E-Commerce
Introduction
Sometimes referred to as internet commerce or electronic commerce, e-commerce is the selling and buying of goods and services via the internet in addition to the transfer of data and money to execute these transactions. Therefore, it refers to the sale of tangible products online or rather any type of commercial transaction facilitated on the internet (LAKSHMI, Head & Phil, 2018). In Business Application, E-commerce systems tend to draw on technologies in relation to electronic funds transfer, online transaction processing, supply chain management, and automated data collection. E-commerce business applications have often aided the Company’s interaction with customers on the web as well as performing tasks relative to meeting consumer needs. Global trends of e-commerce systems as per the information provided by the Global E-commerce Market by the end of 2020 will have rise to 16% equivalent to $4.2 billion (Laudon & Traver, 2016). Continued major players include AR which enhances online shopping reality, the volume of voice search growth, and on-site personalization creating individual experiences. The rest of the essay focuses on the impact of e-commerce systems on markets and retailers, supply chain management, employment, customers, environment, and traditional retail.
Impact of E-commerce on;
- Markets and Retailers
In the markets, e-commerce aids in the promotion of products as information is distributed directly to different customers. It, therefore, reduces offline promotion costs since customers interact online. It also enhances customer services considering how it allows them to search for in-depth information on the marketplace or products sold. New businesses also have sold affordable products from created brands on the internet with pleasant images. Besides that, customized products are made available based on customers’ needs on the internet, and that results to order making processes considering how intermediaries are presented online. In the long run, markets make big values based on the obtained long-term interest of customers.
On the other hand, e-commerce adversely affects the retailers as they experience turnovers coming from offline retailers and that serves as a warning sign to the enterprise. And, with the arrival of online shops, e-commerce has facilitated profit margins especially for offline retailers to law pricing (LAKSHMI, Head & Phil, 2018). To survive in the markets, retailers are expected to introduce low prices while selling their products which bring in concerns on operational costs. A variety of stocks incorporated by online stores has brought a challenge to offline retailers who can’t compete leading to a huge loss.
- Supply Chain Management
E-commerce has a great impact on the supply chain relationship via technology initiated. Its technology facilitates information visibility all through the supply chain. There is better management of supply chain as opposed to discrete portions and that improves streamline supply chain services, data accuracy, acceleration in business cycles, and reduction on overall costs. That also leads to customer enhancement. Generally, e-commerce is the fulfillment process and that allows transportation companies to electronically exchange documents (Schöder, 2016). Also, e-commerce impacts on demand patterns as globalization and technology become intertwined to it. Businesses end up increasing connectivity and boost their sales transaction speeds. E-commerce in the aspect of supply chain management has also transformed logistics as there is more room for buffer stock, individual picking and packing, and shipping.
- Employment
E-commerce raises pays and creates jobs worldwide. In superstar companies like General Motors, Ford, General Electric, Bethlehem Steel, and DuPont among others have proven how e-commerce creates employment. New jobs have been generated especially in the information and technologies departments and, with increased demand and productivity; there is an indirect creation of jobs depending on specific skills (Biagi & Falk,2017). Evidence from the European Union and the United States of America as per information provided in 2019 reveals that ICT employments will often increase in addition to finance and commerce related jobs with net employment gains and losses depending on the demand for particular skills.
- Customers
Electronic commerce changes the behavior of customers as they can comfortably discover new commodities, locate products, and compare prices and manage and create shopping lists. That also adds to the reviewed purchases which build their confidence on where to get their products from particularly. In the long run, customers have turned out with personalized experiences based on the e-commerce progression of seamless shopping. For customers generally, e-commerce has lead to increased social activities on great shopping experiences based on guides of purchasing decisions. Customers have an opportunity for online reviews from complete strange markets on brand perceptions and ratings.
- Environment
E-commerce has a basis for the environment as it incorporates communication, information, and transportation technologies. The internet is believed to have created an economic ecosystem in the marketplace. As it becomes the virtual street of the world which provides a convenient and quick way of transactions, it has brought various environmental implications after several decades of development. BRICI nations in 2009 provided an approximation of 610 billion to be internet users (Schöder, 2016). It has raised positive and overwhelming challenges for human society, scientists, and policymakers. The Internet provides unique strategies to improve the environment through the United Nations Environmental Programme. Citizens can understand various forms of emissions causing pollution and how to eradicate them. On the other hand, e-commerce tends to fasten fuel consumption, transportation modes as it generally focuses on three aspects of resources, pollution, and energy. It has an impact on global warming, greenhouse gas emission, and corporate environmental management; challenges their method of operation and conception of sustainability.
- Traditional Retail
E-commerce permits online payment and trading and that pulls in potential customers. It tends to eliminate geographical limitations and time constraints. On the other hand, it is saved on cost, increase online visibility, and the facilitation of online-based marketing approaches. Such advantages are indeed replacing traditional retail as via search engine visibility; it can gain several customers (Linzbach, Inman & Nikolova, 2019). Even as traditional retail is believed to have various advantages like getting away with scammers and hackers, e-commerce is replacing it based on abundant information initiated on it. It not only provides comparison shopping as it allows customers to locate products quicker, but it also eliminates travel time and cost.
In conclusion, e-commerce history came up with the invention of the telephone as an electronic data interchange at the end of the last century. E-commerce has various social and economic impacts starting with the development of business relationships since it’s the primary object and promotion of better customer services via online interaction. Indeed, it posses various features such as technology-enabled, mediated, universality, and intercommunication. It, therefore, serves as one of the great online platforms in delivering information to customers and electronic completion of business processes.
References
Biagi, F., & Falk, M. (2017). The impact of ICT and e-commerce on employment in Europe. Journal of Policy Modeling, 39(1), 1-18.
LAKSHMI, K. D., Head, P. G., & Phil, M. (2018). E-COMMERCE AND ITS IMPACT ON MARKETS AND RETAILERS. IJRAR-International Journal of Research and Analytical Reviews (IJRAR), 5(3), 234-239.
Laudon, K. C., & Traver, C. G. (2016). E-commerce: business, technology, society.
Linzbach, P., Inman, J. J., & Nikolova, H. (2019). E-Commerce in a physical store: which retailing technologies add real value?. NIM Marketing Intelligence Review, 11(1), 42-47.
Schöder, D. (2016). The impact of e-commerce development on urban logistics sustainability. Open Journal of Social Sciences, 4(03), 1.