Description

CHAPTER ONE

1.0     Introduction

This project is on Design and implementation of online shopping system. E-commerce is fast gaining ground as an accepted and used business paradigm. More and more business houses are implementing web sites providing functionality for performing commercial transactions over the web. It is reasonable to say that the process of shopping on the web is becoming common place.

The objective of this project is to develop a general purpose e-commerce store where any product (such as books, CDs, computers, mobile phones, electronic items, home appliances and any kind of goods) can be bought from the comfort of home through the Internet. However, for implementation purposes, this paper will deal with an online book store.

An online store is a virtual store on the Internet where customers can browse the catalogue and select products of interest. The selected items may be collected in a shopping system. At checkout time, the items in the shopping system will be presented as an order. At that time, more information will be needed to complete the transaction. Usually, the customer will be asked to fill or select a billing address, a shipping address, a shipping option, and payment information such as credit card number. An e- mail notification is sent to the customer as soon as the order is placed.

Business conducted through the use of computers, telephones, fax machines, barcode readers, credit cards, automated teller machines (ATM) or other electronic appliances (whether or not using the internet) without the exchange of paper-based documents. It includes activities such as procurement, order entry, transaction processing, payment, authentication and non-repudiation, inventory control, order fulfilment, and customer support. When a buyer pays with a bank card swiped through a magnetic-stripe-reader, he or she is participating in e-commerce. [35]

With popular trends and demands the concept of the Internet as the way forward to increase profit margins, companies new and old are creating websites here and there. The significance for retailers to having a web site is that a web site is informational and transactional in nature [43]. As the web site can be used for advertising, direct marketing, sales, customer support and public relations.

Significantly according to a study by McKinsey & Company and Salomon Smith Barney, retailers who sell to their customers through catalogues; stores, and online significantly emerge victorious amid the e-tail shake out [44].

With seasonal events and holidays, the Internet has become a tool for a quick and stress free method of shopping. Allowing retailers to cash in the profit from another useful shopping channel. Jupiter Research expects 2003’s online holiday sales to be led by new shoppers, resulting in a 21 percent increase over 2002 figures [45]. The growth in holiday sales is driven by factors such as, online bargains; time saving; avoiding holiday crowds and much more.

The top categories of Online Sales according to comScore Networks are:

• Computer Hardware and Software
• Apparel and Accessories
• Office Supplies
• Books, Music and Movies
• Consumer Electronics
• Home and Garden
• Health and Beauty
• Gifting
• Sporting Goods
• Toys and Games
• Autos
• Pets

Freedman argues that as more consumers are able to connect to faster Internet connections categories such as Apparel may experience growth [36].

1.1     STATEMENT OF THE PROBLEM

Most shops are experienced some draw back in their operation due to the current shopping system (manual shopping) which are:

• Lack of accuracy in customer’s record
• Slow in processing customer’s records
• Lack of proper accountability
• It does not give a customer the incredible convenience to shop at any time of the day due to the limited working hours.

There is a need to change from manual way of shopping to a computerized way, where customers can browse through the

Internet and the system administrator to approve requests shoppers can buy products anywhere and a database that will maintain the products detail information.

1.2     OBJECTIVES OF THE STUDY

The main objectives of Online Shopping System include the Following:

• The design an Online Shopping System that is secured against fraud and ensures easy and effective transactions.
• To develop a good customer oriented system that provides customers with quality services.

1.3     SIGNIFICANCE OF THE STUDY

Many people nowadays are using the web to shop for a wide variety of items, the significance of online shopping system include the followings:

• Online Shopping System is incredible convenience.
• It is always easy when it comes to accessing of customers review
• The choice of Online Shopping is infinite.
• It price is always comparison

1.4     LIMITATION OF THE STUDY

During this research work, below are some limitations that Encountered:

• Inadequate information from the staff of Frankfik International Limited due to heavy work load which occur using the manual system of shopping
• Not all the data were gotten using the primary source
• Some information were gotten through the internet and searching for information was difficult due to same network problems.

Due to this reasons, the researcher may lack vital information about shopping and may also have lapses in this work.

1.5     SCOPE/ DELIMITATION OF THE STUDY

This research work is limited to my easy study Frankfik International Limited.

1.6     DEFINITION OF TERMS

1. ONLINE: An online is a condition of connected to a network of computers of other devices. The term is frequently used to describe someone who is currently connected to the internet.
2. INTERNET: this is a global connection of computer network co-operating with each other to exchange data using common software standard protocols
3. DATA: These are raw fact that to proposed into meaningful information
4. MANUAL SYSTEM: Any system that does not involve the use of electronic computer.
5. COMPUTERIZED SYSTEM: This is process of operation of integrated with a computer system.