essay on the importance of e commerce

Home — Essay Samples — Economics — Commerce — The Importance of E-commerce

The Importance of E-commerce

• Categories: Commerce E Commerce

About this sample

Words: 531 |

Published: Mar 1, 2019

Words: 531 | Page: 1 | 3 min read

• Knowing when an product was saved or not saved in the shopping cart.
• Returning to different parts of the site after adding an item to the shopping cart.
• Easy scanning and selecting items in a list.
• Effective categorical organization of products.
• Simple navigation from home page to information and order links for specific products.
• Obvious shopping links or buttons.
• Minimal and effective security notifications or messages.
• Consistent layout of product information

Cite this Essay

Let us write you an essay from scratch

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

Get high-quality help

Dr Jacklynne

Verified writer

• Expert in: Economics

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

1 pages / 618 words

1 pages / 350 words

1 pages / 1388 words

3 pages / 1591 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Consumer Choice and Freedom: Discuss the importance of consumer choice and freedom, and argue that Buy Nothing Day restricts individuals' ability to make choices about their purchases and lifestyle. Economic [...]

Shipping and delivery are one of the most important aspects when it comes to eCommerce. It is perhaps an integral part of the whole system, without which the whole supply chain management process becomes flak. As the main [...]

No single formula, algorithm or crystal ball can tell you for sure when and why each individual customer will make a purchase. A senior citizen looking to buy a smartwatch might be texted a recommendation by a grandchild, then [...]

IR has a dynamic perception because the bonding between the employer and employees experiences transformation from thesis to antithesis and then to synthesis. This altering process turns out to be an incessant characteristic [...]

As the World stands on the brink of a technological revolution that will fundamentally alter the way everyone lives, works and relates to each other, it will be possible to observe the complete disruption of many industries and [...]

Indonesia has long been using English as a high power language as a language of modern communication, while the national language is regarded as a force of unifying the nation and local languages as carriers of ‘tradition’ or [...]

Related Topics

By clicking “Send”, you agree to our Terms of service and Privacy statement . We will occasionally send you account related emails.

Where do you want us to send this sample?

By clicking “Continue”, you agree to our terms of service and privacy policy.

Be careful. This essay is not unique

This essay was donated by a student and is likely to have been used and submitted before

Download this Sample

Free samples may contain mistakes and not unique parts

Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

Please check your inbox.

We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

Essay on E-Commerce: Scope, Importance, Advantages and Limitations

Essay on E-Commerce: Scope, Importance, Advantages and Limitations! Read this essay to learn about essay on e commerce, e-commerce essay topics, essay on ecommerce in india, e-commerce essays advantages and disadvantages, essay on e commerce and online shopping, e-commerce essay conclusion!

Essay on e-commerce:.

Electronic commerce, commonly known as e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, Electronic Data Interchange (EDI), inventory management systems, and automated data collection systems.

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.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchanging of data to facilitate the financing and payment aspects of business transactions.

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.

ADVERTISEMENTS:

There has been and continues to be much publicity and discussion about e-commerce. Library catalogues and shelves are filled with books and articles on the subject.

However, there remains a sense of confusion, suspicion and misunderstanding surrounding the area, which has been exacerbated by the different contexts in which electronic commerce is used, coupled with the myriad related buzzwords and acronyms.

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. The integration of Information and Communications Technology (ICT) in business has revolutionized relationships within organizations and those between and among organizations and individuals.

Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. With developments in the Internet and Web-based technologies, distinctions between traditional markets and the global electronic marketplace-such as business capital size, among others-are gradually being narrowed down.

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.

With its effect of leveling the playing field, e-commerce coupled with the appropriate strategy and policy approach enables small and medium scale enterprises to compete with large and capital-rich businesses.

On another plane, developing countries are given increased access to the global marketplace, where they compete with and complement the more developed economies.

Most, if not all, developing countries are already participating in e-commerce, either as sellers or buyers. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved.

Among the areas for policy interventions are:

(i) High Internet access costs, including connection service fees, communication fees, and hosting charges for websites with sufficient bandwidth;

(ii) Limited availability of credit cards and a nationwide credit card system;

(iii) Underdeveloped transportation infrastructure resulting in slow and uncertain delivery of goods and services;

(iv) Network security problems and insufficient security safeguards;

(v) Lack of skilled human resources and key technologies;

(vi) Content restriction on national security and other public policy grounds, which greatly affect business in the field of information services, such as the media and entertainment sectors;

(vi) Cross-border issues, such as the recognition of transactions under laws of other ASEAN member-countries, certification services, improvement of delivery methods and customs facilitation; and

(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. While there are indications of e-commerce patronage among large firms in developing countries, there seems to be little and negligible use of the Internet for commerce among small and medium sized firms.

E-commerce promises better business for SME’s and sustainable economic development for developing countries. However, this is premised on strong political will and good governance, as well as on a responsible and supportive private sector within an effective policy framework. This primer seeks to provide policy guidelines toward this end.

Essay on the History of E-Commerce:

History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use. Since that date thousands of businesses have taken up residence at web sites.

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.

The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically. 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.

In 2000 a great number of business companies in the United States and Western Europe represented their services in the World Wide Web.

At this time the meaning of the word ecommerce was changed. 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.

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).

By the end of 2001, the largest form of ecommerce, Business-to- Business (B2B) model, had around $700 billion in transactions.

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. Ecommerce has a great deal of advantages over “brick and mortar” stores and mail order catalogs. Consumers can easily search through a large database of products and services.

They can see actual prices, build an order over several days and email it as a “wish list” hoping that someone will pay for their selected goods. Customers can compare prices with a click of the mouse and buy the selected product at best prices.

Online vendors, in their turn, also get distinct advantages. The web and its search engines provide a way to be found by customers without expensive advertising campaign. Even small online shops can reach global markets. Web technology also allows to track customer preferences and to deliver individually-tailored marketing.

History of ecommerce is unthinkable without Amazon and E-bay which were among the first Internet companies to allow electronic transactions. Thanks to their founders we now have a handsome ecommerce sector and enjoy the buying and selling advantages of the Internet. Currently there are 5 largest and most famous worldwide internet retailers- Amazon, Dell, Staples, Office Depot and Hewlett Packard.

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.

Amazon.com, Inc. is one of the most famous ecommerce companies and is located in Seattle, Washington (USA). It was founded in 1994 by Jeff Bezos and was one of the first American e-commerce companies to sell products over 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.

At the outset Amazon.com was considered as an online bookstore, but in time it extended a variety of goods by adding electronics, software, DVDs, video games, music CDs, MP3s, apparel, footwear, health products, etc.

The original name of the company was Cadabra.com, but shortly after it become popular in the Internet Bezos decided to rename his business “Amazon” after the world’s most voluminous river. In 1999 Jeff Bezos was entitled as the Person of the Year by Time Magazine in recognition of the company’s success.

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. The company supports and operates retail web sites for many famous businesses, including Marks & Spencer, Lacoste, The NBA, Bebe Stores, Target, etc.

Amazon is one of the first ecommerce businesses to establish an affiliate marketing program, and nowadays the company gets about 40% of its sales from affiliates and third party sellers who list and sell goods on the web site.

In 2008 Amazon penetrated into the cinema and is currently sponsoring the film “The Stolen Child” with 20th Century Fox. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year.

The most popular feature of the web site is the review system, i.e. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars. Amazon.com is also well-known for its clear and user-friendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database.

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.

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. The company’s unique strategy of selling goods over the World Wide Web with no retail outlets and no middlemen has been admired by a lot of customers and imitated by a great number of ecommerce businesses.

The key factor of Dell’s success is that Dell.com enables customers to choose and to control, i.e. visitors can browse the site and assemble PCs piece by piece choosing each single component based on their budget and requirements. According to statistics, approximately half of the company’s profit comes from the web site.

In 2007, Fortune magazine ranked Dell as the 34th-largest company in the Fortune 500 list and 8th on its annual Top 20 list of the most successful and admired companies in the USA in recognition of the company’s business model.

History of ecommerce is a history of a new, virtual world which is evolving according to the customer advantage. It is a world which we are all building together brick by brick, laying a secure foundation for the future generations.

Essay on the Scope of E-Commerce:

There is high scope of e-commerce in each aspect of business, at present it is in the embryonic stage but in future e-commerce would be the part of day to day activity of business firms.

Following are the marketing areas where we seek scope of e-commerce:

(i) Marketing, sales and sales promotion.

(ii) Pre-sales, subcontracts, supply.

(iii) Financing and insurance.

(iv) Commercial transactions – ordering, delivery, payment.

(v) Product service and maintenance.

(vi) Co-operative product development.

(vii) Distributed co-operative working.

(viii) Use of public and private services.

(ix) Business-to-administrations

(x) Transport and logistics.

(xi) Public procurement.

(xii) Automatic trading of digital goods like games, learning material, songs and music etc.

(xiii) Accounting and financial management.

(xiv) Legal advice

Essay on the Need for E-Commerce:

E-commerce and e-business are not solely the Internet, websites or dot com companies. It is about a new business concept that incorporates all previous business management and economic concepts.

As such, e-business and e-commerce impact on many areas of business and disciplines of business management studies:

1. Marketing:

Issues of online advertising, marketing strategies, consumer’s behavior and cultures. One of the areas in which it impacts particularly is direct marketing. In the past this was mainly door-to-door, home parties and mail order using catalogues or leaflets.

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.

2. Computer Sciences:

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.

3. Finance and Accounting:

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.

4. Economics:

The impact of e-commerce on local and global economies, understanding the concept of a digital and knowledge-based economy and how this fits into economic theory.

5. Production and Operations Management:

The impact of on-line processing has led to reduced cycle times. 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.

Production systems are integrated with finance marketing and other functional systems as well as with business partners and customers.

6. Production and Operations Management:

Moving from mass production to demand driven, mass customization customer pull rather than the manufacturer push of the past. 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.

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.

7. Management Information Systems:

Analysis, design and implementation of E-business systems within an organization; issues of integration of front-end and back-end systems.

8. Human Resource Management:

Issues of on-line recruiting, home working and ‘intra- pruners’ working on a project by project basis replacing permanent employees.

9. Business Law and Ethics:

The different legal and ethical issues that have arisen as a result of a global ‘virtual’ market. Issues are copyright laws, privacy of customer information, and legality of electronic contracts.

Importance of E-Commerce :

Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. 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. The reason behind this lies in the fact that e-commerce technology is different and more powerful than any of the other technologies we have seen in the past century.

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. 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 India’s case, both these factors are poised to fall into place rapidly.

Prior to the development of e-tailing, the process of marketing and selling goods was a mass- marketing and/or sales force-driven process. Consumers were considered as passive targets of advertising (promotional) “campaigns,” and branding blitzes were intended to influence their long-term product perceptions (brand positioning) and immediate purchasing behavior.

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. Information about prices, costs, and tariffs could be hidden from the customers to get the resultant profitable “information asymmetries” for the selling firm.

Here, information asymmetry means any disparity in relevant market information among parties in a transaction. E-commerce has challenged much of these traditional retail business norms, assumptions, and behavior.

Essay on the Principles of E-Commerce:

The various principles of e-commerce are as follows:

1. Sell Everywhere – be Seen and be Shopped:

Customer expectations for how and when they buy products have changed substantially over the past few years. Multi-channel selling was once limited to managing direct sales, a call centre, a website, and possibly a partner channel.

With E-Commerce 2.0, this has been expanded and refined to include various online channels. 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).

2. The Long Tail -Target Niche Markets:

E-Tailers who can connect with niche markets and provide a better online experience are capitalizing on new-found revenue. In the past, the obvious strategy was to find the bulk of the market and then mass market to them. With so much competition, many online merchants have adapted by discovering new methods and tools that target specific niche markets.

These niche markets are not flooded by the big brands and respond well to content and online experiences directed specifically at them. In many cases, the demands of these niche markets are simply not being met by big brands.

The Long Tail principle of E-Commerce 2.0 is about being able to reach beyond the traditional prospect base and tap the potential of niche markets.

