Kale (RFC 1180, Jan. 1991)
• "TCP/IP and tcpdump Pocket Reference Guide", developed by the author for The
SANS Institute

3.1. The Network Interface Layer

The TCP/IP protocols have been designed to operate over nearly any underlying local or
wide area network technology. Although certain accommodations may need to be made,
IP messages can be transported over all of the technologies shown in the figure, as well
as numerous others. It is beyond the scope of this paper to describe most of these
underlying protocols and technologies.

Two of the underlying network interface protocols, however, are particularly relevant to
TCP/IP. The Serial Line Internet Protocol (SLIP, RFC 1055) and Point-to-Point Protocol
(PPP, RFC 1661), respectively, may be used to provide data link layer protocol services
where no other underlying data link protocol may be in use, such as in leased line or dial-
up environments. Most commercial TCP/IP software packages for PC-class systems
include these two protocols. With SLIP or PPP, a remote computer can attach directly to
a host server and, therefore, connect to the Internet using IP rather than being limited to
an asynchronous connection.

At frigate networks, we find it helpful to think of The Internet Protocols in layers. Our
layers don't match the exactly match ISO model, but we find them very useful in practice:

Application Layer Socket Layer Routing Layer Link Layer Device Driver
Application Layer

Applications let people do something useful with the network. They can be very simple
diagnostic programs such as "ping" or "traceroute". Or they can be more complex and
sophisticated programs such as "telnet" or "ftp". They can be groups of programs. At
frigate, for example, we use "httpd" and "tcl" to implement Web-based remote
management. We also use "sendmail" and "popper" to implement an SNMP and POP3
mail server. Most of the applications that we know about talk to other stations on the
Internet through "sockets".

Socket Layer

The socket layer provides an application with a programming interface to the network
that looks like a file. When an application writes to the socket, the socket layer sends data
to an application on a remote host. When an application reads from a socket, the socket
layer provides data received from a remote host.

Types of sockets include: "raw", "UDP", and "TCP". The "ping" program uses a "raw"
socket. The Routing Information Protocol (RIP), "traceroute", and most Domain Name
Service (DNS) operations use UDP. Multicast Backbone ("mbone") applications such as
"vat" use UDP. The vast majority of applications, including Web browsers (such as
Netscape Navigator and Microsoft Explorer), ftp, and telnet, use TCP. Although the
socket interface is protocol independent, authors of Internet applications are not blind to
which protocol type of socket is being used. Neither UDP nor "raw" sockets provide as
much capability as TCP. The author of an application that uses one of these types of
sockets needs to make up for missing capabilities or decide that these missing capabilities
are not needed.

When data is written to a raw socket the host adds an IP header containing a destination
address and source address. By default, the source address is the IP address assigned to
the output interface. In addition to IP source and destination address, a UDP socket also
adds an optional (but recommended) checksum and source and destination port numbers.
These port numbers are used to distinguish which application and which process on the
remote system will receive the data. TCP includes all the capabilities of UDP, and adds a
window transmission protocol with acknowledgments, timeouts, and retransmissions.
The checksum is mandatory and TCP guarantees reliable, in-sequence reception of data
by the remote application. Modern TCP implementations automatically adjust to changes
in speed, reliability, and congestion in the path through the Internet to a remote host. This
ability to tolerate fluctuations in network performance has made TCP a very widely-used

Routing Layer

The routing layer is where the decision is made to receive, forward, or discard a packet.
This decision is based on the destination IP address. Encrypting routers may also use the
destination IP address to determine how to cipher a packet. "Firewall" routers may also
look at source IP address and UDP or TCP source and destination ports when deciding
whether to forward or discard a packet. By discarding packets based on source IP address
and UDP or TCP ports, traffic from specific hosts or specific applications is selectively
disabled. The relationship between the routing layer and Internet security is changing
rapidly as people add increasingly sophisiticated filtering capabilities to routers. Ascend,
cisco, and Digital have recently announced new products in this area.

Link Layer

The link layer provides a mechanism for sending an IP packet over a particular network
or media. Examples of such networks include point-to-point links, frame relay, regular
analog telephone (POTS), ISDN, Ethernet and Token Ring. Because the link layer
software is responsible for encapsulating IP packets in a way that meets the requirement
of a particular network, IP routing and the socket and application layers above IP routing
are network and media independent. Anything that is done at the IP routing layer or
above works over all media. This is one of the major advantages of using TCP/IP.

