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渀最琀栀攀
戀攀猀
琀氀攀愀搀攀爀
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䔀䌀伀䴀䴀䔀刀䌀䔀
 E-COMMERCE

TABLE OF CONTENTS
0. FOREWORD 5
1. INTRODUCTION TO E-COMMERCE 7
1.1 ORIGIN AND DEFINITION 8
1.1.1 CHARACTERISTICS OF E-COMMERCE 11
1.2 E-COMMERCE TODAY 11
1.3 E-COMMERCE VS TRADITIONAL COMMERCE 22
1.3.1 DIFFERENCES BETWEEN E-COMMERCE AND TRADITIONAL COMMERCE
23
1.3.1 ADVANTAGES AND DISADVANTAGES OF E-COMMERCE 25
1.3.3 TYPES OF BUSINESS 29
2. NEW TECHNOLOGIES AND VALUE CHAIN 31
2.1 INTERNET SERVICE PROVIDER 32
2.2 STRUCTURES OF THE NETWORK 35
2.3 INFORMATION AND CONTENT 37
2.3.1 TRANSMISSION OF CONTENT 38
2.3.2 TOOLS FOR THE EXCHANGE OF INFORMATION 39
2.3.3 FILE TRANSFER PROTOCOL 40
2.4 VALUE CHAIN 41
3. BUSINESS MANAGEMENT 45
3.1 AREAS OF BUSINESS MANAGEMENT 46
3.2 E-COMMERCE BETWEEN BUSINESSES (B2B) 47
3.2.1 B2B MARKETS 47
3.2.2 STAGES OF THE PURCHASING PROCESS 48
3.2.3 THE CURRENT B2B MARKET 49
3.2.4 B2B SERVICES 50
3.3 E-COMMERCE BETWEEN BUSINESSES AND CUSTOMERS (B2C) 51
3.3.1 B2C MARKETS 52
3.4 BUSINESS MANAGEMENT 53
3.4.1 SWOT ANALYSIS 53

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3.4.2 ONLINE SHOP DEVELOPMENT 55

3.4.3 DESIGN OF THE STRATEGY 57
3.4.4 STRUCTURE 57
3.4.5 THE THERMOMETER OF SUCCESS 60
4. ADVERTISING AND MARKETING 62
4.1 ONLINE ADVERTISING 63
4.1.1 TOOLS AND STRATEGIES 65
4.2 MARKETING AND VISIBILITY 67
4.2.1 GOOGLE 69
4.2.2 MARKETING TECHNIQUES 70
4.2.3 DIFFERENTIAL FACTOR 74
4.2.4 SHOPPING HOURS 75
4.2.5 PREMIUM USERS 75
4.2.6 THE IMPORTANCE OF PHOTOGRAPHY 76
4.3 CUSTOMER LOYALTY 77
4.3.1 CUSTOMER SATISFACTION 78
4.3.2 AFTER-SALES SERVICE 79
4.3.3 USABILITY 80
4.3.4 SHOPPING CART ABANDONMENT 82
4.3.5 CONVEY TRUST 83
5. CUSTOMER SERVICE, LOGISTICS AND PAYMENT SYSTEMS 85
5.1 CUSTOMER SERVICE 86
5.1.1 SALES PROCESS 86
5.1.2 ADVANTAGES OF CUSTOMER SERVICE IN E-COMMERCE 90
5.2 LOGISTICS 90
5.2.1 LOGISTICS STRUCTURES 90
5.2.2 DISTRIBUTION 91
5.2.3 PROBLEMS WITH DISTRIBUTION 91
5.2.4 ORDER TRACKING 92
5.3 PAYMENT SYSTEMS 93
5.3.1 ONLINE AND OFFLINE METHODS 93

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5.3.2 VIRTUAL POINT OF SALE 93

5.3.3 PAYPAL 94
5.3.4 CASH ON DELIVERY 95
5.3.5 BANK TRANSFER 95
5.3.6 MOBILE PAYMENT 96
6. SECURITY SYSTEMS AND LEGAL ASPECTS 97
6.1 TLS PROTOCOL 98
6.1.1 CONCEPTS AND OPERATION 99
6.1.2 APPLICATIONS 101
6.1.3 ADVANTAGES 101
6.2 SECURE ELECTRONIC TRANSACTION PROTOCOL (SET) 102
6.2.1 OPERATION 102
6.2.2 SECURITY 103
6.2.3 DISADVANTAGES 104
6.3 CODING SYSTEMS 104
6.4 SYMMETRIC AND ASYMMETRIC ENCRYPTION 105
6.5 DIGITAL SIGNATURE AND CERTIFICATES 106
6.6 E-COMMERCE SECURITY MEASURES AND THREATS 107
6.7 LEGAL ASPECTS OF E-COMMERCE
6.7.1 Data protection in the EU
7. PRESENT AND FUTURE OF E-COMMERCE 115
7.1 FUNDAMENTALS OF E-COMMERCE 117
7.2 NEW TIMES, NEW CHALLENGES 118
7.3 VISIONARIES 120
7.4 CONCLUSIONS 121
7.5 REVIEW 122
7.6 FINAL RECOMMENDATIONS 124
8. BIBLIOGRAPHY 126
8.1 BOOKS 126
8.2 WEBS 127
9. ANNEXES 130

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9.1 ONLINE CONSUMPTION HABITS 130

9.2 HOW TO CREATE AN ONLINE SHOP. SHOPIFY 134
9.3 THE ELECTRONIC COMMERCE DIRECTIVE

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0. FOREWORD

This manual is addressed to all those who want to venture into the world of E-commerce
in a clear and complete way. E-commerce gives companies the opportunity to transform
the online channel into a valuable tool to keep growing and developing in the huge and
essential world of the internet.

Although just 15 years ago selling online sounded crazy, e-commerce is now one of the
major business trends within a sector that grows annually by more than 20%. Anyone
who wants his or her business to grow needs to pay attention to this.

The objective is to get to know all the important aspects of electronic commerce, not
only to understand it, but also to help us develop it.

All the key issues will be dealt with: marketing techniques, legal aspects, social media,
how to add value to a product or how to manage a shopping cart. All those tools that
allow a company to make their way through effort, creation and innovation and be able
to differentiate themselves.

There are some practical examples at the end of the manual, which put the theory
learned into practice.

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1. INTRODUCTION TO E-COMMERCE

"Innovation distinguishes between a leader and a follower.” Steve Jobs.

It cannot be denied that e-commerce is part of our lives. It is something really

comfortable and easy that can be done from anywhere as long as we have a device with
an internet connection. However, e-commerce is also something else. A very complex
world is hidden behind the click on the product that we want to purchase. We need to
know it if we want to take our business online, whether it is an already existing business
or a new business.

The definition and history of e-commerce will be discussed in this first introductory
chapter: main characteristics, advantages and differences with traditional commerce. In
later sections, more complex aspects of it will be dealt with.

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1.1. ORIGIN AND DEFINITION

Despite the initial perception that e-commerce is something relatively new, its history is
more extensive than it appears. We can actually say that the origin of electronic
commerce dates back to the beginning of the 20th century in the United States with the
emergence of catalogue sales. Until then, you could only buy a product in the store, so
catalogue sales were the first way to buy in which the customer did not physically see
the product but saw it in photographs and illustrations. This method of sale was truly
revolutionary, as the distribution of the catalogue allowed some rural areas with difficult
access to commercial areas to purchase different products, which was unthinkable and
inaccessible until that time.

Despite this precedent, it can be considered that the first approach to e-commerce as
we understand it today was in 1960 with the development of the EDI (Electronic Data
Interchange) system, which allowed electronic transactions and the exchange of
commercial information between companies for the first time.

The first sale through the net was in 1981, when the company Thompson Holidays
connected its travel agents to the catalogue so that they could offer their customers the
available services. Soon after, in 1983, the term "Electronic commerce" was coined.

The 1990s were particularly important since the National Science Foundation (NSF)
allowed the use of the internet for commercial purposes in 1991. Throughout this
decade, important portals such as Amazon, eBay or Dell were established, which
became leading companies within the sector. In addition, Netscape developed the SSL
protocol, which was a major breakthrough in security when sharing data and personal
information. The late 1990s brought great turning points such as Google (1998), PayPal
(1998), the possibility of buying products through mobile phones and SMS developed by
Coca Cola (1997) and the option to purchase and download music through Ritmoteca
(1998).

The turn of the century continued to bring changes that revolutionised e-commerce,
such as iTunes (2003) and the social network Facebook, which started the trend of

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buying through social networks, known as "Social Commerce". In 2007 and 2008, iPhone
and Android were launched. They allowed a much more comfortable and faster access
to the universe of electronic commerce. Groupon also appeared in 2008, which is a
network of coupons or offers that revolutionised the way of buying online.

The evolution of sales through mobile devices and tablets has also contributed to
increasing e-commerce, which exceeded 1,500 billion dollars in 2014. This is
undoubtedly the era of this new trade, which has managed to attract its customers
thanks to its many advantages and has caused companies to adapt to this new business
system.

Given these historical considerations, e-commerce could be described as follows:

“Electronic commerce is a type of business model, or segment of a larger business

model, that enables a firm or individual to conduct business over an electronic
network, typically the internet”.

E-commerce consists of commercial transactions with no physical relationship between

the parties that are carried out through online payments. The goods, services or
payments are always formalised through an electronic distribution channel.

Throughout this module, we will focus on internet-based commerce, although we must

not forget that there are other media such as m-commerce, conducted electronically by
mobile phone or interactive digital television, which also offer many possibilities within
electronic commerce.

Currently the possibilities offered by the internet are almost endless thanks to an
infrastructure of thousands of networks interconnected globally. Websites, social
networks, e-mails, chats, audio and videoconference services, news and information
groups, file transfer, etc. are just some of the services that the network provides and
that make e-commerce the ideal tool for communicating with customers and placing
orders and transactions.

However, talking about e-commerce today remains somewhat complex since there is
some confusion when it comes to naming it. Many articles use “e-commerce” or “e-

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business” interchangeably, but there are some significant differences between the two
terms that should be known. This is a brief description of the differences between these
concepts:

▪ E-business: refers to the entire business process managed thanks to the internet
and Information and Communication Technologies (ICT). E-business involves
different aspects such as customer service, online communications for
commercialisation or the sale of the product.
▪ E-commerce: is a specific part of e-business that deals with orders and
transactions.

In addition, it should be noted that e-commerce can be classified according to the

possibilities of interaction between the parties involved, so we must consider:

▪ Business to Customer (B2C): Interaction between the company and the final
consumer.
▪ Business to Business (B2B): Interaction between companies.
▪ Business to Administration (B2A): Interaction between the company and the
administration.
▪ Customer to Customer (C2C): Interaction between different consumers. For
example, auctions in which private users sell their products.
▪ Peer to Peer (P2P): Interaction between individuals to exchange files or
information.
▪ Business to Employee (B2E): Interaction between the company and an
employee. These are sales through corporate websites or restricted access
intranets to the employees of a company.

1. Characteristics of e-commerce

In addition to what has been discussed so far, several features and characteristics that
describe e-commerce should be considered:

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▪ Global reach: There are no national borders or limits, so users can purchase
products that are not available in their country.
▪ Ubiquity: It is available anywhere and through any device with an internet
connection.
▪ Multi-format: Text, audio and video can be used.
▪ Social technology: Users can create and interact through social media.
▪ Standards: There is a consensus of technology standards that allows accessing
the codes of a web anywhere in the world.
▪ Customisation: Technology allows delivering personalised messages according
to the profile of each user or group.

1.2 E-COMMERCE TODAY

As we have said, e-commerce is part of the lives of many of us. We can say that it has
gained ground against traditional commerce in some fields and markets such as fashion,
tickets for shows or airline tickets.

The number of users that carry out purchasing processes through communication
networks has grown exponentially in recent years and companies have also gradually
increased their willingness to invest in this area. However, some relevant data in this
regard should be taken into account. Aspects such as the following should be
considered:

▪ Most companies still consider the internet as a communication channel.

▪ The percentage of businesses that exploit its potential as a sales or distribution
channel is still low.
▪ Most important advertisers are on the web.
▪ Most of these advertisers also carry out online marketing activities.

Based on the strategy developed in e-commerce, four clearly differentiated groups can
be established:

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▪ The determined, who are willing to risk capital and develop large projects. They
anticipate important investments to carry out new initiatives.
▪ The pragmatists, who analyse the decisions and the risk of each project. They
tend not to make large investments, but are aware of the impact and possibilities
of electronic commerce.
▪ The undecided, who do not have a clear and defined strategy.
▪ The traditional, who have a conventional model and do not want to invest in new
business routes.

The determined and the pragmatists make the most investments. This makes them the
main beneficiaries of the on-going changes in the field of e-commerce, especially when
it comes to retaining new customers.

However, there are a large number of companies that have decided to invest in the
internet later, but they aim to incorporate online sales as a short-term plan. The reasons
for this delay when taking their company to a new level are usually the following (in
order of importance):

▪ They know that a significant number of consumers access the market through
communication networks, but consider that this number is still not enough.
▪ They do not know all the possibilities offered by electronic commerce.
▪ They are opposed or reluctant to carry out the big organisational changes
necessary at the organisational level that electronic commerce would mean. In
addition, many companies still think that if something works, it will always work,
which leads them to not update and become stagnated. This is a risk due to the
speed at which things change.
▪ They think they are not prepared for the technological impact that the internet
could have on their business.
▪ The internet is still seen as the future, when the internet and online commerce
are actually the present.

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When buying online, security is essential to ensure good service. Most internet users
say they have not had any problems in their online purchases. In the case of users that
have had incidents; the normal process is to submit a claim. It is estimated that about
70% of customers who have a problem will carry out their claim, and most of them will
do so through the customer service of the business that provided the product. Most of
these claims are solved within the established time and only a small number cannot be
solved.

Given these considerations, we are now going to deal with some data related to the
current situation of e-commerce and the main trends for next year.

The following aspects should be mentioned:

- The global e-commerce market is estimated today at over 471 billion dollars in
annual sales.

- In the United States alone, 205 million consumers frequently purchase over the
internet.

- The countries with the largest growth in online shopping in 2015 were the United
Kingdom, Germany, South Korea, the United States and France.

- Amazon accounted for 60% of the growth of the online shopping sector in 2015.
It obtained 23 million dollars more than the previous year (2014).

- The favourite places for teenagers to shop online are: Amazon, Nike, eBay,
Forever 21, Urban Outfitters and American Eagle.

- By the end of the year, 23.4% of global online purchases will have been made in
China, which accounts for 54.7% of total sales in the Asia-Pacific region.

- Sales during the Christmas season in the American continent accounted for
23.3% of annual sales in 2015, exceeding 56 billion dollars, of which 12 billion
were purchases through mobile phones.

- In 2015, during Cyber Monday more than 2 billion dollars were invoiced.

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- The most popular products in online shopping are: clothing, books, music,
products and services related to travel and holidays, tickets for shows and
technological and electronic devices.

As an example, it is interesting to know that in Spain:

- 80% of households have access to the internet.

- 66% of households have a laptop, and 50% have a tablet.

- 6 out of 10 Spaniards have a smartphone.

According to a study conducted by Kanlli and DA Retail, the sectors with greater
participation in e-commerce are:

- Beauty, fashion and accessories: 23%.

- Hardware, software and IT: 13%.

- Food: 10%.

- Appliances, home and garden: 8%

- Sports equipment: 8%.

- Hotels, tourism and transport: 7%.

- Pharmacy and health care: 7%.

- Professional services: 5%.

- Marketplace: 3%.

The annual expenditure per Spaniard in online shopping is between €600 and €900 per
year.

The following infographic extracted from the web Bamboo Business Services shows data
such as the growth of e-commerce in Europe and in different countries, the number of
e-commerce consumers, the average expenditure, the type of product and age.

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* Bamboo Business Services. Sell online in Europe. https://bamboo-business-

services.com/sell-online-in-europe-b2c-ecommerce-overview-2016

After discussing the current situation of e-commerce, it is of interest to pay attention to

the new trends of electronic commerce in order to understand how it will evolve thanks
to technological advances.

New trends in e-commerce

According to an article published by Beatriz Díaz on the website Puro Marketing

(www.puromarketing.com), these are the ten trends in this field for the next year:

- M-commerce and China

China is always one step ahead, and so it is in e-commerce.

