Customers want communication from the beginning of their experience. At present, electronic commerce over the Internet is relatively small but is growing very rapidly. The two businesses pass information electronically to each other. Providing customer services ; Businessmen can interact with their customers using the internet. He can use this feedback to improve the services and make them better. E-tailing includes some advantages to the consumer that no other form of retailing can provide. 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. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchange or direct physical contact. Consumers are con­cerned with the exposure of the data they provide/insert during transactions. Sell Everywhere – be Seen and be Shopped: Customer expectations for how and when they buy products have changed substantially over the past few years. Terms of Service 7. E-tailers can use previous transactions to identify the likelihood of products being pur­chased at certain price points. So, before you engage in e-commerce, it is important to be aware of its pros and cons. Keeping in touch with the customers also helps a business owner in the long run. Changing industry structures and electronic commerce systems allow for new business models, based on the wide availability of information and its direct distribution-to end customers. 3. These niche markets are not flooded by the big brands and respond well to content and online experiences directed specifically at them. 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. 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. 14 The various principles of e-commerce are as follows: 1. History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. Orders are also delivered to them at their most ideal locations. … The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc. Now, having to wait for hours for a certain store to open is not always convenient or desirable. Account Disable 12. For electronic commerce, IT expertise also needs to be joined with strong business applications skills, and therefore requires a flexible, multi-skilled works force. 3. 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. List of Pros of E-Commerce. 6. 12 Mobile Commerce in Europe reaches 25% Source: Twenga. Accessibility & easiness. There are many choices today for delivering high-quality customer service. Ecommerce web hosting is gaining swift popularity with every passing day as more and more people use the internet to shop and purchase things. E-Commerce - Security Systems - Security is an essential part of any transaction that takes place over the internet. 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. The web and its search engines provide a way to be found by customers without expensive advertising campaign. Business to Consumer e-commerce is where the consumer accesses the system of the supplier. 3. Your customers can make a purchase anywhere and anytime, especially more people are getting used to shopping on their mobile devices. E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. This is again a temporary issue as the evolution of the web continues. The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. They can discuss different issues about their products. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. 5. Going further than new ones, we also see new business models are new forms of intermediaries, or information brokers. 9 3 Technology and E-Commerce trends. Centralizing, this information digitally is therefore of significant value for customers. Once visitors are on your site, you need to keep them there and compel them to buy from you. These linkages support business organization in expansion of business. This happens between many systems based on individual user experience and the context of a particular customer interaction or order. However, as businesses grow, demands increase and you may need more space and bandwidth. Thus, placement can be designed based on the context of the previous purchases. In understanding the importance of e-commerce, many small SMEs have seen that their turnover increase sharply following their e-commerce business. Anyone can start an online business, which sometimes leads to scam and phishi… Amazon.com, Inc. is one of the most famous ecommerce companies and is located in Seattle, Washington (USA). 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. The Canadian e- Commerce site Wasabi even encourages buyers to submit any offers that they find through social and economic incentives. The most popular feature of the web site is the review system, i.e. Firms can offer their products and services with involvement of intermediaries. Try to find an office park that has a wide variety of spaces in different sizes. The examples are currently the directory providers or the search engines, such as Yahoo and Lycos, bidding sites like e-bay, Internet shopping, on line trading, online consultancy etc. 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. 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. 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. (viii) Use of public and private services. Producers and customers are not required to talk face to face or customers are not required to go to shops for buying products or services. It is about a new business concept that incorporates all previous business management and economic concepts. There are many individuals and agencies well equipped to take on your HR activities. Thus, the owner of the website gets a feedback. 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. 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. 13 Internet of Things . According to statistics, the most popular categories of products sold in the World Wide Web are music, books, computers, office supplies and other consumer electronics. Product Descriptions should include details that clearly state the specifications of your products. You can manage those activities in-house or outsource to a third party. If your current ecommerce hosting provider does not offer flexible plans, you may need to transfer your hosting account to another provider. E-commerce is at the heart of their businesses. The best of these shopping tools takes into account that buyers want to be entertained and pleased. Having a unique feature for your products or services makes you stand out … 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. They decide to focus on the sales, marketing, and customer service. Now they are in the driver’s seat. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. 6. 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. It was founded in 1994 by Jeff Bezos and was one of the first American e-commerce companies to sell products over the Internet. If your ecommerce platform is tightly integrated to your accounting system, you may have very little need for an in-house bookkeeper. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year. E-commerce is about much more than marketing or selling. (xii) Automatic trading of digital goods like games, learning material, songs and music etc. As … 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. Once your website is search engine optimized, you may drive loads of traffic to the website. Be sure to understand the costs involved and analyze the other options before moving forward. We did not trust preparation and fulfillment to an outside service. It allows you to operate business 24/7. 9. Uploader Agreement. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility. Information about prices, costs, and tariffs could be hidden from the customers to get the resultant profitable “information asymmetries” for the selling firm. 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. (adsbygoogle = window.adsbygoogle || []).push({});
