importance of e commerce in points
Understanding exactly what they are can help you leverage them to your advantage: 1. Currently there are 5 largest and most famous worldwide internet retailers- Amazon, Dell, Staples, Office Depot and Hewlett Packard. 4. The use of popular websites can be an effective way of introducing a product to the customers. This allows them to maintain a focus on growing their businesses, instead of paying an internal accountant or doing that work you as the business owner. Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. Saves time and cost:-E-commerce reduces delivery time and labor cost. B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. 3. To express in a simple way an e-commerce loyalty program is a powerful way to increase conversions. E-commerce over the Internet greatly increases interactivity in the economy. This happens between many systems based on individual user experience and the context of a particular customer interaction or order. Terms of Service 7. You may need to adjust your approach as your business evolves. Many small-business owners avoid the human resources function. With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy approach enables small and medium scale enterprises to compete with large and capital-rich businesses. E-commerce has challenged much of these traditional retail business norms, assumptions, and behavior. The ability to provide online answers to problems, through resolution guides, archives of company encountered problems, electronic mail interaction, in the future audio and video support and all that 24 hours a day, 365 days a year, builds customer confidence and retention. Account Disable 12. Thus, the web creates a global bazaar-style marketplace that brings together many consumers and many retailers and sellers. Customers will lose his/her faith in e-business if its security is compromi ... Card Holder's Digital Wallet Software − Digital Wallet allows the card holder to make secure purchases online via point … 8. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. The best of these shopping tools takes into account that buyers want to be entertained and pleased. Ecommerce refers to the paperless exchange of business information using the following ways − Web technology also allows to track customer preferences and to deliver individually-tailored marketing. The site then provides a connection between the seller and buyer to complete the transaction. If you drop ship or outsource fulfillment, you may be able to do that for a long period of time. Even when you grow to have many employees, you can set up your offices in class B or C space, as you have no need for a fancy store in the right location. If you use separate systems for your website, order management and accounting, you may require more help for data entry and making sure that the information is properly managed. E-Commerce - Security Systems - Security is an essential part of any transaction that takes place over the internet. Multidirectional approach of e-commerce has created new sales channels by which firms can directly reach to customers, suppliers, and stake holders, considering electronic commerce and in particular the World Wide Web, as a sales channel makes sense for two kinds of products- Physical products sometimes also sold in conventional stores, which can be advertised and for ordered online, such as computer hardware or wine, products which can additionally be delivered over the electronic commerce medium, such as information or software. This is the type of e-commerce that deals with relationships between and among businesses. Since an online store is such an important part of the business, you may need to put in a lot of time and effort while selecting your ecommerce hosting company. However, if your hosting company does not provide maximum uptime, your online store may not be available to customers hence forcing them to purchase from your competitors. 2. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. 2. No guarantee of product quality. The above mentioned elements of ecommerce hosting are crucial to the success of any online business and thus should not be ignored. 9. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, Electronic Data Interchange (EDI), inventory management systems, and automated data collection systems. Catalog retailing still claims a significant part of all retail transactions pie. Many times, trust deficit, security, and privacy concerns prevail. This is particularly the case for multi or omnichannel businesses. The integration of Information and Communications Technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. An e-commerce website also allows customers to post their comments regarding products and services. E-Commerce 2.0 is about collecting and managing data from all online channels to enable better business decisions. Now they are in the driver’s seat. Having a unique feature for your products or services makes you stand out … Anyone can start an online business, which sometimes leads to scam and phishi… In the past, EDI was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. A Larger Market. The role of technology in learning about customers is its ability to record every event in the relationship, such as customers asking for information about a product, buying one, requesting customer service, etc. With web search capabilities (which need further development), it is easier to find the different types and varieties of goods a customer is searching for. Most small ecommerce businesses outsource some element of marketing. Also, the transaction cost is effectively less. By using a SaaS platform, you will not need to host or manage the system in-house, but you may still need web developers on staff. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the necessary human capital skills to make the most of these opportunities through an e-business strategy that is simple, workable and practicable within the context of a global information milieu and new economic environment. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc. Data is King-Collect a Wealth of Opportunities: Gone are the days of looking at purely operational reports. It is still a two way function but is usually done solely through the Internet. You may be able to start in a smaller space and move up to a larger one without penalty, as your needs change. The different legal and ethical issues that have arisen as a result of a global ‘virtual’ market. History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. Mobile devices are playing an increasing role in the mix of e-commerce, this is also commonly called mobile commerce, or m-commerce. Electronic commerce, commonly known as e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks. The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. 4. Thus, choosing a hosting provider which offers 50% uptime would mean that you are allowing competitors to lure your customers. E-Commerce has given the facility of making online transactions. Multi-channel selling was once limited to managing direct sales, a call centre, a website, and possibly a partner channel. Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. These new channels include additional branded websites, various online marketplaces (such as eBay, Amazon.com, Overstock.com and others), and online shopping comparison engines (such as Shopping.com, PriceGrabber.com and others). But choose a style and stay consistent. Essays, Research Papers and Articles on Business Management, Personal Selling: Meaning, Advantages and Limitations, 8 Examples of E-Commerce around the World | Global Trade, Customer Relationship Management (CRM) and Internet, Advantages and Limitations of Advertising, Relationship between Manufacturer and Distributors, Advantages and Disadvantages of Franchising. However, this is premised on strong political will and good governance, as well as on a responsible and supportive private sector within an effective policy framework. However, there remains a sense of confusion, suspicion and misunderstanding surrounding the area, which has been exacerbated by the different contexts in which electronic commerce is used, coupled with the myriad related buzzwords and acronyms. E-tailing includes some advantages to the consumer that no other form of retailing can provide. Thus, placement can be designed based on the context of the previous purchases. If your ecommerce platform is tightly integrated to your accounting system, you may have very little need for an in-house bookkeeper. There is high scope of e-commerce in each aspect of business, at present it is in the embryonic stage but in future e-commerce would be the part of day to day activity of business firms. Many ecommerce companies use outside services for vendor payments, payroll, and other basic accounting activities. To succeed, your website must be found. Cheaper than Traditional Business: Electronic business is much cheaper than traditional business. Other consumers access the site and place bids on the items. If you build and host your own system, you may need more cash up front and skilled administrators and developers on your staff. 3. Forums like YouTube and MySpace underscore how content created by consumers has become a viable and valuable part of the promotional and sales cycle for retailers. This is only possible when the program is overall easy to understand and analyze. It allowed customers to shop from home, when they wanted, at their own convenience. The consumer lists items for sale with a commercial auction site. It is an integral part of any book or manuscript that is written on retailing, and it claims a significant share in this text also. Essay, Business, E-Commerce, Essay on E-Commerce. However, as businesses grow, demands increase and you may need more space and bandwidth. Production systems are integrated with finance marketing and other functional systems as well as with business partners and customers. An intranet is a web site developed to provide employees of an organization with information. While there are indications of e-commerce patronage among large firms in developing countries, there seems to be little and negligible use of the Internet for commerce among small and medium sized firms. Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming. In India’s case, both these factors are poised to fall into place rapidly. This is an essential element especially during peak times as you may need immediate technical help for your online store in order to deal with certain website issues. Physical retail … Likewise, many pectoral trends already under way, such as electronic banking, direct booking of travel, and one-to-one marketing, will be accelerated because of electronic commerce. Providing customer services ; Businessmen can interact with their customers using the internet. In 2008 Amazon penetrated into the cinema and is currently sponsoring the film “The Stolen Child” with 20th Century Fox. Prohibited Content 3. Like reservation in a hotel in a specific time period. Disclaimer 8. As … Monitoring how customers use this support information also provides insights on improvement areas in current products and the list of issues encountered with products can be significant source of product feedback for the design of new products. It is therefore instructive to compare e-tailing to catalog retailing to gain some insight into its potential impact. So, before you engage in e-commerce, it is important to be aware of its pros and cons. INTRODUCTION TO E-COMMERCE in E-Commerce Concepts - INTRODUCTION TO E-COMMERCE in E-Commerce Concepts courses with reference manuals and examples pdf. Sell Everywhere – be Seen and be Shopped: Customer expectations for how and when they buy products have changed substantially over the past few years. The two businesses pass information electronically to each other. There has been and continues to be much publicity and discussion about e-commerce. Catalog retailing, which evolved over a century ago, grew rapidly in its early stages (similar to e-tailing), and it was assumed to become a very important part of the overall retailing environment and market. Accessibility & easiness. E-commerce is a technology driven activity which require an infrastructure that supports the seamless location, transfer, and integration of business information in a secure and reliable manner. Amazon is one of the first ecommerce businesses to establish an affiliate marketing program, and nowadays the company gets about 40% of its sales from affiliates and third party sellers who list and sell goods on the web site. They can discuss different issues about their products. Selling was conducted in typical well-insulated “channels.” Consumers were viewed to be trapped by geographical and social boundaries, unable to search widely for the alternatives with best price and quality. Keeping in touch with the customers also helps a business owner in the long run. Even traditional brick and mortar businesses are also looking for options to make their products and services available online so as to increase the customer base by allowing geographically dispersed customers to access their online store. Technical Expertise and Customer Support: Another key element of ecommerce hosting is technical expertise of the hosting provider. A key strategic challenge is for firms to integrate e-commerce across all the functional areas. Customers can execute transactions/put orders via the same medium the information is provided, so there is no disconnect between the desire to purchase and the ability to purchase. Throughout all these interactions, either over the phone, in person or online, the needs of the customer are identified and will feed future marketing efforts. Discovering product opportunities relies on being able to define business objectives carefully, identify related key performance indicators (KPIs) and receive continual data to act on it. Seeing how many listings you have in a marketplace is fine, but it does not tell you how you compare to other E-Tailers, what your performance is like over time, or what other channels may be more profitable. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. Simply put, because the world is moving more and more into the digital realm every day. Cost effective:-E-commerce is one of the cheapest means of doing business. According to marketing research firm Coleman Parkes, 21-40% of a business’s contributions are a direct result of e-Commerce and that number is expected to grow rapidly over the coming years. 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