3. Decentralized Content Generation – Data from the Community:

Buyers were once along for the ride in the e-Commerce process. Now they are in the driver’s seat. The content buyers create through forums such as product reviews, blogs and social networks influences other buyers as much or more than any promotion E-Tailers create.

Forums like YouTube and MySpace underscore how content created by consumers has become a viable and valuable part of the promotional and sales cycle for retailers. The Canadian e- Commerce site Wasabi even encourages buyers to submit any offers that they find through social and economic incentives.

While some E-Tailers are frightened by the perceived loss of control over content being published, these new avenues of data acquisition greatly increase the richness and diversity of information available, ultimately helping the buyer make better decisions.

4. Personalized Shopping – Make it Fun to Shop and Easy to Buy:

Shopping has long been considered a recreational activity by many. Shopping online is no exception. In fact, with the sophistication and speed of online shopping tools, consumers are spending more and more on E-Tailer sites.

The best of these shopping tools takes into account that buyers want to be entertained and pleased. Buyers are just as in the brick-and-mortar world do not like long checkout processes. 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.

5. Mash-Ups -Integrate and Collaborate:

Integration is nothing new, but what is new is how dynamically these integrations need to be initiated, modified, and used. The e-Commerce 2.0 environment is built upon many interrelated systems and processes that require information to be exchanged dynamically.

This happens between many systems based on individual user experience and the context of a particular customer interaction or order. Seamless access and interaction between systems is what promotes increased conversions and buyer loyalty, as well as attracts new buyers.

6. Data is King-Collect a Wealth of Opportunities:

Gone are the days of looking at purely operational reports. 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.

E-Commerce 2.0 is about collecting and managing data from all online channels to enable better business decisions. 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.

In E-Commerce business is possible in various combinations like:

(i) B2B – Business to Business

(ii) B2C – Business to Consumer

(iii) C2B – Consumer to Business

(iv) B2E – Business to Employee

(v) C2C – Consumer to Consumer

(i) B2B – Business to Business:

E-Commerce has been in use for quite a few years and is more commonly known as EDI (electronic data interchange). In the past, EDI was conducted on a direct link of some form between the two businesses where as today the most popular connection is the internet. B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. They are now able to develop services for individual clients rather than provide a standard service.

The two businesses pass information electronically to each other.

Typically in the B2B environment, E-Commerce can be used in the following processes:

(i) Procurement

(ii) Order fulfillment.

(iii) Managing trading-partner relationships.

B2B is helpful in reduction in transaction costs and improvement of product quality and customer service and insistence by large businesses that all of their suppliers link into their e-commerce system as a condition of doing business. 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.

(ii) B2C – Business to Consumer:

Business to Consumer e-commerce is where the consumer accesses the system of the supplier. It is still a two way function but is usually done solely through the Internet.

B2C can also relate to receiving information such as share prices, insurance quotes, on­line newspapers, or weather forecasts. When the product cannot be physically examined, traditional commerce has no advantage over the convenience of electronic commerce. 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. Entertainment, online games, music and video, is the largest category of products sold to consumers.

(iii) C2B – Consumer to Business:

Consumer to Business is a growing area where the consumer requests a specific service from the business. Like reservation in a hotel in a specific time period.

(iv) B2E – Business to Employee:

Business to Employee e-commerce is growing in use it is in practice in business like pharmacy marketing, supply chain management, insurance, IT companies etc. This form of e-commerce is more commonly known as an ‘Intranet’. An intranet is a web site developed to provide employees of an organization with information. 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.

(v) C2C – Consumer to Consumer:

These sites are usually some form of an auction site. The consumer lists items for sale with a commercial auction site. Other consumers access the site and place bids on the items. The site then provides a connection between the seller and buyer to complete the transaction.

Essay on the Key Elements Supporting E-Commerce :

Here are seven important infrastructure decisions that ecommerce businesses face:

Of all the infrastructure elements, marketing may be the most important. To succeed, your website must be found. Once visitors are on your site, you need to keep them there and compel them to buy from you. That’s the job of your marketing team.

Whether it is website design, social media, search marketing, merchandising, email or other forms of advertising, it’s all about marketing.

To effectively manage marketing activities in-house is very challenging. Most small ecommerce businesses outsource some element of marketing.

2. Facilitie s:

A key competitive advantage that ecommerce businesses have over brick-and-mortar stores is the investment in their physical offices and warehouses. In many cases, you can host your business out of a home office and your basement or garage.

If you drop ship or outsource fulfillment, you may be able to do that for a long period of time. 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.

A word of advice is to keep your options flexible. Try to find an office park that has a wide variety of spaces in different sizes. You may be able to start in a smaller space and move up to a larger one without penalty, as your needs change.

3. Customer Service :

There are many choices today for delivering high-quality customer service. You can manage those activities in-house or outsource to a third party. 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.

A customer-management system will make those activities easier, but for smaller companies it is not a requirement.

Live chat will impact your operations as someone needs to be available during specified hours of operation. Be sure to gauge the impact of that on your organization, if you decide to handle those activities in house.

4. Information Technology :

Choosing the right ecommerce platform is one of the most important decisions you will make in your business. 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?

If you build and host your own system, you may need more cash up front and skilled administrators and developers on your staff. By using a SaaS platform, you will not need to host or manage the system in-house, but you may still need web developers on staff.

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.

There are pros and cons to any approach. Just be sure to think through the impacts on both your staffing and your cash flow and bottom line before you move forward.

5. Fulfillment :

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.

Managing your own inventory will provide you with a high level of control, but you will tie up your cash in inventory, warehouse space, and your own fulfillment staff. In some industries like the jewelry supply industry that my previous business was in managing your own inventory was the most logical choice.

We had no alternative for drop shipping, and most items were purchased in bulk and were very small. We did not trust preparation and fulfillment to an outside service.

Select the best fulfillment option to meet your needs. Be sure to understand the costs involved and analyze the other options before moving forward.

6. Finance and Administration :

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. If your ecommerce platform is tightly integrated to your accounting system, you may have very little need for an in-house bookkeeper.

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. Many ecommerce companies use outside services for vendor payments, payroll, and other basic accounting activities.

They decide to focus on the sales, marketing, and customer service. 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.

On the administration side, you need a leadership team and provide direction to them. Good communication is important, whether you have 3 or 100 employees. Whether you choose to be more authoritative or democratic in your management style is up to you.

But choose a style and stay consistent. Be sure that everyone understands their roles, as well as the overall business strategies. You may need to adjust your approach as your business evolves.

7. Human Resources :

Many small-business owners avoid the human resources function. Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming.

You may choose to bring the resources in-house to manage those activities, but also evaluate outsourcing them. There are many individuals and agencies well equipped to take on your HR activities.

Impact of E-Commerce on Business:

i. Transformation in the Marketplace:

Now business can be conducted at anywhere any place accessible to internet. Firms can offer their products and services with involvement of intermediaries. Traditional intermediary functions will be replaced, new products and markets will be developed, and new and far closer relationships will be created between business and consumers. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility.

ii. Fast Growth of Business:

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. 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.

iii. Helpful in Globalization:

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. E-commerce over the Internet greatly increases interactivity in the economy. These linkages support business organization in expansion of business.

iv. Electronic Commerce Growth:

At present, electronic commerce over the Internet is relatively small but is growing very rapidly. At present electronic commerce is in a birth stage, and technology and market dynamics are still casting its basic shape. People resist using e-commerce. This is especially true for the business-to-consumer segment, where people concerns about security of payment, potentially fraudulent merchants, privacy of personal data, etc.

v. New Employment Opportunities:

Electronic commerce will cause changes in the mix of skills required, driving demand for information technology professionals. For electronic commerce, IT expertise also needs to be joined with strong business applications skills, and therefore requires a flexible, multi-skilled works force. Apart from contingent skills needed to support electronic commerce transactions and applications, there will be a requirement of hardware and software professionals.

vi. New Business Opportunities:

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. Going further than new ones, we also see new business models are new forms of intermediaries, or information brokers. 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.

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. Adaptability of e-commerce in small cities and village is very low due to non-availability of basic infrastructure.

vii. Product Promotion:

Through a direct, information rich and interactive contact with customers. The first use of electronic commerce is to provide product information through online electronic brochures and buying guides. This can be seen as an additional marketing channel, allowing reaching maximum number of customers the advantage of electronic commerce as way to deliver product information and its availability anytime, anywhere, provided the customer has right infrastructure to access the information.

viii. New Sales Channel:

Multidirectional approach of e-commerce has created new sales channels by which firms can directly reach to customers, suppliers, and stake holders, considering electronic commerce and in particular the World Wide Web, as a sales channel makes sense for two kinds of products- Physical products sometimes also sold in conventional stores, which can be advertised and for ordered online, such as computer hardware or wine, products which can additionally be delivered over the electronic commerce medium, such as information or software.

Electronic commerce strategies are of primary value in markets where information is of significant added value to the products being brought, rather than in commodity markets. Centralizing, this information digitally is therefore of significant value for customers.

ix. Customer Service:

E-commerce provides on line customer care and support services. 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. 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.

x. Customer Relationships:

Electronic commerce systems will allow for more personalized relationships between suppliers and their customers, due to their ability to collect information on customer’s needs and behavioural patterns. 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. 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.

Essay on the Basic Elements of E-Commerce Hosting:

Ecommerce web hosting is gaining swift popularity with every passing day as more and more people use the internet to shop and purchase things. 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.

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.

Following are the key elements of ecommerce hosting:

1. Security :

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. Hence, online stores are prone to security issues as hackers try to gain access to such information.

Thus, to ensure that the client information is not at risk, you need to choose an ecommerce hosting provider which offers tight security options such as sophisticated firewalls, valid SSL certificates and anti- phishing software.

2. Flexibility :

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. However, as businesses grow, demands increase and you may need more space and bandwidth.

If your current ecommerce hosting provider does not offer flexible plans, you may need to transfer your hosting account to another provider. Thus, keep your expansion plans in mind while selecting a hosting company and make sure your provider offers flexible plans.

3. Reliability :

The key to the success of an online store is convenience and round the clock availability. People generally use online stores because they are accessible at all times from anywhere in the world.

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. Thus, choosing a hosting provider which offers 50% uptime would mean that you are allowing competitors to lure your customers.

4. Accessibility and Ease :

A website which is easy to browse for products and services is generally liked by customers. Therefore, it is necessary to bring your website at the top in terms of search engine results. Once your website is search engine optimized, you may drive loads of traffic to the website. However, if the hosting servers are down most of the time, making your website search engine optimized would be in vain.

5. Technical Expertise and Customer Support :

Another key element of ecommerce hosting is technical expertise of the hosting provider. 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.

Also, ensure the customer support is available 24/7 via live chat, email and phone to assist clients in solving issues.

The above mentioned elements of ecommerce hosting are crucial to the success of any online business and thus should not be ignored.

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.

Essay on the Advantages, Limitations, and Challenges :

E-tailing can be considered another form of non-store retailing. Its closest “cousin,” in terms of other forms of non-store retailing, is catalog retailing. Catalog retailing still claims a significant part of all retail transactions pie. It is therefore instructive to compare e-tailing to catalog retailing to gain some insight into its potential impact.

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. It allowed customers to shop from home, when they wanted, at their own convenience. While this proved enticing and comfortable for some consumers and some types of products, there are some limitations that limited its growth further.

Advantages :

1. Customers have a much wider choice at their fingertips (many e-tail sites, etc.). Thus, the web creates a global bazaar-style marketplace that brings together many consumers and many retailers and sellers.

2. 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.

3. 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.

4. Payment schemes are still evolving, and therefore, this advantage is likely to become more apparent in the future.

5. E-tailers can use price discrimination more efficiently than other retailers.

6. E-tailers can use previous transactions to identify the likelihood of products being pur­chased at certain price points.

7. 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, placement can be designed based on the context of the previous purchases.

8. E-tailing includes some advantages to the consumer that no other form of retailing can provide. The hypertext nature of the medium allows for more flexible forms of transactions—the growth of C2B and C2C highlights this point. 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.

9. This is giving benefit to marketers who provide products with real (perceived) value and consumers in general. 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.

10. Inventory-based e-retailers are known the world over for running highly automated and efficient warehouses, bringing new benchmarks in this function.