M-commerce is the use of wireless handheld devices, such as mobile phones and
laptops, to conduct commercial transactions online. It is one of the biggest trends and
China is the leading country in it. According to recent data, currently 65% of Chinese
who buy online do so through their mobile phone at least once a month, while only 12%

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say they never do it. This is a very large number if we compare it to the global average,
which is 28% of those who do it monthly and 46% of those who never do it.

It is expected that by the end of 2017, m-commerce will represent 50% of the revenue
from purchases made electronically, while computers are losing their position when
buying online.

- Beacon

Small devices installed in stores that use Bluetooth Low Energy (BLE) technology to emit
signals, record behavioural data and connect to nearby portable electronic devices.

This technology is used to send messages and offers directly to customers when they
are near establishments where they have previously purchased.

For this trend to be successfully implemented in the market, the following two
requirements must be met:

- Users must have a beacon application on their phones.

- Bluetooth localisation service must be on.

This trend goes hand in hand with Google and Apple. In 2013, the latter installed
beacons in its 254 stores in the United States, so that its customers could receive
notifications about offers and new products when they were near the store.

- Multi-device purchase

This third trend refers to the fact that the same consumer generally uses different
devices both to access information and communicate, as well as to buy. Further, the
same purchasing process is often initiated in one device and finished in another, which
means that the company can lose that sale. According to a study carried out by Google,
almost 85% of consumers start their purchase process on one device and finish it on
another.

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This phenomenon may pose a risk to the company since it may lose sales. That is the
reason why it must take careful account of the behaviour of users during their purchase
process in each of the devices, in order to maximise the purchase possibilities.

For example, a user who wants to buy a product from their mobile phone may be away
from home, so, they will usually be more in a hurry to purchase. In that case, if the
website does not load or there is an error, they may end up postponing the purchase.
On the other hand, if we are at home in front of the computer, we will probably
complete the purchase process, even though the website takes longer than usual to
load.

Companies should consider this and should adapt each device to the needs and
behaviour of consumers.

- Drones as new postmen

As we have already seen, with e-commerce customers do not need to go to the store to
look for the product. Instead, they can order from home and the company will send it
to them. It is a quite comfortable system, even though the customer must wait a few
days to physically have the product.

This has led companies to increasingly offer customers fast deliveries so that customers
can get their products as soon as possible. This includes aspects such as 24-hour delivery,
express shipments or Amazon Prime Now one-hour delivery. Due to this strategy to
deliver the order to the customer as soon as possible, drones will soon be commonly
used to deliver orders, thus reducing the delivery time.

Amazon is expected to use these drones very soon to deliver orders in 30 minutes.
Drones can carry packages of up to two and a half kilos, which are 86% of the orders of
this company. This system is relatively costly, so its use will still not be frequent, and will
be used for orders with urgent delivery.

For this to be possible, the following requirements must be met:

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- The client must have a kind of mattress that allows the drone to land. This should
include the Amazon logo, in order for the drone to recognize the place to go.

- In the case of deliveries in buildings and residential areas, it is quite difficult to

use drones since landings must be controlled and cables and narrow streets will
make this process very complicated. However, they are equipped with sensors
that allow them to move safely.

It should be mentioned that, for now, it is nearly impossible to deliver many of the
orders through this system, even though companies are testing all types of systems to
be able to deliver their orders as quickly as possible.

- Ads based on geolocation

As with beacons, based on the geolocation of the customer, companies can send
personalised advertising messages to their customers to encourage them to purchase.

These ads will focus on data collected in real time in order to provide the brand with the
opportunity to create experiences, offers and messages aimed at a specific audience.

The aim is to offer products or services to users based on their location, weather
conditions or time. For example, if it is five o'clock in the afternoon on a cold and rainy
day, customers can be encouraged to have a hot chocolate in a certain cafe, or discounts
for the cinema can be offered.

- Virtual reality

This trend in e-commerce refers to being able to buy through virtual reality. Alibaba,
also known as the Chinese Amazon, is the main representative of this trend. This
company announced that it had developed a store based on virtual reality and, recently,
it has also developed a payment system for its virtual reality stores in which customers
only need to move their heads to purchase an item.

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The intention is to inject some realism into shopping at home. For example, virtual
assistants in this type of stores will serve customers. As a main requirement, customers
must use virtual reality equipment, such as glasses or a helmet, to move around the
store.

- Augmented reality

Augmented reality means that the customer can "try" products before buying them.
Examples of this new trend are virtual testers, which allow users to see how the glasses
they are about to buy look on them.

Ikea is a good example of this trend. In 2014, it introduced augmented reality in its
catalogue with an application that allowed customers to see and place virtual 3D
products in their own home.

- Security

As will be discussed later, internet security is key, especially in terms of payments and
transactions. In fact, many users still do not trust e-commerce, which has led to the on-
going creation of increasingly secure environments. PayPal is an example of these
environments. It is one of the most popular payment platforms and a good option for
not having to disclose personal information to the company.

- Analysis, data and Big Data

In e-commerce, data about consumers is very important because companies can

advertise to users based on their activity, offering them those products that are in line
with their actual needs. In this way, the communication between company and
consumer is more effective since customers are offered what they want when they need
it.

- Contextual shopping

The latest trend refers to what is called "contextual shopping", which entails a higher
level in the personalisation of messages. The aim is to offer an optimised experience

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focused on the user. This new feature allows purchases to be integrated into the day to
day of potential customers, who can buy what they want and when they want.

Finally, it should be said that all these trends try to achieve customer satisfaction and
make the shopping experience as real and customised as possible.

1.3 E-COMMERCE VS. TRADITIONAL COMMERCE

The development of new technologies has turned e-commerce into a new form of
business interrelationship. This kind of trade includes all sectors of commercial activities,
from advertising to the search for financing, customers or suppliers, without forgetting
areas of after-sales service such as customer, claims or repairs service.

The revolution of e-commerce has been able to eliminate physical and geographical
barriers, enabling real-time information. This new concept of direct business challenges
the style of traditional commerce and has caused the disappearance of intermediaries
in transactions. In addition, e-commerce has fostered the creation of new roles and
concepts that do not exist in traditional forms of commerce.

One of these roles is the "prosumer". This term comes from the union of “producer” +
“consumer”. It consists of those customers who stop being passive consumers to create
their own customised products, generating new contents thanks to the freedom and the
possibilities offered by the network.

In line with these new concepts, there is a management system called "Just in Time”. It
is an organisational method based on adjusting production according to demand in
order to work in a more immediate and efficient way. It allows the necessary quantities
to be produced at the time needed and avoids losses due to products that do not enter
the market and end up in the warehouse.

There are some types of companies or businesses that can take particular advantage of
e-commerce. This is the case of small companies, which in traditional commerce would
have to carry out expensive marketing strategies to advertise their product. However,

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electronic commerce allows promoting businesses and it is a window to the world to

increase the impact. This allows any company or person to overcome the barriers that
separate them from their target audience and promote their product beyond their
immediate environment.

Although e-commerce and the incorporation of new technologies to be more productive

and competitive have many advantages, the physical company should not be forgotten.
It must be well constituted and structured in order to succeed in its objectives.

1. Differences between e-commerce and traditional commerce

Let us discuss further both types of commerce in order to deal with their main
differences.

Their definitions established that:

- Traditional commerce: Refers to the exchange of goods and services in person

or face to face. This type of trade requires a significant investment of money to
develop the sales activity, for a place to carry out the activity, for advertising to
promote the business and for the staff working for the public, informing about
the characteristics of the product and carrying out commercial tasks.
- E-commerce: Refers to the activity of selling goods and services electronically. In
this case, the monetary investment is less than in traditional commerce since not
selling face-to-face results in a significant cost reduction.

Now that traditional commerce and e-commerce are defined, the main difference
established is the market since traditional commerce is developed in a physical market,
while e-commerce is developed in a virtual market.

The main differences between these markets are:

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Physical market

- It is based on the physical interaction between seller and buyer in a physical

space. This implies that contact is established between both agents, helping the
seller to know the needs of the customer and offer those products most similar
to their needs.
- Requires a physical infrastructure.
- Advertising goes directly to the customer.

Virtual market

- Eliminates intermediaries.
- Contact is established electronically, that is, there is no face-to-face contact
between buyer and seller. If the customer needs advice, it will be necessary to
establish some tools to achieve that more personalised treatment with the
customer.
- The main requirement of this type of commerce is that the buyer needs a device.
- with an internet connection.
- Ads for the product reach the buyer faster and they also reach more people
through the network, either on websites or social media.

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TRADITIONAL COMMERCE E-COMMERCE

- Requires capital investment. - No accounts payable or receivable.

- Allotments, permits and registrations - Does not require physical premises.
are required. - No fixed costs.
- Fixed costs. - The initial investment is lower than in
- Customer service fixed schedule. traditional commerce.
- Staff is needed. - It can be carried out from anywhere in
- Permanent costs in remodelling and the world.
renovating stock. - The shop is open 365 days a year, 24
- In many cases it is necessary to sell on hours a day.
credit, which increases risks. - Customers can buy from anywhere in
- Expansion means opening new the world.
premises. - Deliveries depend on the delivery
- Generally, the delivery of the product service and the conditions of each
is immediate. company.
- Sellers and buyers deal directly with
each other.

Let us now take a look at the differences between both types of commerce.

Let us now turn to the advantages and disadvantages of electronic commerce.

2. Advantages and disadvantages of e-commerce

As seen above, e-commerce gives its users access to a huge market of opportunities
within any electronic device. These opportunities bring users some advantages and
disadvantages that should be taken into account.

The main advantages of e-commerce include that:

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▪ It is a continuous activity market since it is open 24 hours a day, 365 days a year.
The internet allows access to the market without restrictions or business hours
that limit access to potential consumers.
▪ We can access a world market where the variety of products is unlimited.
Products that may not be for sale in a certain country can be obtained.
▪ The product is cheaper since online sales allow adjusting margins, eliminating
intermediaries and becoming more competitive compared to traditional
commerce. For companies that work mainly on the internet, savings from
infrastructure and personnel should also be taken into account, which minimises
the risk when investing. All this leads to greater productivity, greater speed and
lower costs, which increases the possibilities of expansion of the company.
▪ Dealing with users directly encourages feedback through forums, websites,
blogs and other platforms. Customers can read or share different opinions on a
product based on their criteria and experiences.
▪ The network offers personalised services, which allow the user to detail and
customise products according to their needs.
▪ The convenience of online ordering is a decisive factor, as it allows for faster
transactions and avoids uncomfortable queues and travel. These advantages not
only have an impact on the client, but also on internal or external procedures
with other companies or with consumers.
▪ Communication tools, strategies and protocols that help strengthen the
relationship with customers and allow us to maintain contact with them after a
purchase is made has led to customer loyalty.
▪ There are a large number of online comparators, websites specialising in
analysing the prices of different products and comparing the results. This allows
us to quickly know the price that each company has and gives us a general picture
of the market.
▪ The possibilities offered by electronic commerce make it an open market that
does not limit companies by their capital, size or physical location. This enables

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small and medium businesses to enter markets that would otherwise be

inaccessible to them.
▪ New forms of communication and cooperation between companies, which can
establish relationships without geographical limitations and greatly enable their
expansion, enable the capacity for growth.
▪ The online support provided by e-commerce is a guarantee of quality in
customer service that can solve their problems 24 hours a day. In addition, the
fact that there are no intermediaries between customers and producers means
a more direct and personalised treatment. This can be a decisive factor for the
consumer to trust this type of commerce.

It is also interesting to know the disadvantages of electronic sales:

▪ The main problem with electronic commerce is that it is not of a face-to-face

nature since internet transactions deprive consumers of physical contact with
the product they want to purchase. The absence of personal attention and
having to see the articles in images can cause customers to distrust it. However,
some e-commerce services have virtual assistants or consumer help chats to
provide a more personalised attention and to reduce the degree of uncertainty
experienced by the buyer.
▪ Insecurity when making payments is another of the most challenging points. To
prove the reliability of the company, it is essential to provide very clear
information about the product, the price, the expenses and the details. The
company also needs to be properly identified and to provide direct contact with
them. Most payments are made with a credit card, but although this method is
increasingly secure, there is not 100% reliability yet, which leads to some
distrust.
▪ Problems with deliveries are also a problem for consumers. These logistical
issues may result in the delivery of wrong or defective products, delays or the
absence of items.
▪ Complaints can also be a further disadvantage in e-commerce since the product
may not be what the customer expected and they complain or return it.

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Customers may feel upset when they do not know who to contact to solve these
situations. However, thanks to new claims laws, this situation has now changed
because companies must simplify the entire complaints process so that
customers can receive an answer that suits their needs.
▪ The transition of a company to e-commerce involves financial investment to
ensure its profitability. It requires specialists to help optimise this change.
Training or hiring staff that can use the technology of the business activity also
involves additional spending. Lastly, an attractive website is also needed. It must
be continuously updated and show the services, the way of operating and the
target audience efficiently.
▪ The connection problems of users are the last problem. Due to insufficient
capacity of the user's line, internet disconnections, problems with Wi-Fi or
obsolete equipment can cause problems in establishing communications, and
that can lead to cancelling the order or abandoning the purchase.

3. Types of business

To conclude this introductory chapter on e-commerce, three different types of

businesses will be discussed. They are based on their relationship to the internet.

The three types of business are the following:

- Bricks and clicks

- Offline business
- Showroom

Bricks and clicks

Term for a business that has both offline (bricks) and online (clicks) presence. It has both
a retail outlet as well as a website that is enabled for e-commerce. Additionally, many
will also offer telephone ordering and mobile phone apps, or at least provide telephone
sales support.

Offline business

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Although many people consider e-commerce as the great enemy of traditional stores,
the fact that a store can have online presence can mean feedback between both
business channels.

This is what offline business is about. A good deal of potential customers compare
different products online in different online stores, but they finally purchase the article
in a physical store. This is a clear example of how electronic commerce can be a
permanent showcase until customers decide to take the traditional route.

Showroom

A showroom is a room used for displaying a company’s products to potential buyers.

They are especially common in fashion, even though the term has now been extended
to almost all fields.

As the relationship between e-commerce and traditional stores helps offline businesses,
showrooms promote the physical space as a place to show and promote a product that
can finally be purchased via e-commerce. Some people say that in the future, physical
stores will only work as showrooms and purchases will always be made online.

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2. NEW TECHNOLOGIES AND VALUE CHAIN

“The only fence against the world is a thorough knowledge of it.” John Locke.

Knowledge is power, and when we enter 2.0 business, we should master all the tools
that technology gives us to be better than the competition. The technological concepts
that are associated with electronic commerce are one of the most complex parts for
companies when it comes to adapting to the digital world. However, companies need to
know the language they use, file transfer systems and how data is structured to take
advantage of e-commerce and join this technological model as efficiently as possible.

This chapter will review all the aspects that a company must become familiar with to
adapt to new technologies.

2.1 INTERNET SERVICE PROVIDER

The first element that we should consider when launching our online business is having
access to the internet. To get access to the network, the first thing we need is to contact
an Internet Service Provider (ISP). This is the term used to refer to those companies,
commercial organisations or entities that provide internet access services.

This access can be supplied through different options:

- Phone line

- DSL connection

- Cable

- Wireless network (Wi-Fi)

- Satellite

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Each of them has its own characteristics, as well as advantages and disadvantages, so
when choosing one we must compare the conditions and prices offered by the different
ISP companies.

Some of the criteria that we must consider when choosing an ISP and that will help us
are:

- Coverage: Some ISPs offer services with local, national or international coverage.

- Bandwidth: Refers to the full speed offered by the ISP. The bandwidth assigned
to each client must be higher than its transmission capacity to provide good
quality service.

- Price: Each ISP has a different price that depends on aspects such as the company
that offers it and the conditions of the package.

- Access: Refers to the access time. Now it is always unlimited, but some ISPs may
offer packages that limit the connection time, which means that it cannot exceed
a certain number of hours per month.

- Technical service: Some Internet Service Providers offer technical support in

their packages, a very important aspect if there are problems or incidents.

Large communication companies, such as Telefónica in Spain, offer these services, but
there is increasing competition and, consequently, lower costs.

