Shopping cart software is a piece of

e-commerce E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...

software on a

web server A web server is computer software and underlying hardware that accepts requests via HTTP (the network protocol created to distribute web content) or its secure variant HTTPS. A user agent, commonly a web browser or web crawler, initiate ...

that allows visitors to have an Internet site to select items for eventual purchase.Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. . The

Marketing Accountability Standards Board (MASB) The Marketing Accountability Standards Board (MASB), authorized by the Marketing Accountability Foundation,MASB''Marketing Accountability Foundation (MAF)''. ited 8 December 2010/ref> is an independent, private sector, self-governing group of acad ...

endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoin
Common Language in Marketing Project
The software allows

online shopping Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the r ...

customers to accumulate a list of items for purchase. At the

point of sale The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice f ...

, the software typically calculates a total for the order, including freight transport,

postage The mail or post is a system for physically transporting postcards, letters, and parcels. A postal service can be private or public, though many governments place restrictions on private systems. Since the mid-19th century, national postal syst ...

as well as

packaging and labeling Packaging is the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of designing, evaluating, and producing packages. Packaging can be described as a co ...

. Associated

tax A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or n ...

es are calculated as applicable. This software also allows for a final review of the shortlisted purchase and the choice for a user to modify the purchase. The data is used in

online marketing Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...

particularly in the form of abandoned carts.

History

The development of web shop systems took place right after the

Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...

became a mass medium. This was a result of the launch of the browser

Mosaic A mosaic is a pattern or image made of small regular or irregular pieces of colored stone, glass or ceramic, held in place by plaster/mortar, and covering a surface. Mosaics are often used as floor and wall decoration, and were particularly pop ...

in 1993 and

Netscape Netscape Communications Corporation (originally Mosaic Communications Corporation) was an American independent computer services company with headquarters in Mountain View, California and then Dulles, Virginia. Its Netscape web browser was onc ...

in 1994. It created an environment in which web shops were possible. The Internet therefore acted as the key infrastructure developments that contributed to the rapid diffusion of the

, a subset of e-business that describes all computer-aided business transactions. In 1998 a total of 11 e-business models were observed, one of which was the e-shop business model for a

B2C Direct-to-consumer (DTC) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party retailers, wholesalers, or any other middlemen. Direct-to-consumer sales are usually tr ...

(business-to-consumer) business—also called the “online shop” The two terms “online shop” and “electronic” or “e-shop” are used interchangeably. The term “online shopping” was invented much earlier in 1984. Today the term primarily refers to the business-to-consumer transactional business. In order to enable “online shopping” a software system is needed. Since “online shopping”, in the context of the B2C business model, became broadly available to the end consumer, internet-based “online shops” evolved.

Technical definition

These applications typically provide a means of capturing a client's payment information, but in the case of a

credit card A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the o ...

they rely on the software module of the secure gateway provider, in conjunction with the secure

payment gateway A payment gateway is a merchant service provided by an e-commerce application service provider that authorizes credit card or direct payments processing for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. The ...

, in order to conduct secure credit card transactions online. Some setup must be done in the

HTML The HyperText Markup Language or HTML is the standard markup language for documents designed to be displayed in a web browser. It can be assisted by technologies such as Cascading Style Sheets (CSS) and scripting languages such as JavaScri ...

code of the

website A website (also written as a web site) is a collection of web pages and related content that is identified by a common domain name and published on at least one web server. Examples of notable websites are Google Search, Google, Facebook, Amaz ...

, and the shopping cart software must be installed on the

server Server may refer to: Computing *Server (computing), a computer program or a device that provides functionality for other programs or devices, called clients Role * Waiting staff, those who work at a restaurant or a bar attending customers and su ...

which hosts the site, or on the

secure server Hypertext Transfer Protocol Secure (HTTPS) is an extension of the Hypertext Transfer Protocol (HTTP). It is used for secure communication over a computer network, and is widely used on the Internet. In HTTPS, the communication protocol is enc ...

which accepts sensitive ordering information. E-shopping carts are usually implemented using

HTTP cookie HTTP cookies (also called web cookies, Internet cookies, browser cookies, or simply cookies) are small blocks of data created by a web server while a user is browsing a website and placed on the user's computer or other device by the user's w ...

s or

query string A query string is a part of a uniform resource locator (URL) that assigns values to specified parameters. A query string commonly includes fields added to a base URL by a Web browser or other client application, for example as part of an HTML, cho ...

s. In most server based implementations however, data related to the shopping cart is kept in the session object and is accessed and manipulated on the fly, as the user selects different items from the cart. Later at the process of finalizing the transaction, the information is accessed and an order is generated against the selected item thus clearing the shopping cart. Although the most simple shopping carts strictly allow for an item to be added to a basket to start a checkout process (e.g., the free

PayPal PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper ...

shopping cart), most shopping cart software provides additional features that an Internet merchant uses to fully manage an online store. Data (products, categories, discounts, orders, customers, etc.) is normally stored in a

database In computing, a database is an organized collection of data stored and accessed electronically. Small databases can be stored on a file system, while large databases are hosted on computer clusters or cloud storage. The design of databases sp ...

and accessed in real time by the software. Shopping Cart Software is also known as e-commerce software, e-store software, online store software or storefront software and online shop.

