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Issues in E-Commerce

What Cost Items Contributes to e-Commerce Sales Price?

The cost of establishing an e-commerce presence adds to the calculation of the sales price of the goods or services. A large part of these costs is the set-up cost. Some common cost items are discussed below: -

Investment and Operating Costs

Cost of computer, setting up a website, software, and ongoing costs such as line rental, website maintenance, ISP fees and hosting or line fees.

Credit Card Transaction Fees

The credit card companies may charge merchants a set-up fee; they also charge a commission of 3% and 4% of the value of each transaction.

Fees for Ensuring Security and for Encryption

Secure payment facilities needs to be installed.

Alternatively, some large Internet service providers (such as www.verio.com and www.hway.com) and some large cybermalls (e.g., store.yahoo.com) offer full e-commerce packages.

How Seller Ensures that he will be Paid?

On the whole, the degree of certainty that payments will be made depends on the country and the type of business.

Some of the actions that seller can take to ensure that he will be paid are as follows: -

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* Contributed by: -
Pankaj Kumar & Sameer S. Saigaonkar,
Batch of 2006-2008,
National Institute of Industrial Engineering, Mumbai.