A business-to-consumer website tracks the items you place in a shopping cart using

Definition: Cookies (also referred to as HTTP cookies or browser cookies) are small text files stored in a web user's browser directory or data folder. Ecommerce websites place cookies on visitors' browsers to retain login credentials, identify customers, and provide a customized shopping experience.

What cookies do

Secure websites use cookies to validate a user's identity as they browse from page to page; without cookies, login credentials would have to be entered between before every product added to cart or wish list. Cookies enable and improve:

• Customer log-in
• Persistent shopping carts
• Wish lists
• Product recommendations
• Custom user interfaces (i.e. "Welcome back, Steve")
• Retaining customer address and payment information

How do cookies work?

Cookies can be divided into two major categories, with many subsets of:

• Session cookies stay on a browser and retain your information until it is closes. When a new browser window is opened, the same user is treated as a new visitor and must input their login credentials.
• Persistent cookies have a designated lifespan and remain in a browser until the period elapses or the cookie is manually deleted. Websites that use persistent cookies will remember users even after they close a browser. Persistent cookies enable features such as persistent shopping carts, which retain products added to cart between sessions.

When a user lands on an ecommerce website for the first time, the webpage makes a record of the activity on its remote server and it places a cookie in the user's browser files. The cookie is only a short line of text. It contains no information about the user or the user's machine. Instead, it typically contains the URL of the website that placed the cookie, a unique generated number and an expiration date for the cookie.

As the user browses the website, each new page the user visits queries the browser, looking for the cookie. If the cookie's URL matches the website's URL, the website retrieves the user information from its server by utilizing the unique generated number. In this way, the website adjusts the user's experience to reflect her browsing history.

If the user searches the site for cowboy boots, then the next time the user comes to the site, the website will retrieve the user's record and fill the landing page with more cowboy boots.

Some websites also use cookies to customize the website experience. A new user may see one version of the landing page, while a longtime user may see a different layout entirely.

Cookies in ecommerce

The single most important job of a cookie is to keep a user logged in as they browse from page to page. A user's browsing history becomes part of a database which the website then uses to improve the customer experience.

Ecommerce sites use a combination of session cookies and persistent cookies to create a seamless shopping cart experience. As the user adds items to her cart, session cookies keep track of the items. If the user abandons the cart, persistent cookies will retrieve her selections from the database the next time she visits, or allow you to create personalized retargeting campaigns that encourage her to revisit her cart. This is a huge help in encouraging conversions.

Cookies are an essential part of the Internet. Without them, webpages would be a great deal less useful and interactive. Ecommerce would be impossible. They give websites the ability to remember and improve.

What is a shopping cart?

Definition: A shopping cart on an online retailer's site is a piece of software that facilitates the purchase of a product or service. It accepts the customer's payment and organizes the distribution of that information to the merchant, payment processor and other parties.

Why shopping carts are important

Shopping carts bridge the gap between shopping and buying, so having the best shopping cart software is extremely important on your website.

It's likely that those just starting out in the market may be unfamiliar with the concept. Most people, especially those in the ecommerce industry, have likely made a purchase online at some point in their lives. That said, most consumers don't fully realize the need and capability that shopping carts have (besides leading a customer to checkout). A cart typically has three common aspects:

1. It stores product information
2. It's a gateway for order, catalog and customer management
3. It renders product data, categories and site information for user display

Another way to look at things is as follows: The online shopping cart is similar to the tangible ones we use at the supermarket, but it wears many more hats. It's also the shelves, the building, the clearance sign, the cash register and often the credit card machine relaying information back to the bank.

What options are there?

For those seriously considering the ecommerce platform route, it's important to know that there are two basic types of carts:

• Hosted shopping carts: A third-party firm "hosts" the solution and is responsible for server backups, maintenance and upgrades. The beauty of a hosted solution is that hosting comes free, which means it doesn't cost anything for the third party to keep your site functional on the Web. The main drawback with hosted solutions is that customers will be directed to another domain for payment processing.
• Licensed shopping carts: This type of solution allows business owners to build their own type of cart and customize it to their specific needs. There is much greater flexibility in changing features and functionality, as well as in adding third-party tools if need be. However, the upfront costs are often higher and require more hands-on expertise for troubleshooting issues and technical support.

Hosted solutions are often recommended for those who are beginning their own venture because they require less technical expertise. That's not to say all new online retail store owners aren't adept in IT, but a hosted solution may free up time to focus on other aspects of operations. There are numerous providers of shopping cart software on the market today, and companies must first evaluate their individual needs before making a final decision on which solution is best for them.

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