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| | Frequently Asked Questions(FAQ) | | | | |
| | | | Electronic Commerce and the Internet | |
General Questions
- What is electronic commerce?
- How can business benefit from electronic commerce?
- What is the Internet and the World Wide Web?
- How do I get my computer connected to the Internet?
- What is the entry price to get connected to the Internet?
- What is a domain name?
- What is a Registry, a Registrar and a Registrant?
- What is hosting and virtual hosting?
- What is a digital signature?
Answers
General Questions
- What is electronic commerce?
Electronic commerce is any commercial activity, such as the buying and selling of goods and services, conducted over electronic networks (e.g. local phone lines, high-speed digital cable, etc.) that link electronic devices (e.g. fax machines, computers). E-Commerce includes the following activities:
- commercial transactions conducted by Internet, telephone and fax;
- electronic banking and payment systems;
- trade in digitized goods and services;
- electronic purchasing and restocking systems (supply chain management);
- business-to-business exchange of data;
- delivery of goods and/or services purchased (order fulfillment); and customer service.
The "open" structure of the Internet and its affordability has opened up networking to everyone with a computer and Internet access.
Once connected, your business could make buying and selling goods and services easier for your customers.
Your business could stay in touch with your customers, your suppliers, and your employees (in the same office or on the other side of the world) more efficiently.
Your business could also find and pursue opportunities more quickly by connecting your bank accounts, your credit information services, your sources of market information, etc.
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- How can business benefit from electronic commerce?
Electronic commerce can benefit all types of businesses; it is not limited to technology-related products and services. Companies in every field are doing business online. Networking through electronic commerce can be applied to any facet of a company's operations, including marketing and sales, purchasing and logistics, production, design and engineering. The most effective use of electronic commerce is when several of these functions are combined.
- Electronic commerce can help your business:
- Cut costs and transaction times.
- Cut costs and save time by improving internal functions and internal supply chain management -- an Intranet (a private network inside an organization) can minimize the number of physical meetings, facilitate information sharing, increase speed and consistency of information, and be used to coordinate internal company operations, such as product design, production, inventory control, and shipping.
- Streamline external supply chain management -- an Extranet (connecting two or more Intranets) can be used to coordinate and to automate your business operations with outside partners, suppliers, distributors, customers, etc., such as order taking, supply-chain management, logistics, billings, feedback, etc.
- Promote, market and sell around the world and around the clock with a Web site -- Web sites can be designed to inform visitors (existing and potential customers) about your business activities and keep them informed about new products, services, and ongoing developments; to invite customer questions and input; and to solicit market research information from visitors.
- Compete globally with your Web site against companies of all sizes -- without setting up offices in other countries. However, it is important to remember that when you move into a foreign market, whether you use E-Commerce or more traditional methods, you must be careful to comply with all applicable export and import requirements.
- Reduce the costs and increase the speed of customer support, customer communication, and relationship management -- using E-mail or online collaboration, instead of telephone, mail, etc.
- Mine information, conduct competitive intelligence, or network with other business owners.
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- What is the Internet and the World Wide Web?
The Internet is a global computer networks connecting and sharing information through a common set of data protocols. It allows computers attached to networks to communicate regardless of manufacturer or brand, architecture, operating system or location. Along with open communication, this network is also efficient, and is able to carry voice, data and video transmissions over one infrastructure. The Internet was developed primarily for data transmission, but telephony (voice transmission) and video transmission usage is growing.
The most popular interface to the Internet is the World Wide Web. The World Wide Web links Web sites and documents throughout the Internet. Using a web browser (e.g. Netscape Navigator, Microsoft Internet Explorer, etc.), anyone with a computer, modem and Internet access can easily search and retrieve information from millions of web servers around the world.
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- How do I get my computer connected to the Internet?
Get in touch with an Internet Service Provider (ISP).
Through your ISP, you will be able to access the Internet either with a lower-cost "dial-up" connection or a higher-cost "dedicated" connection.
The ISP server delivers, in effect, the Internet dial tone. When looking for an ISP to connect your business to the Internet, consider what different ISPs charge for access time, reliability (e.g. no busy signals or interruptions in connection), the speed of data transmission and the technical and other services they offer.
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- What is the entry price to get connected to the Internet?
At first, the costs to get on the Internet can seem intimidating, but compared with what you can accomplish in the areas of marketing and retailing on the Internet versus in the traditional commercial world, it can be a very cost-effective solution. Also, the potential Internet market is exponentially larger than any local market. To get started, you will need a modem-equipped computer ($1,000-$5,000) and access to the Internet through an Internet Service Provider ($10-$40 a month). These costs are estimates only, since costs can vary significantly, as computer prices continue to decrease, and as new access technologies become accessible and affordable (e.g. cable access).
If you want to set up a Web site for your business, consider hiring a professional to design it for you. The costs can vary significantly whether you want a simple Web site or a very complex Web site. Once you have a site, you will want to register the domain (e.g. your-business-name.com). The cost of registration may vary, depending on your choice of the .com or .ca domain extensions. Registering your domain on the Internet is like registering your company and company name. For information on how to register a domain name, you may contact us or learn our Services section.
There are also maintenance costs to consider to keep the site up to date and running smoothly, which can vary depending on the scope and size of the site.
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- What is a domain name?
A domain name is a unique alpha-numeric address used to identify and locate a particular computer on the Internet. It is used for Web pages and e-mail addresses. Domain names allow Internet users to type in an easy-to-remember name, such as strategis.gc.ca, which is then translated by the Domain Name System (DNS) into numerical addresses (Internet Protocol numbers) such as 192.197.183.15. The DNS allows ordinary Internet Users to find Web sites and send e-mail without having to memorize the numerical addresses.
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- What is a Registry, a Registrar and a Registrant?
A Registry is a regional organization or entity that is responsible for assigning domain names and Internet addresses. Each country manages domain names through a certain company or organization, with the responsibility to record and update domain names, as well as the information associated with them, on a root server. A registry is usually under contract from its respective government to control domain name registration.
A Registrar is an organization or company that is authorized by the government or by ICANN (the Internet Corporation for Assigned Names and Numbers) to provide registration services for domain names.
A Registrant is the individual or organization in whose name a domain name is registered.
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- What is hosting and virtual hosting?
A hosting service provider (HSP) or application service provider (ASP) are third party entities that manage and distribute software-based services and solutions to customers across a wide area network from a central data centre. They provide the housing, servicing and maintaining of files for Web sites.
When looking for a carrier to host your Web site some features to consider are the amount of storage space, bandwidth number of e-mail accounts, transfer limit, technical support, etc.
There are many different Web hosting packages available online and prices can range from $15 to $100 a month. When deciding on a Web hosting package, evaluate your individual business needs prior to purchasing. As your business needs change you can update your package accordingly.
Virtual hosting allows a business to have its own virtual server. This virtual server gives the appearance that a company controls their own server and that server is entirely dedicated to that business site. Prices for virtual hosting packages are significantly higher than standard hosting packages and range from $200 to $1000 a month.
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- What is a digital signature?
A digital signature is a convenient and secure way of "signing" electronic documents. When a document is digitally "signed", its integrity and authenticity can be verified, as can the identity of the signer. Digital signatures provide a secure form of transacting electronically: they are virtually impossible to forge or copy. Digital signatures are based on mathematical theory and the use of algorithms. A digital signature is a complicated concept, but its application is relatively simple and straightforward. Your software does all the work, while you (the user) simply select the signature option in the software. Digital signatures are particularly important if you want to make the electronic transaction as binding as possible.
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