Internet service providers offer different services to their end users such as:

▪ Connection: Depending on the needs of the company, different types can be

chosen (ADSL, RSDI, Modem, Cable, Satellite, Wireless Networks or 4G
technology).
▪ Websites: ISPs provide the possibility to build websites, registering the data of
the company and granting a domain on the internet (username + .com, .net,
etc.).

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▪ E-mail: E-mail addresses to communicate with users and send information, files
and any type of data are created.
▪ Payment system: Providers provide SSL (Secure Sockets Layer) payment services
that protect against possible electronic frauds and also protect the information
exchanged between browsers and servers.
▪ Shopping cart: This is the most common application when shopping online and
it displays the articles, the payment method and the details of the sale.

Regarding Internet Service Providers, virtual private servers should also be considered.

Virtual private servers

A virtual private server (VPS) is a virtual machine used to host websites. The user
perceives it as a private server even though it is installed on a physical computer running
multiple operating systems.

The concept of a virtual private server can be better explained as a virtual machine that
caters to the individual needs of a user just as a separate physical computer that is
dedicated to a particular user. The virtual dedicated server provides the same
functionality and privacy as that of a normal physical computer. A number of virtual
private servers can be installed on a single physical server with each one running its own
operating system.

The main advantages of virtual private servers include:

- Low cost: Due to its virtual nature, this service does not require manual
intervention by the hosting company, so its cost is lower than the cost of a
dedicated physical server. These servers also use the available space and the
power resources more efficiently.
- Scalability: If the user needs more RAM, CPU or disk space, private servers allow
their configuration on the fly, they do not need to disconnect the system to
undertake such actions.

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- Control: The user has control of the server, so they can make all the necessary
modifications to achieve a better optimisation.
- Flexibility: The user is free to choose the operating system and the software that
they want to install on the server. It also allows them to customise their services
based on their needs.
- Resources: The private virtual server has a large amount of RAM, CPU and disk
drive at any time.
- Faster implementation: The hardware installation in the rack is really fast. This
allows the user to use the system almost immediately; there is no need to wait.
- More resistance: In the event of a failure, the resistance of the private virtual
server can be guaranteed from the beginning as long as the server has been
configured in the cloud where the data is stored virtually through several
physical servers. This means that a major failure in the server will not cause the
loss of data or periods of disconnection.

2.2 STRUCTURES OF THE NETWORK

The internet is also called "cyberspace" or "the network of networks" due to its
structural relationships, which are extremely complex and can offer endless possibilities
at lightning speed. There are different transfer systems and depending on the design
and structure, the following types of networks can be classified:

▪ Telephone network:
- Reduced speed network used in business and domestic environments.
- A modem, either external or internal, is used to access the internet. It allows
networking several computers through a network switch.
- A router can also be used to establish connections from different local
networks.
▪ Optical fibre:
- Offers a faster, more direct and stable connection than the basic telephone
network.

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- The cost for the user is higher since it needs a special network card for an
optical fibre connection, which is essential for the computer to be able to
connect. However, manufacturing costs compared to traditional wiring are
lower.
- Allows connecting several PC's at the same time by using a switch.
- There are telecommunications technologies such as the FTTH (Fibre to the
home) that promote the implementation of optic fibre, which is becoming
increasingly popular around the world.
▪ Satellite:
- Satellite and radio networks have broader scope and higher speed than other
networks. They work by orienting the satellite dish to a specific satellite. Not
only are they characterised by their speed, but also because they work in
rural areas, where communications are difficult to access for conventional
cable.
▪ New systems:
- WAP (Wireless Application Protocol) is one of the most powerful services
since it uses mobile telephony and wireless communications to access the
internet.
- PLC (Power Line Communications) is one of the most innovative systems. It
transforms the electrical network into a high-speed digital line for data
transmission.
▪ Internal structures:
- There are different types of communication devices such as routers, modems
or switchers that connect to the computer and enhance internal
communication and the optimisation of a company's resources.
- Intranet is the computer network that shares information within the same
company or association and is connected by separate local network routers.
- Telnet (Telecommunication Network) is a protocol that allows a user to
remotely use the resources of another PC and have direct access to all its
contents and to solve problems remotely. SSH (Secure Shell) has a model
similar to Telnet but it has an encrypted channel to ensure greater security.

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2.3 INFORMATION AND CONTENT

There is a large amount of information of different types on the internet. In order to get
the most out of each type of content, it is convenient to use appropriate software for
each type of information.

In the traditional commerce, there is a warehouse where the product is stored and then
sent to an end user through a carrier. The patterns followed by the online process are
similar. In this case, the product can be the content itself, which is stored on a server
and distributed through the network to its end user.

The World Wide Web (www) is a great communication system for texts, graphics and
multimedia objects accessible on the internet and stored in servers.

Sometimes we talk about the internet and the web as if it were the same thing, when in
fact they are not. The www is a subset within the internet that consists of websites
accessed through a browser. So services like e-mail, FTP or online games are part of the
internet, but not of the www.

The basic concepts about the World Wide Web that should be known are the following:

▪ URL: Uniform Resource Locator. The address of a resource on the internet. A URL
indicates the location of a resource as well as the protocol used to access it.
▪ HTML: HyperText Markup Language. Text-based approach to describing how
content contained within an HTML file is structured. This markup tells a web

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browser how to display the text, images and other forms of multimedia on a
website.
▪ HTTP: HyperText Transfer Protocol. HTTP is the protocol used to transfer data
over the web. It is part of the Internet Protocol Suite and defines commands and
services used for transmitting website data.
▪ HOSTING: The business of housing, serving, and maintaining files for one or more
websites. ISPs provide this service.

2.3.1 Transmission of content

The internet offers many possibilities to transmit information, whether through text,
images, video or audio. One of the most popular tools used to exchange it is e-mail,
which plays a very important role in e-commerce, as information can be sent and
attachments can be added.

Email accounts are personal and user names and passwords are necessary to access
them in order to ensure their confidentiality. Mail servers allow us to send emails and
users use their accounts to store all their personal messages.

To access email accounts, specific programs such as Outlook or Gmail are necessary, and
we must access our personal account from our mobile phone or PC.

We can also access Webmails, free services with a web interface through which we can
access our email. We can access them from any device that allows us to surf the net.
Gmail, Outlook, Yahoo! or Aol Mail are the most popular.

2.3.2 Tools for the exchange of information

There are many services for the exchange of information that are adapted to the
commercial purpose and the needs of each company. These are classified according to
the type of business, the type of communication and the information. The following
types of services can be highlighted:

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▪ Newsgroups: A newsgroup is an online discussion forum accessible through

Usenet. Each newsgroup contains discussions about a specific topic, indicated in
the newsgroup name. You can browse newsgroups and post or reply to topics
using a newsreader program. Access to newsgroups also requires a Usenet
subscription.
▪ Mailing list: A list of names and addresses used by an individual or an
organisation to send material to multiple recipients. Mailing lists have become a
popular way for internet users to keep up with topics they are interested in.
Many software producers and other vendors are now using them as a way to
keep in touch with customers. This service is similar to newsgroups, but it allows
us to be more selective with the members of the group, so the information can
be more direct and specific.
▪ Chat: refers to the instant communication between two or more users through
the internet. These conversations can be public or private and can be in writing,
audio and video. They also allow users to exchange files.
▪ Phone: The use of conventional telephony services is one of the most convenient
and direct ways to establish business relationships.
▪ Audioconference: a conference in which people at different locations speak to
each other via telephone or internet connections. It allows eliminating the space
and time barriers thanks to easy access technology and great coverage. Its use
has become popular thanks to programs such as Skype.
▪ Videoconference: A conference in which participants in different locations are
able to communicate with each other in sound and vision.

2.3.3 File Transfer Protocol

One of the most popular methods to download files is File Transfer Protocol (FTP). It is
a standard network protocol used for the transfer of computer files between a client
and server on a computer network.

One of its main advantages is its large storage space. We do not need hard disks or CDs
since we can use the network to store material.

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Companies often use this system to exchange files. They use the most secure mode,
which has a password to access the data to ensure the privacy of the content.

Although the download of files is not exclusive to FTP (it is also possible through the
web), this service can be considered one of the most complete services in data
transmission. Unlike the web, we must start the address with “ftp." instead of “www"
to access an FTP.

2.4 VALUE CHAIN

The technical aspects of the internet were discussed at the beginning, but now it is time
to understand the stages necessary to obtain a product. To succeed in this laborious
process, none of the stages can be neglected and each step should be turned into a goal
that gives us competitive advantage over the competition.

This last section will deal with the value chain. Michael Porter first introduced this
concept in his book Competitive Advantage: Creating and Sustaining Superior
Performance (1985).

The Porter’s value chain concept says that there is a chain of events that occur in a
company right from the procurement of raw materials to the delivery of goods as well
as the post sales service. This chain is made up of 9 steps and the process can be changed
in any of the nine steps to add further value to the final product.

The analysis of the value chain allows taking full advantage of the production process,
as the operation of the company and the stages that add value to the product can be
seen in detail. In this way, cost reduction and the optimisation of resources to achieve
the company's objectives can be assessed.

The supply chain is a concept linked to the value chain that should be mentioned. In this
case, all the necessary processes from the raw material to the final product are involved,
although in some of these processes, such as storage or transportation, the value does
not increase.

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In the new era of electronic commerce, the main method to add value to a product
involves reducing costs to ensure competitive prices. The main task is choosing good
retailers, transporters, distributors, suppliers and manufacturers who manage both the
value chain and the supply chain well.

In conclusion, it can be said that a value chain is effective if the development of

resources is constant. In addition, it does not increase the price, but increases the profit
margin between production and sale.

Several concepts must be taken into account for the value chain to be effective. First, an
extensive analysis of the demand for the product and the behaviour of its target
audience should be carried out. Second, the supply chain should be planned and the
most appropriate way to use the resources should be found.

The internet value chain

The value chain is not a model especially developed for the network, but it is considered
a very important process to increase the potential of a company on the internet thanks
to e-commerce.

Computer developments allow companies to optimise their work systems, integrating

all the agents involved in the value chain. If we compare the management of a traditional
business model, whether it is selling T-shirts or bus tickets, we realise that advertising is
limited to the press and the media. In addition to these methods, electronic commerce
also allows us to reach our public through websites, social media and banners. If the
product is sold, e-commerce also allows choosing the seat or the shirt model
comfortably avoiding boring queues and travel.

Electronic commerce has reduced the supply chain and has led to disintermediation. The
number of intermediaries has been reduced to a large extent thanks to the possibilities
offered by the network. Websites, applications and other network services have
provided consumers with a huge number of offers. They can also compare different
alternatives in a fast and convenient way.

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Compared to the supply chain of a traditional business, in e-commerce both the number
of intermediaries and distributors or retailers is sharply reduced since the manufacturer
or distributor sells to the final consumer.

Reintermediation is an interesting concept that cannot be ignored. New technologies

cause new intermediaries to appear. They have the role of the former suppliers to
facilitate the business of the companies. Second-hand sales portals are a good example
since they are a new intermediary between buyers and sellers even though they do not
have products or warehouses.

The power of information

Information management plays a crucial role when selling a service via e-commerce. Our
website must be clear, concise and updated regularly if we want our product to be
competitive and to overcome the disadvantage of online presence and online
transactions.

The objective is to achieve an effective value chain, and the processing of information is
a fundamental phase to add value to the product. There must be a permanent and
updated flow of information, and the highest security for users must be ensured. Quality
structure and contents must be provided and user navigation must be easy so that they
have a positive experience.

There are different possibilities for the exchange of information through the network,
such as:

▪ Social media (Facebook, Twitter, Instagram, etc.)

▪ Websites
▪ E-mail
▪ Electronic Data Interchange (EDI) to exchange business documents in a standard
electronic format between business partners.

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▪ Extensible Markup Language (XML) is a markup language that defines a set of

rules for encoding documents in a format that is both human-readable and
machine-readable.
▪ File Transfer Protocol (FTP) to transfer and download files.

For a successful e-commerce model in terms of distribution and manufacturing, the

supply chain must be improved. Fast and cheap communications are essential, as well
as a perfect interaction between companies and users.

Direct access to information is important in the electronic supply chain and influences
aspects such as:

▪ Reduction in intermediary costs

▪ Better reaction to demand
▪ Reduction in delivery times
▪ Inventory reduction
▪ Better customer service
▪ Reduction in bureaucratic procedures

As previously seen, a good analysis and effective organisation of the supply chain results
in an optimisation of the resources, the advantages and benefits of the company.

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3. BUSINESS MANAGEMENT

“The best structure will not guarantee results and performance. But the wrong
structure is a guarantee of non-performance”. Peter Drucker.

E-commerce provides new tools to traditional businesses and it is the perfect

complement to efficiently manage the inner workings of a company adding value to the
business.

It is a different model of trade, both when buying, selling or requesting a service and it
develops much faster than traditional business. However, to ensure its successful
implementation, we should be prepared to satisfy the demand quickly and adapt to
market changes.

Businesses that fail in their attempt to adapt to electronic commerce repeat the same
mistakes: absence of added value, poor management, marketing problems, inefficient
communication in the company's market or deficiency in logistics and distribution.
These mistakes should be taken into account since they may prevent a company from
achieving its objectives.

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Evolution of business e-commerce

Over the last few years, computer developments have been great achievements when
it comes to managing a company. Databases, spread sheets, orders or stock controls
were some of the first changes and almost every business uses them.

Today, progress is increasing in terms of business management. Transactions are much

faster, storage problems are avoided, infrastructure costs are reduced, information
circulates much faster, distances are reduced and interaction with customers is more
efficient and direct.

Large and small companies already use e-commerce, either to control all transactions or
only for certain areas. The truth is that regardless of size, any business can take
advantage of electronic commerce.

3.1 AREAS OF BUSINESS MANAGEMENT

The different sections of the company that have evolved the most with the arrival of
electronic commerce will be analysed: digital marketing techniques, customer service,
security in transactions, forms of payment or logistics and distribution.

New technologies require qualified professionals to understand how the market

develops and to adapt to their needs. That is why the human resources department
requires highly qualified personnel in new technologies. On the other hand, in the online
shopping section, personnel costs can be reduced since a large part of the transactions
are carried out without the need for personnel.

The department of orders and warehouse have also been affected. Due to the
immediacy of e-commerce and thanks to the transmission of files and email, order
management times have been reduced.

In addition, there are software and specialised companies that can be very helpful in
dealing with the different sections of a company and providing integral solutions to
manage them.

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3.2 E-COMMERCE BETWEEN BUSINESSES (B2B)

The development of new technologies has led to the exponential growth of e-commerce
in recent years and a growing number of national and international companies have
adapted to electronic commerce. E-commerce offers a broad range of options and
different business models have been created for each type of e-commerce.

One of the most important models of electronic commerce is the interaction between
companies (B2B, Business to Business). This model is comparable to that established by
wholesale companies in conventional commerce which is associated with the
distribution and supply of the product. A great specialisation is essential to building
strong relationships between companies that take the first steps in the supply chain.

3.2.1 B2B Markets

Companies in the B2B model can have several functions:

▪ They can act as supplier companies, offering their services to final buyers
directly. They can also do it indirectly through electronic markets (e-markets) or
websites.
▪ They can act as purchasing companies. They obtain products and services from
suppliers through e-market applications, electronic purchase applications or
enterprise resource planning systems (ERP). The latter are business information
systems that integrate the business part related to the production and
distribution operations of a company.
▪ They also act as intermediaries. They create virtual markets where they connect
suppliers with buyers to facilitate market expansion (eMarketMakers).

Depending on the function of each company, their business objectives will be different.
The priority for purchasing companies and intermediaries is to obtain a high number of
associates and participants, obtain large profits that provide liquidity to the company
and generate the highest volume of sales and business.

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Supplier companies need integrated systems to maintain the volume of sales of their
products through traditional and electronic commerce. In addition, they must enhance
their differential factor to stay ahead of the competition in order to become more
competitive.

3.2.2 Stages of the purchasing process

When conducting transactions, B2B businesses follow a similar procedure to traditional

business companies.

▪ Order: The first step is issuing an order to the company. For this, we must follow
the electronic procedure that it uses, which can be by sending an email,
completing a form or making a phone call.
▪ Payment: Once the order is processed, it is time to pay for the purchase. There
are different ways to pay: card, online payment centres such as PayPal or bank
transfer, depending on the options offered by the company.
▪ Verification: It is necessary to confirm the payment with our bank.
▪ Preparation: Once the payment is confirmed, the company asks the warehouse
to prepare the product for its shipment.
▪ Delivery: Finally the company delivers the order using the logistical means
available for distribution.

