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Full Project – Design and implementation of online store management system

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CHAPTER ONE

INTRODUCTION

Background of the Study

Nowadays in new era of technology, internet has already become part of our life. As Internet is becoming more widely used, we almost can find or do everything via internet. As many businesses are attempting to globalize their sales, Internet becomes the primary means of advertising and selling their products or services worldwide. Many businesses are creating web pages in addition to their retail stores, and many start their businesses with online stores alone. Today, in all aspects of our daily lives, the Internet has become an undivided part of our lives, as it has a versatile impact on our social activities. Every day, going to the bank to make cash transactions or withdraw money or go to the market to buy things and essential commodities is now quite difficult since there is no time, the human being has become too busy in his work and so, in these circumstances, online purchases have become an increasingly integral part of our society. Anything that customer’s purchases affects environment by means of delivery, whether they have the product shipped at home or drive to a brick and mortar store (supermarket). Due to the development of World Wide Web it has now become easy to access the products available worldwide without wasting time, money and other resources apart from helping environment. Centre for Energy and Climate Solutions suggests that we can protect land and save energy by shopping online (Trask, 2006).

Many supermarkets such as Marks and Spencer’s, John Lewis, Amazon, Carbon Cart etc. have their own websites are selling greener products and offering more choices to customers. Bricks and mortar store eat up lot of energy and resources. Online store retail companies stores goods in direct warehouse which saves cost of fixtures and glitzy gimmicks of brick and mortar store.

Statement of the problem

Online stores are burgeoning and getting popular with every passing day.

Given the lack of ability to inspect merchandise before purchase, puts consumers at higher risk of fraud than face-to-face transactions. Also when ordering merchandise online, it might not be the same item pictured in the online photo. The item may not work properly it may have defects.
Another problem of online store is that the checks on registration are poor and selling poor-quality in the name of brands is becoming increasingly common. Merchants also risk fraudulent purchases if customers are using stolen credit cards or fraudulent repudiation of the online purchase.
Furthermore, customers are facing a troubled time with the tracking systems which do not accurately locate the product. Many online store do not even have clear and concise website policies for return and refund. Consumers get confused due to vague stipulations about a refund and return.
Identify theft is another concern in online store, hackers might break into a merchant’s web site and steal names, addresses and credit card numbers, although the Payment Card Industry Data Security Standard (PCIDSS) is intended to minimize the impact of such breaches.
Also, Phishing is another danger, where consumers are fooled into thinking they are dealing with a reputable retailer, when they are actually been manipulated into feeding private information to a system operated by a fraudsters.
However, denial of service attacks are a minor risk for merchants, as are server and network outages.

Aims and Objectives of the Study

This research work aim at designing, developing and implementing online store management system. The objectives towards the realization of the above aim are as follows:

To develop a computerized interface for managing Online Shopping processes, such as buying, selling, delivery and record keeping.
To create a platform for easy generation of sales status and report.

To develop a robust system that will aid in proper decision making and forecast.

To create a system that will lessen the burden of shoppers being physical in making purchases.

Significance of the Study

Online store allows the shoppers to purchase products from the convenience of their homes by using the net. The internet shopping web sites allow buyers access to purchase the products they want to have. Instead of physically visiting a store for shopping people tend to be more dependent for shopping on-line. This has increased the presence of Online marketing portals around the world. All these online websites require an outstanding system to make sure that they will be always quite easy to access for its users without giving them any difficulties to shop. If the portals are not good it will in turn have an effect on their online business.

It is very important to have an organized as well as appealing website that offers fantastic solutions as they play an essential role in the income of their business. The portal with an authentic design are entirely customer centric. This also helps in marketing as well as branding of the portal. Essentially when one shops on-line they actually look into 3 advantages trust, convenience and security. Irrespective of any kind of online shopping it’s essential for them to sustain all three factors for being a reputed portal. Once a portal is trusted, users really feel simple and protected to shop and also they tend to shop using the same portal each time they go for online shopping.

