Three Stages in online transactions:
Pre-purchase/sale: -It is based upon advertising and information about the product.
Purchase/sale: - It includes price of the product, price negotiation, actual purchase or sale and payment.
Delivery stage: - After completing sale-purchase stage, this is the final stage.
Steps involved in Online transactions: -
1. Registration: -Registration is required for online transactions. The person who wants online transaction needs to register with the online vendor by filling up a registration form. Among various details to be filled in is a 'password' relating to the registered 'account' and 'shopping cart.' For security reasons 'Account' and 'Shopping Cart' are password protected.
2. Placing an order: -The online shopper can pick and drop the things in the shopping cart. The shopping cart maintains the record of what items have been picked up while browsing the online store. After making sure about the items to be purchased, the shopper can choose a payment option.
3. Payments: -Payments can be done in a number of ways like:
a. Cash on delivery (CoD): -After physical delivery of goods, payments for the online goods ordered is made.
b. Cheque: -The Vendor collects the cheque from the customer and after realization of the cheque, the goods are delivered.
c. Net Banking Transfer:
Here, the payment is transferred from the buyer’s account to the seller’s account electronically i.e. through the internet. After the payment is received by the seller, the seller dispatches the goods to the buyer.
d. Credit or Debit Cards:
Here the payment is made through the buyer’s credit/debit card. The buyer has to share the details of his credit / debit card on the payment gateway to make the payment, after the payment is received by the seller, the seller dispatches the goods to the buyer. Credit / Debit cards are also known as ‘plastic money’.
e. Digital Cash: -It is a form of electronic currency that exists only in cyberspace. It has no real physical properties, but offers the ability to use real currency in an electronic format. In all the transactions information plays a very important role. Information is exchanged in both traditional as well as online (internet) business. But as compared to traditional business internet transactions are easier. In traditional business, time is required to travel, to negotiate (to talk), to convince, presence of both the parties for face to face interaction. In this process lot of time wasted. So online transactions are easier and result oriented than traditional business.