Limitations :

1. All the customers may not have access to the web, as they do to the postal system. This is a temporary issue as the evolution of the web continues.

2. 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.

3. Online retail stores are not standardized in design in the way catalogs and retail stores (which use planograms for the same) have become.

4. Therefore, different user behaviors and patterns (navigation schemes) need to be observed for each online store. This is again a temporary issue as the evolution of the web continues.

5. Many times, trust deficit, security, and privacy concerns prevail. Consumers are con­cerned with the exposure of the data they provide/insert during transactions.

6. In Indian context, tax demands and regulatory hassles, coupled with low Internet den­sity and sundry other problems, pose some other challenges.

Related Articles:

• Customer Relationship Management (CRM) and Internet
• Personal Selling: Meaning, Advantages and Limitations
• 8 Examples of E-Commerce around the World | Global Trade
• Advantages and Limitations of Advertising

We use cookies

Privacy overview.

• Top Courses
• Online Degrees
• Find your New Career
• Join for Free

What Is E-commerce? Types, Benefits, and More

Learn all you need to know about e-commerce, including what it is, types, and benefits, in a world increasingly driven by technology.

E-commerce, also known as electronic commerce or internet commerce, is a big industry with a bright future ahead. With online retail sales reaching nearly five trillion dollars worldwide in 2022, industry analysts expect it to grow in the coming years [ 1 ]. Reports reveal that 58 percent of internet users buy something online every week [ 2 ]. 

E-commerce isn’t just for well-known brands. From start-ups to big multinationals, businesses leverage e-commerce to sell directly to customers or other businesses. Before you jump in, here's what you need to know about e-commerce.

What is e-commerce?

E-commerce is buying and selling goods using the internet, and transferring money and data to complete those transactions. All stores that sell products online can be classified as e-commerce. This could be anything from online marketplaces like Amazon and Etsy, to food delivery platforms and B2B services.

Technology is changing how we do business at a phenomenal pace, and e-commerce trends continue to grow and evolve. During the pandemic, brick-and-mortar businesses suffered while e-commerce companies boomed. Despite being able to shop in real life now, online grocery shopping continues to rise [ 4 ].

With simple tools to set up e-commerce websites and e-commerce platforms like Shopify, Etsy, and eBay, anyone can set up an e-commerce store quickly. 

A brief history of e-commerce

E-commerce traces back to 1994 when the first internet sale was made (a CD sold to a friend through a website). Now a global phenomenon bolstered by the likes of Amazon and Alibaba, e-commerce has a global reach of 12 to 24 million e-commerce stores [ 3 ]. In the last few years, e-commerce has grown exponentially due to the COVID-19 pandemic, during which many businesses pivoted their models to satisfy customers.

Types of e-commerce 

E-commerce businesses typically fall into one of four main groups. The model is typically determined by who is selling and who it's being sold to.

Business to consumer (B2C): In this e-commerce model, the business sells directly to a consumer. If you buy a product from a retailer like Amazon, you're purchasing from a B2C company. Setting up a Shopify store to sell your wares to customers is considered B2C. 

Business to business (B2B): The B2B model involves selling products or services to other businesses. For example, a wholesale company that sells car parts to factories is B2B.

Consumer to business (C2B): With C2B, individuals sell their products or services to a business through an online platform. Social media influencers and bloggers fall under this category if they receive money from businesses to promote the brand. 

Consumer to consumer (C2C): C2C e-commerce models typically involve online websites where people to sell goods and services directly to others. Examples include eBay, Facebook Marketplace, and Etsy.

Read more: Choosing Your Business Structure: Types and Use Cases

Benefits of e-commerce

E-commerce has been so successful that many physical businesses now implement omnichannel sales strategies , including selling online. Here are some more benefits.

Reduced operating costs: E-commerce stores are typically cheaper to set up and operate than physical brick-and-mortar stores. You can cut costs and avoid paying for rent, furnishings, signs, and more.

Extended opening hours and global reach: An e-commerce store never closes its doors to customers. Customers can purchase products at nearly any time of day, from anywhere in the world. Because they're not limited by opening hours or proximity, your business could exponentially increase sales.

Increased sales conversions: Within the online marketplace, there are many ways to enhance the customer experience and reach consumers with digital marketing. Social media and SEO allow you to connect with customers actively searching for goods and services like yours. Track your customers' behaviors and habits, such as monitoring their shopping carts and improving your checkout processes.

Learn how to create a Shopify site in an hour or less with this guided project:

The future of e-commerce

Growth in e-commerce is evident in the coming years. Revenue is expected to grow at a rate of 11.51% per year for a projected market volume of $1,563 billion by 2027 [ 5 ]. It shows no signs of stopping as our culture and landscape of acquiring goods and services shifts.

These are the trends shaping the e-commerce landscape:

Automation: Supply chain and logistics are crucial for picking, packing, shipping, and sending items around the world. The use of CRM tools and robots to automate and speed up this process has been a game-changer and will continue to improve.

Personalized customer experience: Machine learning is now being used to optimize the shopping experience, offering a more personalized approach. With so many options for clothing, furniture, and other goods, it can be increasingly difficult for customers to find the right product. Algorithms can help track buying history and preferences to suggest the right items for customers, while chatbots can help drive better customer service.

Social shopping: Online shopping targets customers where they are: Instagram and TikTok are huge drivers for brands to acquire new sales because they can purchase directly from those sites, or be redirected in a few seconds to the item's page.

How to start an e-commerce business

E-commerce is an important consideration for the future. In fact, it's becoming a crowded space with many businesses competing for customers' attention. As an entrepreneur or business leader, you'll want to make sure your e-commerce business stands out using digital marketing and other targeted marketing strategies.

Read our comprehensive guide: How to Start an E-commerce Business

Get started in e-commerce

Discover ways to market, build, and support your e-commerce business with the Google Digital Marketing and E-Commerce Professional Certificate . Learn strategies and skills to get started in less than six months.

Article sources

Ecommerce Guide. “ Ecommerce Statistics for Retailers and Online Shopping in 2022 , https://ecommerceguide.com/ecommerce-statistics/.” Accessed March 23, 2023.

DataReportal. “ Digital 2022: Global Overview , https://datareportal.com/reports/digital-2022-global-overview-report.” Accessed March 23, 2023.

Digital In The Round. “ How Many Online Stores Are There? , https://digitalintheround.com/how-many-online-stores-are-there/.” Accessed March 23, 2023.

Mercatus. “ Understanding The Drivers Of eGrocery Success , https://info.mercatus.com/online-grocery-shopper-consumer-behavior.” Accessed March 23, 2023.

Statista. " eCommerce , https://www.statista.com/outlook/dmo/ecommerce/united-states." Accessed March 23, 2023.

Keep reading

Coursera staff.

Editorial Team

Coursera’s editorial team is comprised of highly experienced professional editors, writers, and fact...

This content has been made available for informational purposes only. Learners are advised to conduct additional research to ensure that courses and other credentials pursued meet their personal, professional, and financial goals.

Benefits of E-Commerce

Introduction, advantages of e-commerce, reduction of production cycle, reference list.

E-commerce refers to an electronic system that allows businesses, consumers, manufacturers, and suppliers to buy or sell goods and services via the Internet. Technological advancement has made it possible for firms to interact virtually with customers and gather essential information. As Kurnia, Choudrie, Md Mahbubur, and Alzougool (2015) put it, e-commerce promotes internal and external communication, which is vital in improving organizational efficiency and productivity. Globalization has led to many companies striving to establish their influence in the international market. E-commerce enables multinationals to guarantee consistency in products and services delivery across different foreign markets. This paper will discuss the various benefits that a company can accrue from investing in e-commerce.

The advantages of investing in e-commerce overshadow the drawbacks for many businesses. Nevertheless, Kurnia et al. (2015) argue that most organizations are not familiar with the capabilities of the Internet. They use this resource for advertising and sending emails to customers only. Knowing the benefits of e-commerce is critical to its implementation. Yu, Wang, Zhong, and Huang (2016) insist that it is imperative to make sure that e-commerce corresponds to business goals. One of the benefits of e-commerce is that it allows a business to remain competitive. Yu et al. (2016) maintain that most consumers will continue to purchase products in major outlets. Nevertheless, for an organization to remain competitive, it ought to exploit other modes of consumer buying behaviors. The rise of the Internet has contributed to most customers, particularly millennials and generation X buying their products and services online. Yu et al. (2016) argue that e-commerce is expected to comprise 17.5% of the international retail turnover by 2012. It implies that organizations, which have invested in e-commerce, will have an opportunity to boost their customer share, thus remaining competitive.

One of the demerits of the brick-and-motor outlets is that they are restricted by location, making it difficult for them to reach many clients. It is hard for a business operating under such a setting to exploit the global market. E-commerce enables businesses to reach the international market, therefore increasing their returns. Targeting the global market gives a company a chance to diversify its operations. For example, “if your business is primarily service-based, you may want to complement your local offerings with products that people can purchase online, such as a hairdresser offering specialty accessories” (Savrul, Incekara, & Sener, 2014, p. 37). In other words, investment in e-commerce helps a company target the global market by identifying other business opportunities.

E-commerce allows an organization to tailor its products and services to the needs of individual clients. Savrul et al. (2014) argue that the Internet supports digital selling and marketing platforms that enable a business to gather information from customers. The data collected from clients is helpful in understanding their tastes and preferences, thus enabling a company to improve its products and services to suit consumer needs. E-commerce enables an organization to monitor consumer buying behavior. In return, a company is able to formulate effective promotional and target marketing strategies.

In the past, procurement, design engineering, and production departments communicated via paper-based approaches. This mode of communication was ineffective and contributed to an increased period of the production cycle. The introduction of e-commerce has enhanced communication among these departments, therefore enhancing efficiency. One of the companies that use e-commerce to enhance the duration of the production cycle is Toyota. The company’s engineering department, procurement division, and assembling unit are situated in different locations across the globe. E-commerce helps Toyota to connect the different divisions to expedite production processes (Stanowska, 2018).

The design engineering division sends blueprint sketches and specifications to the purchasing unit via the Internet. The move hastens to buy of the necessary materials that are shipped to the assembling plants, thus guaranteeing prompt commencement of the production processes. Another company that uses e-commerce to enhance production cycle time is Apple Inc. The company sources components from the United States, China, Europe, and Asia (Marinagi, Trivellas, & Sakas, 2014). All the materials are delivered to China where they are assembled to get the final product. Apple uses the Internet to promote communication between plants located in different countries. The production units are also connected to the assembling unit. Communication between the assembling unit and the various plants makes sure that components reach the former on time (Marinagi et al., 2014). It helps to improve the production cycle time and to ensure the timely release of products into the market.

Businesses benefit immensely from investing in e-commerce. The technology enables an organization to boost its competitiveness by identifying and exploiting diverse business opportunities. A company gets a chance to grow its customer base by targeting clients who purchase products online. E-commerce helps businesses target both local and global markets. Additionally, it enables firms to tailor their products and services to the needs of individual clients. The technology is helpful in the formulation of promotional and target marketing strategies. Manufacturing firms use e-commerce to improve the production cycle. They utilize the Internet to expedite communication between different units that are involved in production processes. It helps to ensure that the production divisions receive requisite information and resources on time, therefore speeding up their processes.

Kurnia, S., Choudrie, J., Md Mahbubur, R., & Alzougool, B. (2015). E-commerce technology adoption: A Malaysian grocery SME retail sector study. Journal of Business Research, 68 (9), 1906-1918.

Marinagi, C., Trivellas, P., & Sakas, D. P. (2014). The impact of information technology on the development of supply chain competitive advantage. Procedia – Social and Behavioral Sciences, 147 (1), 586-591.

Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a globalizing business environment. Procedia – Social and Behavioral Sciences, 150 (1), 35-45.

Stanowska, N. (2018). An investigation into the development of Toyota’s e-commerce customer journey. Journal of Undergraduate Research at NTU, 1 (1), 146-181.

Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2016). E-commerce logistics in supply chain management: Practice perspective. Procedia CIRP, 52 (1), 179-185.