Components

* Storefront: the area of the Web store that is accessed by visitors to the online shop. Category, product, and other pages (e.g., search, bestsellers, etc.) are dynamically generated by the software based on the information saved in the store database. The look of the storefront can normally be changed by the store owner so that it merges with the rest of the web site (i.e., with the pages not controlled by the shopping cart software in use on the store). * Administration: the area of the Web store that is accessed by the merchant to manage the online shop. The amount of store management features changes depending on the sophistication of the shopping cart software chosen by the merchant, but in general a store manager is able to add and edit products, categories, discounts, shipping and payment settings, etc. Order management features are also included in many shopping cart programs. The administration area can be: ** Web-based (accessed through a

web browser A web browser is application software for accessing websites. When a user requests a web page from a particular website, the browser retrieves its files from a web server and then displays the page on the user's screen. Browsers are used on ...

) ** Desktop-based (a desktop application that runs on the user's computer and then transfers changes to the storefront component). * API: most of the major shopping cart software solutions offer an API which allows third party solution providers to build integrations to the shopping cart software. For example, an accountancy platform like Xero or Quickbooks will build an integration with the shopping cart software so that orders placed on the shopping cart are automatically exported as invoices.

Types

Shopping cart software can be generally categorized into three

types of E-commerce There are many ''types of e-commerce models, based on market segmentation, that can be used to conducted business online. The 6 types of business models that can be used in e-commerce include: Business-to-Consumer (B2C), Consumer-to-Business (C2B ...

software: * Open source software: The software is released under an open source licence and is very often free of charge. The merchant has to host the software with a

Web hosting service A web hosting service is a type of Internet hosting service that hosts websites for clients, i.e. it offers the facilities required for them to create and maintain a site and makes it accessible on the World Wide Web. Companies providing web h ...

. It allows users to access and modify the source code of the entire online store. * Licensed software: The software is downloaded and then installed on a

Webserver A web server is computer software and underlying hardware that accepts requests via HTTP (the network protocol created to distribute web content) or its secure variant HTTPS. A user agent, commonly a web browser or web crawler, initiate ...

. This is most often associated with a one-time fee, the main advantages of this option are that the merchant owns a license and therefore can host it on any web server that meets the server requirements. * Hosted service: The software is never downloaded, but rather is provided by a

hosted service provider A hosted service provider (xSP) is a business that delivers a combination of traditional IT functions such as infrastructure, applications (software as a service), security, monitoring, storage, web development, website hosting and email, over the ...

and is generally paid for on a monthly or annual basis; also known as the

application service provider An application service provider (ASP) is a business providing application software generally through the Web. The ASP model The application software resides on the vendor's system and is accessed by users through a communication protocol. Altern ...

(ASP) software model. Some of these services also charge a percentage of sales in addition to the monthly fee. This model often has predefined templates (often known as themes) that a user can choose from to customize the look and feel of their website. Predefined templates limit how much users can modify or customize depending on what platform the template is used on. Some platforms like Shopify, BigCommerce or ShopWired allow users to edit the individual files that their template is made from, often using a templating language to render dynamic content (such as Shopify's Liquid or Twig). Hosted services offer the advantage of having the vendor continuously keep the software up to date for

security patch A patch is a set of changes to a computer program or its supporting data designed to update, fix, or improve it. This includes fixing security vulnerabilities and other bugs, with such patches usually being called bugfixes or bug fixes. Patches ...

es as well as adding new features.

PCI Compliance

The PCI security standards are a blanket of regulations set in place to safeguard payment account data security. The council that develops and monitors these regulations is composed of the leading providers in the payment industry:

American Express American Express Company (Amex) is an American multinational corporation specialized in payment card services headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City. The company was found ...

Discover Financial Services Discover Financial Services is an American financial services company that owns and operates Discover Bank, which offers checking and savings accounts, personal loans, home equity loans, student loans and credit cards. It also owns and operate ...

JCB International , formerly Japan Credit Bureau, is a credit card company based in Tokyo, Japan. Its cards are accepted at JCB merchants, and has strategic alliances with Discover Network merchants in the United States, UnionPay merchants in China, American Ex ...

, MasterCard Worldwide, and

Visa Inc Visa Inc. (; stylized as ''VISA'') is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded cre ...

. Essentially, they define the best practices for storing, transmitting, and handling of sensitive information over the internet. Visa Inc. can hold shopping cart software providers responsible for liability that may occur as a result of non-compliance to Visa's regulations. For this reason, Visa Inc. may require that online merchants use shopping cart software providers from their list of

PCI DSS The Payment Card Industry Data Security Standard (PCI DSS) is an information security standard used to handle credit cards from major card scheme, card brands. The standard is administered by the Payment Card Industry Security Standards Council a ...

-validated service providers.

References