3.2.3 The current B2B market

Currently most large companies are involved in e-commerce. These B2B business
transactions are valued at over 20,000 million euros.

Companies use all the tools provided by e-commerce to establish new business forms.
They can obtain information about their value chain and their business management in
a more global way since electronic commerce covers all the steps of the purchasing
process.

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This type of platform enables different companies to approach the internet, regardless
of their volume of sales, activity or technological development, which facilitates the
transition from traditional to electronic commerce.

American Express or the pharmaceutical company Parexel are good examples of

companies that offer services to other companies.

3.2.4 B2B services

B2B companies offer specific solutions for certain areas such as the virtual market,
negotiation, procurement or consulting.

The latter is the field that covers a greater percentage since a growing number of
companies offer consultancy and advisory services to other companies.

However, within the B2B market, there are other companies offering other types of
services:

▪ Enterprise Resource Planning (ERP). Business information systems that integrate

the business part relating to aspects such as production, purchasing, logistics,
distribution, accounting, financial control, merchandising or sales.
▪ Business Intelligence (BI). Responsible for analysing a company and making
decisions based on their finances, marketing, sales, production and distribution.
▪ Customer Relationship Management (CRM). Considered the union between
database marketing and services marketing. It is responsible for providing
technological solutions to the client to strengthen communication and improve
relationships.
▪ Partner Relationship Management (PRM). Similar to CRM management but the
strategy tries to strengthen the relationship only with partners.
▪ Data Warehouse. A data warehouse for e-commerce companies.
▪ Electronic Data Interchange (EDI). Transmission of data between companies
through electronic means.

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▪ Computer Telephony Integration (CTI). Technological system for the interaction

between a computer and a telephone call.

Taking into account all these services offered by B2B companies, and by making smart
use of e-commerce, a company could meet their needs and increase the number of
customers or suppliers, increase the turnover and reduce costs.

3.3 E-COMMERCE BETWEEN BUSINESS AND CUSTOMER (B2C)

Online businesses and new models of electronic commerce have led to the international
growth of e-commerce in recent years. The best-known model is that of interaction
between businesses and consumers (Business to Customer, B2C) since it deals with the
end user directly. Retailers use this model.

It is a more accessible model since the customer only needs an internet connection to
access the company's website and purchase. The fact that it does not need complex
platforms, intranet or technological barriers means that its use is simpler and more
efficient.

The technological needs of the selling company are similar to those available in B2B
commerce: a page showing the products for sale, a procedure, form or shopping cart to
order, a payment option to buy the item and its subsequent bank verification, the order
to the warehouse and the final delivery.

3.3.1 B2C markets

As with B2B companies, B2C companies can also have different functions:

▪ They can act as supplier companies, offering their services directly to final
buyers. They can also do it indirectly through electronic markets (e-markets) or
websites.
▪ They can act as intermediaries, creating virtual markets and connecting
suppliers with buyers. The function of an intermediary is to add value to the

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product and provide users with an easy way to purchase the products. Websites
that sell agency travel packages are a good example.

Although the volume of economic transactions between B2B companies is much larger,
B2C companies can have a large number of daily sales, especially in its virtual shop
format.

Virtual shops try to resemble traditional shops and consist of the same elements: a
showcase with products, forms of payment, financing, promotions, etc. According to
surveys, the products in highest demand via e-commerce are accommodation and
vacation packages, tickets for shows, computer software and sports equipment.
Amazon, eBay or Groupon can be highlighted among the leading companies of this type.

▪ Ticketing

Ticketing is one of the fastest growing services in B2C. It is a sales system for shows that
allows customers to buy tickets comfortably from home. Each ticket has an encrypted
bar code or QR to be exchanged at the box office.

These tickets are usually obtained through digital channels, but ticketing can also be
accessed through more traditional channels such as ticket offices, stores and
department stores.

Although the main business of ticketing is seen as B2C, this system can be considered as
B2B2C (Business to Business to Customer) since a company (the company that organises
the event) first hires another company (the company that sells the tickets) that deals
with consumers. That is, the ticketing operator is an intermediary between the company
and the consumer.

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3.4 BUSINESS MANAGEMENT

3.4.1 SWOT Analysis

The SWOT analysis is a technique used to identify the Strengths, Weaknesses,

Opportunities and Threats related to business competition or project planning.

It is intended to specify the objectives of the business venture or project and identify
the internal and external factors that are favourable and unfavourable to achieving
those objectives.

Strengths describe what an organisation excels at and separates it from the competition
and weaknesses describe the elements that stop an organisation from performing at its
optimum level.

Opportunities are favourable external factors that an organisation can use to give it a
competitive advantage, while threats are factors that can harm an organisation.

Below is an explanatory chart of the whole process:

HELPFUL HARMFUL

to achieving the objective to achieving the objective

INTERNAL STRENGTHS WEAKNESSES

Company characteristics Advantages over the Disadvantages over the

competition competition

EXTERNAL OPPORTUNITIES THREATS

Environmental Advantageous outside Disadvantageous outside

characteristics elements elements

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It is about analysing the internal and external factors to identify the elements that
contribute towards the development of the company and the elements that are an
obstacle. Thus, the best strategy can be developed.

3.4.2 Online shop development

The process to create an online shop is relatively easy. However, if we want to develop
a successful and large business, many more means, logistics and money will be
necessary.

For a large company that already has large areas, physical shops and a stable and solvent
business, creating an online shop would not involve a significant effort and could achieve
high returns in a short time. By contrast, small companies would need to make a much
bigger effort and should be careful when setting targets. However, if their expectations
are realistic and follow an appropriate road map, they can get the most out of their
online shops.

So, before creating our online shop, we must be clear about our market and if we already
have a physical shop, we must know which parts of the business we want to take to the
web. Once we are clear about that, the next step is to define the content, structure and
look for an attractive design.

There are different websites that offer these services. They can be very useful in helping
us create our shop and there are even services and consultants that can fully develop an
online shop, from creation to maintenance, integral solutions and updating.

Among all the platforms available, Shopify is worthy of mention. It has a low monthly
cost, a very intuitive interface, many customisable templates and good forums and
systems to optimise web positioning. We also find other free alternatives such as Joomla
or Prestashop, that have a simple design but with many options and functionalities.
These are the essential steps to creating an online shop:

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▪ Create a website to host the business.

▪ Set up the visual format of the website and the online catalogue to display the
products and services with their prices.
▪ Establish a payment system by card, PayPal, forms, etc. and specify the shipping
method.
▪ Depending on the number of products, a search engine can be added to facilitate
navigation. Products can also be classified by categories.
▪ Include promotions and offers to encourage purchase.

Some more requirements can be added depending on the business ambition:

▪ Apply the CRM system. As previously mentioned, this method has services
marketing based on databases. In an online shop, it could display useful
information or products related to the customer’s search while he or she is on
the web.
▪ Add the "shopping cart" function so that the user can easily and quickly see the
selected items, their price and the total.
▪ Create a payment gateway. This service transmits the information between the
website and the bank quickly and safely.
▪ Set up a Secure Sockets Layer (SSL) and an encrypted database. It is a protocol
that allows transmitting information in a more reliable way, protecting the
customer's data and guaranteeing the security of the processes.
▪ Create a tracking system for orders. In this way the customer can check the
status of their order.

3.4.3 Design of the strategy

The following aspects should be taken into account to develop the e-commerce strategy:

▪ Name of the URL. It should be appealing, easy to remember and be related to

the business.

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▪ Design a structure that is easy to navigate and adapted to the type of customer.
It should also have a complete catalogue of products.
▪ Develop a marketing plan aimed at the potential audience. The target audience
can be segmented in different ways.
▪ Improve web positioning so that search engines can easily find the store.
▪ Make the customer feel safe on our website: guarantee reliability, security
protocols, ensure refunds and offer different payment methods.
▪ Analyse the performance of the business constantly to update and improve its
weak points and strengthen its virtues.

3.4.4 Structure

In terms of business management, the logistics structure of the store should also be
taken into account. In this regard, two realities should be considered:

- Centralised inventory.

- Dropshipping.

These organisational structures will now be briefly addressed in order to compare the
advantages and disadvantages of both.

Centralised inventory

A centralised inventory is a very common method for online companies to use for e-
commerce ventures. The company has a "face" on the website that allows users to order
products. Primary company activity takes place at the centralised inventory location,
where the products are gathered and shipped based on orders. Amazon.com, among
other companies, has made use of this strategy in e-commerce.

The main advantages of centralised inventory are:

- Allows gathering goods from different suppliers, which facilitates deliveries.

- Products are only sold when they are in the warehouse, which guarantees a fast
delivery.

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- Allows controlling the stock, as well as all the procedures related to the
preparation of the order.
- Allows the company to optimise the costs of preparation of suppliers, by
grouping orders and optimising transport costs.
- The central warehouse is usually located at a strategic point, at a relatively close
distance to its potential customers, so the distance to the end customers is
usually smaller than the distance from suppliers.
- This allows the company to control the whole process of returns.

In addition to these advantages, it also is interesting to learn the potential problems and
inconveniences with this type of organisational structure:

- A physical warehouse entails high costs, not only for the facilities, but also for
the costs related to goods handling, such as loading and unloading, storage and
order preparation.

- Problems of stock obsolescence can arise due to the complexity of estimating

the demand.

Dropshipping

Dropshipping (also Drop shipment) is a type of business model where a store does not
keep the products it sells in stock. Instead, when a product is sold, the company
purchases the item from a third party and has it shipped directly to the customer. As a
result, the merchant never sees or handles the product.

The biggest difference between dropshipping and the standard retail model is that the
selling merchant does not stock or own inventory. Instead, the merchant purchases
inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfil
orders.

The main advantages of this model are:

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- No intermediary stock
- Fast delivery service

However, it also has some problems:

- Several products from different suppliers cannot be sent in a single delivery, so

if the customer purchases products from different suppliers, their order will be
delivered in different shipments.
- Suppliers are usually prepared for large distribution orders, which means that
the company must look for suppliers that accept small orders.
- The cost of transport is usually higher since it does not take advantage of
economies of scale or the cost savings for collection at a single point. In addition,
the distances from the supplier's warehouses to the end customer are often
greater than the distances from central warehouses.
- The company cannot control the quality.
- Products are usually returned to the company, not to the supplier. This means
that the e-commerce company must have special facilities for this, which adds
costs to the supply chain.

3.4.5 The thermometer of success

When it comes to running an online business, each company has different objectives
and methods. Sometimes it is difficult to know if the process is going well. However,
these factors can work as a thermometer of the success of a company:

▪ High turnover margin of the company.

▪ High percentage of regular customers.
▪ High consumption per client.
▪ Low costs of attracting new customers.
▪ Small number of unsatisfactory or incomplete orders.
▪ High level of customer satisfaction.

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All these indicators will give us an idea of the situation of a company and will help us
follow up to measure success. However, we must be able to interpret the data since
they can be misleading sometimes.

The following case of an electronic store is a good example. Some customers checked
products and prices on the internet but purchased them in the offline business (store).
The electronic commerce was a determining factor in the purchase process, even
though the final transaction was made in the physical establishment.

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4. ADVERTISING AND MARKETING

“People love advertising in particular but they hate advertising in general”. Cindy
Gallop.

In advertising, it is essential to look for the differential factor of a company and to

customise the product to stand out from the competition. As Cindy Gallop’s quote
suggests, we should differentiate from advertising "in general" and become advertising
"in particular."

To achieve this, businesses must know the profile of online buyers and constantly adapt
to their needs within a changing market. There are some fundamental factors that
should be taken into account such as usability and ease of navigation, the trust that the
company generates, marketing management or customer service.

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4.1 ONLINE ADVERTISING

There are different online tools for a company or service to be better known. First of all,
the website, which is the most important space for the company to present itself in the
digital world, and show its corporate image and its service or products. In addition, it
will be the main tool for customers to communicate and interact with the company.

The design of a website should be neat and clear to facilitate navigation and access to
information. The content must be direct, concise and of quality since it is essential to
get the customer's attention and engage their interest in the services or products.

We should not forget that users generally read diagonally, so we must use every means
at our disposal to attract their attention. We must use a direct style, short paragraphs
and add images or videos to encourage them to keep reading. Large images or videos
that may slow down browsing the website should also be avoided.

Some other factors that will add value to the website can also be included:

▪ Site Map: allows users to know all the services at a glance.

▪ Contact Information: telephone, mail or address of the company.
▪ Social media: direct access to the social media of the company such as Facebook,
Twitter, Instagram or Google+.
▪ Subscriptions: customer loyalty through newsletters. Promotions, discounts or
additional content can be offered to motivate the user to subscribe.
▪ Additional content: either through related news, links of interest, discussion
forums and even customer opinions that generate trust in the user.

Social media, such as Facebook, Instagram or Twitter, are another element that can help
the company to promote itself and that is becoming more popular.

We can say that social media are part of our lives to a greater or lesser extent.
Companies know it, and use them to reach users and potential customers directly. In
general, social media offer their users a certain type of information and they include
them in a group, which makes them feel part of it.

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Social media are defined as a social structure made of a set of actors (individuals or
organisations) that are related according to some criteria (professional relationship,
friendship, kinship, etc.)

Social media involve applications that favour the interrelation of individuals, and can be
classified into three levels, depending on the type of relationship.

- Generic Social Media: the most common. Its main role is to establish
relationships among its members, who may or may not previously know each
other. The most popular are Facebook, Instagram or Twitter. They are a source
of both personal and public information.
- Professional Social Media: its members are professionally related. It can be used
to contact co-workers or to seek employment. Linkedin or Xing are some of the
best known.
- Vertical or Thematic Social Media: based on a specific topic, establish
relationships between users interested in this topic. Some examples are Flickr,
where users exchange more professional photos or Dribble, a social network for
graphic designers where they show their work.

Their interactivity is based on three aspects:

- Interactivity with the sender. Both in conventional communication and in online

communication, tools such as chats or forums are made available to the user in
order that the receiver can communicate with the sender.
- Interactivity with information. This interactivity is characterised by:
- Navigation through a range of options provided by the sender but allowing the
receiver to select the contents that are of their interest.
- The receiver can set filters and preferences in order to regulate the information
they receive.
- The user is conceived as a sender of information thanks to their account on social
media or a website, a blog or an account in audio-visual media such as YouTube.
- Interactivity with users. The network has plenty of options that facilitate the
interactivity among users. Social media are a good example, but there are also

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public and private chats, discussion forums, online games, blogs, websites, email
and surveys, among others.

Thus, we should not only consider the option of the website if we want to open an e-
commerce since under no circumstances should we leave this option aside. We can say
that they represent one of the main channels to promote our products or services and
to reach a large number of people.

4.1.1 Tools and strategies

Regarding the tools and strategies for online advertising, the following two elements
cannot be ignored:

- Banners and pop-ups

- Search engines

Banners and pop-ups

Banners and pop-ups are some of the most popular tools in online advertising. Banners
are very effective for their immediacy, the ability to direct them to a specific audience,
the easy monitoring of the campaign and its low economic cost.

For a banner to be effective, it should have an attractive design and a very direct
message, so that it gets the attention of users and it makes them click-to-click on it.
These are some common techniques: “Did you know...", "Ask for an estimate...", "Click
here..." or even discount promotions.

Pop-ups are small windows that appear automatically to display advertising content in
the foreground of the visual interface. They use the "click-through" method, which
redirects to the advertiser's website by clicking on a link. However, pop-ups can be
annoying and inconvenient when browsing and there are pop-up blocking programs to
eliminate this type of advertising.

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Search engines

Another interesting strategy to promote our company on the internet is to appear in

different search engines. To do this, we must analyse the available search engines and
register in those we consider appropriate. It is essential to analyse the keywords since
they will determine the way in which users can find our company.

The internet should not be seen as a space to fight with the competition, but as a space
for relationships and feedback. It is important to link other sites and spaces of interest
since this exchange of links can grow the community associated with the company and
improve the positioning of the brand.