Cite this paper

• Chicago (N-B)
• Chicago (A-D)

StudyCorgi. (2022, March 12). Benefits of E-Commerce. https://studycorgi.com/benefits-of-e-commerce/

"Benefits of E-Commerce." StudyCorgi , 12 Mar. 2022, studycorgi.com/benefits-of-e-commerce/.

StudyCorgi . (2022) 'Benefits of E-Commerce'. 12 March.

1. StudyCorgi . "Benefits of E-Commerce." March 12, 2022. https://studycorgi.com/benefits-of-e-commerce/.

Bibliography

StudyCorgi . "Benefits of E-Commerce." March 12, 2022. https://studycorgi.com/benefits-of-e-commerce/.

StudyCorgi . 2022. "Benefits of E-Commerce." March 12, 2022. https://studycorgi.com/benefits-of-e-commerce/.

This paper, “Benefits of E-Commerce”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: November 9, 2023 .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal . Please use the “ Donate your paper ” form to submit an essay.

• Undergraduate
• High School
• Architecture
• American History
• Asian History
• Antique Literature
• American Literature
• Asian Literature
• Classic English Literature
• World Literature
• Creative Writing
• Linguistics
• Criminal Justice
• Legal Issues
• Anthropology
• Archaeology
• Political Science
• World Affairs
• African-American Studies
• East European Studies
• Latin-American Studies
• Native-American Studies
• West European Studies
• Family and Consumer Science
• Social Issues
• Women and Gender Studies
• Social Work
• Natural Sciences
• Pharmacology
• Earth science
• Agriculture
• Agricultural Studies
• Computer Science
• IT Management
• Mathematics
• Investments
• Engineering and Technology
• Engineering
• Aeronautics
• Medicine and Health
• Alternative Medicine
• Communications and Media
• Advertising
• Communication Strategies
• Public Relations
• Educational Theories
• Teacher's Career
• Chicago/Turabian
• Company Analysis
• Education Theories
• Shakespeare
• Canadian Studies
• Food Safety
• Relation of Global Warming and Extreme Weather Condition
• Movie Review
• Admission Essay
• Annotated Bibliography
• Application Essay
• Article Critique
• Article Review
• Article Writing
• Book Review
• Business Plan
• Business Proposal
• Capstone Project
• Cover Letter
• Creative Essay
• Dissertation
• Dissertation - Abstract
• Dissertation - Conclusion
• Dissertation - Discussion
• Dissertation - Hypothesis
• Dissertation - Introduction
• Dissertation - Literature
• Dissertation - Methodology
• Dissertation - Results
• GCSE Coursework
• Grant Proposal
• Marketing Plan
• Multiple Choice Quiz
• Personal Statement
• Power Point Presentation
• Power Point Presentation With Speaker Notes
• Questionnaire
• Reaction Paper
• Research Paper
• Research Proposal
• SWOT analysis
• Thesis Paper
• Online Quiz
• Literature Review
• Movie Analysis
• Statistics problem
• Math Problem
• All papers examples
• How It Works
• Money Back Policy
• Terms of Use
• Privacy Policy
• We Are Hiring

E-Commerce, Essay Example

Pages: 3

Words: 850

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

E-commerce includes the buying and selling of objects over the Internet.  It can include services and products, and e-commerce may also be performed on other types of computer networks besides the Internet.  E-commerce has become considerably popular in recent years, with its involvement in some aspect of transactions that occur over the Internet.  Online shopping and banking are two examples of this common aspect of the Internet and online business as it resembles today’s market.

E-business is much broader than e-commerce.  The former represents the application of information and communication technologies to support the business’s activities.  E-business includes more aspects than e-commerce, such as the interaction between business customers and partners.  E-business goes beyond the buying and selling of goods and services of e-commerce, although it certainly contains it in many cases.  Thus, they intersect in the dynamics of online transactions.

Competitive advantage can of course take many forms, referring to the higher earning of the cost of investments.  The capturing of advantageous attributes represents an effective strategy, such as the implementation of new technologies into a product or business model.  Access to natural resources can also provide a company with a competitive advantage.

Obtaining a competitive advantage can take two forms.  Porter (1985) has identified two type of competitive advantage, found in cost advantage and differentiation advantage.  The former refers to delivering the same benefits as the business’s competitors, but at a lower cost.  The latter refers to delivering benefits that go above and beyond products of competing businesses.  As these two forms both create superior value for its customers, a business can obtain a competitive advantage in either, or boy, ways.  A business may use either of these positional advantages to prove benefits in cost or differentiation.  Or, a resource-based advantage makes use of the business’s resources and capabilities to produce a competitive advantage.

Scaling methods remain an important dynamic, even for small businesses.  For instance, one method is used by small businesses in regards to search engine optimization, where such principles are utilized in order to allow the website to be scaled.  Scaling allows websites to become friendlier to users and servers.  Thus, businesses should be careful to spend time on the many scaling methods available to improve the efficiency and presentation of their website to customers and other businesses.

Online security measures often run into dangerous online criminals who exhibit a number of options in the way of Internet crime.  According to Chickowski (2008), “the ways of making money with online scams, identity theft, and hacking are limited only by criminal creativity.”  Chickowski also points to the “thriving” underground community of online criminals (2008).  A number of scams exist to give problems to Internet crime.

Some of the most dangerous forms of Internet crime are which Chickowski mentions.  Identity theft is one growing crime in the United States and around the world, with the Internet serving as a major role.  Hackers and other criminals target businesses or users on the Internet for online crimes.  For instance, malware writers attempt to exploit Internet Explorer, which takes up nearly 70% of the browser market (Keizer 2009).  It has caused users to look for other browsers, account for Internet Explorer’s dropping share.

Internet security is constantly evolving.  However, so are methods to hack into user’s and business’s accounts.  As a result online crime is undergoing difficult situations in this realm.  Not to mention, not all Internet users keep up with the latest technologies and scams.  This makes them easy targets for online criminals to take advantage of these users, to infiltrate their accounts, passwords, and other sensitive information.

Someone who uses the Internet would generally be much more likely to continue doing so.  The Internet allows individuals to perform a number of activities, both for business and personal reasons that would make continued use of the Internet quite logical.  For instance, an individual may find connectivity with friends and family useful.  Others may find the Internet complimentary to research for work, or even supplement their work with a website to improve business.

Internet usage can also be seen along the lines of e-commerce, to which we have analyzed briefly.  Shopping online is considered quite convenient for many who have engaged in this part of business.  As retailers make better use of the Internet, such as cheaper and faster methods of shipping and online sales, consumers will be more likely to shop online.  This relationship is one of many in the growing use of the Internet for individuals who are becoming more experienced online.

Overall convenience will dictate increased presence on the Internet for many individuals.  The Internet provides many conveniences to enhance the quality of life, to connecting with family via e-mail or a social network to finding additional work online.  Of course conveniences exist in e-commerce and business online for consumers and businesses.  The nature of the Internet will allow experienced users to continue or increase their Internet usage.

Chickowski, Ericka (2008). “Inside online crime: Of hackers, identity theft and online scams.” http://www.baselinemag.com/c/a/Security/Inside-Online-Crime-Of-Hackers-Identity-Theft-and-Online-Scams/. Retrieved 2010-05-25

Keizer, Gregg (2009). “Internet explorer loses market share.” http://www.pcworld.com/article/156306/ie_loses_market_share.html?tk=rss_news. Retrieved 2010-05-25

Porter, Michael (1985). Competitive advantage: Creating and sustaining superior performance. New York, NY: Free Press.

Stuck with your Essay?

Get in touch with one of our experts for instant help!

Mohandas Karamchand Gandhi: His Early Years (1869-1915), Essay Example

A Time to Say, A Time to Act, Essay Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

Related Essay Samples & Examples

Voting as a civic responsibility, essay example.

Pages: 1

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

The Term “Social Construction of Reality”, Essay Example

Words: 371

E-Commerce Essay Examples and Topics

Online shopping vs. traditional shopping.

• Words: 1278

Online Grocery Store Business Plan

• Words: 1716

Advantages of Online Shopping

• Words: 1114

The Impact of E-Commerce on Business

• Words: 3446

Impacts of Internet on International Business

• Words: 2285

Social Media Marketing and Promotion

• Words: 1185

Amazon E-Business Model

Electronic payment systems for e-commerce.

• Words: 2424

E-Commerce and Digital Marketing

• Words: 3926

The Impact of Live Streaming Marketing on Online Impulse Buying

• Words: 9629

E-Commerce and Risky Shopping Behaviors

Tesco company’s e-commerce implementation and challenges.

• Words: 8433

E-Commerce for the Organization McDonald’s

Boeing australia limited current procurement processes.

• Words: 2003

International Students Attitudes Towards Online Shopping

• Words: 3823

E-Commerce: Amazon.com

• Words: 3996

E-Commerce and Internet

E-commerce strategy and action plan.

• Words: 1705

Mobile Commerce: Opportunities and Dangers

E- commerce and the environment.

• Words: 2273

Information systems in Best Buy

• Words: 1002

Outsourcing: Benefits and Challenges

• Words: 1389

Internet Marketing: Advantages and Disadvantages

Internet promotion in business.

• Words: 1122

Service Quality Model in Internet Banking and Finance

• Words: 2211

A Managerial Perspective of Electronic Commerce

• Words: 2573

AirAsia X’s Business Environment

• Words: 1801

The eBay Firm’s E-Commerce Analysis

• Words: 3308

Photography in the E-Business: Marketing Strategy

• Words: 2774

Optimum Nutrition Product: E-Retailing Plan

• Words: 2199

Entity Relationship Diagrams for IT Projects

• Words: 1215

Product Reviews in Online Shopping

The era of online shopping, the challenges associated with payments across international borders.

• Words: 1030

Marks & Spencer’s E-Retailing: Advantages and Disadvantages

E-commerce: amazon.com analysis and recommendations, electronic money: challenges and solutions.

• Words: 2616

Internet Marketing: Use of Social Media by Artists to Market Their Music

• Words: 2516

Advantages of E-Commerce at Walmart

• Words: 1236

United Parcel Services E-Strategy

• Words: 1156

Technology and Its Effect to Consumers and Retailers in Canada

• Words: 1624

EBay Company in E-business

• Words: 1675

Electronic Payment Systems: Advantages and Disadvantages

Consumer behavior in online shopping, carter’s inc. ecommerce analysis, the importance of digital marketing for multinational organizations.

• Words: 1435

E-Commerce at Alibaba Group

• Words: 1342

E-Commerce Company Comparison: Walmart, Mirakl, eBay

Changing nature of retail and the rise of commerce.

• Words: 3167

Amazon.com’s Popularity and Users Forecasting

Walmart company: role of e-commerce, amazon.com marketing efforts, factors that influence the development of m-commerce, data warehouse and data mining in business.

• Words: 4190

Identity Theft and E-Commerce

• Words: 2612

B2B and B2C technologies, application and advantages

• Words: 1666

The Development of E-Commerce

• Words: 1530

Virtual Corporations: Article Analysis

• Words: 1604

Hair Electrical Styling Tools Market Growth

• Words: 2838

China Cross-Border E-Commerce Report

• Words: 3387

Reinventing E-Commerce: Amazon’s Bet on Unmanned Vehicle Delivery

• Words: 1927

Internet Revenue Contribution at Sandvik Steel

Internet contracts overview and analysis.

• Words: 1414

What Is the Role of E-Commerce in Globalization?

E-business and e-commerce marketplace analysis, amazon.com: e-commerce marketing plan.

• Words: 4117

New Motor Company Business Plan

• Words: 2809

Current and Emerging Technology in Data Warehousing and Business Intelligence

• Words: 2741

Security and Privacy Issues in E-Commerce

• Words: 1987

Loyalty Ladder: Online Brand Analysis

Pestel analysis of canvas magazine, google analytics as a business intelligence tool, electronic payment issues in e-commerce, drawbacks and benefits of online shopping.

• Words: 1444

Impact of E-Commerce Technologies on Business Practices

• Words: 3591

Mobile Commerce Technology

• Words: 1648

Importance of Outsourcing in Businesses

Consumer attitudes towards online shopping.

