The term e-commerce also known as electronic commerce is considered to be a new hub in doing business where provides a great deal of convenience not only to customers but also the company since it minimize cost. With the aid of telecommunication, internet and information technology it really is a sure way of reaching target audience and an effective tool in conducting business. The domains of e-commerce encompasses all business-to-business (B-to-B) and business-to-customer (B-to-C) transactions that engages the buying and selling of goods and services through an innovative medium of communication.
Historically, e-commerce evolved from electronic data interchange (EDI) which facilitates electronic exchange of business documents in grocery and transportation industries in the 1970s. The most common internet business model is the mail-order model where a web site shop is established to sell physical goods that are then posted or delivered wherein the scheme of payment can be made via the internet.
In all these views, e-commerce plays a critical role in the strategy of global competition where companies reap the biggest benefits. Thus, it develops entirely the new business capacities of a company. E-commerce as the perfect tool paired with the internet is tantamount to profitability in any company.
The future of electronic commerce depends on meeting challenges in wireless technology and security. Currently, the future of e-commerce is so bright such that people are getting hooked with the technology driven gadgets and innovations in the nature of doing business. The revenue of e-commerce continuously has gone up and is expected to rise in the years to come because of the continuing efforts put up by company in the event of providing customers with great extent of satisfaction and convenience. Moreover, the number of internet users is rapidly increasing all over the world. Eighty percent said they would increase their online shopping in 2000 (, 2000). Studies have found that online shopping of consumer reaches at a high level because of positive comments from friends (the word-of-mouth referrals), better selection and the satisfying services they get from online shopping. The company in turn, spends more money on retaining customers through e-commerce than in advertising ( 2000).
On the contrary, some analyst believed that e-commerce is heading a fall despite the fact of the increasing sales in the online market. (2003) believes that net consumers are very different than mall shoppers and catalog shoppers. Accordingly, says that e-commerce is a fickle world with little, if any, customer loyalty ( 100). In fact, claims that thirty-four percent of online shoppers described themselves as comparison shoppers since they are considered as price-sensitive customers, whereas only eight percent of traditional shoppers have described themselves as comparison shoppers.
Whether or not e-commerce will continue to be demanding and a necessity in the future, the fact remains that there is an increasing need in the use of e-commerce especially for those in the business sector who are doing their businesses in the global market and may be used as a powerful tool for a potent expansion of any company if they will succeed in the use of e-commerce.
The development of new applications in the use of e-commerce is prevalent. E-commerce firms continue their quest in making innovative means of catering the fast-changing world of electronic commerce dealings. The twentieth century proves to be a cradle of making new technology. Ten years from now, perhaps, will be another innovation of technology and another alternative for online consumer to indulge into. But as for now, the most popular means of online dealings is the pervasive e-commerce.
Wireless technology is the next big thing to crash into the world of technology. But its reliability has not been really proven yet and that it still has minor setbacks. In Japan, the use of wireless technology such as mobile phones can already be a gadget for retail transactions. For example, they use can now use their mobile phones to purchase products from a vendo machine. It may or not contribute to the development of e-commerce since currently; there is no way of telling if people have the buying power to venture into these wireless technologies and it is to no assurance for companies that venturing into these wireless technology would mean profit for them. Wireless technology has a very strong potential of making into the market and a promising tool for the future.
For now, e-commerce has earned its reputation as an effective means of new marketing strategies, convenience to the consumers and an alternative for business to minimize cost in business transactions.
References:
Credit:ivythesis.typepad.com
0 comments:
Post a Comment