4.2 MARKETING AND VISIBILITY

As they say in marketing: "if they do not see you, you do not exist". So, in addition to
offering a good product at a competitive price, we must give visibility to our service and
ensure that it reaches the largest number of potential customers.

We will now review some of the basic steps to better market our website and get the
maximum number of potential customers to access our online store.

The first thing we should be familiar with is the market we want to focus on, its situation,
costs and movements. It is also essential to be documented to find the needs of the
sector, get familiar with potential customers, choose a certain range of products,
prevent potential problems and get the most out of the budget avoiding the losses that
incorrect positioning can cause.

These studies to develop data on markets do not need to be astronomically expensive

since the internet offers many possibilities to learn about the market situation.
Moreover, if the business already has a physical store, a survey can be conducted among
the customers to find out what contributions they would appreciate in an e-commerce
version.

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The name of our online business is also essential for customers to remember it. The
name should represent the identity of the brand simply, briefly and attractively. Unusual
characters should be avoided and the name must be easy to remember and pronounce.

Before developing the project, we have to make sure that the name is available. If
necessary, the extension can be changed to ".es", ".com", ".net", ".biz", etc., according
to our needs. In addition, our target audience must be taken into account based on their
age, if they are local or international, language, etc.

Another process that will help improve the visibility of our website is web positioning,
also known as SEO (Search Engine Optimisation). It is about optimising the positioning
in search engines since most of the searches are on search engines and appearing in the
top positions of a giant like Google can be essential for the customer to access our
website.

Web positioning allows our company to appear in the top positions when someone
searches keywords related to our brand or business activity. This will allow us to quickly
reach our target audience and promote our company in a more efficient and cost-
effective manner than with conventional advertising.

Contact with customers is essential to improve communication, and newsletters give

the possibility of keeping consumers updated with promotions that encourage them to
be interested in the product and be informed of the company's news. It is undoubtedly
a good way to approach both customers who have previously purchased something as
well as new customers, provided they have previously agreed to receive information.

As they say in marketing: "the important thing is not that customers buy, but that they
come back". Customers are the most valuable jewel of a company, so we must seek
consumer loyalty to create a long-term customer base.

It is important to offer them personalised service and address customers by their name
to avoid them feeling like a number. It is also a good idea to provide fast registration on
the website and allow them to change their profile, as well as access additional

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information that may add value to their purchase. Finally, discounts and special
promotions for groups of customers can be offered to reward their loyalty.

It is also worth placing advertising banners on strategic websites that our target
audience accesses. Although it is more expensive than search engines, banners can
attract new customers provided they are well located.

When a customer is about to purchase, we can also offer them a cross-selling service. It
consists of offering products or accessories related to their acquisition and that can
complement it. That is, if the product is a camera, a good strategy would be to offer
covers, lenses or batteries since the customer will probably be interested in them. A
classic cross-selling pitch is the famous "Customers who bought this product also
bought" and display items that might attract customers based on the tastes of previous
users.

Public relations can also play an important role. For this it is necessary that our business
gets the maximum possible coverage through press releases, viral campaigns and emails
that create interest in the activities of the company in the media.

Let us now look at some important elements related to marketing that will help the
company achieve visibility.

1. Google

To talk about web positioning is to talk about Google since

it is the most important search engine so far, and most
searches are done on Google.

That is why appearing in the top positions of the search results is essential for potential
customers to access a certain online store.

The company also offers different interesting services for e-commerce such as Google
Analytics, which allows gathering statistics from a website obtained by its search engine.

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This service also provides information based on different interests, and it can also track
users, results of marketing campaigns, content performance or browsing analysis.

Google AdWords is also an interesting possibility. It is an advertising tool for certain ads
to appear in search engines or banners on websites related to the advertiser.

2. Marketing techniques

“Marketing refers to the activities of a company associated with buying, advertising,

distributing or selling a product or service.”

Marketing studies the techniques and procedures to promote and distribute products,
set prices or plan strategies that boost sales and meet the needs of potential consumers.

One of the definitions within the business world is the following: "Marketing means
having the right product, at the right time, adapted to the demand, and with the fairest
price".

E-marketing has evolved in parallel with technological advances and is based on the
same principles as general marketing but focuses on online business and electronic
transactions.

The following elements of marketing techniques will be briefly addressed:

- Strategy
- Market research
- Psychological factor
- Return on Investment

Strategy

In order to get the most out of our company in the field of new technologies, good
marketing strategy planning should be developed.

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For this, all the factors conditioning e-commerce should be taken into account, such as
the open market, changes in demand, immediate access to information, specialisation,
non-personal transactions, and comparators of products and prices. All these needs
determine the marketing strategies to achieve their objectives of positioning in the
market, user loyalty and the differential factor with regard to the competition.

As in traditional marketing, a good e-marketing strategy should have some essential

steps similar to those of traditional marketing: market research, strategy planning,
market segmentation, positioning and consolidation.

Market research

Market research consists of the analysis of a company and the sector it belongs to in
order to help it make decisions and guide marketing actions. It is very helpful to be able
to segment the market, get the information of a specific sector and foresee its changes
and fluctuations.

When analysing the sector, the news archive can be referred to on the internet or media.
Public administrations can have data of interest to conduct market research. There are
also certain expert companies that can provide marketing solutions. There are great
professionals in the field and more affordable options such as small businesses, schools
or freelance. If you do not want to delegate this analysis to external companies, the
following elements need to be clear:

▪ Product or service: what we sell and why.

▪ Customers: our target audience.
▪ Competition: analyse their situation and differential factors.
▪ Planning: design the operation and sale strategy.
▪ Legal framework: legal concepts of the company.
▪ Forecast: estimate the growth of the company, as well as the sector’s and that
of the competition.
▪ Sector: Know the sector in which the company will operate.

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Before starting an online business, it is necessary to analyse if the product offered is

suitable for this channel, due to its conditions, demand, price, transport options, etc.

As previously mentioned, currently the most successful products in e-commerce are

tickets, accommodation, software or music due to its easy distribution, but the items
that are difficult to purchase in the conventional market have great potential since e-
commerce is often the only way for minorities to access them.

The company should also conduct a study of its capacity to start an online business. Its
human and economic resources, administrative structure, development in new
technologies and the cost it might incur should be analysed.

Psychological factor

One of the keys to success in e-commerce is not forgetting that our customers are not
objects but subjects. That means they are subjective people who sometimes allow their
impulses and emotions to take over.

It is a fact that visual marketing can affect the purchase based on how a page influences
the user's psychology. To do this, an interface that reflects reliability must be created so
that the customer feels safe.

The order, colours and photos should be very clear and bright. It is also advisable to
include positive opinions of other users to encourage the purchase and guarantee the
refund if the customer is not satisfied.

Return on Investment

Return on Investment (ROI) is a performance measure, used to evaluate the efficiency

of an online marketing campaign. ROI measures the amount of return on an investment,
relative to the investment’s cost. To calculate ROI, the benefit (or return) of an
investment is divided by the cost of the investment. The result is expressed as a
percentage or a ratio.

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ROI = BENEFIT-INVESTMENT/INVESTMENT

Tools like Google AdWords or Google Analytics allow us to extract this information, but
the company itself can calculate the ROI. For example, if 100 euros are invested and 50
are recovered throughout a campaign, the ROI is 50% (Sales/Cost).

This value helps us plan strategies based on the platforms that generate higher ROI.
Before implementing the strategy, the company can estimate the minimum acceptable
ROI, even though we want to achieve a value that is always close to 100%. In this way,
investment in advertising can be optimised and better strategic decisions can be made.

3. Differential factor

One of the most important aspects when starting up a business is to identify the
differential factor that will make our company different from the rest of the
competition. For this, it is necessary to implement marketing strategies that help us find
the market space we want to take part in and customise our work tools.

One of the methods used for collecting customer information is "cookies". Cookies are
files that the server includes in the website to store information about the interests of
users when they access it. Cookies are a very useful tool to get to know our audience
and be able to offer personalised content and information based on their interests.

Banners are another fundamental tool. A banner is a small piece of advertising that is
hosted on certain websites based on the user's profile. Its objective is to attract users to
a certain page paid by the advertiser. Advertisers can direct advertising according to the
schedules, domains, interests or geographic location of potential customers and can also
control their campaigns, their payment method, its immediate impact and the evolution
of results.

Finally, we return to the CRM model. This system manages a very practical data
warehouse to collect the number of sales, data and customers that allow the tracking of
their contacts and use their information to offer personalised services or activities to the
customer, generating good feedback and stronger and more effective communication.

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4. Shopping hours

A fact that may be interesting for the owners of an online business is to know the most
frequent purchasing times. According to a study by Blueknow, (the link to the results of
this study can be consulted in the bibliography) the most important peak for online
shopping is on Mondays between 4 pm and 5 pm. However, night purchases should not
be underestimated, because although the number of users is usually much lower, the
average amount spent reaches 100 euros.

According to this same study, we can also see how the concept "end of the month”, that
causes a decrease in traditional sales, does not affect the online market since there are
no significant differences between the beginning and the end of the month.

Knowing peak times in our online store can be useful, for example, when updating or
adjusting the website, as we can try not to make any changes during these hours to
avoid incidents.

If, instead, we want to send promotional emails, Tuesdays and Wednesdays are
considered the days of greatest acceptance since many emails sent on the weekend are
accumulated on Monday and on Thursdays and Fridays many entrepreneurs spend a
great part of their time finishing pending projects.

5. Premium users

There are more and more websites that offer the possibility of obtaining a Premium
services account. This service allows, for a certain price, accessing exclusive content or
advantages.

It is an interesting strategy so that customers can feel they have preferential treatment
and feel privileged inside a community. This system can boost business revenue as long
as the content is worthwhile for the customer, whether it is more storage capacity, less
waiting time, access to offers and invitations, or exclusive content such as articles,
interviews, videos or downloads.

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6. The importance of photography

Good use of photographs is essential in e-commerce since they are the element that
makes up for the lack of being able to see the article. That is why there should be good
quality photographs. They must be clear and reflect the image of the company.

Some of the guidelines for photographs are:

▪ Follow a strategy of Visual Marketing so that design and photography always

match the essence of the product we want to sell.
▪ The photo must be clear, the product must be isolated and the background must
be white and well-lit.
▪ Apart from the main general image, it is a good idea to add some more images
of the product that show the details from different angles.
▪ They should awaken the desire of customers to buy the product.
▪ Add advanced options such as zoom, panoramic view or videos.
▪ Do not exceed the size of the image and use easily compatible light formats such
as .jpg or .png.

4.3 CUSTOMER LOYALTY

Lastly, one of the most important elements in the advertising and marketing processes
is customer loyalty.

Customer loyalty is one of the objectives that the company must set to extend their
relationship with the user and increase profitability. For this purpose, customer service
must be carefully taken care of and different communication systems must be used,
such as e-mail, one-to-one marketing, newsletters or automatic response services.

E-mail is the most direct way of communication between company and user, and its use
must follow some pre-established parameters in the communication strategy. It is a very
comprehensive tool that can be present throughout the purchase since the user places
the order, in customer service or in complaints service.

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Emails can also include a "digital signature", where the company includes the data it
considers necessary to promote or consolidate its brand image. It is also a good way to
advertise events, or new products in a direct way. However, the relationship of emails
sent to the user must be studied based on the necessary communication and feedback
with the customer. It is advisable to avoid spam because they are annoying and
counterproductive. In addition, the user must be able to stop the communication with
the company whenever they want.

In one-to-one marketing, the main virtue is to create a personalised relationship with

the customer based on how the customer wants to be treated. Using a database, the
company establishes user profiles with their interests and behaviours and establishes
an appropriate communication channel. In this way, the customer feels closer to the
company and has faster access to the products or promotions that interest them and it
saves time and effort.

Subscriptions to newsletters are also very effective since it is the user who is interested
in the service, usually motivated by some promotion or additional content. It is a good
option to promote the company or product, and favours feedback with customers.

There are also automatic response services, which can program an entire sequence of
emails to track a customer and verify that they have received a product, keep them
updated or show new offers. It is a very practical tool since, in a very simple way, it
manages to keep the customer's interest by offering an immediate response.

Given the aforementioned considerations, let us look at some key aspects in customer
loyalty.

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4.3.1 Customer satisfaction

It is essential that customers think they are dealing with a reliable website when
purchasing.

Customers may have doubts before the payment due to aspects such as unexpected
increases in the price or confusing information, which may cause their loss of interest
and cancellation of the order. However, if the process and the data are clear, the
expectations of users will be met and they will be able to complete their purchase
successfully. Hopefully, they will repeat the process in the future.

These are some of the aspects that should be taken into account for customer
satisfaction:

▪ The information must be clear and complete. If necessary, infographics or images

can be added to clarify the product and facilitate navigation.
▪ The search engine for products or services must be fast and easy.
▪ Contact information to establish communication with the company that offers
the service must be displayed.
▪ Orders and payments must be made quickly, easily and safely. An electronic
confirmation after the purchase can be added.
▪ The price of the products should not be higher than in the physical market.
Otherwise customers will rather go to the physical store. In addition, different
payment methods must be offered.
▪ It is also desirable that the order can be traced and delivered as quickly as
possible.
▪ Security guarantees in the data transfer must be offered and include the option
for the user to return the product in case they are not satisfied.

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4.3.2 After-sales service

The after-sales service is crucial for customer loyalty. That is why this section should be
treated with special attention so that the level of satisfaction does not end with the final
transaction.

For the service to be adequate, the customer must receive a confirmation of their order
via email. This email must include the details of the purchase and the details to contact
the company in case of doubt, as well as the possibility of tracking the transport of their
order. The delivery must be efficient and within the dates and estimated deadlines since
delays always cause great discomfort among customers.

We have to bear in mind that a customer can complain, can change the product or can
ask for a refund. The process for that must be easy so that the service is satisfactory and
the customer will want to buy again in the future. If the process is difficult, the customer
service is not appropriate or the customer feels unattended, they will not repeat their
purchase and they can complain in different forums that can seriously damage the
image of the brand.

A good way to measure the degree of satisfaction of users is to perform a test in which
different aspects can be evaluated. This will improve certain deficiencies and enhance
other services. It is convenient to reward the user with a discount or a gift to be
encouraged to participate.

4.3.3 Usability

The ease of use and navigation is a fundamental factor when making online transactions.
Users must find the information they are looking for on the website quickly and easily
for a positive experience. In fact, usability can be a factor that is even more decisive than
the price of the product itself when it comes to making the purchase decision.

Factors such as the following must be taken into account for usability:

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- Design
- Content
- Search engine
- Payment methods
- Delivery methods

The design and navigation should attract the attention of the buyer and fulfil its main
purpose: sell. We should not forget its practical function, so we have to dismiss the idea
of complex designs that can distract the customer's attention and instead, provide them
with a direct way to purchase the product.

In spite of the technological developments and the ever-increasing connection speed, it

is advisable to avoid heavy videos that may slow down navigation in some devices.

Content is also one of the most important factors to consider. As mentioned, one of the
disadvantages of e-commerce is the non-contact nature of the transactions. The sense
of touch must be replaced by good images and detailed information that leaves no room
for doubt to the user, encourages the purchase and adds value to the product.

In addition, the content should be useful, interesting and updated whenever necessary.
All these aspects are key when encouraging the user to stay on our website, which will
prevent them from looking for other alternatives and will multiply the possibilities of
selling the product.

The search speed is also essential since we must be aware that the average user is not
very patient.

We cannot expect the customer to spend much time in finding the item they are looking
for. We have to provide the facilities so that they do not give up and decide to try with
the competition. This requires a clear, logical and intuitive organisation that allows the
user to reach their goal as quickly as possible.

It is important to know the buyer's data, to establish our database and also to
communicate with our customer. However, we should be cautious since an excessively
long form can make some potential buyers give up.

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The shopping cart tool is also one of the key features for good usability. This method is
highly standardised and makes the process easier, faster and more reliable. Customers
must always know the steps they have to take and the point where they are. A good
technique is to place a direct access to the cart next to each product so that the process
is more direct.

It is also advisable to give the possibility of making last-minute changes prior to the
confirmation of the order instead of having to restart the process. All these
characteristics allow quick transactions that will prevent the customer from abandoning
the purchase, something that is still very frequent and that causes companies to lose a
lot of money. Once the purchase is completed, an immediate confirmation must be sent
to the consumer by email.

