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FREE online courses on ECOMMERCE FUNDAMENTALS - Internet based E commerce
- Applications on the Net |
A plethora of E-commerce
applications exist on the Internet right from electronic mail (e-mail) -– the
simplest from of Internet usage allowing instant communication among various
entities on the network, to more sophisticated applications (e.g., EDI
(electronic data interchange), EFT (electronic funds transfer).
Many organizations are looking to the Internet as a future
platform for EDI transactions. There is a visible
cost-benefit for doing EDI (electronic data interchange) using the Internet
instead of a VAN (value added network). On the Internet, per transaction cost is
much lower than that on a VAN.
This allows smaller businesses that previously could not
afford the fees of VANs to start using EDI. It also helps large firms conduct
business electronically with small partners and customers cost effectively
beyond national borders.
However, EDI on the Internet is still in its infancy:
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For one, the Internet lacks the kind of security that EDI users have
come to depend on.
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Second, customer service on the Internet virtually does
not exist. In order to overcome these obstacles, the Internet Engineering Task Force (IETF), the governing
body for Internet standards, has already devised a common method Multipurpose
Internet Mail Extension (MIME) for sending EDI documents over the Internet.
