In 2012, e-commerce sales topped $1 trillion for the first time in history. There are many individuals and agencies well equipped to take on your HR activities. At this time the meaning of the word ecommerce was changed. B2B E-Commerce could be used as a significant enabler in their move towards greater trading partner collaboration. When the product cannot be physically examined, traditional commerce has no advantage over the convenience of electronic commerce. E-Commerce technologies have allowed even the smallest businesses to improve the processes for interfacing with customers. By the end of 2001, the largest form of ecommerce, Business-to- Business (B2B) model, had around $700 billion in transactions. There are pros and cons to any approach. It is therefore instructive to compare e-tailing to catalog retailing to gain some insight into its potential impact. It will change the organization of work- new channels of knowledge diffusion and human interactivity in the workplace will be opened more flexibility. 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. However, to facilitate e-commerce growth in these countries, the relatively underdeveloped information infrastructure must be improved. According to statistics, approximately half of the company’s profit comes from the web site. Production systems are integrated with finance marketing and other functional systems as well as with business partners and customers. If your ecommerce platform is tightly integrated to your accounting system, you may have very little need for an in-house bookkeeper. Issues are copyright laws, privacy of customer information, and legality of electronic contracts. 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. It is recognized that in the Information age, Internet commerce is a powerful tool in the economic growth of developing countries. Accessibility & easiness. It allowed customers to shop from home, when they wanted, at their own convenience. Technical Expertise and Customer Support: Another key element of ecommerce hosting is technical expertise of the hosting provider. We had no alternative for drop shipping, and most items were purchased in bulk and were very small. Shopping online is no exception. This is a temporary issue as the evolution of the web continues. 11 Cloud computing . E-commerce is at the heart of their businesses. E-commerce has become an important tool for small and large businesses worldwide, not only to sell to customers, but also to engage them. 4. At present, electronic commerce over the Internet is relatively small but is growing very rapidly. But choose a style and stay consistent. Companies see an average increase in repeat purchases of 20% – all because of a loyalty program. (xii) Automatic trading of digital goods like games, learning material, songs and music etc. Buyers are just as in the brick-and-mortar world do not like long checkout processes. 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. Therefore, it is necessary to bring your website at the top in terms of search engine results. 10. 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. 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. 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. 3. 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. There has been and continues to be much publicity and discussion about e-commerce. The key factor of Dell’s success is that Dell.com enables customers to choose and to control, i.e. Ecommerce became possible in 1991 when the Internet was opened to commercial use. This is only possible when the program is overall easy to understand and analyze. 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. In some industries like the jewelry supply industry that my previous business was in managing your own inventory was the most logical choice. Many e-commerce retailers gain major benefits from loyal customers. Flexibility and speed. The special advantages of e-commerce like, Opportunity to operations, easy global reach, lower cost of acquiring, serving and retaining customers, easy to build an extended enterprise, improve customer service and de-intermediation tempt the world business community to adopt e-commerce. List of Pros of E-Commerce. E-Commerce has given the facility of making online transactions. (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. History of ecommerce is a history of a new, virtual world which is evolving according to the customer advantage. An e-commerce website also allows customers to post their comments regarding products and services. 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. The importance of trade and commerce are mentioned in following points :- 1. Anyone can start an online business, which sometimes leads to scam and phishi… In many cases, you can host your business out of a home office and your basement or garage. Keeping in touch with the customers also helps a business owner in the long run. … This is particularly the case for multi or omnichannel businesses. With E-Commerce 2.0, this has been expanded and refined to include various online channels. 4. According to the research conducted in 2008, the domain Amazon.com attracted about 615 million customers every year. Moving from mass production to demand driven, mass customization customer pull rather than the manufacturer push of the past. One of the areas in which it impacts particularly is direct marketing. 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. Amazon.com, Inc. is one of the most famous ecommerce companies and is located in Seattle, Washington (USA). Business to Consumer e-commerce is where the consumer accesses the system of the supplier. 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. It is still a two way function but is usually done solely through the Internet. However, as businesses grow, demands increase and you may need more space and bandwidth. As … 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. E-Commerce or Electronics Commerce is a methodology of modern business, which addresses the need of business organizations, vendors and customers to reduce cost and improve the quality of goods and services while increasing the speed of delivery. (xiii) Accounting and financial management. Currently there are 5 largest and most famous worldwide internet retailers- Amazon, Dell, Staples, Office Depot and Hewlett Packard. Ecommerce refers to the paperless exchange of business information using the following ways − On another plane, developing countries are given increased access to the global marketplace, where they compete with and complement the more developed economies. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled mass customization, besides reducing costs. A customer-management system will make those activities easier, but for smaller companies it is not a requirement. 1. However important may be the item to be purchased, they do not have any other option before them other than to procrastinate them. 1. A key strategic challenge is for firms to integrate e-commerce across all the functional areas. 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. 5. 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. 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. Prohibited Content 3. 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. The best of these shopping tools takes into account that buyers want to be entertained and pleased. E-commerce provides on line customer care and support services. If you build and host your own system, you may need more cash up front and skilled administrators and developers on your staff. If you drop ship or outsource fulfillment, you may be able to do that for a long period of time. You can manage those activities in-house or outsource to a third party. 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. Customers have a much wider choice at their fingertips (many e-tail sites, etc.). This is again a temporary issue as the evolution of the web continues. 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. This is no different when providing a delivery service. Providing customer services ; Businessmen can interact with their customers using the internet. Once your website is search engine optimized, you may drive loads of traffic to the website. Many times, trust deficit, security, and privacy concerns prevail. 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. If your current ecommerce hosting provider does not offer flexible plans, you may need to transfer your hosting account to another provider. Select the best fulfillment option to meet your needs. 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. To effectively manage marketing activities in-house is very challenging. A Larger Market. 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. Data is King-Collect a Wealth of Opportunities: Gone are the days of looking at purely operational reports. E-Commerce is very important in the age of science, technology, and the internet. Issues of on-line recruiting, home working and ‘intra- pruners’ working on a project by project basis replacing permanent employees. 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. Also, the transaction cost is effectively less. Copyright 10. Types of e-commerce. Decentralized Content Generation – Data from the Community: Buyers were once along for the ride in the e-Commerce process. Firms can offer their products and services with involvement of intermediaries. Today, we can see e-commerce is becoming a part of study of almost all the courses in management and commerce. 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? Recruiting, setting up compensation, maintaining compliance and other HR activities are specialized and time consuming. (iv) Commercial transactions – ordering, delivery, payment. Electronic commerce will cause changes in the mix of skills required, driving demand for information technology professionals. We did not trust preparation and fulfillment to an outside service. Lower Cost than traditional shopping and selling:- Selling products and services online is less costly … 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. Now business can be conducted at anywhere any place accessible to internet. History of ecommerce dates back to the invention of the very old notion of “sell and buy”, electricity, cables, computers, modems, and the Internet. 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. (viii) Use of public and private services. The cost taken to set up an e-business is much higher than the cost required to set up a traditional business. Content Guidelines 2. You may be able to start in a smaller space and move up to a larger one without penalty, as your needs change. 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. Top Performers in the Market: Business Intelligence analyzes the Most profitable advertising campaigns, customers, segments and products based on data and gives the E-commerce business a … Many small-business owners avoid the human resources function. 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. You may need to adjust your approach as your business evolves. 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. The most popular feature of the web site is the review system, i.e. The Canadian e- Commerce site Wasabi even encourages buyers to submit any offers that they find through social and economic incentives. Online retail stores are not standardized in design in the way catalogs and retail stores (which use planograms for the same) have become. 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