When showing the final price, there cannot be unexpected or disproportionate

increases in the cost. It is advisable to clearly specify the price of the product including
additional expenses. It is often tempting to start with a low price to attract customers,
but if the cost skyrockets at the end, they will cancel the order. The price should be
clearly shown and the shipping costs should be moderate and clearly indicated. We can
also offer free shipping if the total price exceeds a certain amount, which will encourage
customers to make a larger purchase.

It is also advisable to make clear which products are in stock and which are not, so that
the customer does not start the purchase process and end up disappointed. That will
not cause a good impression of our company.

Lastly, the website must indicate the expected delivery times and the company must
ensure that it complies with the established deadlines since otherwise it could
disappoint the buyer and they can even cancel the shipment.

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4.3.4 Shopping cart abandonment

One of the biggest problems of e-commerce is that some purchases are not completed.
There are different reasons and options why a user abandons a purchase process when
they have already started it. The following reasons must be taken into account:

▪ The high prices associated with shipping costs are one of the main reasons for
abandonment. Users notice an unexpected increase in the price and exit without
completing the purchase. For this it is advisable to apply reasonable, well-
detailed expenses and offer discounts, promotions or even free shipping.
▪ The purchase process must consist of few steps since for each extra step that is
added at the time of purchase, the abandonment rate increases. It must consist
of a reduced number of steps and the action buttons to continue must be in
bright colours to make the process easier.
▪ If the user does not find the payment option they want, they may leave a pending
purchase, so the company must offer all possible forms of payment.

If the user still abandons the purchase, we can remind the customer on later occasions,
on the website itself or via email, that last time they left a pending purchase. This may
recover some of the purchases that were uncompleted.

4.3.5 Convey trust

The internet is impersonal, and that always leads to distrust. Companies must overcome
these barriers to convey trust to the user and to channel a business. To achieve this, it
is necessary to follow some guidelines:

▪ First of all, an encrypted system must be used for payments. This must be
communicated to the customer so that they know that they are dealing with a
reliable company with safe methods for both payment and data. We must also
specify that these data will not be transferred to third parties.

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▪ There are different quality certificates based on the type of company. This will
undoubtedly be a good way to convince the user that the security offered has
been approved by an external association and that the company or services meet
all the legal requirements.
▪ Offering a good guarantee can also be good proof of reliability. For this, all the
details must be clearly described and the aspects that differentiate us from the
competition such as duration, possibilities of change, etc. must be highlighted.
▪ When paying, it is advisable that the customer be able to choose between
different methods: credit or debit card, PayPal, transfers or cash on delivery.
▪ A section of the website can display, not only the email, telephone and address,
but also the people who work at the company. It is a way to counteract the
impersonality of the internet, giving the company a face and creating a closer
relationship with the customer.

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5. CUSTOMER SERVICE, LOGISTICS AND

PAYMENT SYSTEMS

“Whatever you do, do it well. Do it so well that when people see you do it, they will
want to come back and see you do it again, and they will want to bring others and
show them how well you do what you do.” Walt Disney.

As seen, one of the main characteristics of e-commerce is the fact that face-to-face
contact with customers is not possible. That makes customer service one of the most
complex processes in e-commerce, as it must overcome the barriers of the impersonal
nature of this type of commerce. That is why the customer must be taken care of and
be treated with the maximum personalisation so that they have a pleasant experience.

Even today many companies do not pay enough attention to this part, which results in
large losses as well as a lack of loyalty that may be important. We must not forget that
if we do not take care of our customers, the competition will be happy to do it.

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For this, we must guarantee a good interpersonal relationship that provides solutions
whenever there is a problem, compliance with delivery schedules, order tracking and
good service for claims, returns or repairs. All these factors guarantee the satisfaction
and loyalty of the consumer following this key principle: “do not just get a sale, but
rather a customer".

5.1 CUSTOMER SERVICE

Sales are the main element to consider in customer service since sales will depend on
the attention.

Sales not only consist of making and executing the purchase, but also of different
processes and phases that should be known.

5.1.1 Sales process

As we have just said, the sale is a process made up of different phases. These phases
are:

- Presales
- Sales
- After sales
- Claims

Presales

The presales phase should focus on attracting the attention of potential customers and
encouraging them to purchase. For this, the first impression that users have when they
see the website is essential. An attractive, clear and easy design together with different
promotions or discounts are very useful for this phase.

They must also know in advance all the details of the service, the payment and delivery
system, and there should be a contact form in case the customer wants to contact the
company before placing the order. A section of frequently asked questions (FAQ) and an

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automatic answering service will provide most answers so that customers can solve their
doubts comfortably.

Sale

The sales phase starts when the customer selects an article, and adds it to their shopping
cart. From that moment on, the consumer must have complete information on the price
of the item and the total price. They should feel the purchase is safe, there is no risk of
fraud and the payment process must be easy. They must also be informed about the
stock of the product, the delivery time and the delivery system.

Many companies ask customers to fill out registration forms before purchasing. Data
should be relevant and forms should be easy to fill out so it does not become a tedious
or suspicious process. This is why it is advisable to include the company policy that
guarantees the security of the information and the option to memorise the form so that
the customer does not have to repeat this process with future purchases.

Aftersales

This last phase of customer service takes care of several aspects. First, it is responsible
for solving doubts, claims or complaints about the items purchased. There are different
ways to access this section: website, email, telephone or forms. In any case, the access
to this section must be visible so that it does not generate mistrust among users.

In this phase, it is advisable to ask customers to assess the service through

questionnaires or comments on social media. In this way, we will get good publicity in
their environment. This phase is essential to turn a casual customer into an active
customer. On the contrary, poor management of the aftersales phase will cause the user
to be dissatisfied and this may result in bad publicity about our company that will harm
our brand.

To improve customer service, we can use services such as live chats, FAQ, telephone
support and even social media. We can also offer promotions or discount coupons to
customers to encourage them to purchase on the web.

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Some platforms allow us to monitor the comments about our brand in order to analyse
the feedback, know what is being discussed about us and analyse the online reputation
of the company. This function is very useful when it comes to thanking and promoting
positive criticism and finding a solution to negative comments. Some of the free tools to
monitor a brand are Google Alerts, Tweet Alarm, Social Mention or Topsy.

Claims

Online purchases can lead to disagreements with the companies that sell the product. If
the consumer is not satisfied, they can always make a claim. The most common reasons
are: the advertised characteristics do not match with the real product, prices are higher,
delays in the delivery, or lack of guarantee in the payment methods. There are different
ways to complain:

▪ Directly to the company. We should always try to reach an agreement through

the customer service of the company. If it is a reliable company, they will try to
guarantee assistance and solve the problems and doubts. In this first phase, the
following should be provided: purchase invoice, date, name and address, price,
reason for claim, relevant documents and specify if a refund or a change is
desired.
▪ To the entity that provides the trust mark. In case the company has a trust mark,
customers can use this route so that the entity mediates and applies their
internal code of conflict resolution.
▪ Consumer Protection Offices. If the first options do not work, it is necessary to
go to these organisations. They mediate, inform consumers and guide them in
reaching an agreement between both parties. In event that a solution between
the company and the consumer is not reached, Consumer Protection Offices will
submit it to an arbitration process to obtain a resolution. It is a fast, simple and
free way that avoids having to go to court.
▪ Justice system. It is the last possible option for the consumer to be able to claim
compensation, and can be appealed by civil or criminal means, depending on the

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case. It should be considered as the last resort since this process can involve a
lot of money.
▪ European Consumer Centre. If the claim is processed in a company of the
European Union, we can go to this office to obtain information or assistance. If
the operation has been carried out in another country, it can also be claimed on
www.econsumer.gov.

5.1.2 Advantages of customer service in e-commerce

Although customer service in electronic commerce lacks some strengths in comparison

to face-to-face assistance, there are also advantages that can turn it into an option with
more possibilities than traditional commerce.

First of all, e-commerce can have 24-hour customer service and it does not have any
physical or geographical barriers. This allows answering customers much faster and
procedures are also faster. Customer attention is becoming more personalised, as
storage systems can create specific profiles for each type of consumer and offer the type
of promotion that best suits their needs, creating a very effective feedback.

In addition, many possibilities are offered on the website, such as registration, access to
profile, performing operations, consulting catalogues, comparisons and purchases.

Another of the main problems is still distrust regarding the security offered by the
network when making payments. However, a growing number of users are buying on
the internet thanks to systems that guarantee security, passwords and protection
systems.

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5.2 LOGISTICS

5.2.1 Logistics structures

Logistics is a fundamental part of satisfying customers and them having a positive
experience. Logistics systems have evolved and e-commerce is improving what was one
of its weak points, which is key to understanding the growth of electronic commerce in
recent years.

5.2.2 Distribution

Good management of deliveries and distribution of orders can become a differential

factor for the company and add value to the service. For this, it must be consistent with
the capabilities of the company and the needs of users when setting services, prices and
conditions.

The first thing to consider is that the delivery should be cheap making it one of the
reasons why a large number of buyers back out. It should also be as fast as possible and
meet the deadlines. Otherwise the service will not meet the expectations of the
customer and they may prefer the competition in the future.

A high quality logistics service is essential because it has been proved that a high
percentage of online orders never reach their users due to incidents related to
distribution that result in loss of sales and reputation of the company. That is why the
company must adapt its distribution system according to its business. In other words,
food delivery cannot have the same management as a photography shop or vouchers
for leisure activities.

5.2.3 Problems with distribution

We must always bear in mind that e-commerce is constantly struggling to minimise the
intrinsic distrust associated with it. In addition to the problems inherent to distribution,
there are other problems such as the absence of the customer when the delivery arrives
and product defects or mistakes that result in returns.

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Apart from these problems, companies must also take into account other factors such
as obstacles in customs (as with international sales) that depend on the cataloguing,
weight and characteristics of the product.

Keeping customers informed is key to making them trust the service, so the user should
know the status of the order and the estimated delivery time based on their
geographical situation.

5.2.4 Order tracking

A growing number of companies are working with delivery companies that provide
tracking reports linked to a locator. This way, the customer can always know the status
of their order. They can confirm the address and the number of pending packages, as
well as the status at all times, the time it leaves the warehouse, the delivery process and
finally the delivery.

There are different companies specialising in logistics that ensure quality service for our
company and at increasingly competitive prices for both the seller and the customer.
Unless it is a local distribution company, working with these companies will be of great
importance in coordinating sales and processing orders rapidly and efficiently.

All these possibilities have improved distribution and have made online sales a much
safer and more reliable channel, open 24 hours a day and 365 days a year.

5.3 PAYMENT SYSTEMS

5.3.1 Online and offline methods

The current forms of payment can be classified into two categories:

! Online methods: The payment is made at the time of purchase on the internet.
The most used online modalities are the Virtual POS or PayPal.
! Offline methods: The payment is not made at the time of purchase, but later. It
is a slower but safer way for the buyer since they pay once they have received

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and checked their order. The most popular offline payment methods are cash on
delivery, bank transfer and direct debit.

5.3.2 Virtual Point of Sale

In most physical stores payments can be made by card through a payment terminal
connected to their bank. On the internet, card payment is also the most common
method when making online transactions.

The Virtual Point of Sale Terminal (POS) is virtual payment by card. It allows encrypted
data to be transferred so that the seller cannot access them. The operation is identical
to a traditional POS, but instead of entering the information in a payment terminal, we
enter it in software that works as an intermediary between the online store and the
bank.

The purchase process works like this:

▪ The customer contacts the virtual POS and enters the data to place their order.
▪ The virtual POS requests the card type, number and expiration date.
▪ There is an exchange of information between the virtual POS and the bank of the
customer.
▪ Once inside the bank, the customer identifies themselves with some method or
password agreed with their bank for online shopping.
▪ The virtual POS requests the authorisation to proceed and the purchase is made.

It is a convenient and simple system for the buyer. As can be seen, the whole last part
of the process is done through the bank, so there is a guarantee of a safer environment.

In order to install a payment gateway in our virtual store, we need to contact our bank
to provide us with the codes and software required to enable these services.

A direct payment by card can also be made and there is no need for a payment gateway
in this case. The process is similar to the previous one, but in this case all the process is
done through the online store, which gets in touch with the bank. Once the transaction

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is accepted, it is the merchant who tells us that the transaction has been accepted and
the sale is completed. It is an appropriate method when the customer knows the seller
and the physical store, which already has its data.

5.3.3 PayPal

PayPal is a system that enables you to pay, send money and accept payments.

When an account is set up, a bankcard is registered. It works as if it were an internet

account in which we can deposit money through the associated card.

It is an online payment system made popular by eBay

that has been widely used in recent years. To purchase
a product, it is only necessary to enter the PayPal username and password to authorise
the payment, which means that the seller does not have access to the card's data.

The speed of payments, the convenience of not having to enter data and the security of
not sharing financial data have lead PayPal to have over 100 million accounts. This
system is continuously growing and it is free for users, as it only charges a small
percentage to the selling company. Its ease of implementation in the electronic business
compared to a virtual POS has made it the best method for small merchants.

5.3.4 Cash on delivery

Cash on delivery (COD) consists of paying for the product once received. This payment
is made directly to the person who delivers the product and usually involves a surcharge
for shipping costs.

It is a good option for customers who do not trust electronic payment systems, as it does
not entail any risk for the buyer, who can check their order physically and pay in cash.

However, it is not a very comfortable method for the seller since they have to increase
the price due to the shipping fees. They also have to deliver the product without having
charged anything, which increases the likelihood of unsuccessful orders.

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5.3.5 Bank transfer

For this type of payment, the customer makes a bank transfer to an account given by
the seller to place their order. It is a very safe way to complete the economic transaction,
even though it slows down the purchase process, as the product is not shipped until the
transfer is completed. This loses the essence of speed and the immediacy of other
payment methods. In addition, banks can charge recurring fees on these types of
transfers.

There is also the direct debit method, in which it is the customer who provides an
account number to the selling company so that they can charge an amount with a
certain periodicity.

5.3.6 Mobile payment

This type of payment is divided into several modalities, such as transferring money
between users, buying in online stores or using the mobile phone to pay in the physical
store.

There are several applications designed as virtual wallets whose purpose is to store the
personal and banking data of the user in order to make fast transactions and have all
available options in one click. Google Wallet or Apple Pay are some examples.

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6. SECURITY SYSTEMS AND LEGAL ASPECTS

As we have previously mentioned, one of the great obstacles when shopping online is
security. There is no impassable system since there will always be a small shadow of a
doubt in online business as well as in physical businesses. But that should not be an
excuse to reject all the developments that new technologies offer.

Firstly, customers must understand that security systems and measures are becoming
increasingly efficient. To ensure user safety, security protocols (or cryptographic
protocols) are implemented, which consist of common rules to establish secure
communication on the internet.

These protocols describe how the different data structures should be used and
contribute to the smooth functioning of data transport. In addition to these protocols,
there are rules and legal aspects to protect the data of users so that their personal
information is protected and cannot be accessed by anyone.

This chapter will discuss security systems in order to gain the confidence of consumers,
as well as legal aspects that must be taken into account when working with the personal
data of third parties.

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6.1 TLS PROTOCOL

One of the most widely-used security protocols is Transport Layer Security (TLS). It is a
cryptographic protocol that provides communications security over a computer
network. The predecessor to TLS was Secure Sockets Layer (SSL).

The TLS protocol only identifies the server which is why the customer remains
unidentified. These systems allow entering personal information in different websites
safely, and can prevent eavesdropping or identity-related crimes.

It is the most widely deployed system in online stores, banks and any business that
involves passwords and personal data. However, we must bear in mind that not all
websites use this system so we must be very careful with our personal information and
our passwords:

“Passwords are like underwear. You shouldn’t leave them out where people can see
them, you should change them regularly and you shouldn’t loan them out to
strangers”.

6.1.1 Concepts and operation

Before delving into how TLS works, we should first review some concepts that will help
us understand this security system:

▪ Encryption: the process of encoding information in such a way that only certain
users can access it. For technical reasons, an encryption scheme usually uses an
encryption key generated by an algorithm. The message can only be decrypted
with the key.
▪ Digital signature: like an electronic “fingerprints.” In the form of a coded
message, the digital signature securely associates a signer with a document in a
recorded transaction. Digital signatures use a standard, accepted format, called
Public Key Infrastructure (PKI), to provide the highest levels of security.

