Transcription 1 The Business Impact of E-Commerce Ruchi Monga 1 Abstract Electronic commerce refers to the buying and selling of products or services over electronic systems such as the Internet and other computer network The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange EDIinventory management systems, and automated data collection systems.
This has had many positive effects on both the business and on consumers. Additionally there are risks that have had a negative impact on both the customer and businesses. This report discusses the impact and risks associated with e-commerce to an organisation and to global business and society in general.
This means they sell goods both in-store brick an online click on their website www. Use this article to help you understand different impacts so that you can research this topic further. Consumer Impact Enabling people to shop online has had a massive positive impact on consumers throughout the world.
Consumers have become more empowered than ever before and have a greater choice of goods available to them at much lower prices than they would pay in a local store due to the fact that they can shop anywhere in the world and take advantage of currency exchange rates and economic differences throughout the world.
Taking a large item such as garden shed as an example http: This is both beneficial to the business and the customer. The customer can have a large item sent directly to their home with a click of a mouse.
The business itself encourages spending by offering free delivery on orders over and certain amount and this encourages the customer to spend at least that amount. Direct Communication with Customers One thing you could say about using eCommerce as a means to sell your products could be that some customers may be wary of not having direct face to face contact with sales representative.
This could be particularly apparent with the older generation who are not digital natives.
They might also prefer to get a look and feel of the product in advance. On the flip side of this we have the younger generation of digital natives who are more trusting of purchasing online and see it as second nature. This does cut man hours and the need for direct contact with customers as products are ordered, packed and shipped.
Greater choice Someone that is able to shop online has a wider choice of what to buy. However, if someone is confident of ordering online then they open up a global market place in which to shop for a lawn mower. Obviously there are issues with delivery costs and international trading laws when shopping outside your own company but the choice becomes much wider on a national scale.
In this instance there may even be the opportunity to buy directly from the manufacturer and obtain the product for less or even purchasing used goods using eCommerce sites such as ebay.
Just have access to a computer with web access and the ability to pay for something digitally opens up a massive range of products in terms of quality and price compared to shopping locally on foot.
This is an example of how a customer could source an item at a lower price. Because of the reduced cost of not having a physical high street presence and online only company can offer items cheaper as they just need a limited amount of warehouse staff to pack and process the orders for delivery.
The reduced cost of not having to set up a high street or customer facing retail outlet means that these savings can sometimes be passed directly on to the customer.
Another instance where customers might see a reduction in price is by ordering regularly from the same eCommerce site. Online businesses have customer loyalty schemes were customers can get reduced rates based on repeat purchases.
They also communicate with customers using email newsletters informing them of special offers and discounted stock that they might be interested in.
Again this empowers customers and keeps them informed of the latest deals that may be of interest to them.
When shopping online a customer may be able to purchase a product online before it is made available in their own country in a retail outlet.
For example if a new automatic lawn mower was developed in the USA and was still waiting on the manufacturer to come to an agreement with a sole distributor in the UK then a customer may be able to order this product before Global markets Using eCommerce websites to purchase goods online opens up a massive range of choice for the consumer.E-COMMERCE: PURCHASING AND SELLING ONLINE • Professional image – Even if you have a small business, your e-commerce site can enhance your reputation by what metrics and method of evaluation you plan on implementing.
• Logistics: Develop pricing, payment choices, delivery. The Business Impact of E-Commerce Ruchi Monga 1 Abstract Electronic commerce refers to the buying and selling of products or services over electronic systems such as . We know that starting an e-commerce business is exciting and it can be tempting to jump right in, without constructing a business plan.
READ: PLEASE DON’T DO THIS. If you haven’t put your ideas, questions and concerns on paper, then you haven’t given your business model enough thought.
Thanks for the post Mark. This seems to be a really painful part of business for many entrepreneurs and many avoid it all together.
However, writing a business plan is the single best exercise you can go through to really think about your business.
PDF | This paper reports on a study of the impact of e-commerce initiatives on business process changes and shows why some organisations carry out simple automation of business processes instead.
This will be important in understanding the impact of these services to your margins. Section 6. could I have the pdf. format as well 🙂 I became frustrated trying to find info on writing a business plan for an e-commerce business. There’s ‘mountains’ of info from ‘mountains’ of sites on ‘How to make money online.