• Words: 1358

ICT: E-Banking and Firm Performance

Cloud computing in organisational processes, indian e-commerce market’s growing popularity, the amazon company’s story of success, amazon’s e-commerce and customer purchase phases.

• Words: 1501

Development of a Plan for an Online Venture

• Words: 2797

E-Commerce: Doing Business Online

E-commerce after the covid-19 pandemic, the instashop egypt firm’s use of digital platforms, transforming a sewing business into an online venture, vermont teddy bear: improving it systems operations, data-driven decision-making in e-commerce business.

• Words: 3596

An E-Commerce Team’s Role in Business

Virtual stores and their impact on consumer goods, amazon: the prime 2-day delivery, online trends in business after the covid-19 pandemic.

• Words: 1538

E-Commerce: Shopbop Website Analysis

The process of moving to e-commerce.

• Words: 2080

Recommendations for Eco-Chocolate for Online Expansion

• Words: 3057

An E-Commerce Platform Project Proposal

The problem of entering the field of e-commerce, an e-commerce strategy and its importance, amazon web services and e-commerce, global ecommerce marketplace, e-commerce: an expansion of tools corp inc. to the japanese market, benefits from adding the online channel, transforming brick-and-mortar into e-business, l’oréal sa products and e-commerce, digital engagement in a business, amazon’s success online and its main reasons, specifics of the big data usage, raley’s shop’s website structure and organization, contactless payment and mobile point-of-sale issues, how e-businesses use network economics to achieve a competitive advantage.

• Words: 2549

E-Marketing Plan for Fast Fitness

• Words: 4796

ViaBela: Online Business and Website Success

• Words: 1341

Monthly Digital Marketing Results for Sustainable Sips

The role of gender in the perception of barriers to e-commerce in the uae.

• Words: 3239

E-Commerce Business Management

• Words: 1015

Global Website Production Task: Company Report

• Words: 3070

E-Commerce as a Fast-Growing Trend in the Industry of Food

“student beans”: starting the business in india.

Your Article Library

Essay on e-commerce: meaning, advantages and disadvantages.

ADVERTISEMENTS:

Read this article to learn about the meaning, advantages and disadvantages of E-Commerce.

Meaning of E-Commerce:

The fast and dramatic changes in information technology specially in last one decade has given new concept of marketing in which buyer and seller do not see each other face to face nor see the goods physically; the whole transaction is carried out with the help of ‘on line’ communication. The entire deal is carried out with the help of computer – telecommunication and net working with associated hardware.

In the e – commerce internet provides information about goods and services “It is” a way of conducting imaging and executing business transactions and services through elec­tronic media and net working in computers and communication net work, websites, e-mail are resorted.

Customers know about goods and services sitting at home. The manufacturers, distributors, suppliers and services providers let the consumers know about their products quality, price, size, color etc. through multi-colored catalogues on website. The consumers can ‘surface various web sites and compare their relative prices, quality characteristic, features etc.

These details can be obtained from suppliers around the globe. The websites are available beside for goods for direct selling, context selling, financial and other services such as hospitals, education, training, advertise­ments, property, entertainment, product demonstrations, bill payment, exchange and all other ser­vices which one can think of.

The types of selling through the use of internet and other electronic devices can be of following types:

1. Business to Business (B2B):

This implies selling by one business manufactures to other business manufactures, trade, wholesaler or retailer. In India as yet most of the e-commerce is B2B. The number of companies like TELCO, IBM, C1TI BANK, BHEL, ESSAR, TVS, MARUTI, BAJAJ, and many others are doing B2B. In 1998 out of total e-commerce of us$ 210 billion us$ 100 billion was accounted for B2B.

2. Business to Consumer (C2B):

When business sells to customers/consumers it is called B2C and is most important from our point of view. The products include items sold in departmental stores, chemist shops, grocery stores, books, stationery, clothes, vegetables, fruits and what not. As yet in India such sales are only of US$ 100 billion but are expected to go up to US$ 900 billion by 2005 i.e. the growth of 9000 percent. Many service sectors are adopting this mode.

3. Consumer to Consumer (C2C):

Under this system when some consumer want to dispose off his old items, he can take the help of selling through internet. But this type of e-commerce is not very common at least in India and the business is negligible.

4. Business to Government (B2G):

Business house or on individual business has to file income tax and sales tax returns and various types of other returns. As yet this requires filing of return in respective office and apply for approval in concerned office. But now many countries allow this type of activity through e-mail/e-commerce. However, as yet this is not being done in India.

5. Government to Consumer (G2C):

In order to provide facilities to public and speed up information and records government in many cases provide record of information, through this system; sale of documents, passport forms, copies of returns etc are supplied through e-mail. The main features of e-commerce is that one does not physically feel an item nor sees it and places order on the basis of information supplied through website or in response to consumers inquiry, as yet e-commerce has last preference for daily consumption items.

It is largely limited to durable goods like computers, TV’s, automobiles, books, travel reservation. In case of service it is becoming popular for banking and share purchases. The growth of E-commerce is restricted as given in Table 20.1

Key players in e-commerce are consumers and sellers.

E-mail net work :

E-commerce requires visit of website, selection of products, select a payment mode, realization of money (which is done before dispatch) and dispatch of goods.

The process may be depicted as under:

A. Visit of website :

Selection of a product

Selection of payment mode

1. Credit card

2. E-banking

3. VP/courier (who collects the payment at the time of delivery, but this is discouraged.

4. Placement of order through e-mail

5. Realization of money.

Dispatch to the customer can be on line or through courier.

In order that consumer may visit particular website, sellers have to advertise about their website so that consumer may visit the website. The consumer decides which websites have to be visited and after getting the information from various sites he makes a choice and decides which one should be purchased. He then places an order intimating the mode of payment which is generally through credit card or e-banking and advise the bank where he has credit card to debit the amount to his account.

After the seller realizes the amount for the goods order he dispatches the goods. In most of the cases whole process takes couple of minutes and goods reaches the consumer within half an hour to one hour if he is a local consumer, it is claimed so by sellers. In India in this business Rediff(dot)com is most popular and sells products worth Rs. 1340 million every month.

Advantage to Consumers:

The consumer has number of advantages and convenience and therefore the system is becoming popular.

1. Consumer has wider choice not from his town or country but also round the globe unless there are import restrictions.

2. Customized or personalized product and service. For instance if some lady wants a bra of exact size, her size can be measured through internet and stored and she will be supplied bra of her requirement.

3. In case of purchase, one is not required to go from store to store to see the products to collect their details, prices etc. Sitting at home he gets all the required information and that too very fast without spending much time.

4. There is absolute flexibility of time, place and distance is no hurdle; one can open the site any time day or night to get details, there is no problem of shops/stores opening/closing hours. Website can be opened any time. In physical sales place and distance is also a problem which is no problem in e-commerce because one can see sites all over the world without moving out of the house.

5. Goods are available at cheaper price because there are lot of economies of space, rent, interest to the seller Further, he manages with much lesser number of outlets and cost of marketing is reduced. Part of these savings is passed on to consumer and therefore, he gets the products cheaper than from conventional shops/departmental stores, grocers etc.

6. It helps to globalize retail trading. One can buy things without geographical boundaries.

7. It eliminates with the system of distributors, authorized dealers and retailers, the manufac­turer can deal with large territory with one store.

8. The inventory is reduced, and so the cost of carrying goods and distribution cost.

9. Exports to final consumers is possible through e-commerce, not only-just sales but procure­ment, accounts, logistics product development and other related services are also possible through e-commerce

10. The net enables suppliers to introduce and promote new markets and new products to meet the needs of individual buyers.

11. Long distance, travelling and delays, pollution all are avoided because one has not to travel to the shop.

12. Consumer is better informed about products, price etc and therefore can make better choice.

13. Suppliers, competitors and customers come under one roof through internet websites and massive exhibition of various items is possible.

Disadvantages:

1. The biggest disadvantage of e-commerce is that one is not able to see and feel the product.

2. Since consumers are not able to feel and touch the products and therefore business is on trust and as yet business is largely limited to travel, automobiles, PC’s, services, books and CD’s entertain­ment. As yet sales of apparel, food products is largely small percentage of total e-business. For instance in 1999 the maximum ownership of internet was 50 percent in USA, in other countries it varied between 1.8 percent to 45 percent (Table 20.2) But gradually this disadvantage is being reduced but still there is large percentage of population which does not own internet.

3. There is a big problem in on-line payment. It is with regard to time and legality of order to complete the transaction. As yet satisfactory system of payment has not been developed by banks and financial institutions in large number of countries.

4. The electronic signatures acceptance has been legalized by large number of countries but still many more have to take steps in this direction. Further, there are great chances of fraud in-spite of all the precautions.

5. The. e-commerce requires large investment to build a brand image on internet which is esti­mated around us$ 100 million or around Rs. 500 crores which can be invested only by big players. Thus small suppliers cannot get business through internet.

6. The market is restricted to high income and educated population who own and know the use of internet. Thus in poor, illiterate or less educated countries it has limited access.

7. Sometimes there could be flood of orders for any particular product which makes problem of timely supply to consumer. In 2000 there was YK2, problem and customers had to wait to get product of their choice.

8. Consumer has number of problems. He has to search internet/websites information on internet, make the purchase domain and the payment. There are difficulties in searching, surfing, browsing and wandering around the internet which costs both time and money.

9. Privacy of consumer is adversely affected specially in the matter of accounts; he is required to tell his credit card number to supplier or e-banker.

10. E-commerce is good for branded products like automobiles, electronic goods, computers, electrical goods, branded garments, branded food products, music, books etc. If middle class or lower middle class want to buy non branded products which are generally cheaper, they cannot be bought through e-commerce.

In other words e-commerce is for effluent society i.e. why population in USA use is 50%, in Europe 13 percentage, in poor countries only 1-2 percent and in some countries it is negligible. Thus e-commerce is for classes and not for masses.

Related Articles:

• Speech on E-Commerce: Meaning, Characteristics and Other Details
• E-Commerce System: Meaning, Resources Required and Benefits

Comments are closed.

Importance of E-commerce

The Influence of E-commerce Around the Globe

With the advent of industrialization and technological advancements, people do not have any time to waste in their lives. As the world witnesses more and more developments in the society as well as in the market, the work pressure also has increased. People working even at odd hours to exhibit their efficiency to attain all their targets, do not have any time for traditional shopping. However important may be the item to be purchased, they do not have any other option before them other than to procrastinate them.

Electronic Commerce or E-Commerce is the new progressive marketing strategy that helps you to purchase your goods without having to be physically present in the stores. The Internet is the medium through which e-commerce websites operate. It helps you to choose and buy any product through the websites without any hassle. No matter where you are if you have a stable internet connection and a smartphone/laptop with you, any purchase can be done with a few clicks. E-commerce marketing strategies have many advantages due to which everyone prefers them over traditional marketing.

Less Time Consumption

One of the most prominent features of e-commerce is that it consumes very less time compared to traditional marketing. When you personally go to a store for a purchase, it wastes the time of both you and the salesperson. The process of payment takes up even more time in traditional marketing. Whereas e-commerce showcases the best products from which you can choose the ideal product and make payments within a short span of time.

The Most Reliable Payment Methods

Handling payment by using cash is more time-consuming and risky. Walking along the pavements with a wad of cash in your wallet can even make you a victim of pilfering. In e-commerce, the shopping websites accept payment through credit/debit cards and also through net banking. In this way, you do not have to waste your time counting the exact change to be given to the store owner. Almost all the websites, nowadays, support cash on delivery of the items purchased, by which payment can be done after ensuring that your product is delivered without any deformities.

The Ability to Entertain Multiple Customers at the Same Time

Do you have the patience to endure a long queue to make a payment for your goods? If not, then the time has come for you to switch your mode of purchase. It is only possible by e-commerce to allow thousands of customers all around the world to make their purchases simultaneously. Here, you do not have to wait for your turn to purchase any product. All the customers online are provided with the same amount of attention and quality.

No Need To Worry About The Authenticity of the Products

The products available in the e-commerce websites are more trustworthy compared to the items in the local stores. The warranty period is clearly listed in all the items displayed on the websites. They do not impose any hidden charges on you unlike the people ruling the traditional system of marketing.

