Question
Elaborate the steps involved in on-line trading.

Answer

  1. Registration: Before online shopping, one has to register with the online vendor by filling-up a registration form. Registration means that you have an ‘account’ with the online vendor. Among various details that need to be filled in is a ‘password’ as the sections relating to your ‘account’, and ‘shopping cart’ are password protected. Otherwise, anyone can login using your name and shop in your name. This can put you in trouble.
  2. Placing an order: You can pick and drop the items in the shopping cart. Shopping cart is an online record of what you have picked up while browsing the online store. Just as in a physical store you can put in and take items out of your cart, likewise, you can do so even while shopping online. After being sure of what you want to buy, you can ‘checkout’ and choose your payment options.
  3. Payment mechanism: Payment for the purchases through online shopping may be done in a number of ways:
  • Cash-on Delivery (CoD): As is clear from the name, payment for the goods ordered online may be made in cash at the time of physical delivery of goods.
  • Cheque: Alternatively, the online vendor may arrange for the pickup of the cheque from the customer’s end. Upon realisation, the delivery of goods may be made.
  • Net-banking Transfer: Modern banks provide to their customers the facility of electronic transfer of funds over the Internet using Immediate Payment Services (IMPS), NEFT and RTGS. In this case, therefore, the buyer may transfer the amount for the agreed price of the transaction to the account of the online vendor who may, then, proceed to arrange for the delivery of goods.
  • Credit or Debit Cards: Popularly referred to as ‘plastic money,’ these cards are the most widely used medium for online transactions. In fact, about 95 percent of online consumer transactions are executed with a credit card. Credit card allows its holder to make purchase on credit. The amount due from the card holder to the online seller is assumed by the card issuing bank, who later transfers the amount involved in the transaction to the credit of the seller.
  • Digital Cash: It is a kind of electronic currency which exists only in cyberspace. It has no real physical properties, but offers the ability to use real currency in an electronic format. For this, the buyer has to deposit cash in bank account which issues equivalent digital cash to the person which can be used for online trading. It is more secure than credit or debit cards.

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