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▪ Certificate Authority (CA): a trusted entity that issues electronic documents that
verify a digital entity's identity on the internet.
▪ HTTPS: results of combining the HTTP protocol and the TLS (or SSL) to
communicate encrypted messages on websites.
▪ TLS digital certificate: consists of a document that certifies the link between an
entity and its code. It includes the user's personal data and the information about
the key such as the serial number, its certifying authority, validity period, digital
signature, etc.

Secure communication starts in the first phase of the protocol. The customer and the
server negotiate the cryptographic algorithms with which the data will be encrypted and
authenticated. All the data about the protocol they support and the parameters
required for the connection are sent.

In the following phase, the two parties exchange the keys, authenticate themselves by
means of digital certificates, and exchange the necessary codes to carry out the
information traffic. The integrity of the certificate, its validity and the issuer are verified.

Finally, server and browser can initiate encrypted communication.

The TLS protocol has several stages of data exchange:

1. First, the browser asks the web server to be identified.

2. The server shows a copy of its TLS (or SSL) certificate to prove its identity.
3. In order to establish reliable communication, the browser verifies the certificate
and, if it is correct, sends a message to the server.
4. The server returns the digitally signed confirmation and the session is started
with TLS encryption.
5. Process validation: the browser and the server exchange data securely through
encrypted communication.

To access a website, it is advisable to use the HTTPS protocol, often represented with a
padlock in the address bar. If the TLS protocol fulfils its function, we can access the site.
Otherwise, if there is an error, a warning message will appear.

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The TLS protocol is the safest way to navigate and offers a guarantee of trust of the
website for several reasons:

▪ It allows establishing a secure connection thanks to the encryption of

confidential data in online transactions.
▪ The TLS certificate is a unique credential that indicates who is the sole owner of
the certificate.
▪ It allows two different applications to exchange codes without needing to know
the codes of each other. In addition, it is not a limited protocol since it allows
incorporating new cryptographic algorithms.
▪ It has a certificate of identity of the owner of the certificate before issuing it.

The protocol is divided into two levels:

▪ Record Protocol: It is the lowest level protocol and it provides a reliable and
private connection through symmetric encryption algorithms. For each
connection, a key is created based on the mutually agreed protocol.

▪ Handshake Protocol: Allows both the server and the customer to authenticate
and agree on an algorithm for encryption before data exchange. It is a secure
connection since the identity is verified using a public key. Negotiation is safe
and reliable, and cannot be modified without being detected.

6.1.2 Applications

The main application of the TLS protocol is to create secure versions of software that
use low reliability protocols. There are secure versions for different servers and
protocols such as HTTP, SMTP, POP3, NNTP, LDAP, etc., which can offer security to any
protocol that uses trusted connections such as TCP.

There are widely used applications of the TLS protocol such as the Openssl Library, (with
General Public License, GNU) that has both SSL and TLS versions and many cryptographic
algorithms (www.openssl.org).

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6.1.3 Advantages

In summary, we can say that the TLS protocol constitutes a significant step forward in
security guarantees, which are essential for e-commerce. It is highly valuable as it has
achieved encrypted communication between the server and the customer thanks to
encrypted algorithms. It is also an improvement on the previous protocol (SSL) that had
a weaker encryption system.

However, we must be aware that there is no absolute security in the network. Despite
this, this system has allowed a higher degree of reliability and confidentiality in
transactions and exchanges of private data, which means that customers trust the
company and e-commerce and are not afraid to purchase online.

6.2 SECURE ELECTRONIC TRANSACTION PROTOCOL (SET)

The SET protocol is a communications system designed to ensure the security of credit
card payments on the internet. SET blocks out the details of credit card information,
thus preventing merchants, hackers and electronic thieves from accessing this
information. It was supported initially by Mastercard, Visa, Microsoft, Netscape, and
others.

6.2.1 Operation

In order to use this system, the company needs to have a certified digital certificate. The
user must also have another certificate issued by the company of their credit card, which
includes the digital signature of the company (Visa, Mastercard, etc.) and the expiration
date.

The SET protocol consists of the following steps:

▪ The company and the customer carry out the process of identification and
verification through digital certificates.

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▪ The buyer and their bank close the transaction. In this process, the merchant
does not have access to the data of the user's card, which guarantees the
confidentiality of personal and banking information.
▪ The process is complete and the information is transferred in an encrypted form.

It is a very interesting protocol because of its authentication system because it helps to

avoid illegal activities, fraudulent use of cards or web forgery. Digital certificates mean
that companies and users can authenticate each other for greater security.

When carrying out the SET transaction, the process follows these steps:

▪ Before the order has been completed, the user receives the digital signature of
the online store and checks its validity.
▪ The user sends the company the details of the order, the date, the price of the
item or service, the encrypted payment order in such way that only the bank can
access this information, and the relationship between that order and its
payment.
▪ The company receives the order and authenticates its validity with the digital
signature and sends its payment order to the bank.
▪ Finally, the bank authorises the order and sends a confirmation for the company
and another for the user.

6.2.2 Security

The SET protocol has many advantages in terms of security. As we have already
mentioned, one of its strengths is that the merchant cannot access the credit card
information since users identify themselves with a digital certificate issued by their bank.

It also guarantees that the data cannot be manipulated during the transaction since they
are encrypted and protected by the digital signature.

Finally, we must highlight the security offered by its ability to authenticate, both the
customer as the true holder of a credit card, and the company as an authorised entity
to charge that card.

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6.2.3 Disadvantages

Currently, the SET protocol is one of the most frequent means of payment in e-
commerce since it is an improvement over older protocols such as SSL. However, there
are still ISPs that cannot work with this system.

This forces companies to combine the SSL protocol with the SET protocol, which results
in a more complex structure. Besides, in the SET system, transactions are slower and
involve an additional cost for the company because they must pay for the digital
certificate.

6.3 CODING SYSTEMS

In its efforts to find private and confidential information traffic, 21st century computing
has developed cryptographic systems based on mathematical codes that transform
information so that only authorised persons can access it.

A cryptographic system must fulfil the following characteristics to be safe:

▪ Privacy: codes used must grant access only to authorised personnel.

▪ Authentication: identities of both parties must be verified within
communication.
▪ Integrity: full content of the message must be guaranteed.
▪ Link: information can be directly linked to a specific person or system. This action
means that the person understands and accepts this connection.

The encrypted data travelling across the network are encoded in a binary system
through mathematical operations that make them indecipherable. To access this
information, it is necessary to use the keys that authorised personnel have and to apply
the same algorithm that decrypts the message. These data include a digital date that
can work as a legal guarantee if necessary.

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6.4 SYMMETRIC AND ASYMMETRIC ENCRYPTION

Symmetric encryption, also known as private-key encryption and secure-key

encryption, is a form of computerised cryptography using a singular encryption key to
disguise an electronic message. Its data conversion uses a mathematical algorithm along
with a secret key, which results in the inability to make sense out of a message.

As a key is needed, in case a supposed attacker knew the algorithm, they would not be
able to do anything since they need the key. The problem arises when it comes to
sending this key to new customers securely since it could be intercepted in that process.
It would also be necessary to create a secret key for each of the users who buy online.
So despite the security it provides, the symmetric system is not widely used when there
is a large number of customers.

Asymmetrical encryption (or key cryptography) is a relatively new method compared to

symmetric encryption. Asymmetric encryption uses two keys to encrypt a message: a
public key is made freely available to anyone who might want to send you a message
and the second private key is kept a secret so that only you can know. Secret keys are
exchanged over the internet or a large network. It ensures that malicious persons do not
misuse the keys. It is important to note that anyone with a secret key can decrypt the
message and this is why asymmetrical encryption uses two related keys to boost
security.

The process would be the following:

▪ The sender creates a message and encrypts it with the receiver's public key.
▪ The encrypted message is sent over the network.
▪ The receiver decrypts the message with its private key and has access to the
original information.

This system has become the most frequent on the internet as it guarantees the
authenticity of the members and the integrity of the message. In addition, it is perfect
for e-commerce because it solves the key exchange problems of the symmetric systems.

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Participants do not need to agree on the key to use, the sender just needs to have a
copy of the public key of the receiver.

One of the disadvantages of the asymmetric key is that it needs more resources to work
and it is slower, which is why there is also hybrid cryptography combining the speed of
the symmetric algorithm with the security of the key exchange provided by the
asymmetric system.

6.5 DIGITAL SIGNATURE AND CERTIFICATES

The digital or electronic signature identifies the signer as the sender of a message and
validates its content. For this, it uses an asymmetric coding system in which the issuer
uses its private key to encode the message and is linked to the message.

To decode the message, the receiver uses the public key of the author and manages to
verify their authenticity by verifying that the sender is who they claim to be and
confirming that the information has not been altered. It is a good measure to avoid
falsifications and manipulation of information. In addition, these digital signatures are
valid for legal purposes and are subject to legal considerations.

Digital or electronic certificates are files created by certification service entities in which
the following data are associated:

▪ Authority signing the certificate

▪ Personal data of the sender
▪ Period of validity
▪ Certificate number
▪ Public key of the owner
▪ Electronic signature of the authority signing the certificate

The certification services entities are responsible for validating the information
presented by the applicants and creating the certificates. Economic guarantees and civil
liability insurance are also required for these entities. These certificates represent an

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important tool in terms of building trust as they guarantee the authorship of the
message.

6.6 E-COMMERCE SECURITY MEASURES AND THREATS

We have previously discussed security protocols to avoid network infractions that could
affect the privacy of transactions over the internet. However, there are other threats
that can affect the proper functioning of both online businesses and individuals.

Computer viruses can alter our computers and destroy or modify the stored data. To
avoid them, we should be careful when downloading files, when using external hard
disks and we should also have a good antivirus programme.

Antivirus programmes are designed to detect and combat these computer threats. They
must always be alert to be able to act before the virus runs and be constantly updated
since there are new malicious programmes every day.

It is also advisable to have an antivirus that can make quick revisions and not interfere
in the activities of the computer. Another useful protection measure is Firewall, which
filters the information according to the instructions given when it was set up. It screens
potentially harmful information, but its work is simply filtering and not specifically
detecting virus attacks.

E-commerce threats

Despite the increasing number of user protection measures, there are still some threats
that can expose and endanger our equipment and our personal and banking data. Some
of these threats and how to avoid them will be addressed below.

▪ Phishing. Phishing is a form of fraud in which an attacker masquerades as a

reputable entity or person in electronic communication channels trying to obtain
sensitive information such as usernames, passwords, and credit card details (and
money), often for malicious reasons.

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▪ Malware. A portmanteau for malicious software, malware refers to software

designed to cause damage to a computer, server or computer network. Common
examples of malware include viruses, worms, Trojan horses, and spyware.
Viruses, for example, can cause havoc on a computer's hard drive by deleting
files or directory information. Spyware can gather data from a user's system
without the user knowing it. This can include anything from the Web pages a
user visits to personal information, such as credit card numbers.
▪ Scam. A criminal action that involves electronic commerce. Fraudulent profiles
are commonly used to market non-existent products and deceive the user thanks
to the reputation of the original seller. Emails with prizes or non-existent
donations can also be considered scam.
▪ Other practices. Unfortunately, there are many types of scams on the internet.
Carding and skimming copy the magnetic stripes of credit cards to access
personal and banking information. Crimeware is a special type of malware used
to commit financial crimes. These programs are meant to automate the theft of
information, allowing the thief to gain access to a person’s financial accounts
online. Clickjacking is a malicious technique of tricking a web user into clicking
on something different from what the user perceives they are clicking on, thus
potentially revealing confidential information or taking control of their computer
while clicking on seemingly innocuous web pages. Malvertising is the use of
online advertising to spread malware. It typically involves injecting malicious or
malware-laden advertisements into legitimate online advertising networks and
websites

Below are some recommendations to prevent these threats:

▪ Install one or more antivirus programmes to detect malicious software and codes
that can steal information from our computer.
▪ Avoid clicking on suspicious links, emails in other languages or unknown rewards
or websites.
▪ Verify the domain and the HTTPS protocol to avoid entering information in fake
websites.

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▪ Use strong and alphanumeric passwords.

▪ Avoid suspicious forms that may request more information than necessary.
▪ In case of doubt, contact the supplier to validate any information.

6.7 LEGAL ASPECTS OF E-COMMERCE

For an online business to succeed, it is also necessary to know the rules or the legal
structures and legal considerations that protect electronic commerce.

The growth of new technologies and e-commerce has forced authorities to remain firm
to avoid the threats of a constantly changing business and be consistent with the laws
established in each country.

Therefore, we need to know the legal aspects of e-commerce to avoid unpleasant

surprises for our company and our customers.

6.7.1 Data protection in the EU

Fundamental rights

The EU Charter of Fundamental Rights stipulates that EU citizens have the right to
protection of their personal data in all aspects of life: at home, at work, whilst shopping,
when receiving medical treatment, at a police station or on the internet. This right is
enshrined in article 8 of the Charter of Fundamental Rights, which establishes that:

1. Everyone has the right to the protection of his/her personal data.

2. Such data must be processed fairly for specified purposes and on the basis of the
consent of the person concerned or some other legitimate basis laid down by law.
Everyone has the right of access to data which has been collected concerning him or
her, and the right to have it rectified.
3. Compliance with these rules shall be subject to control by an independent
authority.

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EU-level data protection bodies

The regulation on the protection of individuals with regard to the processing of personal
data by EU institutions established a European data protection supervisor (EDPS). The
EDPS is an independent EU body responsible for monitoring the application of data
protection rules within European Institutions and for investigating complaints.
The European Commission has appointed a data protection officer who is responsible
for monitoring and the application of data protection rules in European institutions. The
data protection officer independently ensures the internal application of data
protection rules in cooperation with the European data protection supervisor.

Law

The European Commission put forward its EU Data Protection Reform in January 2012
to prepare Europe for the digital age.

This regulation aims to strengthen citizens' fundamental rights in the digital age and
facilitate business by simplifying rules for companies in the digital single market.

Technological progress and globalisation have profoundly changed the way data is
collected, accessed and used. In addition, the 27 EU Member States have implemented
the 1995 rules differently, resulting in divergence in enforcement. A law was created to
do away with fragmentation and costly administrative burdens, leading to savings for
businesses of around €2.3 billion a year. The initiative helps reinforce consumer
confidence in online services, providing a much needed boost to growth, jobs and
innovation in Europe.

In 2015, the European Parliament, the Council and the Commission reached agreement
on the new data protection rules, establishing a modern data protection framework
across the EU. The European Parliament's Civil Liberties committee and the Permanent
Representatives Committee (Coreper) of the Council then approved the agreements
with very large majorities. The agreements were also welcomed by the European
Council of 17-18 December as a major step forward in the implementation of the Digital

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single market strategy, which aims to allow better access for consumers and business
to online goods and services across Europe.

Key changes include:

• A single set of rules on data protection, valid across the EU. Unnecessary
administrative requirements, such as notification requirements for companies,
will be removed.
• Instead of the current obligation of all companies to notify all data protection
activities to data protection supervisors – a requirement that has led to
unnecessary paperwork and costs businesses €130 million per year, the
Regulation provides for increased responsibility and accountability for those
processing personal data.
• Companies and organisations must notify the national supervisory authority of
serious data breaches as soon as possible (if feasible within 24 hours).
• Organisations will only have to deal with a single national data protection
authority in the EU country where they have their main establishment. Likewise,
people can refer to the data protection authority in their country, even when
their data is processed by a company based outside the EU. Wherever consent
is required for data to be processed, it is clarified that it has to be given explicitly,
rather than assumed.
• People will have easier access to their own data and be able to transfer personal
data from one service provider to another more easily (right to data portability).
This will improve competition among services.
• A ‘right to be forgotten’ will help people better manage data protection risks
online: people will be able to delete their data if there are no legitimate grounds
for retaining it.
• EU rules must apply if personal data is handled abroad by companies that are
active in the EU market and offer their services to EU citizens.
• Independent national data protection authorities will be strengthened so they
can better enforce the EU rules at home. They will be empowered to fine

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companies that violate EU data protection rules. This can lead to penalties of up
to €1 million or up to 2% of the global annual turnover of a company.
• A new Directive will apply general data protection principles and rules for police
and judicial cooperation in criminal matters. The rules will apply to both
domestic and cross-border transfers of data.

