Week 1 Task 2

Robert Tarantino
12 July 2012
Info 224

E-commerce is an information system that allows the convenience of purchasing a product without the consumer ever setting foot within that store. This information system very valuable to businesses because it limits the  need for a storefront and the expenses associated with it. The transactions are conducted over the Internet via a web page owned by the company which showcases its various products. An example of such a company is Newegg.com which solely conducts business online. The process of purchasing a product from Newegg begins with the input of information by the consumer. Information such as name, billing and shipping address, e-mail address etc. After the consumer has entered his account information and found a product he or she wishes to purchase they must input their payment information. The order is then processed by a computer program which verifies the payment and sends  feedback to the customer in the form of an electronic receipt via email. Feedback is then sent to an employee for then organizes the order and prepares it to be shipped to the customer. The transaction information is then outputted to a database which is saved just in case of any disputes the customer has with the product.

This information system is valuable to Newegg because it allows them to thrive without leasing a space to open a store. The feedback Newegg receives regarding payment helps protect them from fulfilling fraudulent orders. This information system also helps Newegg market their products because they may send the consumers who sign up weekly or monthly advertisments straight to their e-mail.  If e-commerce did not exist companies like Newegg would never exist and consumers would not get to enjoy their services.