Examples of link layer protocols are PPP HDLC, PPP Async Pseudo-HDLC, Frame
Relay RFC 1490 (often called "IETF"), Ethernet, and SNAP.

Device Driver

The device driver layer refers to the software that manages the network interface
hardware and sends and receives packets. Device drivers often have strict performance
requirements and limited development tools available. Since they are accessing real
hardware, they have the potential to cause a system failure.

Standard driver interfaces such as FTP Software's "Packet Driver" and Microsofts NDIS,
reduce the need for custom device drivers. For those customers who cannot take
advantage of one of these standard interfaces, frigate networks offers consulting services
to support development and maintainence of device drivers for BSD and various
embedded operating systems

The Internetwork Protocol (IP)

The IP (Internet Protocol) is a protocol that uses datagrams to communicate over a
packet-switched network. The IP protocol operates at the network layer protocol of the
OSI reference model and is a part of a suite of protocols known as TCP/IP. Today, with
over 1.5 billion users worldwide, the current Internet is a great success in terms of
connecting people and communities. Even though the current Internet continues to work
and is capable of fulfilling its current missions, it also suffers from a relative
“ossification”, a condition where technological innovation meets natural resistance,
as exemplified by the current lack of wide deployment of technologies such as multicast
or Internet Protocol version 6 (IPv6).

The Internetwork Protocol (IP) [RFC791] provides a best effort network layer service for
connecting computers to form a computer network. Each computer is identified by one or
more gloablly unique IP addresses. The network layer PDUs are known as either
"packets" or "datagrams". Each packet carries the IP address of the sending computer and
also the address of the intended recipient or recipients of the packet. Other management
information is also carried.

The IP network service transmits datagrams between intermediate nodes using IP routers.
The routers themselves are simple, since no information is stored concerning the
datagrams which are forwarded on a link. The most complex part of an IP router is
concerned with determining the optimum link to use to reach each destination in a
network. This process is known as "routing". Although this process is computationally
intensive, it is only performed at periodic intervals.

An IP network normally uses a dynamic routing protocol to find alternate routes

whenever a link becomes unavailable. This provides considerable robustness from the
failure of either links or routers, but does not guarentee reliable delivery. Some
applications are happy with this basic service and use a simple transport protocol known
as the User Datagram Protocol (UDP) to access this best effort service.

Most Internet users need additional functions such as end-to-end error and sequence
control to give a reliable service (equivalent to that provided by virtual circuits). This
reliability is provided by the Transmission Control Protocol (TCP) which is used end-to-
end across the Internet.

In a LAN environment, the protocol is normally carried by Ethernet, but for long distance
links, other link protocols using fibre optic links are usually used. Other protocols
associated with the IP network layer are the Internet Control Message Protocol (ICMP)
and the Address Resolution Protocol (arp).

IP the Next Generation, IPv6

The IPv4 protocol although widely used, is slowly being superceded by IPv6 [RFC2460],
a next-generation network-layer protocol. IPv6 is now widely implemented, and deployed
in many networks.

The gradual transition from IPv4 towards majority IPv6 deployment will take many years
and IPv4 may never itself be phased out completely. In the meantime the two protocols
can co-exist and be used together in various ways. IPv6 will ultimately succeed the
current version, IPv4, to become the dominant version of IP used in the Internet. IPv6
changes many things, one of the most obvious from the Ethernet perspective is that it
uses a different Ether-Types and uses the Neighbor-Discovery (ND) protocol in place of
Why name the next version after IPv4 as IPv6?

The new protocol is IPv6. (The version number "5" had already been used for an
experimental protocol, called ST-2, which has not stood the test of time.

Why name the next version after IPv4 as IPv6?

The new protocol is IPv6. (The version number "5" had already been used for an
experimental protocol, called ST-2, which has not stood the test of time

What are the Benefits of eCommerce & eBusiness?

The processes involved with conducting business on the Internet and opening an eCommerce shop to sell
from have several benefits to both merchants and the customers who buy from them. The biggest benefits
of conducting business Online include a cheaper upfront cost to the merchant, it's easier to set up and open
the store and it's faster to get an Online business up, running and making sales.

Helps Create New Relationship Opportunities:

Expanding or opening an eBusiness can create a world of opportunity and helps to establish new
relationships with potential customers, potential business associates and new product manufacturers. Just
by being in an easy to find location that is accessible to users all over the world, you will be available for
others to find and approach you about new opportunities. Customers who don't know you exist will know
about you, product suppliers will request you add their items and other businesses will approach you about
partnership opportunities. Many of these opportunities would not present themselves without an Online
presence or site for them to discover you on their own.