While the aforementioned qualities are applicable for the people who wish to make online purchases, e-commerce also helps the owners of the brands to a great extent. Let us have a look at them.

Provides Opportunities to Enter Into the International Markets

International Clients can easily be sought after through e-commerce. If on-time delivery and good quality of the products are maintained properly, you can easily enter into the international marketing system. It gives you better opportunities to find the most potential clients all over the world.

Easy to Promote Your Brand

Through social media like Facebook, Twitter, etc., the promotion of your brand can be done easily. Though it can be done even by local shopkeepers, the most important advantage you get is that your website gets global attention.

Less Cost Required for Maintenance

A considerably large amount of money is required to build a shop. But cost required to develop an e-commerce website is very less compared to that required in offline marketing. This also helps to attain more profit in a business.

In a fast-paced world, the role of hassle-free marketing is crucial. E-commerce is the most advanced platform used by the people globally as both clients and owners. It has also become easier to deliver your feedbacks and complaints to the vendors through e-commerce. So, it’s time to go on a shopping spree, because all your favorite brands are now just a click away.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Captcha: 6616

• IAS Preparation
• UPSC Preparation Strategy

E-Commerce - Definition, E-Commerce Market & Relevant Facts for UPSC GS-II

What is e-commerce.

E-Commerce is defined as the buying and selling of goods and services including digital products over digital and electronic networks. Electronic commerce (E-commerce) draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

It is important for IAS Exam from the perspective of current affairs and Indian Polity.

E-commerce – UPSC Notes:- Download PDF Here

Who is an E-Commerce Entity

It means a company that is incorporated under the Companies Act,1956 or the Indian Companies Act 2013 or a foreign company covered under the Companies Act 2013 or an office, branch or agency in India as provided in FEMA 1999, owned or controlled by a person resident outside India and conducting the e-commerce business.

Let us study from the image below, the sectors that contribute the most to e-commerce :

Why e-commerce is in the news?

• 100% Foreign Direct Investment ( FDI ) is permitted through the automatic route in the market place model of e-commerce.
• The above development indicates that 100% FDI is not permitted in the inventory-based model.
• This FDI is permitted only for B2B (Business-to-Business) model and not for B2C (Business-to-Consumer).

E-Commerce in India

As in 2019, India has an internet user base of about 40% of the total Indian population, especially with regard to e-commerce. E-commerce in India has been budding since 2009 and many major e-commerce companies have grown their businesses in India. 

There are typically two patterns in which e-commerce works in India:

1. Multi-product E-Commerce – The portals which sell multiple products on the same website or application are Multi-product E-Commerce companies. This includes Amazon, Flipkart, Snapdeal, where garments, furniture, books, stationery, etc. are all available at a single platform

2. Single Product E-Commerce – Under this, the companies which sell only a single type of product online are called Single-Product E-commerce companies. This includes portals like Makemytrip which enables all kinds of tourism-related services, similarly specific e-commerce companies for eyewear, furniture, gadgets, automobiles, etc.

Types of E-Commerce Models

There are mainly four types of E-Commerce Models which are followed in India. Discussed below are the same:

• Business to Business (B2B) – The selling of products between the manufacturer, retailers and wholesalers is called the B2B model of e-commerce. Here the customer is not involved in the transfer of products or goods
• Business to Consumer – This is the generally used online portals where the e-commerce company sells directly to the consumer
• Consumer to Consumer (C2C) – The best example of this is OLX, where consumer can upload their old products and resale them directly to the buyer. There is no interference of the manufacturers or retailers
• Consumer to Business – When a person designs or creates something new, they can sell it to the e-commerce company for further sales. This is called the Consumer to Business model

Also, read FDI in E-commerce: Whom will it benefit?

Aspirants can refer to the linked articles mentioned below which are related to e-commerce:

Under what conditions FDI is granted here?

• A manufacturer will be permitted to sell its manufactured products in India through E-Commerce retail.
• A single brand retail entity operating through brick and mortar store is permitted to undertake retail trading through E-Commerce.
• An Indian manufacturer is permitted to sell its own single brand products through E-Commerce retail. Indian manufacturer would be the investee company, which is the owner of the Indian brand and which manufactures in India, in terms of value, at least 70% of its products in house, and sources, at most 30% from Indian manufacturers.

The conditions levied are as follows:

• E-Commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfilment, call centre, payment collection and other services.
• The E-Commerce entity providing the marketplace will not exercise ownership over the inventory i.e. goods purported to be sold. Such an ownership over the inventory will render the business into an inventory-based model in which FDI is not permitted.
• An e-commerce entity will not permit more than 25% of the sales affected through its marketplace from one vendor or other group companies.
• Post-sales, delivery of the goods, the satisfaction of the customer, warrantee/ guarantee of the goods and services will be the responsibility of the seller.
• In a market-based model, payment for sales may be facilitated by the e-commerce entity in conformity with the guidelines of the Reserve Bank of India.
• E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field.

The table below how the two models of e-commerce work:

(Source: DIPP)

Market-Based Model:  Under this model, an e-commerce entity acts as a facilitator of goods and services by providing an information technology platform to the buyers and sellers

Inventory Based Model:   Under this model, the e-commerce entity owns an inventory of good and services to be sold to the buyers directly

Implications of FDI in E-Commerce   Good points:

• The B2B business model in the market place has been officially recognized by the government of India and hence ended much ambiguity in the policy.
• The discount wars will end providing some relief to the brick and mortar retailers and provide a level playing field.
• It will allow the traditional brick and mortar sellers to come out of their geographical barriers.
• It will help connect the long chain of demand in India with a long chain of supply.
• Indian offline manufacturers can go online and attract foreign investment now.

Advantages of E-Commerce Industry in India

Discussed below are the advantages of the E-Commerce Industry in India:

• Business can be done from anywhere can the products can be sold both within the country as well as Internationally
• One can promote their work and sell their products directly to the consumers without the interference of middlemen
• Goods can be delivered to the doorstep from any part of the country or the world
• Reduced the investment cost since in many cases money can be saved on buying a storeroom for the display of products
• 24×7 facility to order products online. The only requirement is an internet connection
• Through the four different models of electronic commerce in the country, businessmen can choose their target consumers and sell directly to the customers or to other retailers as well

What are the Challenges of the Indian e-commerce industry?

• High competition:  There are different players in the same area of business leading to decrease in profitability due to reasons such as aggressive pricing strategies, heavy discounts and offers, free delivery, high commissions to affiliates and vendors during sale period to name a few. These firms are losing billions to attracting customers.
• Poor logistic & supply chains:  E-commerce companies need to maintain the stock to get the benefit of reach and the ability to stock more items than physical stores as these are their biggest differentiators. With this benefit also comes the challenge of robust supply chains and logistics networks, which are not comparable and developed to global standards in India.
• Payments:  While offering a wide variety of payment options, Cash on Delivery(CoD) option in India is the most prevalent as customers fear to share information online and do not trust the website for secure payments. Also, the return percentage of orders in CoD is much higher compared to online payments.
• Trust of the customer:  Due to the constraints of quality, colour and texture recognition especially in apparels and luxury products, the customers are not able to trust that what is shown will be delivered.

Frequently Asked Questions on E-Commerce

Q 1. what is e-commerce, q 2. what are the different types of e-commerce models.

Ans. There are a total of 4 types of e-commerce models. These include:

• Business to Business (B2B)
• Business to Consumer
• Consumer to Consumer (C2C)
• Consumer to Business

Q 3. What are the benefits of E-Commerce?

Ans. E-Commerce has benefitted both the consumer and the seller/manufacturer equally. Given below are the advantages of E-Commerce:

• Less Start-up cost for the seller
• 24×7 online access to shop and order
• Goods can be delivered Nationally and Internationally
• One does not need to be physically present at the store to shop
• Easy Access to e-commerce websites and application

Q 4. How does e-commerce works?

Ans. The E-commerce companies create websites and applications where all the available products and goods are uploaded. A consumer can scroll through the products, choose the ones they like, add their delivery address and contact details and pay through online or COD mode for the products.

UPSC Preparation:

Leave a Comment Cancel reply

Your Mobile number and Email id will not be published. Required fields are marked *

Request OTP on Voice Call

Post My Comment

IAS 2024 - Your dream can come true!

Download the ultimate guide to upsc cse preparation.

• Share Share

Register with BYJU'S & Download Free PDFs

Register with byju's & watch live videos.

Paragraph on E Commerce 100, 150, 200, 300 and 400 + Words

Paragraph on E Commerce- 100 Words

E commerce is the process of buying and selling goods and services online . It has become increasingly popular in recent years, as it offers a convenient and efficient way to shop. There are many advantages to using e commerce, including the ability to compare prices, access a wider range of products, and enjoy greater convenience. It is also typically faster and more convenient than traditional shopping methods. E-commerce has revolutionized the way businesses operate and has created new opportunities for entrepreneurs around the world. If you’re thinking of starting an online business, there’s no better time than now. With the right platform and a bit of creativity, you can build a successful e-commerce business that will thrive for years to come. Thanks for reading!

Paragraph on E Commerce- 150 Words

E-commerce is the buying and selling of goods or services over the internet. It has become an increasingly popular way to shop, as it is convenient and often cheaper than traditional brick-and-mortar stores. E-commerce also offers a wider selection of goods and services than most physical stores. There are several reasons why e-commerce is so popular. First, it is convenient. Customers can shop at any time of day or night from the comfort of their own homes. They don’t have to deal with traffic, crowds, or weather. Second, e-commerce often offers lower prices than traditional stores because businesses save on overhead costs like rent, utilities, and employees. Finally, customers can usually find a wider selection of goods and services online than they can in a physical store. E-commerce also offers businesses a more efficient way to manage inventory and orders, and can help them save money on overhead costs. For these reasons, e-commerce is becoming an increasingly popular option for businesses of all sizes.

Paragraph on E Commerce- 200 Words

Ecommerce has come a long way since its humble beginnings and is now a major industry. It has revolutionized the way we do business and has made it possible for anyone to start their own online store. If you’re thinking of starting an online business, then ecommerce is a great option. There are many different platforms to choose from, so you’ll be sure to find one that suits your needs. And with the ease of payment options and delivery methods, there’s no reason not to give it a try. So what are you waiting for? Start your own ecommerce business today! With e commerce, businesses can operate 24 hours a day, 7 days a week without having to worry about opening and closing times. In addition, businesses can reach a larger audience with e commerce than they would if they were only selling through brick-and-mortar stores. On the other hand E-commerce is not without its drawbacks, however. One downside is that customers cannot physically inspect or try out products before they buy them. This can be a problem for items like clothing or electronics. Another downside is that delivery times can be slow and unreliable. Customers may also be concerned about the security of their personal and financial information when shopping online. Despite these drawbacks, e-commerce continues to grow in popularity

Paragraph on E Commerce- 300 Words

E-commerce is the conduct of business activity via the Internet. This includes buying and selling products, as well as providing services. It has become increasingly popular over the years, as more and more people have access to the Internet. There are many advantages to using e-commerce, such as being able to reach a global audience, being able to conduct business 24/7, and having lower overhead costs. It has become increasingly popular in recent years, as businesses have realized the potential of the internet as a sales platform. E-commerce offers many advantages over traditional brick-and-mortar shopping, such as convenience, a wider range of product choices, and lower prices. For consumers, e-commerce provides a convenient way to shop from the comfort of their own homes. They can browse through a wide variety of products and compare prices from different sellers without having to leave the house. And thanks to the advent of mobile commerce, they can even do this while on the go. For businesses, e-commerce offers a cost-effective way to reach a larger audience than they would be able to reach offline. By selling goods and services online, businesses can tap into a global market, which can result in increased sales and profits. In addition, businesses can save money on overhead costs by not having to rent or maintain physical storefronts. E commerce is convenient for both buyers and sellers as it eliminates the need for a physical store. It also allows for 24/7 shopping which is not possible with brick-and-mortar stores. There are many benefits to using e-commerce, such as being able to compare prices easily, being able to buy goods from anywhere in the world and having a wider range of products to choose from. It is also important to note that e-commerce is not just limited to shopping; it can also include other activities such as online banking and payments. E-commerce has come a long way in recent years, and it shows no signs of slowing down. With so many businesses now operating online, it’s more important than ever to make sure your e-commerce website is up to scratch. By following the tips in this article, you can ensure that your e-commerce website is user-friendly, efficient, and successful.