With the strength of the online as well as the development of the technology more and more websites are booming up. Each one competes with every way achievable. Customer’s review plays an important for everybody to get into a brand new web site for shopping on-line. Staying at home and browsing through a thousand of web sites is a lot a lot easier compared to going shopping offline. Online shopping portals I have all your preferred brands with different discounts and also deals which help the consumer chose the best one for them. There is certainly no threat, no obligation to buy anything.

The pleasurable experience & user friendly navigation of the customer’s offers an additional value which in turn also helps the portals to get more brand new shoppers. Offering customers’ a variety of options in manufacturers, special discounts & deals also pulls in plenty of varied guests. Once the customer’s have been lead to the proper place where he is exposed to precisely what he needs, then they won’t even think of coming out of it. It will always be beneficial to offer successful deals and offers to any visitors as it raises the revenue and also reputation. Online marketing is an extremely advantageous business and hence, one must create and design the portal with a lot of interest and planning which in turn would be able to offer rewarding returns.

Scope of the Study

Purchasing and selling products and services over the internet without the need of going physically to the market is what online shopping all about. Online shopping is just like a retail store shopping that we do by going to the market, but it is done through the internet. Online shopping has made shopping painless and added more fun. Online stores offer product description, pictures, comparisons, price and much more. Few examples of these are Amazon.com, ebay.com, framt.com and the benefits of online shopping is that by having direct access to consumer, the online stores can offer products that cater to the needs of consumer, cookies can be used for tracking the customer selection over the internet or what is of their interest when they visit the site again. Online shopping makes use of digital technology for managing the flow of information, products, and payment between consumer, site owners and suppliers. Online shopping can be either B2B (business to business) or B2C (business to consumer)

Shopping cart is one of the important facility provided in online shopping, this lets customer to browse different goods and services and once they select an item to purchase they can place the item in shopping cart, and continue browsing till the final selection. Customers can even remove the items from shopping cart that were selected earlier before they place the final order. It reminds us of shopping basket that we carry in departmental store.

1.6 Limitations of the Study

Delay in delivery: Though the duration of selecting, buying and paying for an online product may not take more than 15 minutes; the delivery of the product to customer’ s doorstep takes about 1-3 weeks.
Lack of significant discounts in online shops: Physical stores offer discounts to customers and attract them so this makes it difficult for e-tailers to compete with the offline platforms.
Lack of touch and feel of merchandise in online shopping: Lack of touch-feel-try creates concerns over the quality of the product on offer. Online shopping is not quite suitable for clothes as the customers cannot try them on.
Lack of interactivity in online shopping: Physical stores allow price negotiations between buyers and the seller. The show room sales attendant representatives provide personal attention to customers and help them in purchasing goods.
Lack of shopping experience: The traditional shopping exercise provides lot of fun in the form of show-room atmosphere, smart sales attendants, scent and sounds that cannot be experienced through a website.
Lack of close examination in online shopping: A customer has to buy a product without seeing actually how it looks like. Customers may click and buy some product that is not really required by them.
Frauds in online shopping: The rate of cyber crimes has been increasing and customers’ credit card details and bank details have been misused which raise privacy issues.

1.7 Definition of terms

Online Store: online store is a website which allows consumers to directly buy goods or services from a seller over the Internet using a web browser.
Merchandising: Merchandising is everything you do to promote and sell your products once the potential customer is in your store.
Retail sale: A retail sale is when a business sells a product or service to an individual consumer for his or her own use.
Payment Processing: Payment processing is a system that allows the user to select which payment method they want to use, gather payment information (e.g. credit card number), and processes or records the payment information.
B2C: the physical analogy of buying products or services at a regular “bricks-and-mortar” retailer or shopping centers.
B2B: this is the process When an online store is set up to enable businesses to buy from another business.

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