Therefore, it is necessary to bring your website at the top in terms of search engine results. Library catalogues and shelves are filled with books and articles on the subject. Providing customer services ; Businessmen can interact with their customers using the internet. The importance of a website for search engine optimization (SEO) lays in the way that this marketing tactic works. 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. Availability is another important benefit of having an e-commerce website. There has been and continues to be much publicity and discussion about e-commerce. The best of these shopping tools takes into account that buyers want to be entertained and pleased. 7. One more company which has contributed much to the process of e-commerce development is Dell Inc., an American company located in Texas, which stands third in computer sales within the industry behind Hewlett Packard and Acer. Through a direct, information rich and interactive contact with customers. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility. Electronic commerce will cause changes in the mix of skills required, driving demand for information technology professionals. These linkages support business organization in expansion of business. 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. Most small ecommerce businesses outsource some element of marketing. E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. You may be able to start in a smaller space and move up to a larger one without penalty, as your needs change. Why is e-Commerce such an important part of today’s world? The web and its search engines provide a way to be found by customers without expensive advertising campaign. In 2012, e-commerce sales topped $1 trillion for the first time in history. Typically in the B2B environment, E-Commerce can be used in the following processes: (iii) Managing trading-partner relationships. Catalog retailing still claims a significant part of all retail transactions pie. No guarantee of product quality. E-commerce promises better business for SME’s and sustainable economic development for developing countries. The two businesses pass information electronically to each other. This significant impact has led to a greater number of customers to exploit various fields of electronic commerce for their benefits. Understanding exactly what they are can help you leverage them to your advantage: 1. Even small online shops can reach global markets. Here, information asymmetry means any disparity in relevant market information among parties in a transaction. E-business allows companies to reach more consumers in a much broader economic market. Source: Global B2C E-Commerce report 2014 . Consumers can easily search through a large database of products and services. 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. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc. 2. It also pertains to any form of business transaction in which the parties interact electronically rather than by physical exchange or direct physical contact. 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. (adsbygoogle = window.adsbygoogle || []).push({});
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B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. Terms of Service 7. On another plane, developing countries are given increased access to the global marketplace, where they compete with and complement the more developed economies. Now business can be conducted at anywhere any place accessible to internet. E-commerce is about much more than marketing or selling. Moving from mass production to demand driven, mass customization customer pull rather than the manufacturer push of the past. Many times, trust deficit, security, and privacy concerns prevail. E-Commerce has given the facility of making online transactions. At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. 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. 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. In many cases, you can host your business out of a home office and your basement or garage. 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. 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. Ecommerce web hosting is gaining swift popularity with every passing day as more and more people use the internet to shop and purchase things. 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. 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. 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. A word of advice is to keep your options flexible. For electronic commerce, IT expertise also needs to be joined with strong business applications skills, and therefore requires a flexible, multi-skilled works force. 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. It also penalizes the marketers who have thrived in market­places that had “information” barriers to entry, where lack of information for customers restricted their choices and led to inefficient pricing and localized monopolies. It allowed customers to shop from home, when they wanted, at their own convenience. 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. Importance of ECommerce:- E-commerce refers to a wide of online business activities for products and services. Likewise, many pectoral trends already under way, such as electronic banking, direct booking of travel, and one-to-one marketing, will be accelerated because of electronic commerce. Whether you choose to be more authoritative or democratic in your management style is up to you. You can manage those activities in-house or outsource to a third party. Selling was conducted in typical well-insulated “channels.” Consumers were viewed to be trapped by geographical and social boundaries, unable to search widely for the alternatives with best price and quality. Low Financial CostOne of the ecommerce benefits is that it has a lower startup cost. There are pros and cons to any approach. Consumer to Business is a growing area where the consumer requests a specific service from the business. Payment schemes are still evolving, and therefore, this advantage is likely to become more apparent in the future. In sub-assembler companies, where a product is assembled from a number of different components sourced from a number of manufacturers, communication, collaboration and coordination are critical so electronic bidding can yield cheaper components and having flexible and adaptable procurement systems allows fast changes at a minimum cost so inventories can be minimized and money saved. Shopping online is no exception. Live chat will impact your operations as someone needs to be available during specified hours of operation. Try to find an office park that has a wide variety of spaces in different sizes. 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. 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. Once your website is search engine optimized, you may drive loads of traffic to the website. Just be sure to think through the impacts on both your staffing and your cash flow and bottom line before you move forward. These sites are usually some form of an auction site. E-Commerce 2.0 is about collecting and managing data from all online channels to enable better business decisions. If you build and host your own system, you may need more cash up front and skilled administrators and developers on your staff. Plagiarism Prevention 5. Also, the transaction cost is effectively less. 5. Thus, keep your expansion plans in mind while selecting a hosting company and make sure your provider offers flexible plans. Adaptability of e-commerce in small cities and village is very low due to non-availability of basic infrastructure. Report a Violation 11. Good communication is important, whether you have 3 or 100 employees. The consumer lists items for sale with a commercial auction site. It is an integral part of any book or manuscript that is written on retailing, and it claims a significant share in this text also. … Copyright © 2020 SolutionWeb.in - All Rights Reserved. Thus, placement can be designed based on the context of the previous purchases. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved. So, before you engage in e-commerce, it is important to be aware of its pros and cons. Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming. Customers have a much wider choice at their fingertips (many e-tail sites, etc.). The largest business-to-consumer e-commerce involves intangible product that can be delivered directly to the consumer’s computer cover the network is composed of five broad categories-entertainment, travel newspaper/magazines, financial services, and e-mail. 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. Now that you know what you need to run a successful ecommerce site, you can buy and sell websites, being sure that you will be able to figure out how to host them on a decent server or offer the best quality possible (in case you sell sites) to your buyer. Physical retail … Companies see an average increase in repeat purchases of 20% – all because of a loyalty program. On the administration side, you need a leadership team and provide direction to them. Whether it is website design, social media, search marketing, merchandising, email or other forms of advertising, it’s all about marketing. Firms can offer their products and services with involvement of intermediaries. Thus, choosing a hosting provider which offers 50% uptime would mean that you are allowing competitors to lure your customers. E-commerce and e-business are not solely the Internet, websites or dot com companies. Do you want to build and host your own system, outsource the development and then manage the system going forward, or using a host, software as a service platform that is more turnkey and externally managed? 6. Cheaper than Traditional Business: Electronic business is much cheaper than traditional business. There are many choices today for delivering high-quality customer service. However, as businesses grow, demands increase and you may need more space and bandwidth. 13 Internet of Things . Even today, some considerable time after the so called ‘dot com/Internet revolution’, electronic commerce (e-commerce) remains a relatively new, emerging and constantly changing area of business management and information technology. 5. People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services. 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. This form of e-commerce is more commonly known as an ‘Intranet’. 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. 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. People generally use online stores because they are accessible at all times from anywhere in the world. 1. Following are the marketing areas where we seek scope of e-commerce: (i) Marketing, sales and sales promotion. We are going to use two categories: A general one based on who the buyers and sellers are. The importance of trade and commerce are mentioned in following points :- 1. In Indian context, tax demands and regulatory hassles, coupled with low Internet den­sity and sundry other problems, pose some other challenges. Before uploading and sharing your knowledge on this site, please read the following pages: 1. When the product cannot be physically examined, traditional commerce has no advantage over the convenience of electronic commerce. 10 Big data Source: Firstmark. Centralizing, this information digitally is therefore of significant value for customers. 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. 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. Thus, the web creates a global bazaar-style marketplace that brings together many consumers and many retailers and sellers. It’s the best shopping option for people who are always busy.2. In the past this was mainly door-to-door, home parties and mail order using catalogues or leaflets. 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. Web technology also allows to track customer preferences and to deliver individually-tailored marketing. Uploader Agreement. These niche markets are not flooded by the big brands and respond well to content and online experiences directed specifically at them. Customers can compare prices with a click of the mouse and buy the selected product at best prices. E-commerce will serve as a catalyst and diffuse more widely changes that are already under way in the economy, such as the reform of regulations, the establishment of electronic links between businesses (EDI), the globalization of economic activity, and the demand for higher-skilled workers. B2B e-commerce is simply defined as e-commerce between companies. (viii) Use of public and private services. 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. With web search capabilities (which need further development), it is easier to find the different types and varieties of goods a customer is searching for. Choosing to outsource the development and hosting will reduce your staffing costs, but you will incur higher costs for any future enhancements or changes to your websites. Mobile devices are playing an increasing role in the mix of e-commerce, this is also commonly called mobile commerce, or m-commerce. One of the areas in which it impacts particularly is direct marketing. 3. It is about a new business concept that incorporates all previous business management and economic concepts. Account Disable 12. 9 3 Technology and E-Commerce trends. 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. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. In many cases, the demands of these niche markets are simply not being met by big brands. It allows you to operate business 24/7. B2C can also relate to receiving information such as share prices, insurance quotes, on­line newspapers, or weather forecasts. Its closest “cousin,” in terms of other forms of non-store retailing, is catalog retailing. 9. E-commerce is at the heart of their businesses. Issues are copyright laws, privacy of customer information, and legality of electronic contracts. Other consumers access the site and place bids on the items. 11 Cloud computing . 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. Although the Internet began to advance in popularity among the general public in 1994, it took approximately four years to develop the security protocols and DSL which allowed rapid access and a persistent connection to the Internet. Seeing how many listings you have in a marketplace is fine, but it does not tell you how you compare to other E-Tailers, what your performance is like over time, or what other channels may be more profitable. The role of technology in learning about customers is its ability to record every event in the relationship, such as customers asking for information about a product, buying one, requesting customer service, etc. Inability to experience products beforehand leads to more checkout dropouts. 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