Production systems are integrated with finance marketing and other functional systems as well as with business partners and customers. Why is e-Commerce such an important part of today’s world? According to statistics, approximately half of the company’s profit comes from the web site. In the past, the obvious strategy was to find the bulk of the market and then mass market to them. They can discuss different issues about their products. As with other business operations, you will need to decide if you want to manage your finance and administration activities in-house, outsource, or a hybrid of the two. Content Guidelines 2. 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. 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). 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. Like reservation in a hotel in a specific time period. This form of e-commerce is more commonly known as an ‘Intranet’. History of ecommerce is a history of a new, virtual world which is evolving according to the customer advantage. Orders are also delivered to them at their most ideal locations. INTRODUCTION TO E-COMMERCE in E-Commerce Concepts - INTRODUCTION TO E-COMMERCE in E-Commerce Concepts courses with reference manuals and examples pdf. This significant impact has led to a greater number of customers to exploit various fields of electronic commerce for their benefits. With E-Commerce 2.0, this has been expanded and refined to include various online channels. The name of the game is strategic positioning, the ability of a company to determine emerging opportunities and utilize the necessary human capital skills to make the most of these opportunities through an e-business strategy that is simple, workable and practicable within the context of a global information milieu and new economic environment. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. 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. Web technology also allows to track customer preferences and to deliver individually-tailored marketing. 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. Availability is another important benefit of having an e-commerce website. Live chat will impact your operations as someone needs to be available during specified hours of operation. E-commerce is playing an important part to market and advertise products all over the world. In 2012, e-commerce sales topped $1 trillion for the first time in history. Report a Violation 11. Mobile devices are playing an increasing role in the mix of e-commerce, this is also commonly called mobile commerce, or m-commerce. Firms can offer their products and services with involvement of intermediaries. They decide to focus on the sales, marketing, and customer service. Since that date thousands of businesses have taken up residence at web sites. Accessibility & easiness. 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. 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. 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. 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 … E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. Content Filtration 6. It impacts significantly on all the functional areas of a business. 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. Companies can sell goods and services to national and international markets through the use of a website. There are pros and cons to any approach. Thus, keep your expansion plans in mind while selecting a hosting company and make sure your provider offers flexible plans. Customers are the most important factor in e-commerce businesses and therefore customer satisfaction must be the main priority in everything you do. Providing customer services ; Businessmen can interact with their customers using the internet. Typically in the B2B environment, E-Commerce can be used in the following processes: (iii) Managing trading-partner relationships. 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. With so much competition, many online merchants have adapted by discovering new methods and tools that target specific niche markets. Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming. Allows for product and price comparison: Again, when making purchases, customers want to get the best deals. (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. It is recognized that in the Information age, Internet commerce is a powerful tool in the economic growth of developing countries. 6. Online retail stores are not standardized in design in the way catalogs and retail stores (which use planograms for the same) have become. (iv) Commercial transactions – ordering, delivery, payment. Thus it saves the time of both the vendor and the consumer. These linkages support business organization in expansion of business. Consumer to Business is a growing area where the consumer requests a specific service from the business. Account Disable 12. Now they are in the driver’s seat. E-commerce is at the heart of their businesses. Importance of ECommerce:- E-commerce refers to a wide of online business activities for products and services. Following are the marketing areas where we seek scope of e-commerce: (i) Marketing, sales and sales promotion. Development of different network and computing technologies and languages to support e-commerce and e-business, for example linking front and back office legacy systems with the ‘web based’ technology. This is giving benefit to marketers who provide products with real (perceived) value and consumers in general. Entertainment, online games, music and video, is the largest category of products sold to consumers. On the administration side, you need a leadership team and provide direction to them. 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. Increase Your Reach. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchange or direct physical contact. 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. This is an essential element especially during peak times as you may need immediate technical help for your online store in order to deal with certain website issues. At this time the meaning of the word ecommerce was changed. 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. 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. Although the dot-com collapse in 2000 led to unfortunate results and many of ecommerce companies disappeared, the “brick and mortar” retailers recognized the advantages of electronic commerce and began to add such capabilities to their web sites (e.g., after the online grocery store Webvan came to ruin, two supermarket chains, Albertsons and Safeway, began to use ecommerce to enable their customers to buy groceries online). Prohibited Content 3. A Larger Market. The site then provides a connection between the seller and buyer to complete the transaction. The importance of trade and commerce are mentioned in following points :- 1. 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. Technical Expertise and Customer Support: Another key element of ecommerce hosting is technical expertise of the hosting provider. While this proved enticing and comfortable for some consumers and some types of products, there are some limitations that limited its growth further. In this modern world, people would want to receive what they want anytime. It is about a new business concept that incorporates all previous business management and economic concepts. All the customers may not have access to the web, as they do to the postal system. 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. There has been and continues to be much publicity and discussion about e-commerce. A customer-management system will make those activities easier, but for smaller companies it is not a requirement. 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. 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. E-tailing can be considered another form of non-store retailing. An e-commerce website also allows customers to post their comments regarding products and services. Buyers are just as in the brick-and-mortar world do not like long checkout processes. If you are a startup business your business demands might not be as high as those of large businesses and you may opt for an ecommerce plan which fulfills your immediate hosting needs. At present, electronic commerce over the Internet is relatively small but is growing very rapidly. 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. Since an online store is such an important part of the business, you may need to put in a lot of time and effort while selecting your ecommerce hosting company. E-tailers can use price discrimination more efficiently than other retailers. The impact of on-line processing has led to reduced cycle times. 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. Thus, the web creates a global bazaar-style marketplace that brings together many consumers and many retailers and sellers. 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. (adsbygoogle = window.adsbygoogle || []).push({});
