Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller. It is performed over the Internet using a web browser. It is also referred by different names, such as e-shop, e-store, Internet shop, web-shop, web-store, online store, and virtual store.
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E-Commerce is often thought simply to refer to buying and selling using the Internet; people immediately think of consumer retail purchases from companies such as Flipkart or EBay. E-commerce should be considered as all electronically mediated transactions between an organization and any third party it deals with. By this definition, non-financial transactions such as customer requests for further information would also be considered to be part of e-commerce.
The UK government used a broad definition when explaining the scope of e-commerce to industry:
E-commerce is the exchange of information across electronic networks, at any stage in the supply chain, whether within an organization, between businesses, between businesses and consumers, or between the public and private sector, whether paid or unpaid.
Online Shoppers has various options of payments which include both online and offline methods:
A credit card is a payment card issued to users as a system of payment. It allows the cardholder to pay for goods and services based on the holder's promise to pay for them. Credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer.
Many credit card companies provide option for EMI with 3 to 6 months term period. Hence credit card payment is one of the most preferred modes of payment.
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A debit card is a payment card that provides the cardholder electronic access to his or her bank account(s) at a financial institution. The card, where accepted, can be used instead of cash when making purchases. Payments using a debit card are immediately transferred from the cardholder's designated bank account, instead of them paying the money back at a later date.
Online banking (or Internet banking or E-banking) allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution.
To access a financial institution's online banking facility, a customer having personal Internet access must register with the institution for the service, and set up some password (under various names) for customer verification.
To access online banking, the customer would go to the financial institution's website, and enter the online banking facility using the customer number and password.
It is used by customers who have accounts enabled with Internet Banking. Instead of entering card details on the purchaser's site, in this system the payment gateway allows one to specify which bank they wish to pay from. Then the user is redirected to the bank's website, where one can authenticate oneself and then approve the payment.
Here the payment of products and/or services received is done at the time of actual delivery rather than paid-for in advance. The term is mainly applied to consumer products purchased from a third party, where payment is made to or collected by the deliverer from the recipient rather than the sender.
A cheque is a document that orders a payment of money from a bank account. The person writing the cheque, the drawer, usually has an account where their money was previously deposited. The drawer writes the various details including the monetary amount, date, and a payee on the cheque, and signs it, ordering their bank, known as the drawee, to pay that person or company the amount of money stated.
A demand draft is a check created by a merchant with a buyer's checking account number on it, but without the buyer's original signature. A demand draft is typically for deposit only.
A gift card is a restricted monetary equivalent or scrip that is issued by retailers or banks to be used as an alternative to a non-monetary gift. The recipient of the gift card can use it at his or her discretion within the restrictions set by the issuing agency.
A gift card may resemble a credit card or display a specific theme on a plastic card the size of a credit card. The card is identified by a specific number or code, not usually with an individual name, and thus could be used by anybody. They are backed by an on-line electronic system for authorization.
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A money order is a payment order for a pre-specified amount of money. Because it is required that the funds be prepaid for the amount shown on it, it is a more trusted method of payment than a cheque.
A money order is purchased for the amount desired. In this way it is similar to a certified cheque. The main difference is that money orders are usually limited in maximum face value to some specified figure, while certified cheques are not.
PayPal is a global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders.
PayPal is an acquirer, performing payment processing for online vendors, auction sites, and other commercial users, for which it charges a fee.
EMI (Pay-in-Instalments) is a way where user pays in instalments. Buyers can pay using EMI on bank credit cards in specific monthly instalments. Here the borrowers are usually only allowed one fixed payment amount each month.
The benefit of an EMI for borrowers is that they know precisely how much money they will need to pay each month. The best form of the EMI option is where there is no interest charged on the payment. The calculation here is very simple, as the total payment is broken up into the required parts.
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