importance of e commerce in points

3. The consumer lists items for sale with a commercial auction site. 3. It allows for ease of comparison across broad product categories with the evolution of shopping bots and allows for more flexible pricing mechanisms that lead to dynamic pricing. 6. Select the best fulfillment option to meet your needs. Electronic commerce is generally considered to be the sales aspect of e-business. In 2008 Amazon penetrated into the cinema and is currently sponsoring the film “The Stolen Child” with 20th Century Fox. Decentralized Content Generation – Data from the Community: Buyers were once along for the ride in the e-Commerce process. Adaptability of e-commerce in small cities and village is very low due to non-availability of basic infrastructure. A key strategic challenge is for firms to integrate e-commerce across all the functional areas. Since that date thousands of businesses have taken up residence at web sites. According to all available data, ecommerce sales continued to grow in the next few years and, by the end of 2007, ecommerce sales accounted for 3.4 percent of total sales. The above mentioned elements of ecommerce hosting are crucial to the success of any online business and thus should not be ignored. Disclaimer 8. Many small-business owners avoid the human resources function. Production systems are integrated with finance marketing and other functional systems as well as with business partners and customers. Commerce tries to satisfy increasing human wants Human wants are never ending. Flexibility and speed. Simply put, because the world is moving more and more into the digital realm every day. 4. Just be sure to think through the impacts on both your staffing and your cash flow and bottom line before you move forward. The various principles of e-commerce are as follows: 1. It allows you to operate business 24/7. Customers are the most important factor in e-commerce businesses and therefore customer satisfaction must be the main priority in everything you do. E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. B2B is helpful in reduction in transaction costs and improvement of product quality and customer service and insistence by large businesses that all of their suppliers link into their e-commerce system as a condition of doing business. On-line banking; issues of transaction costs; accounting and auditing implications where ‘intangible’ assets and human capital must be tangibly valued in an increasingly knowledge based economy. 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 … 2. Also, the transaction cost is effectively less. The reason behind this lies in the fact that e-commerce technology is different and more powerful than any of the other technologies we have seen in the past century. (vii) The relatively low cost of labor, which implies that a shift to a comparatively capital intensive solution including investments on the improvement of the physical and network infrastructure is not apparent. 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. The importance of a website for search engine optimization (SEO) lays in the way that this marketing tactic works. Physical retail … According to statistics, approximately half of the company’s profit comes from the web site. Here, information asymmetry means any disparity in relevant market information among parties in a transaction. Anyone can start an online business, which sometimes leads to scam and phishi… E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. E-tailing includes some advantages to the consumer that no other form of retailing can provide. One of the areas in which it impacts particularly is direct marketing. Whether you choose to be more authoritative or democratic in your management style is up to you. Through a direct, information rich and interactive contact with customers. 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. Low Financial CostOne of the ecommerce benefits is that it has a lower startup cost. It also consists of the exchanging of data to facilitate the financing and payment aspects of business transactions. In addition, there is greater demand by final consumers for fast order fulfillment and the ability to track an order as it is being processed and delivered. Types of e-commerce. Information about prices, costs, and tariffs could be hidden from the customers to get the resultant profitable “information asymmetries” for the selling firm. Choosing to outsource the development and hosting will reduce your staffing costs, but you will incur higher costs for any future enhancements or changes to your websites. To succeed, your website must be found. The largest and most-successful e-commerce businesses have invested hugely over many years to develop their IT systems, business processes and capabilities. It is the e-commerce development that has made it possible to reduce the cost of promotion of products and services. on Importance of ECommerce And Function of E-Commerce? Saves time and cost:-E-commerce reduces delivery time and labor cost. 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. People generally use online stores because they are accessible at all times from anywhere in the world. Another key decision is whether you will manage your own inventory or outsource those activities to a fulfillment house or through drop shipping arrangements with your suppliers. People resist using e-commerce. 8. Privacy Policy 9. 2. The Long Tail principle of E-Commerce 2.0 is about being able to reach beyond the traditional prospect base and tap the potential of niche markets. E-tailers can use previous transactions to identify the likelihood of products being pur­chased at certain price points. Electronic commerce strategies are of primary value in markets where information is of significant added value to the products being brought, rather than in commodity markets. Centralizing, this information digitally is therefore of significant value for customers. When customers use the search engine to research products, services, brands, or even challenges, the search engine delivers a list of web pages relevant to these topics. Therefore, different user behaviors and patterns (navigation schemes) need to be observed for each online store. The e-business concept is wider than the e-commerce one and e-commerce is actually a part of e-business since it is a type of business model. Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. E-commerce provides on line customer care and support services. The foremost of these is the rise of a sizeable class of Internet-habituated consumers, and then is the creation of an ecosystem essential for e-tailing’s growth. (viii) Use of public and private services. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations. There are many choices today for delivering high-quality customer service. Web based Enterprise Resource Planning systems (ERP) can also be used to forward orders directly to designers and/or production floor within seconds, thus cutting production cycle times by up to 50 per cent, especially when manufacturing plants, engineers and designers are located in different countries. 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. … Even small online shops can reach global markets. 7. 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. Consumers were considered as passive targets of advertising (promotional) “campaigns,” and branding blitzes were intended to influence their long-term product perceptions (brand positioning) and immediate purchasing behavior. A customer-management system will make those activities easier, but for smaller companies it is not a requirement. E-Commerce - Security Systems - Security is an essential part of any transaction that takes place over the internet. The Addition of e-commerce in your company is interesting, since the web is an unlimited marketplace with potential clients connected around the world at any point of time. 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. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc. History of ecommerce is unthinkable without Amazon and E-bay which were among the first Internet companies to allow electronic transactions. Increase Your Reach. Business to Consumer e-commerce is where the consumer accesses the system of the supplier. We had no alternative for drop shipping, and most items were purchased in bulk and were very small. It is therefore instructive to compare e-tailing to catalog retailing to gain some insight into its potential impact. Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming. 1. The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. Essay on the Key Elements Supporting E-Commerce: Here are seven important infrastructure decisions that ecommerce businesses face: Of all the infrastructure elements, marketing may be the most important. All the customers may not have access to the web, as they do to the postal system. Business to Employee e-commerce is growing in use it is in practice in business like pharmacy marketing, supply chain management, insurance, IT companies etc. Top Performers in the Market: Business Intelligence analyzes the Most profitable advertising campaigns, customers, segments and products based on data and gives the E-commerce business a … Providing customer services ; Businessmen can interact with their customers using the internet. Low Financial CostOne of the ecommerce benefits is that it has a lower startup cost. E-commerce over the Internet greatly increases interactivity in the economy. By the end of 2001, the largest form of ecommerce, Business-to- Business (B2B) model, had around $700 billion in transactions. Among the areas for policy interventions are: (i) High Internet access costs, including connection service fees, communication fees, and hosting charges for websites with sufficient bandwidth; (ii) Limited availability of credit cards and a nationwide credit card system; (iii) Underdeveloped transportation infrastructure resulting in slow and uncertain delivery of goods and services; (iv) Network security problems and insufficient security safeguards; (v) Lack of skilled human resources and key technologies; (vi) Content restriction on national security and other public policy grounds, which greatly affect business in the field of information services, such as the media and entertainment sectors; (vi) Cross-border issues, such as the recognition of transactions under laws of other ASEAN member-countries, certification services, improvement of delivery methods and customs facilitation; and. 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. Information exchange was constraint in transnational business but e-commerce provides facilities to MNCs and global organizations to transfer real time information to employees, stake holders and customers. However, as businesses grow, demands increase and you may need more space and bandwidth. 4. In fact, with the sophistication and speed of online shopping tools, consumers are spending more and more on E-Tailer sites. 4. To express in a simple way an e-commerce loyalty program is a powerful way to increase conversions. They are now able to develop services for individual clients rather than provide a standard service. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility. The largest business-to-consumer e-commerce involves intangible product that can be delivered directly to the consumer’s computer cover the network is composed of five broad categories-entertainment, travel newspaper/magazines, financial services, and e-mail. 14 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. Inventory-based e-retailers are known the world over for running highly automated and efficient warehouses, bringing new benchmarks in this function. While this proved enticing and comfortable for some consumers and some types of products, there are some limitations that limited its growth further. However, if the hosting servers are down most of the time, making your website search engine optimized would be in vain. The intranet is usually access through the organizations network, it can and is often extended to an entrant which uses the Internet but restricts uses by sign on and password. Amazon.com is also well-known for its clear and user-friendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database. Sell Everywhere – be Seen and be Shopped: Customer expectations for how and when they buy products have changed substantially over the past few years. A website which is easy to browse for products and services is generally liked by customers. Now they are in the driver’s seat. Try to find an office park that has a wide variety of spaces in different sizes. 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. 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