IMPACT OF ECOMMERCE ON BUSINESS TODAY
INTRODUCTION TO ECOMMERCE
Ecommerce stands for Electronic commerce. It is defined as the selling and buying of various products and services using the internet and other computer devices. It includes internet marketing, data interchange, online transaction system, and other management systems. It also includes a wide range of technologies such as email, mobile devices, and telephones. Over the past few years, Ecommerce has emerged speedily and introduced new trends regarding marketing, business, and academic studies. Ecommerce services include graphic designing, digital marketing, flash designs, shopping carts, database programmers, and e-business.
Ecommerce decreased face to face meet up and manual processing of traditional business transactions. It has affected different sectors such as retail trade, finance, service, and communication. Ecommerce increased the use of internet and network communications technologies. It uses automated processing of business transactions.
BENEFITS OF ECOMMERCE
Ecommerce has increased businesses as it allows people to work from anywhere and anytime. It has improved market and product analysis. Ecommerce gives the opportunity of low-cost advertising.
For customers, Ecommerce gives the benefit of;
- Wide-scale information
- Wide selection of products at a low rate
- Fast service and delivery options
- Saves time and money
- Easy to maintain customer care service
- Ecommerce provides a customer and client database it helps to reduce delivery time and labor cost.
- Error detection and correction chance has been increased.
TYPES OF ECOMMERCE
There are the following types of Ecommerce;
It is business to business relationship of Ecommerce. It is the largest form of Ecommerce. It is an effective way to sell products all over the world. It includes an electronic transaction of order and purchase. It favors manufacturing and wholesale dealings. Its benefits are
- Encourages online business
- Facilitates import and export of products
It is a business-to-consumer relationship of Ecommerce. It develops communication between seller and customer at the individual level. It develops direct interaction between producer and consumer and includes online banking and online catalogs. This type of Ecommerce has increased online shopping.
It is business to employee relationship of Ecommerce. It helps the owner to keep and access the records and address information of all of his employees.
It is the consumer-to-business relationship Ecommerce. In this type, the consumer is the seller and the business is the buyer. It includes individual persons who sell their products and services to the companies. It helps the consumer to save his time and budget and favors online transactions.
It is the consumer-to-consumer relationship of Ecommerce. It includes transactions between the customers. It is the online dealing of services and products among people and favors online market dealing. For this, both the persons need to register on the Web just like eBay.
THE IMPACT OF ECOMMERCE ON BUSINESS
The internet has changed today’s world and traditional business has modified into online marketing and business. Now we shop online while staying at home. It has forced small businesses to shut down and opened new ways to online businesses. It has also influenced the company’s marketing trend and its product selling ratio. It has affected sales promotion, customer services, corporate images, and cycle time. Ecommerce has expanded the marketplace at the international level.
- Ecommerce has increased product promotions through the internet and World Wide Web.
- It has now made product selling much easy and saves time for both seller and buyer.
COST AND DELIVERY
- Ecommerce favors the production of products in specific quantities as required by the customers and avoids excess manufacturing and saves budget.
- The cost of service has been decreased as information is now transferred using internet services.
- The delivery of digital products is done in reduced time periods. It is done even in seconds.
- Newcomers can develop their own corporate images using the Web, these corporate images increase the trust ratio. Corporate images are for individual identification.
- Ecommerce has expanded the marketplace at an international level and provides more customers to the companies.
- It has developed multinational corporations.
- Ecommerce given choice to customers to shop over the world.
- Online business has given more choices to consumers and they can select products of their own choice at lower rates.
- Ecommerce favors electronic cash systems and online banking.
- It has affected the management information system and implementation of e-commerce business within the organization.
24 HOURS ACCESS
- Ecommerce has provided 24-hour service to buyers.
- They can buy at any time from any place.
- Ecommerce gives customers the option to check the price of a single product on various websites given by the companies.
COMPARISON OF TRADITIONAL BUSINESS AND E-COMMERCE
Ecommerce has decreased retail business and traditional systems. The traditional business needs opening of markets and shops 24/7 hours. It includes customer services and export of product by hand to hand which causes wastage of time and increased budget rate. Traditional business needs more and permanent employees and cash transfer while e-commerce business does not require permanent employees. E-commerce has decreased employee demand limiting it to online websites working through the internet.
Communication and coordination have been increased through the internet and decreased traditional payments. Though electronic cash facility is unavailable but soon in future it will also become available. Consumers have now connected to new technology and increased online shopping. Traditional business includes face-to-face meet up and mail systems while e-commerce includes internet technologies like the internet and World Wide Web. E-commerce has decreased overtime and supervision expenses.
E-commerce has enabled people to get connected on the internet and sell and buy globally. It has developed different Web technologies and replaced permanent employees. It has replaced traditional businesses developing countries are getting developed due to expanded network of electronic commerce business.