Electronic Commerce or E-commerce
Electronic Commerce or E-commerce is all about selling and purchasing the product and services supported by electronic payment system. The system was introduces in 1970 with electronic data interchange. E-commerce refers to a commercial transactions that involves the transfer of information over the internet. With the rapid growth in online shopping websites like: Amazon and EBay were introduced. It has made the market place for businesses and consumer to make trade and transaction across the world. As like all business, electronic business is also have some benefits and drawbacks. Let’s go through the advantages and disadvantages of E-commerce. Firms typically have both direct and indirect competitors. Direct competitors are those companies that sell products and services that are very similar and into the same market segment.
For example, Priceline and Travelocity, both of whom sell discount airline tickets online, are direct competitors because both companies sell identical products—cheap tickets. Indirect competitors are companies that may be in different industries but still compete indirectly because their products can substitute for one another. For instance, automobile manufacturers and airline companies operate in different industries, but they still compete indirectly because they offer consumers alternative means of transportation. , a news outlet, is an indirect competitor of not because they sell identical products, but because they both compete for consumers’ time online.
Advertisements of job placement
Now all the business companies post the advertisements of job placement in their companies so that anyone who found it suitable can join them or try for it. In the past, it was a time taking process for any brand to make its reputation in the market. But now things have changed and many of the companies have made its reputation and name of their company among people through the internet technology in a very short span of time. Internet share the whole information about the company which a customer wants to know before placing the order and this seems easy for the suppliers also.
In e-commerce activities, supply chain and logistics are two most crucial factors that need to be considered. Typically, cross-border logistics need about few weeks’ time round. Based on this low efficiency of the supply chain service, customer satisfaction will be greatly reduced (‘Brien, 2011). Some researcher stated that combining e-commerce competence and IT setup could well enhance company’s overall business worth (Leung, 2000). Other researcher stated that e-commerce need to consider the establishment of warehouse centers in foreign countries, to create high efficiency of the logistics system, not only improve customers’ satisfaction, but also can improve customers’ loyalty.
Business-to-business electronic commerce
Electronic commerce that takes place between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that takes place between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Online shopping is a form of electronic commerce where the buyer is directly online to the seller’s computer usually via the internet. There is often no intermediary service involved, and the sale or purchase transaction is completed electronically and interactively in real-time. However, in some cases, an intermediary may be present in a sale or purchase transaction or handling recurring or one-time purchase transactions for online games.
The Internet holds the potential to become the most equal-opportunity platform for economic empowerment the world has ever known. Yet the only way to realize this goal is for the entire planet – yes, every one of the world’s nearly seven-and-a-half billion inhabitants – to gain affordable Internet access. Electronic Procurement System – using Internet technologies to handle product distribution to the the buyer and from supplier while at the same time removing the complexity of multi-level paper and processing which are labour intensive. This allows the business to run more efficiently and allows purchasing professionals to have more time to focus on complex acquisitions and supplier negotiation. Besides reducing cost and hassle, it must be designed expressly for casual use by untrained employees and it must also provide extensive management controls, reporting, and integration with existing systems.
Successful retail business is in its use of technology
The hallmark of a successful retail business is in its use of technology. What point of sale system you are using, whether you and your employees are IT efficient or not and finally, if you are selling online through an integrated process. Use of technology in the retail business is a necessity these days so that you can augment your sales and remain ahead in the completion all through the year. Microsoft Retail management system is one such application that can take your business to places and to give new wings to your retail business, you may go for a Microsoft dynamics RMS cart application.
Besides this, e-commerce gives small businesses the opportunity to compete with the big boys. This is mainly due to the low costs associated with online business, affordable hosting and low cost marketing techniques like search engine optimization, social media and pay per click advertising. While in the past, the company with the most funding and money for marketing dominated their niche, online business has leveled the playing field considerably. For example, a small business with a great product and an SEO expert could realistically receive a higher ranking in Google than a much larger company with unlimited marketing funds. You can also attract high end customers who normally wouldn’t shop in a small, unknown brick and mortar store. While many high end customers wouldn’t give a mom and pop store the time of a day in a physical setting, they are likely to make a purchase online because everyone is on the same level.