Customers want communication from the beginning of their experience. 10. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices. The importance of trade and commerce are mentioned in following points :- 1. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved. A word of advice is to keep your options flexible. It was founded in 1994 by Jeff Bezos and was one of the first American e-commerce companies to sell products over the Internet. List of Pros of E-Commerce. (xiii) Accounting and financial management. Also, ensure the customer support is available 24/7 via live chat, email and phone to assist clients in solving issues. Customers can compare prices with a click of the mouse and buy the selected product at best prices. 1. They are now able to develop services for individual clients rather than provide a standard service. E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc. At this time the meaning of the word ecommerce was changed. A key competitive advantage that ecommerce businesses have over brick-and-mortar stores is the investment in their physical offices and warehouses. It also consists of the exchanging of data to facilitate the financing and payment aspects of business transactions. 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. Product placement- E-tailers can change the product placement (user display) based on previous transactions, to increase the visibility of goods that the user is more likely to purchase based on their close relationship with previous purchases. Understanding exactly what they are can help you leverage them to your advantage: 1. E-business allows companies to reach more consumers in a much broader economic market. Therefore, it is necessary to bring your website at the top in terms of search engine results. Content Filtration 6. It is recognized that in the Information age, Internet commerce is a powerful tool in the economic growth of developing countries. Be sure to understand the costs involved and analyze the other options before moving forward. The special advantages of e-commerce like, Opportunity to operations, easy global reach, lower cost of acquiring, serving and retaining customers, easy to build an extended enterprise, improve customer service and de-intermediation tempt the world business community to adopt e-commerce. So, before you engage in e-commerce, it is important to be aware of its pros and cons. Ease of use may be an issue, as the web design may appear to be complex for some users or at sometimes a bit chaotic. In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500 list and 8th on its annual Top 20 list of the most successful and admired companies in the USA in recognition of the company’s business model. E-commerce promises better business for SME’s and sustainable economic development for developing countries. Ecommerce web hosting is gaining swift popularity with every passing day as more and more people use the internet to shop and purchase things. on Importance of ECommerce And Function of E-Commerce? Entertainment, online games, music and video, is the largest category of products sold to consumers. 3. 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. 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. Now, having to wait for hours for a certain store to open is not always convenient or desirable. 1. No guarantee of product quality. 9. Following are the key elements of ecommerce hosting: You need to bear in mind that while making online sales, you will have access to the credit card information of many clients and such information is very sensitive. 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. 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. 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. The use of popular websites can be an effective way of introducing a product to the customers. There are four important functions of e-commerce:-, World TB Day 2021 : Theme, Date, History, Celebration, World Meteorological Day : 23 March 2021 Theme,Date,Information, World Water Day 2021 : Theme, Date,Celebration,Slogans, Republic Day Slogan 2021 – 40 Slogans on Republic Day in English, World Forestry Day 2021 : International Day of Forests 2021, International Day for the Elimination of Racial Discrimination 2021, March 18 : Ordnance Factories’ Day – Ordnance Factory 2021, World Kidney Day 2021 : History, Theme, Objective, Dandi March Day 2021 | Salt Satyagraha | Salt March | Indian Independence Movement. Cost effective:-E-commerce is one of the cheapest means of doing business. Integration is nothing new, but what is new is how dynamically these integrations need to be initiated, modified, and used. 14 Companies can sell goods and services to national and international markets through the use of a website. Before uploading and sharing your knowledge on this site, please read the following pages: 1. The integration of Information and Communications Technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Types of e-commerce. You may need to adjust your approach as your business evolves. This is especially true for the business-to-consumer segment, where people concerns about security of payment, potentially fraudulent merchants, privacy of personal data, etc. E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. Library catalogues and shelves are filled with books and articles on the subject. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchange or direct physical contact. Therefore, different user behaviors and patterns (navigation schemes) need to be observed for each online store. Increase Your Reach. Online vendors, in their turn, also get distinct advantages. E-Commerce - Security Systems - Security is an essential part of any transaction that takes place over the internet. When the product cannot be physically examined, traditional commerce has no advantage over the convenience of electronic commerce. They can discuss different issues about their products. Thus, placement can be designed based on the context of the previous purchases. 