The e-commerce Directive 2000/31/EC also created the basic legal framework for
online services, including electronic commerce. Its purpose is to remove obstacles to
cross-border online services in the European Union and provide legal certainty to
businesses and citizens in cross-border online transactions.

The Directive establishes rules on issues such as the transparency and information
requirements for online service providers, commercial communications, electronic
contracts and limitations of liability of intermediary service providers. It also enhances
administrative cooperation between the Member States and the role of self-regulation.
A link to the whole Directive can be found in the annexes for further information.

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7. PRESENT AND FUTURE OF E-COMMERCE

As seen in the first chapter, e-commerce is becoming more popular year after year, both
with companies and customers, who feel increasingly safer with this type of purchase.

Regarding this evolution of electronic commerce, the following elements in relation to

its current situation can be highlighted:

▪ The number of visits and online purchases has greatly increased by small-scale
consumers who buy gifts, articles or services.
▪ The big companies that have managed to adapt to electronic commerce have
greater success in their fields, from banking to department stores.
▪ There is a growing trend for businesses to be only internet-based.
▪ The number of internet users is over 2,300 million, one third of the world's
population approximately, and electronic commerce is the most direct way to
reach international markets.

7.1 FUNDAMENTALS OF E-COMMERCE

To understand the growth of e-commerce, it is necessary to review the main virtues that
we have analysed throughout the course and that Vee24 Marketing Consultancy
considers fundamental for the success of this type of commerce:

▪ Usability. One of the main problems when it comes to web browsing is pages
with tedious information and unstructured designs that can result in a negative
experience for the user. Sometimes "less is more" and a simple presentation,
without unnecessary menus and a clear and attractive image with summarised
information can retain users and improve their experience.
▪ Speed. As mentioned, patience is not usually the greatest virtue of online users.
This is why a quick service should be provided, both when loading the content of

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the website, in the purchasing process, and when answering their questions in
customer service.
▪ Personalisation. The biggest challenge of e-commerce is still the search for the
physical store experience. To overcome this barrier, all efforts must be made to
assist customers in the most human and personal way possible and to use online
resources to meet their demands.
▪ Customer service. One of the keys for customers to choose one service or
another, and so that they purchase again in the same company and strengthen
their online loyalty. Meeting the customer's expectations and showing
personalised attention must be considered the pillars of online commerce.
▪ Transparency. Users do not like surprises. They do not like when the conditions
of a payment are changed or transferring money to an anonymous entity whose
reputation is unknown. Therefore it is important to be transparent and have
clear information about the company and about the steps to follow when placing
an order.

7.2 NEW TIMES, NEW CHALLENGES

The aspects that have consolidated e-commerce for years have previously been
discussed and now it is time to see what the new trends and the new challenges are to
evolve towards new electronic commerce. Large companies work hard to anticipate
these new guidelines and stay ahead of the competition.

▪ M-commerce. Mobile commerce is undoubtedly one of the environments that

has grown the most in recent years. Mobile sales are estimated to surpass the
rest of the devices, so any company that decides to move to the online market
should take into account m-commerce. For good multi-channel integration, an
online store needs to be adapted to any type of screen and device.
▪ Personalisation. Personalisation has been considered one of the most important
factors for the development of e-commerce so far, but it should further evolve
to become a new showcase for each user based on their tastes and preferences.

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The new technological systems in data management must store all possible
information about users and use it to optimise and personalise their purchase
and browsing experience.
▪ Offline sales and showroom. E-commerce is changing purchasing dynamics, but
it does not seem that this will result in the closing of physical stores. Many
traditional stores will end up working as Showrooms, product exhibition centres
to test or experience the product and then buying the article online. However,
conversely, some users navigate to get information and comparisons of the
product but they buy it in person (offline sales). In short, physical stores are part
of the strategic plan.
▪ Social Commerce. An e-commerce channel that uses social media as a
collaborative tool to sell. A growing number of people share information on
Facebook or Twitter at breakneck speed. Companies need to have a strong
presence on them, not only to promote themselves but also to identify problems
or complaints and prevent "word of mouth”, which can harm the brand. Social
media also leaves aside catalogue photos to offer more attractive videos and
demonstrations.
▪ Web Positioning. Search engine optimisation (SEO) is one of the most direct
ways to reach customers when they are looking for a product. That is why
companies must improve their positioning and content that places its offer
among the top positions of Google results.
▪ Remarketing. A technique that seeks that the customer who has searched for a
product receives specific advertising from that same brand on the different sites
they navigate.

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7.3 VISIONARIES

Given the new trends applied in electronic commerce that are the new guidelines, we
may be wondering what will happen next.

Although it is very difficult to make accurate predictions, there are many visionary
experts who have ventured to foresee what the future of a business as variable and
unpredictable as e-commerce could be.

▪ Patrick Curtis (www.wallstreetoasis.com) thinks that e-commerce will allow

everything to be ordered. He hopes that it will not be necessary to leave the
comfort of home to get any item as everything will be sold online.
▪ According to Liam Martin (www.staff.com) the key in the field of fashion will be
to customise clothing plans: specific looks for each person based on their data,
trends and sizes.
▪ Kelly Azevedo (She's Got Systems) talks about the future of virtual sizes.
Technology will allow you to digitally see how your body adapts to one size or
another and will avoid numerous returns for problems with size, design or style.
▪ Bhavin Parik (Magoosh Test Prep) believes product designs will be customised.
Customers will be able to create their own designs based on templates where
different characteristics can be combined.

▪ Mitch Gordon (Go Overseas) predicts 3D printing for clothes. Customers will be
able to use these techniques to print clothes according to their size.
▪ Chuck Cohn (Varsity Tutors) thinks there may be human agents for online
purchases. This process will help stores in their transition to online and will build
confidence in people who need help and advice to purchase.

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7.4 CONCLUSION

It has been many years since the beginning of electronic commerce, when selling on the
internet and uploading your banking information to the network seemed crazy. Since
then, advances in technology and security have made this type of business increase its
figures every year.

Fashion, electronics, travel and downloads will continue to play an important role in
electronic commerce, even though other segments such as food can become
increasingly important. The future of commerce and business is online and it depends
on increasing the budget for e-commerce and online marketing. Only then will we be
able to face or stay ahead of potential competitors and consolidate our position in a
market sector.

7.5 REVIEW

Here is a brief review for some of the concepts that have been discussed throughout the
manual:

▪ E-commerce is the process of buying, selling or exchanging goods, services and

information through communication networks: the internet, cable or interactive
TV.
▪ The advantages of e-commerce are its 24-hour continuous activity, access to an
open and global market, the opportunity to get cheaper prices, user feedback
and loyalty, personalised service offers, convenience of purchase, options
provided by comparators, its greater capacity for growth and online support.
▪ Its disadvantages are the lack of face-to-face contact in the purchases, the
insecurity of the users, claims and incidents in the distribution, the connection
problems and the economic investment needed.
▪ ISPs are companies that provide an internet connection through different
technologies and can create websites, emails, payment systems or shopping
carts.

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▪ The value chain is the theoretical model that describes the development of all
the actions and activities of a company that increase the value of a product.
▪ The B2B model (Business to Business) deals with the interaction between
companies, while in B2C (Business to Customer) companies interact with final
consumers.
▪ To create a virtual store it is necessary to create a website, set up the visual
format and the catalogue, establish the payment systems and the shipping
method, and add extras such as search engines, shopping carts, order tracking,
discounts and promotions.
▪ Advertising must look for the differential factor of the company and the
personalisation of the product. Companies must understand the profile of
buyers and adapt to the market. For this, they must take into account usability
and ease of navigation, the confidence that the company generates, marketing
management and customer service.
▪ Marketing is the set of activities designed to increase trade and demand, while
achieving consumer satisfaction through their product or service.
▪ A good e-marketing strategy should consist of the following steps: market study,
strategy planning, market segmentation, positioning and consolidation.
▪ Customer service in e-commerce is available 24 hours a day and it does not have
physical or geographical barriers, the attention is becoming increasingly
personalised and storage systems allow creating specific profiles for each
consumer and offer the type of promotion that best fits their needs, thus
creating a very effective feedback.
▪ Good management of delivery and distribution of orders can be a differential
factor for the company and add value to the service. It must be consistent with
the capabilities of the company and the needs of users when setting services,
prices and conditions.
▪ The TLS Protocol allows a secure connection over the network through an
encrypted channel that guarantees the transport of private and secure
information.

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▪ The SET Protocol is a communication system designed to safely carry out

commercial transactions with a credit card over the internet.
▪ Symmetric cryptography uses the same secret key to encrypt and decrypt the
information shared by the sender and receiver.
▪ Asymmetric cryptography uses two keys, a public key known by both parties and
a private key only accessible to the receiver.

7.6 FINAL RECOMMENDATIONS

In this manual, we have been able to review all the concepts and tools that help us
understand what e-commerce is and how to manage it successfully.

But before we finish, we should put aside the purely technical aspects and conclude with
some tips based on the experience in e-commerce that companies should take into
account when venturing into the online market:

IT IS NOT THAT FAST. It is true that the internet moves very fast, but that does not mean
that benefits will suddenly appear. It takes time to start getting benefits from electronic
commerce and a good strategy that guarantees a mid-term return on investment should
be developed.

IT IS NOT THAT CHEAP. E-commerce requires investment, strategy, experts, designers,

marketing, etc. Some executives think that the investment needed to build the online
channel as a business is very low, but the truth is that apart from technology, a good
sum is required to run an online company.

IT IS NOT THAT EASY. An online business requires time and knowledge. This manual lays
the foundations of e-commerce, but this business is continuously updating, which
means that we should be alert to changes to not fall behind: new systems, new
platforms, new features, etc. Luckily, information also moves very quickly and formulas
to be updated can be easily found in forums, media, blogs, articles, etc.

DO NOT FORGET ANY AREA. E-commerce cannot be considered an "extra" apart from
the rest of the company. It affects the entire organisation.

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NOT EVERYONE CAN WORK ON IT. The new members of the staff of a company must
understand the online market and be clear about the objectives of the online business.
The rest of the workers must think about the online channel as an incentive for the
company and not as a threat to their position.

After dealing with these “NO", we want to finish with the big “YES” of hundreds of
entrepreneurs who have joined the internet and the e-commerce challenge. They have
made great profits in a sector that grows more than 20% every year, which makes it
clear that there is still a long way to go.

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9. ANNEXES
Finally, to conclude on e-commerce, this section includes some practical examples of
the concepts discussed throughout the manual. There are also some articles to deepen
the current situation of e-commerce and the expected trends.

9.1 DIGITAL CONSUMPTION HABITS AND TRENDS

Below are some links to researches on online consumption behaviours.

McGrath, Felim. Globalwebindex. Digital consumption habits and trends.

http://www.fande.es/documental/2017/Ficheros/Digital_Consumption_Habits_Trends
_F_McGrath_GWI.pdf

BBVA Research. E-commerce and consumption habits in Spain: the importance of online
banking.

https://www.bbvaresearch.com/en/publicaciones/e-commerce-and-consumption-
habits-in-spain-the-importance-of-online-banking/

Digital Content Next. Five things you need to know about millennial media habits.

https://digitalcontentnext.org/blog/2017/09/22/five-things-need-know-millennial-
media-habits/

9.2 HOW TO BUILD AN ONLINE SHOP. SHOPIFY

The following link includes a step-by-step guide on how to build your own online shop
with Shopify.

Article from https://websitesetup.org

Mening, Robert. Beginner’s guide to the Shopify Store.

URL: https://websitesetup.org/build-online-store-shopify/

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In addition to this information, the following video is also helpful to understand how to
create an online shop with Shopify.

Shopify Tutorial For Beginners - Create An Online Shopify Store 2018

URL: https://www.youtube.com/watch?v=E58ZVwOhj6c

9.3 THE ELECTRONIC COMMERCE DIRECTIVE

EUR-Lex. Access to European Union law. Directive 2000/31/EC of the

European Parliament and of the Council of 8 June 2000 on certain legal
aspects of information society services, in particular electronic commerce, in
the Internal Market ('Directive on electronic commerce')
https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32000L0031

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8. BIBLIOGRAPHY

8.1 BOOKS

Awad, Elias M. Manual fundamental de comercio electrónico. Madrid: Anaya

multimedia, 2007.

Berrocal, Eduardo et. al. Libro blanco del comercio electrónico. Barcelona: AECEM, 2012.

Gámez Gámez, Arturo. El comercio electrónico internacional: las webs que consiguen
exportar. Alcalá: Formación Alcalá, 2011.

González López, Óscar Rodrigo. Comercio electrónico 2.0. Madrid: Anaya, 2014.

Noblejas, Daniel. 6 consejos para tener un eCommerce rentable. Incrementa.

Puentes Calvo, Juan Francisco. Principios de seguridad en el comercio electrónico.

Madrid: Ra-Ma, 2008.

S. Fonseca, Alexandre. Fundamentos del eCommerce. Autoedición.

Villar Varela, Ana Mª. Comercio electrónico: conceptos, recursos y estrategias. Vigo:
Ideaspropias, 2005.

8.2 WEBS

Información eCommerce. Sobre las diferencias entre el comercio tradicional y el

comercio electrónico.
http://informacionecomerce.blogspot.com.es/2013/04/comercio-tradicional-vs-
comercio.html

Comercio electrónico versus comercio tradicional. http://e-

commercevscomerciotradicional.blogspot.com.es/

Kanilli y DA Retail. Estudio sobre la evolución y las perspectivas del eCommerce para
2016. http://www.acotex.org/wp-
content/uploads/2016_evolucion_y_perspectivas_de_ecommerce_para_2016.pdf

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Pablo Renaud. 2016. Sobre los datos de eCommerce en España.

https://www.renaud.es/categoria/blog/actualidad-ecommerce/

Beatriz Díaz. 2016. Sobre las tendencias del eCommerce para 2017.
http://www.puromarketing.com/76/27876/commerce-tendencias-para.html

Swhosting. 2016. Sobre las amenazas del eCommerce.

http://www.swhosting.com/blog/seguridad-ecommerce-los-4-ataques-mas-comunes/

Marketing 4 eCommerce. 2015. Sobre las amenazas del eCommerce.

http://marketing4ecommerce.mx/revelan-principales-amenazas-en-seguridad-para-
2016/

IAB. 2016 Sobre la situación actual del eCommerce. http://www.iabspain.net/wp-

content/uploads/downloads/2016/06/Estudio-eCommerce-IAB-2016_VPública1.pdf

Jaime Mesa. Creación de una tienda online en shopify.

http://www.jaimemesa.com/como-crear-paso-paso-tu-tienda-online-con-shopify/

Introversión. 2016 Sobre los hábitos de consumo online en España. http://v-

introversion.com/habitos-de-consumo-online-en-espana/#

Ana Lemus. 2016. Sobre las nuevas tendencias en hábitos de consumo online.
http://www.ks.com.mx/tendencias-en-habitos-de-consumo-para-este-2017/

Nielsen. 2016. Sobre el eCommerce.

http://www.nielsen.com/mx/es/insights/reports/2016/Estudio-Global-Comercio-
Conectado.html

Nielsen. 2016. Sobre el eCommerce.

http://www.nielsen.com/es/es/insights/reports/2016/global-connected-
commerce.html

Rafa Galán. 2016. Sobre empresas dedicadas a los servicios B2B.

http://www.emprendedores.es/casos-de-exito/ejemplos-casos-practicos-empresas-
business-to-business-b2b-en-espana

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Marketing 4 Marketing. Sobre los resultados del estudio de Blueknow sobre las horas y
días que más se compra online. http://marketing4ecommerce.net/lunes-a-las-4-la-
tarde-el-momento-preferido-para-realizar-compras-online/

Susana Villalobos Bretón. Sobre los motivos porqué las empresas retrasan su entrada en
el mercado online. http://estrategias-marketing-online.com/el-internet-y-los-
empresarios-por-que-los-empresarios-no-utilizan-el-internet-como-herramienta-de-
marketing/

Laura Mora. Sobre los sistemas de pago en el eCommerce.

https://www.veinteractive.com/es/blog/7-tipos-pagos-online-ecommerce/
Sophia Digital. Sobe los sistemas de pago en el eCommerce.
http://www.sophiadigital.es/los-sistemas-de-pago-online-pronto-seran-tendencia/

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