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What is Ecommerce and the Importance of Ecommerce
Electronic commerce, or Ecommerce, which literally means business
trading through the Internet, has been around the globe since mid 90s. However, until
the recent few years, Ecommerce is getting more and more attention from entrepreneur
and consumers, both local and international. One of the main reasons is due to the highly
successful operations of some well known names on the Internet, such as eBay, Yahoo and Dell.
The sales revenue these companies shown in their annual reports are without doubt, one of
the biggest factors why Ecommerce is important in the commercial market nowadays.
Ecommerce proved its importance based on the fact where time is essence. In the commercial
markets, time plays an important role to both the business and consumers. From the business
perspective, with less time spent during each transaction, more transaction can be achieved
on the same day. As for the consumer, they will save up more time during their transaction.
Because of this, Ecommerce steps in and replaced the traditional commerce method where a
single transaction can cost both parties a lot of valuable time. With just a few clicks in
minutes, a transaction or an order can be placed and completed via the internet with ease.
For instance, a banking transaction can be completed through the Internet within a few minutes
compared to the traditional banking method which may take up to hours. This fact obviously
proves that Ecommerce is beneficial to both business and consumer wise as payment and
documentations can be completed with greater efficiency.
From the business viewpoint, Ecommerce is much more cost effective compared to traditional
commerce method. This is due to the fact where through Ecommerce, the cost for the middleperson
to sell their products can be saved and diverted to another aspect of their business. One example
is the giant computer enterprise, Dell, which practice such a method by running most of their
business through internet without involving any third parties. Aside from that, marketing for
Ecommerce can achieve a better customer to cost ratio as putting an advertisement on the internet
is comparably much cheaper than putting up a roadside banner or filming a television commercial.
For Ecommerce, the total overheads needed to run the business is significantly much less compared
to the traditional commerce method. The reason due to that is where most of the cost can be reduced
in Ecommerce. For example, in running an Ecommerce business, only a head office is needed rather
than a head office with a few branches to run the business. In addition to that, most of the cost
for staff, maintenance, communications and office rental can be substitute by a single cost,
web hosting for the Ecommerce business.
To both the consumers and business, connectivity plays an important part as it is the key factor
determining the whole business. From the business point of view, Ecommerce provides better
connectivity for its potential customer as their respective website can be accessed virtually
from anywhere through Internet. This way, more potential customers can get in touch with the
company's business and thus, eliminating the limits of geographical location. From the customer
standpoint, Ecommerce is much more convenient as they can browse through a whole directories of
catalogues without any hassle, compare prices between products, buying from another country and
on top of that, they can do it while at home or at work, without any necessity to move a single
inch from their chair. Besides that, for both consumers and business, Ecommerce proves to be more
convenient as online trading has less red tape compared to traditional commerce method.
In global market sense, the appearance of Ecommerce as a pioneer has opened up various windows of
opportunities for a variety of other companies and investors. For instance, due to the booming
of Ecommerce, more and more resources are being directed into electronic securities, internet facilities,
business plans and new technologies. In result of this phenomenon, a variety of new markets have
emerged from Ecommerce itself giving a boost to the global market.
In short, if without any major obstacles, Ecommerce will certainly continue
to mature in the global market and eventually, it will become an essential business plan for a
company in order to survive and stay competitive in the ever changing market.
Ecommerce Related Websites
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