Paragraph on E Commerce- 500 +Words

E-commerce is the buying and selling of goods or services over the internet. It’s become increasingly popular over the years, as businesses have looked for ways to reach more customers and streamline their operations. While e-commerce has a lot of advantages, there are also some potential drawbacks that businesses need to be aware of. In this article, we’ll take a look at both sides of the e-commerce coin so you can decide if it’s right for your business.

What is e-commerce?

Ecommerce, also known as electronic commerce, is the buying and selling of goods and services online. Ecommerce businesses can range from small, home-based businesses to large, multinational corporations. There are several benefits to starting an e-commerce business. First, it is relatively easy to set up and manage an online store. Second, there are a wide variety of products and services that can be sold online. Finally, e-commerce businesses can reach a global audience of potential customers. If you are thinking about starting an e-commerce business, there are a few things you should keep in mind. First, you need to choose a niche market or product that you will sell. Second, you need to create a website or online store that is easy to use and navigate. Finally, you need to promote your website or store through social media and other online channels.

The different types of e-commerce

There are different types of e-commerce, each with its own unique benefits. Business-to-consumer (B2C) e-commerce is the most common type of eCommerce. In this type of e-commerce, businesses sell products or services directly to consumers. The most popular examples of B2C e-commerce businesses are online retailers, such as Amazon and eBay. Business-to-business (B2B) e-commerce is less common than B2C e-commerce, but it is growing rapidly. In this type of ecommerce, businesses sell products or services to other businesses. The most popular examples of B2B ecommerce businesses are online marketplaces, such as Alibaba and Etsy. Consumer-to-consumer (C2C) eCommerce is the least common type of e-commerce. In this type of ecommerce, consumers sell products or services to other consumers. The most popular examples of C2C ecommerce businesses are online auction sites, such as eBay and Craigslist.

Why ecommerce is growing

Ecommerce is growing for a variety of reasons. First, more and more people are shopping online. This is because it’s convenient and you can find good deals. Second, businesses are making more sales online. This is because they can reach a wider audience and it’s easier to set up an online store than a physical one. Finally, ecommerce is growing because it’s becoming more mobile. This means that people are buying things on their phones and tablets more and more. So why is ecommerce growing? There are a few reasons. First, people like the convenience of shopping online. They can do it from anywhere and they often find better deals than in physical stores. Second, businesses make more sales when they sell online. They have a wider audience and it’s easier to set up an online store than a physical one. Finally, ecommerce is becoming more mobile, which means people are buying things on their phones and tablets more frequently.

What are the benefits of ecommerce?

Ecommerce offers a number of potential benefits for businesses, including increased sales, improved efficiency, and decreased costs. For businesses that sell products online, ecommerce can be a highly effective way to reach a larger audience and boost sales. By making products and services available online, businesses can tap into a global market of potential customers. In addition, ecommerce can help businesses to improve their efficiency and reduce their costs. For businesses that rely on brick-and-mortar stores, ecommerce can provide a way to reach a wider audience and boost sales. By making products and services available online, businesses can tap into a global market of potential customers. In addition, ecommerce can help businesses to reduce their costs. Ecommerce can also offer benefits for customers, including convenience, greater choice, and lower prices. By shopping online, customers can avoid the hassle of traveling to brick-and-mortar stores and can find items that may not be available locally. In addition, online shoppers often have access to better deals and discounts than they would find in traditional stores.

What are the challenges of ecommerce?

There are many challenges that ecommerce businesses face on a daily basis. These can include things such as website crashes, slow loading times, poor customer service, and more. However, there are ways to overcome these challenges and succeed in the world of ecommerce.

Some of the biggest challenges that ecommerce businesses face include:

1. Website crashes and slow loading times 2. Poor customer service 3. Lack of customer engagement 4. difficulty in standing out from the competition 5. Security concerns

How to start an online store

Are you thinking about starting an online store? If so, you’re not alone. eCommerce is a rapidly growing industry, and more and more businesses are making the move to sell their products and services online. If you’re thinking about starting an online store, there are a few things you need to do in order to get started. Here are four tips to help you get started:

1. Choose your niche – The first step to starting an online store is to choose your niche. What type of products or services do you want to sell? What are you passionate about? Once you’ve answered these questions, you’ll be well on your way to choosing a profitable niche for your online store. 2. Find a supplier – The next step is to find a supplier for the products you want to sell. You’ll need to find a reliable supplier who can provide high-quality products at a competitive price. This is one of the most important steps in starting an online store, so take your time and make sure you find a supplier that meets your needs. 3. Create a website – Now it’s time to create your website. Your website will be the foundation of your online store, so

Tips for success in ecommerce

Ecommerce is a growing field, and with the right tips, you can succeed in this rapidly growing industry. Here are some tips to help you get started:

1. Know your audience. Who are you selling to? What do they want? Why would they buy from you? Knowing your audience is essential to success in ecommerce. 2. Have a great product. – Your product needs to be high quality and competitively priced. If you don’t have a great product, no amount of marketing will save your business. 3. Build a strong brand. – Your ecommerce business needs to have a strong brand identity. This includes having a great website, logo, and social media presence.

Why ecommerce is important

Ecommerce is important for a number of reasons. First and foremost, it is a convenient way to shop. You can buy anything you want, from anywhere in the world, at any time of day or night. This is especially useful for people who live in remote areas, or who have busy schedules that make it difficult to get to the store. Another reason ecommerce is important is that it offers a huge selection of products. You can find anything you want online, and you’re not limited by what’s available in your local stores. This is great for people who are looking for specific items, or who want to compare prices and find the best deals. Finally, ecommerce is important because it helps businesses reach a wider audience. If you have an online store, people from all over the world can purchase your products. This gives you the potential to make a lot more money than you would if you were selling through brick-and-mortar stores only.

The Benefits of Ecommerce

Ecommerce offers many benefits for businesses and consumers alike. For businesses, ecommerce can provide a wider market reach, as well as a more efficient and cost-effective way to conduct business. For consumers, ecommerce can offer greater convenience, choice, and value.

Some of the key benefits of ecommerce for businesses include:

Increased reach: An online store can be open 24/7 and reach customers anywhere in the world. This is especially beneficial for businesses that operate in multiple countries or cater to international markets. Improved efficiency: Ecommerce can automate many business processes, from inventory management to customer service. This can free up time and resources that can be better spent on other areas of the business. Lower costs: An online store typically has lower overhead costs than a brick-and-mortar store, since there is no need to maintain a physical space. Additionally, businesses can save on shipping costs by fulfilling orders electronically.

Some of the key benefits of ecommerce for consumers include:

Greater convenience: Consumers can shop online at any time of day or night, from the comfort of their own homes. They can also avoid crowds and save time by shopping online instead of in brick-and

The drawbacks of ecommerce

Ecommerce, or electronic commerce, is the buying and selling of goods and services online. While ecommerce has many advantages, there are also some significant drawbacks that businesses and consumers should be aware of. One of the biggest disadvantages of ecommerce is the risk of fraud. Because transactions are completed online, it can be difficult to verify the identity of the parties involved. This can lead to scams and fraud, which can be costly for businesses and consumers alike. Another downside to ecommerce is the potential for cyberattacks. Hackers can target online stores and steal sensitive customer data, such as credit card numbers and addresses. This can cause serious financial damage to businesses and customers alike. Finally, ecommerce can be disruptive to traditional brick-and-mortar businesses. By allowing customers to purchase goods and services online, ecommerce can Directly compete with physical stores and put them at a disadvantage. Overall, ecommerce has many advantages and benefits, but there are also some significant drawbacks that businesses and consumers need to be aware of. By understanding the risks involved in ecommerce, businesses can take steps to protect themselves and their customers from potential harm.

E-commerce has revolutionized the way we do business, and there’s no turning back. It’s fast, efficient, and convenient for both businesses and consumers alike. If you’re not already on board the e-commerce train, now is the time to jump aboard. You won’t regret it!

Related Posts

The Endless

September 1, 2022

E-Commerce Essay- Suitable for all class students

Essay On E-Commerce

E-Commerce Essay – Introduction: This is an age of science and technology. The practice, description, and terminology of any or all applied sciences of commercial value by dint of science is E-Commerce.

Contributions of science: Science has contributed one wonder after another day by day in the world. The computer is one of the most useful inventions of modern science. By opening the computer, logs on to the internet clicks a few times and within a few moments we may take the world in our hand and can go to the new world of E-Commerce. The internet has brought about a revolutionary change leading to a convergence of communicative and computing technologies.

Don’t Forget to Check: Essay in English

What is E-Commerce: E-Commerce may be defined as a dynamic set of technologies, applications and business processes link enterprises, consumers and communities through electronic transactions and the electronic exchange of goods, services, and information.

E-Commerce is not limited to shopping on the internet. It encompasses all the aspects of running a business, from advertising and marketing to sales, ordering, manufacturing, distributing, customer service, and inventory procurement.

Its impact: E-Commerce can have a very profound impact on corporate strategy because it not only changes the way a company interacts with its customers but also changes its suppliers, partners, employees or investors. In fact, electronic media have brought about a revolution in the field of business and commerce.

A few years back it was beyond our imagination. Electronic media have changed the expectations of all concerned persons in the field of commerce. Day by day E-Commerce is becoming popular all over the world.

A virtual explosion: In recent years there has been a virtual explosion in the realm of global information and marketing, as exemplified most vividly by the onset of the internet, electronic communication, and the world wide web. Between 1990 and 2000 the estimated number of internet users grew from around 1 million to 300 million.

This explosion has had a major impact on commercial activities, as firms realize the potential of the Internet to reach a consumer audience beyond the reach of traditional marketing means. The increasing popularity of the web as a vehicle for commercial and marketing enterprises is due mainly to its current size and potential for future growth and expansion.

Its global demographics and its ability to facilitate the global sharing of information, resources, goods, and services make it an attractive medium for consumers, businesses, and government.

Importance: E-Commerce is very important in the age of science, technology, and the internet. E-Commerce has given the facility of making online transactions. 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. They may get their required products or services staying in their houses.

It presents a lot of advantages and challenges for all parties involved. For consumers, the benefits of E-Commerce are multi-folded including increased availability of information about products.

E-Commerce also includes the enormous, potential of the web as a distribution channel, a global medium for marketing communications, lower distribution costs, as the use of middlemen no longer becomes essential. Lower marketing costs as buyers and sellers are able to communicate in a direction with each other .

Operational benefits such as reduced errors, time, and overhead costs in informational processing; and easier, faster, and cheaper creation of entry into new markets. E-Commerce is important for many reasons because it provides. the country’s products and investment potentially on the world screen; support of a new form of commerce that benefits all classes of society. It also increases foreign export earnings and tax revenues.

Conclusion: E-Commerce means electronic commerce. The world has dynamic technologies for international trade and commerce. So man can run various businesses sitting at home through it.

FAQ’s of Essay On E-Commerce

What is e commerce.

The practice, description, and terminology of any or all applied sciences of commercial value by dint of science is E-Commerce.

What is E Commerce and its importance?

E-Commerce is very important in the age of science, technology, and the internet. E-Commerce has given the facility of making online transactions.

What is e commerce scope?

It encompasses all the aspects of running a business, from advertising and marketing to sales, ordering, manufacturing, distributing, customer service, and inventory procurement.

About the Author

This is my personal Blog. I love to play with Web. Blogging, Web design, Learning, traveling and helping others are my passion.This blog is the place where I write anything whatever comes to my mind. You can call it My Personal Diary. This blog is the partner of My Endless Journey

Comment Policy: Your words are your own, so be nice and helpful if you can. Please, only use your real name and limit the number of links submitted in your comment. We accept clean XHTML in comments, but don't overdo it, please.Let's have a personal and meaningful discussion.

Please Say Something or Ask Any question about this topic! Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed .