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. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars. Why is e-Commerce such an important part of today’s world? The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. The site then provides a connection between the seller and buyer to complete the transaction. There are pros and cons to any approach. The importance of a website for search engine optimization (SEO) lays in the way that this marketing tactic works. The original name of the company was Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename his business “Amazon” after the world’s most voluminous river. Basic customer service for sales and post- sales activities can be handled using email, and by providing an 800 number for more extensive phone support. Other consumers access the site and place bids on the items. 4. Just be sure to think through the impacts on both your staffing and your cash flow and bottom line before you move forward. To succeed, your website must be found. 1. E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. 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 … 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. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. While some E-Tailers are frightened by the perceived loss of control over content being published, these new avenues of data acquisition greatly increase the richness and diversity of information available, ultimately helping the buyer make better decisions. Traditional intermediary functions will be replaced, new products and markets will be developed, and new and far closer relationships will be created between business and consumers. While these other technologies transformed economic life in the 20th century, the evolving Internet and other ITs will shape the 21st century in many ways. Personalized Shopping – Make it Fun to Shop and Easy to Buy: Shopping has long been considered a recreational activity by many. Uploader Agreement. Business to Consumer e-commerce is where the consumer accesses the system of the supplier. 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. 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. 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. 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. This is the type of e-commerce that deals with relationships between and among businesses. Simply put, because the world is moving more and more into the digital realm every day. Cheaper than Traditional Business: Electronic business is much cheaper than traditional business. Product Descriptions should include details that clearly state the specifications of your products. Electronic Commerce is enabling the customer to have an increasing say in what products are made, how products are made and how services are delivered (movement from a slow order fulfillment process with little understanding of what is taking place inside the firm, to a faster and rt1ore open process with customers having greater control. Although the company’s main headquarters is located in the USA, WA, Amazon has set up separate websites in other economically developed countries such as the United Kingdom, Canada, France, Germany, Japan, and China. Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. … Data is King-Collect a Wealth of Opportunities: Gone are the days of looking at purely operational reports. E-Commerce 2.0 is about collecting and managing data from all online channels to enable better business decisions. This significant impact has led to a greater number of customers to exploit various fields of electronic commerce for their benefits. With so much competition, many online merchants have adapted by discovering new methods and tools that target specific niche markets. It is still a two way function but is usually done solely through the Internet. 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. To express in a simple way an e-commerce loyalty program is a powerful way to increase conversions. An e-commerce website also allows customers to post their comments regarding products and services. At present, electronic commerce over the Internet is relatively small but is growing very rapidly. If you drop ship or outsource fulfillment, you may be able to do that for a long period of time. The most popular feature of the web site is the review system, i.e. Customers have a much wider choice at their fingertips (many e-tail sites, etc.). Customers are the most important factor in e-commerce businesses and therefore customer satisfaction must be the main priority in everything you do. INTRODUCTION TO E-COMMERCE in E-Commerce Concepts - INTRODUCTION TO E-COMMERCE in E-Commerce Concepts courses with reference manuals and examples pdf. A Larger Market. 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. B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. 12 Mobile Commerce in Europe reaches 25% Source: Twenga. It’s the best shopping option for people who are always busy.2. In understanding the importance of e-commerce, many small SMEs have seen that their turnover increase sharply following their e-commerce business. They decide to focus on the sales, marketing, and customer service. 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. Accessibility & easiness. 6. Electronic commerce will cause changes in the mix of skills required, driving demand for information technology professionals. On e-commerce particular it is importance of e commerce in points, whether you have 3 or 100.. Customer service help you leverage them to buy: shopping has long considered... 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