Open for Business 24x7:

An eCommerce site basically gives you the ability to have unlimited store hours, giving your customers 24
hours a day, 7 days a week access to shop and buy items from you. Some merchants choose to limit their
hours to 5 days a week, but orders can still be made over the weekend and customers can still make contact
24/7 via email, phone or fax. In addition, the costs associated with having your store open 24/7 are much
less than maintaining a physical storefront or phone operator with 247 operation capability. You can
literally take orders and let customers shop while you sleep, take vacations or from remote locations.

Increases Brand or Product Awareness:

Having an Online business means that you can literally reach out to millions of consumers looking for what
you sell anywhere in the world. By reaching out to new markets and displaying your site prominently in
front of them, you will be able to help increase your company/domain brand name and also increase
awareness about your product line. By giving users 24/7 access in an easy to find location, you will help to
create more word of mouth buzz for your eBusiness, in turn helping to promote your brand name and
products. Users who haven't heard of you will discover you exist and help spread the word about you.

Helps Establish Customer Loyalty:

An eCommerce storefront will help create an easier means for your customers to purchase the items you
sell and offers a unique way to display and describe your products in a informative, visual and interactive
way. The customers you have will become more loyal shoppers each time they visit, making eCommerce
great for improved customer satisfaction and visitor loyalty. Now that you offer your products for sale
Online, consumers will be able to shop from your catalog more easily, get updates on new items or product
discounts and can shop or buy anytime they wish.

Potential to Increase Overall Business Sales:

An eCommerce store that is an extension of a physical storefront is a great way to boost overall business
sales and potentially increase company profits across the board. Companies who already do business from a
physical location are typically unaware of how much more they could be making if only they were to
expand into their Online marketplaces. Selling Online opens up many opportunities for businesses both
new and old. It's a great way to increase sales, especially if you already have a physical store.

Potential to Increase Company Profits:

As mentioned above, opening an Online extension of your store or moving your business solely Online are
great ways to boost sales and potentially profits. Remember, just because SALES increase it does not
necessarily mean that company PROFITS will increase also. Online businesses do have a greater chance of
increasing sales and profits by opening up an eCommerce store to sell the items they offer. Sales and profits
are the lifeblood of any company, so it makes sense to increase them where ever possible and whenever
possible throughout the existence of your company. More sales, more profits, bigger budgets, etc.

Potential to Decrease Some Costs:

In addition to potentially increasing sales and profits, eBusiness owners can also typically reduce the costs
of running their business by moving it or expanding it into the Online world. eCommerce stores can run
with less employees including sales staff, customer service reps, order fulfillment staff and others.
eBusinesses also do not need a physical location in order to stay operational, which can reduce costs related
to building leases, phone bills, utility costs and other costs associated with running a brick-and-mortar

Expands Geographical or Customer Reach:

As mentioned, owning an eCommerce business typically means no limits as to who and where you can sell
your products. Some countries outside the United States have additional regulations, licensing requirements
or currency differences, but generally you will not be limited on the customers you can reach out to.
Physical storefronts are limited to the city in which they are located, Online businesses aren't limited unless
you put geographical limits in place. At the very least, you should consider targeting U.S. buyers, but also
consider, Canada, UK, Australia and others. Sell to anyone, anywhere, anytime!

Allows for Smaller Market or Niche Targeting:

Although your customer reach may expand beyond your local area, you may only wish to target smaller
consumer markets and buyer niches for your eCommerce products. Owning an Online store gives the
merchant much control over who they target and reach out to notify about the items for sale in their store.
Currently, you can target women, men, a generation of users, a particular race and many more smaller
niche markets. This is typically done by placing keywords that those niche markets use on a regular basis
when shopping for the items you offer.

Allows for Easier Delivery of Information:

An Online store and Web brochure are great ways to deliver and display information about your company
and the products you sell. With an Online presence your customers will have direct access to product
information, company information, specials, promotions, real time data and much more information that
they can easily find just by visiting your site day or night. Not only does it benefit your customers, but it's
also generally easier for merchants to update their site rather than break down an in store display and put up
another for the next event. It saves both your customers and you precious time and can help you to plan
more updates or better sales as it will be much easier for you to update and take down.