• Available- 24/7
• +183 424 34234
• [email protected]
• Search for: Search

Number 1 custom essay writing service

Importance of E-Commerce Essay

The implementation of e-commerce across different sectors has been able to gain much popularity, most so within the boundaries of most business sectors.

Moreover, E-commerce has been able to play one of the most fundamental roles as far as the holiday selling season is concerned. Through the implementation of e-commerce, artificial intelligence has been used as a significant parameter when it comes to smarter shopping.Importance of E-Commerce Essay.  This has enabled the e-commerce to come up with the right products at the right time at the right place through the use of small screens and with just a click of a button (Schwartz  2). Importance of E-Commerce Essay. In the holiday season, e-commerce also plays an essential role by spiking the entire customer service activity, thus making it much easier and more efficient to provide reliable responses to most of the questions that are likely to be raised by the customers.

To attain different objectives within an appropriate time frame, e-retailers should prepare for holidays in various ways. Firstly, they should be in a position of adequately planning for the entire event by making sure that everything is in its correct position. This is to avoid any conditions that are likely to be associated with confusion. On the other hand, the e-commerce retailers should make sure that all their respective mobile sites are adequately optimized before the holidays to create more positive interactions of their products and services across all customer segments. By benchmarking themselves against the entire industry together with their specific vertical appears to be one of the best of understanding their success and even brainstorming their respective tactics in the coming year (Watson 4). Importance of E-Commerce Essay.

The retailers should also be in a position of focusing on the efforts in the coming New Year by adequately concentrating on their goals and objectives, thus making sure that they stay relevant at all times. Moreover, they should also focus on their efforts by being competitive in terms of offering quality services to all customer segments that are likely to be targeted in the coming New Year. Through this, they will be able to move to the next stage with a lot of ease. Importance of E-Commerce Essay.

ORDER A PLAGIARISM-FREE PAPER NOW

Works Cited

Watson, Corrine.  Cyber Week 2019 Trends Report: Off-Day Sales Grow, Black Friday

            Dominates, and Mobile Purchases Continue to Rise.  New York: E-commerce research,

2019. Print

Schwartz, Caila.  Cyber Monday Results: Still the Top U.S. Digital Shopping Day With the Best

            Deals as Global Revenue Grows to $8B . New York: Sales force blog, 2019. Print

Through electronic marketing and internet communication business firms are coordinating different marketing activities such as market research, product development, inform customers about product features, promotion, customer services, customer feedback and so on. E-commerce is used as a medium for communication and electronic commerce, it is to increase or improve in value, quality and attractiveness of delivering customer benefits and better satisfaction, that is why e-commerce is more convenient and day by day increasing its popularity.  Importance of E-Commerce Essay.

The two most commonly cited reasons for e-commerce have been convenience and price. The capability of purchasing without leaving your place is of great interest to many consumers. Not only does e-commerce offer really good deals, but also brings optimum convenience to the consumers. Moreover, the use of Internet tools for price searching and comparison provides an additional advantage in consumers’ final decision, as they can purchase their desired products in the lowest available price.

E-Commerce refers to the buying and selling of products and services over electronic systems like the internet and other computer networks. This system depends on technologies like electronic funds transfer, supply chain management, internet marketing, online transactions, electronic data interchange and automated data collection systems. E-commerce is divided into three major categories which include; Consumer to consumer: electronic commerce which involves consumers selling directly to consumers.

Like eBay (the giant web auction site) which allows people to sell their goods to other consumers by auctioning the products off to the highest bidder. Business to consumer: electronic commerce involves retailing products and services to individual shoppers. Like Noble. com which sells books, software and music to individual consumers. Business to business: electronic commerce refers to the selling of goods and services among businesses. For example, Milpro. com (web site) for selling cutting tools and grinding wheels to small businesses.

There are various ways through which electronic commerce payments are made and these include; Credit cards are a bank issued card that allows people to purchase goods or services from a merchant on credit. Importance of E-Commerce Essay. This type of system is commonly used in the USA and UK where 95 percent of the population uses online payments. A digital wallet is a soft ware application, usually for smart phones that serve as an electronic version of a physical wallet. This type of payment securely stores credit card and the owners’ identification information which also provides the information at the electronic commerce site’s checkout counters.

Digital credit card payment systems are those equipped with miniature computer that creates a new credit card number each time the owner makes a purchase. In this case, owners must also use personal identification number similar to those used with debit cards to complete a transaction. Digital checking payment system like Western union and Money gram are encrypted with a digital signature that can be verified and used for payments in electronic commerce and this is more useful in business to business electronic commerce.

A smart card is a plastic card with same size like that of a credit card that stores information and can also store health records and identification data like telephone numbers. All these electronic commerce payment systems are more common and advanced in the western world like UK, USA, German, Canada and a few African countries like South Africa, Nigeria and some North African countries where businesses are higher advanced and still boosting.

The following are the importance of electronic commerce in modern business across the globe; Electronic web pages provide vendors with the option of communicating with their customers, dealing with their problems and assisting them in the future which factor has enabled companies to build stronger reputation in the market places and an a good example of this is DELL computer company which coordinates directly with its customers without the presence of third parties.

Intelligent ideas in the field of electronic commerce are also acting as innovative ways to develop and attractive online shopping platforms which factor is improving the standards of online markets like eBay ( the giant web auction site) and Noble. com (which sells books and movies to individuals. For electronic commerce based merchants like DELL computer company, eBay ( the giant web auction company and Noble. com (which sells movies and books to individuals), their stores are open 24*7 which factor enables customers to browse, order and buy the products any time and any where.

Electronic commerce is user friendly and easy to maintain in a way that a person having no knowledge about programming can also edit manage and add content on his or her electronic commerce store which factor has created a wide range of products online hence giving customers a chance to choose from the variety of products on the various web sites.

Electronic commerce also helps to create interactive web stores where users can look at the products, their descriptions and order for them online through shopping cart and they can use the various options like credit cards, visa cards, digital wallet and smart cards which factor reduces the labor cost and hence vendors are able to make branded products available at lower prices and hence a wider market. Importance of E-Commerce Essay.

Electronic commerce has also reduced on the cost of marketing and promotions in form of advertisements for many companies using electronic commerce like DELL and eBay whereby, various products on the market are always uploaded on the different web sites which factor enables such companies to save and invest more in their respective businesses and hence boosting business in the modern globe.

Electronic commerce saves time of both the vendors and the customer in a way that, the vendor only needs a well designed and attractive web sites where his or her products are to be uploaded and its upon the customers to browse and see what they really need and then just order directly from the vendors. With the introduction of multiple payment systems, electronic commerce has greatly improved on the business standards in different countries like UK and USA where the customer are able to buy the available products internationally and this has greatly improved on the various businesses strategies across the globe.

Electronic commerce has also minimized on the cost of space occupied by the various products in terms of rent on the side of the vendors and in this case, the vendors only require a small office and a computer to do all their transactions whereby whenever a product is ordered for by the customers, the vendor only has to contact the industry and in a very limited time, a product is delivered which in fact encourages saving by the vendor.

Electronic commerce also enables the customers to compare prices of the various products and this is a way that many sites claim to offer customers the best prices and information from these sites can be used to compare prices by the customers. Electronic commerce also gives customers a chance to return defective goods where by most of these e-commerce web sites have a ‘returns police’ and it is always advisable that customers read this before purchasing a product from the vendors.

And this gives customers a right to return such products which factor is totally different from buying products in our common shop where the policy is ‘goods once bought cannot be returned. CONCLUSION; In conclusion, without any obstacles, electronic commerce will probably continue to mature in the global market and eventually, it will become an essential business plan for most companies in order to survive and stay competitive in the ever changing market. And the appearance of E-commerce as a pioneer has opened up windows of opportunities for a variety of other companies and investors. Importance of E-Commerce Essay.

Essay on E Commerce in India

Students are often asked to write an essay on E Commerce in India in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on E Commerce in India

Introduction to e-commerce.

E-commerce, or electronic commerce, is the buying and selling of goods and services on the internet. In India, it has become extremely popular due to the rise in smartphone usage and internet access.

Impact on Indian Market

E-commerce has transformed the Indian market. It’s now easy to shop from home, leading to a boom in online businesses. Major players like Flipkart and Amazon have seen tremendous growth.

Advantages of E-Commerce

E-commerce offers many advantages. It provides a wider product range, competitive prices, and the convenience of home delivery. It also allows businesses to reach a larger audience.

Challenges for E-Commerce in India

Despite its advantages, e-commerce in India faces challenges. These include internet connectivity issues, digital literacy, and concerns about online fraud. However, efforts are being made to address these issues.

250 Words Essay on E Commerce in India

Introduction.

E-commerce, or electronic commerce, has revolutionized the way business is conducted in India. It refers to the buying and selling of goods and services, and the transfer of funds, through digital platforms.

Growth and Evolution

E-commerce in India has seen exponential growth in the last decade. The advent of advanced technologies, increased internet penetration, and a shift in consumer behavior have driven this evolution. The Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017.

Key Players

The Indian e-commerce landscape is dominated by giants like Amazon India, Flipkart, and Snapdeal. These platforms offer a wide range of products, from electronics to fashion, and have become a preferred shopping destination for the Indian populace.

Government Regulations

The Indian government has implemented various regulations to manage this booming industry. The introduction of the Goods and Services Tax (GST) has streamlined taxation, while the FDI policy for e-commerce has attracted foreign investments.

Despite its growth, e-commerce in India faces challenges like logistics and infrastructure issues, digital illiteracy, and data privacy concerns. Cybersecurity is another significant concern that needs to be addressed.

E-commerce in India is a dynamic and rapidly evolving sector, offering immense opportunities. However, it is essential to address the challenges to ensure sustainable growth. The future of e-commerce in India promises exciting prospects, given the increasing digitalization and evolving consumer preferences.

500 Words Essay on E Commerce in India

Introduction to e-commerce in india.

E-commerce, or electronic commerce, has been a transformative force in India’s economic landscape. It refers to the buying and selling of goods and services over the internet, which has revolutionized traditional commerce by providing unparalleled convenience, variety, and cost-effectiveness.

The Growth of E-commerce in India

India’s e-commerce sector has seen exponential growth in the past decade. This surge can be attributed to several factors. Firstly, the proliferation of smartphones and the internet has made online shopping a viable option for a large segment of the population. Secondly, the rise of digital payments, facilitated by initiatives like the Unified Payments Interface (UPI), has made transactions seamless and secure. Lastly, the growing middle class with increasing disposable income has fueled demand for a wide range of products and services available online.

Impact on Businesses and Consumers

E-commerce has had a profound impact on both businesses and consumers in India. For businesses, it has opened up new markets and opportunities. Small and medium enterprises (SMEs), in particular, have benefited from the vast reach of e-commerce platforms, enabling them to overcome geographical limitations and reach customers nationwide, or even globally.

For consumers, e-commerce has expanded choice and convenience. They can now compare products, read reviews, and make informed decisions before making a purchase. Moreover, the convenience of home delivery and easy returns has made online shopping an attractive alternative to traditional retail.

Challenges and Future Prospects

Despite the impressive growth, e-commerce in India faces several challenges. Infrastructure bottlenecks, such as inadequate logistics and supply chain, can hinder delivery and customer satisfaction. Cybersecurity is another concern, as cases of online fraud and data breaches can erode consumer trust in online transactions.

However, the future of e-commerce in India remains promising. The government’s Digital India initiative aims to further improve digital infrastructure and promote online transactions. Additionally, emerging technologies like artificial intelligence, machine learning, and blockchain are expected to revolutionize e-commerce, offering personalized shopping experiences, enhanced security, and greater transparency.

In conclusion, e-commerce has transformed the commercial landscape in India, offering unprecedented opportunities for businesses and consumers alike. While challenges persist, the e-commerce sector in India is poised for continued growth, driven by technological advancements and supportive government policies. As such, it will continue to play a pivotal role in India’s economic development in the years to come.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

• Essay on Drug Free India
• Essay on Dowry System in India
• Essay on Domestic Violence in India

Apart from these, you can look at all the essays by clicking here .

Happy studying!

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.