Essay

+The spread of the internet in recent years has pushed the amount and volume of electronic trade to extraordinary levels and has led to innovations and developments in areas such as electronic funds transfer, electronic data interchange and internet marketing.
+First is the enhanced security of online payments
+ Second is access to credit cards and other forms of online payment. Research shows that more than half of internet sales are finalised using credit cards. Consumers are generally able obtain credit cards with the bank's greater ability to assess borrower risk
+ Other forms of payment such as debit cards and electronic transfers are also now more developed and can only assist in the drive for online shopping
+ First of these is the Transaction Cost Economic (TCE) model, which basically says that a transaction subject will choose one form of transaction channel instead of others because of lower transaction costs.
+ Applied to internet shopping, which is essentially a choice between the internet and traditional stores, consumers are thought to choose the internet channel because of the lower transaction costs.
+ Lower transaction costs necessarily includes the money costs of the good or service purchased but also refers to convenience gained by the purchaser in the process.
+ The internet acts mainly as a mechanism that reduces consumers' costs of acquiring in  
+The web, however, makes it easy to gather more information.formation about products and prices
+ as more and more retailers and customers go online, customers become pickier. Retailers will find it increasingly difficult to sell overpriced goods because people will have more knowledge about other options.
+ Some network externality effects can also be seen as a contributing factor. In consumer economics, network effect exists if one's consumption is influenced by those around him/her and this has long been seen as the reason for large shifts in consumer buying behaviour.
+ Not...