• Credit Card security is a serious issue if vulnerable

• Costs involved with bandwidth and other computer and server costs
• Extensive database and technical knowledge and experience required
• Customer apprehension about online Credit Card orders
• Constantly changing technology may leave slow businesses behind
• Some customers need instant gratification, and shipment times interrupt that
• Search utilities far surpasses the speed used to find products through catalogs
• Encourages competition between small and large online retailers

Internet Retailing
Resources for retailers considering selling products online. These e-commerce resources offer
Internet retailers advice, tips and research for retailing online. Website design, hosting, online
marketing and other e-commerce articles for retailers.
A Beginners Guide to e-Commerce Software
About's Guide to Online Business/Hosting, Ana Rincon, explains the differences between
shopping carts, complete e-commerce solutions, service providers, and installed software.
ABC's of Creating an Internet Marketing Strategy
Feel overwhelmed by all of the online marketing vehicles available? Unsure of where to start
with your Internet marketing plan? Your About Guide to Marketing can help! Laura Lake
explains the many options of using the Internet to market your products.
See more links below...

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Content and E-commerce
HTML Guide, Jennifer Kyrnin, shows us how to use the same tricks that the big e-commerce
sites use to keep people on your site and buying.
How Do Companies Fare at Online Selling and eCRM?
eMarketer's Online Selling and eCRM report looks at how retailers are using the Internet to sell
products and serve their customers online, while also examining what consumers think of
various online sales and customer service initiatives.
Measuring The ROI Of Selling Online
According to a report from Forrester Research, retailers will find that their investments in
online technology will pay off if they take a disciplined approach to site investments and ROI
Promoting Your Store Online
How to use the Internet to promote your brick and mortar retail store.
Putting Your Craft Business Online
Getting started in selling your crafts online with this article from William T Lasley, your Guide
to Arts/Crafts Business.
Search Engine Optimization Techniques You Can Do Yourself
To get traffic, your business website must be found in the search engines. In order for search
engines to find your site, search engine optimization (SEO) techniques can make a huge
difference in where your website ranks in search results. Randy Duermyer, our Guide to Home
Business explains how to improve rankings and web site traffic with these do-it-yourself SEO
Selling on eBay: Quick Tips at a Glance
Aron Hsiao gives us the quick and dirty tips on how to sell most effectively on eBay. What to
do, what not to do, and links to more information.

Internet Marketing Research benefits:

• help you realize and recognize customers needs and requirements in a cost
effective manner
• help you develop products and services according to customers' needs which will
in turn increase sales and profits
• help you develop more effective marketing plans and help decision making such
as whether to initiate a new line of business or not
• enable you to stay ahead of your competition by helping you fulfill your target
market’s needs -grab them and retain them
• help you increase customer base
• improve business performance

AWPI Internet Marketing Research Services

• business case/research report preparation/business proposal

• desk research/secondary research
• competitive intelligence reports
• personalized guidance on how to do internet market research according to your
business needs

Using ecommerce advertising on your site allows you to maximize your profits, capturing
those visitors not interested in your main product.

Ecommerce advertising allows you to place adverts for other companies and services on
your site in the form of banners or, perhaps text adverts using a contextual advertising
program such as Google Adsense.

The two most popular forms of advertising are cost per impression and cost per click.

Each has its own benefits:

Ecommerce advertising using the cost per impression model

If you use a cost per impression ecommerce advertising solution, you are making use of
the simplest type of ad revenue generation.

This is the best system as you will be paid a certain amount of money for a certain
amount of ads being displayed on your website.

Advertisers will vary with how much they will pay, but a good example is $1.00 CPM. If
they had the ad campaign set at 500 views, you would get $1.00 for every 500 ads that
are displayed on your website.

You don’t have to do a selling job on potential customers of these advertiser’s online
businesses in order to benefit from this type of ecommerce advertising. Your job is just to
display the advert to your visitors.

You may not get rich using this type of advertising but it is hands off and it may just pay
for your hosting costs every month.

Ecommerce advertising using the cost per click model

In addition to displaying the adverts in the cost per impression model above, cost per
click ecommerce advertising demands that your visitors click on the advert to visit the
advertiser’s site before you get paid.

As you only get paid if a visitor clicks through to the advertisers site why should you
consider using the cost per click model?

Simply because you stand to gain more money using this model, particularly in the more
competitive niches where advertising budgets are larger and businesses spend more to
bring in customers.

You may be able to earn anything from a nickel up to even $70 per click this