Welcome to building a PHP e-commerce framework! During the course of this book we are going to build a flexible e-commerce framework using PHP, which can be extended and modified for the purposes of any e-commerce site. In this chapter, you will learn: The business logic behind e-commerce Why (and when) you should use your own system over an existing product The benefits of a "framework" About existing e-commerce sites and products e-commerce: Who, what, where, why? e-commerce, or electronic commerce, is the sale and purchase of goods or services through electronic means. In our case, this electronic means is the Internet. There are so many different applications of e-commerce on the Internet, including: Online shops selling products, such as Amazon, or the online counterparts to Brick 'N Mortar stores Online auctions, such as eBay Online services/web services such as BaseCamp, or subscription-based websites An overview of e-commerce e-commerce is an incredibly popular way of doing business, so let's look at who is using e-commerce and what they are using it for. • • • • • • •
PHP e-commerce
eBay According to eBay's website, there are approximately 84 million active users of eBay, with users trading more than $1,900 worth of goods each second. That means 84 million of us are using eBay to buy and sell goods, either as a business sustaining a regular turnover, or to try and make a little extra cash by selling unwanted or unneeded things knocking about the house. eBay is a social e-commerce site, operating as an online auction house, whereby they don't actually sell anything themselves, but instead allow their community of users to not only buy but also sell through their site. This not only illustrates the popularity of e-commerce, but also that there is money to be made in providing a stage for low (and high) volume online purchases. Amazon With revenue of over $19 billion in 2008, Amazon is one of the most popular e-commerce sites on the Internet. Research in early 2009 indicated that it was the favorite retailer for both video and music in the UK. Brick 'N Mortar stores Large, established Brick 'N Mortar stores such as Wal-Mart, Tesco, and Borders use online shops to sell the products they generally keep in store. With the likes of Wal-Mart and Tesco, customers often book a delivery timeslot for their groceries to be delivered. They also offer more than what is available in store, which they can easily bolt on for the convenience of their customers. With online retail, sellers are not confined to what they can stock on the shelves, but what they can store in their distribution warehouses. Smaller, niche-based Brick 'N Mortar stores use online selling as a way to target their products to a wider audience, without the limitation of their existing physical presence. Service-based companies Companies such as 37signals are setting up online applications (such as Project Management tool, BaseCamp) with monthly subscription models. Other examples of such sites include large file distribution websites (allowing you to "e-mail" large files using a third-party website) and premium features on certain websites, for example Get Satisfaction.
PHP e-commerce
eBay According to eBay's website, there are approximately 84 million active users of eBay, with users trading more than $1,900 worth of goods each second. That means 84 million of us are using eBay to buy and sell goods, either as a business sustaining a regular turnover, or to try and make a little extra cash by selling unwanted or unneeded things knocking about the house. eBay is a social e-commerce site, operating as an online auction house, whereby they don't actually sell anything themselves, but instead allow their community of users to not only buy but also sell through their site. This not only illustrates the popularity of e-commerce, but also that there is money to be made in providing a stage for low (and high) volume online purchases. Amazon With revenue of over $19 billion in 2008, Amazon is one of the most popular e-commerce sites on the Internet. Research in early 2009 indicated that it was the favorite retailer for both video and music in the UK. Brick 'N Mortar stores Large, established Brick 'N Mortar stores such as Wal-Mart, Tesco, and Borders use online shops to sell the products they generally keep in store. With the likes of Wal-Mart and Tesco, customers often book a delivery timeslot for their groceries to be delivered. They also offer more than what is available in store, which they can easily bolt on for the convenience of their customers. With online retail, sellers are not confined to what they can stock on the shelves, but what they can store in their distribution warehouses. Smaller, niche-based Brick 'N Mortar stores use online selling as a way to target their products to a wider audience, without the limitation of their existing physical presence. Service-based companies Companies such as 37signals are setting up online applications (such as Project Management tool, BaseCamp) with monthly subscription models. Other examples of such sites include large file distribution websites (allowing you to "e-mail" large files using a third-party website) and premium features on certain websites, for example Get Satisfaction.