, Application of E-commerce in Direct Marketing and Selling. We had no alternative for drop shipping, and most items were purchased in bulk and were very small. Commerce tries to satisfy increasing human wants Human wants are never ending. 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. This primer seeks to provide policy guidelines toward this end. 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. Customer loyalty becomes a bigger issue as there is a minimal direct customer-company interaction. Typically in the B2B environment, E-Commerce can be used in the following processes: (iii) Managing trading-partner relationships. When building your online brand, regardless of channel, remember that speedy checkout equates to happier buyers who are more likely to return and buy again. E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. 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. Most, if not all, developing countries are already participating in e-commerce, either as sellers or buyers. Apart from contingent skills needed to support electronic commerce transactions and applications, there will be a requirement of hardware and software professionals. It takes seconds to deliver digitized products and services electronically; similarly the time for processing orders can be reduced by more than 90 per cent from days to minutes. Like reservation in a hotel in a specific time period. 1. While this proved enticing and comfortable for some consumers and some types of products, there are some limitations that limited its growth further. The different legal and ethical issues that have arisen as a result of a global ‘virtual’ market. The key factor of Dell’s success is that Dell.com enables customers to choose and to control, i.e. E-tailing can be considered another form of non-store retailing. 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. Flexibility and speed. 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. These sites are usually some form of an auction site. 4. Additionally, sales can occur 24/7 since many companies do not shut down their website. Following are the marketing areas where we seek scope of e-commerce: (i) Marketing, sales and sales promotion. The above mentioned elements of ecommerce hosting are crucial to the success of any online business and thus should not be ignored. It is recognized that in the Information age, Internet commerce is a powerful tool in the economic growth of developing countries. 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. 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. E-commerce is playing an important part to market and advertise products all over the world. In India’s case, both these factors are poised to fall into place rapidly. This is only possible when the program is overall easy to understand and analyze. Prohibited Content 3. 4. Mobile devices are playing an increasing role in the mix of e-commerce, this is also commonly called mobile commerce, or m-commerce. You may choose to bring the resources in-house to manage those activities, but also evaluate outsourcing them. It is still a two way function but is usually done solely through the Internet. 4. Analysis, design and implementation of E-business systems within an organization; issues of integration of front-end and back-end systems. Simply put, because the world is moving more and more into the digital realm every day. In many cases, the demands of these niche markets are simply not being met by big brands. 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. Inability to experience products beforehand leads to more checkout dropouts. 2. According to statistics, approximately half of the company’s profit comes from the web site. E-commerce over the Internet greatly increases interactivity in the economy. 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. 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. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations. Library catalogues and shelves are filled with books and articles on the subject. This is no different when providing a delivery service. Thus, keep your expansion plans in mind while selecting a hosting company and make sure your provider offers flexible plans. 1. It also consists of the exchanging of data to facilitate the financing and payment aspects of business transactions. There has been and continues to be much publicity and discussion about e-commerce. Many ecommerce companies use outside services for vendor payments, payroll, and other basic accounting activities. 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). Online retail stores are not standardized in design in the way catalogs and retail stores (which use planograms for the same) have become. Whether it is website design, social media, search marketing, merchandising, email or other forms of advertising, it’s all about marketing. Launched in 1994 as a static page, Dell.com has made rapid strides, and by the end of 1997 was the first company to record a million dollars in online sales. Issues of on-line recruiting, home working and ‘intra- pruners’ working on a project by project basis replacing permanent employees. Due to the internet’s accessibility, millions of people across the world can … Cost effective:-E-commerce is one of the cheapest means of doing business. 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. Thus, choosing a hosting provider which offers 50% uptime would mean that you are allowing competitors to lure your customers. Inventory-based e-retailers are known the world over for running highly automated and efficient warehouses, bringing new benchmarks in this function. That’s the job of your marketing team. 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. 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 … This can be seen as an additional marketing channel, allowing reaching maximum number of customers the advantage of electronic commerce as way to deliver product information and its availability anytime, anywhere, provided the customer has right infrastructure to access the information. Shopping online is no exception. It is the e-commerce development that has made it possible to reduce the cost of promotion of products and services. Now business can be conducted at anywhere any place accessible to internet. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved. E-Commerce has given the facility of making online transactions. All the customers may not have access to the web, as they do to the postal system. Essay, Business, E-Commerce, Essay on E-Commerce. Through a direct, information rich and interactive contact with customers. The greatest advantage of e-commerce is the ability to provide secure purchase transactions through the Internet and together with the almost instantaneous verification and validation of credit card transactions. About 80% of e-commerce is of this type, and most experts predict that B2B ecommerce will continue to grow faster than the B2C segment. However, if the hosting servers are down most of the time, making your website search engine optimized would be in vain. 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