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Plagiarism Prevention 5. Going further than new ones, we also see new business models are new forms of intermediaries, or information brokers. It is still a two way function but is usually done solely through the Internet. 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. Most, if not all, developing countries are already participating in e-commerce, either as sellers or buyers. 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. 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. (xiii) Accounting and financial management. He can use this feedback to improve the services and make them better. E-commerce has challenged much of these traditional retail business norms, assumptions, and behavior. 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. 4. It is the e-commerce development that has made it possible to reduce the cost of promotion of products and services. The two businesses pass information electronically to each other. Types of e-commerce. The cost taken to set up an e-business is much higher than the cost required to set up a traditional business. As such, e-business and e-commerce impact on many areas of business and disciplines of business management studies: Issues of online advertising, marketing strategies, consumer’s behavior and cultures. This moved to telemarketing and TV selling with the advances in telephone and television technology and finally developed into e-marketing spawning ‘e-CRM’ data mining and the like by creating new channels for direct sales and promotion. The importance of a website for search engine optimization (SEO) lays in the way that this marketing tactic works. 9 3 Technology and E-Commerce trends. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility. Saves time and cost:-E-commerce reduces delivery time and labor cost. 3. Essay, Business, E-Commerce, Essay on E-Commerce. The use of popular websites can be an effective way of introducing a product to the customers. Business to Consumer e-commerce is where the consumer accesses the system of the supplier. Analysis, design and implementation of E-business systems within an organization; issues of integration of front-end and back-end systems. The integration of Information and Communications Technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals. Before uploading and sharing your knowledge on this site, please read the following pages: 1. The most popular feature of the web site is the review system, i.e. Discovering product opportunities relies on being able to define business objectives carefully, identify related key performance indicators (KPIs) and receive continual data to act on it. Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. 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. Inventory-based e-retailers are known the world over for running highly automated and efficient warehouses, bringing new benchmarks in this function. Be sure to understand the costs involved and analyze the other options before moving forward. 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 web and its search engines provide a way to be found by customers without expensive advertising campaign. So, before you engage in e-commerce, it is important to be aware of its pros and cons. Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. It allows you to operate business 24/7. The various principles of e-commerce are as follows: 1. 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. This primer seeks to provide policy guidelines toward this end. 5. However important may be the item to be purchased, they do not have any other option before them other than to procrastinate them. That’s the job of your marketing team. Select the best fulfillment option to meet your needs. Source: Global B2C E-Commerce report 2014 . Be sure that everyone understands their roles, as well as the overall business strategies. In the emerging global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic development. We did not trust preparation and fulfillment to an outside service. E-commerce promises better business for SME’s and sustainable economic development for developing countries. This is the type of e-commerce that deals with relationships between and among businesses. 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. Many times, trust deficit, security, and privacy concerns prevail. By the end of 2001, the largest form of ecommerce, Business-to- Business (B2B) model, had around $700 billion in transactions. This is particularly the case for multi or omnichannel businesses. You may choose to bring the resources in-house to manage those activities, but also evaluate outsourcing them. Catalog retailing still claims a significant part of all retail transactions pie. 10 Big data Source: Firstmark. 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. 3. E-business allows companies to reach more consumers in a much broader economic market. 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. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved. 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. B2B e-commerce is simply defined as e-commerce between companies. The e-Commerce 2.0 environment is built upon many interrelated systems and processes that require information to be exchanged dynamically. In the past this was mainly door-to-door, home parties and mail order using catalogues or leaflets. Payment schemes are still evolving, and therefore, this advantage is likely to become more apparent in the future. Having a unique feature for your products or services makes you stand out … They are now able to develop services for individual clients rather than provide a standard service. Library catalogues and shelves are filled with books and articles on the subject. Even small online shops can reach global markets. At present electronic commerce is in a birth stage, and technology and market dynamics are still casting its basic shape. History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. After the dot-com collapse Amazon lost its position as a successful business model, however, in 2003 the company made its first annual profit which was the first step to the further development. 1. Most small ecommerce businesses outsource some element of marketing. In 1999 Jeff Bezos was entitled as the Person of the Year by Time Magazine in recognition of the company’s success. The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. Copyright © 2020 SolutionWeb.in - All Rights Reserved. Due to the internet’s accessibility, millions of people across the world can … E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. If your current ecommerce hosting provider does not offer flexible plans, you may need to transfer your hosting account to another provider. 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