Analyze the role of EC in the modern business and social environments. Identify three international barriers to EC and evaluate their roles in the success of EC. This assignment tests your analytical and critical thinking skills and your ability to synthesize concepts around topics. The paper should be in APA format, 2-3 pages (not including reference page), with at least two references. With the introduction of internet, Ecommerce has taken its supreme position in Today’s industry. Ecommerce essentially means trading products and services by using computer through internet. It has three important factors- Technology, Law Policy and finally Business Ecommerce was introduced in 1970s and, from then, its use has been exponential Ecommerce also had its setbacks during the start of year 2000 when the dot com bubble burst and the stock market was caught in frenzy. Only genuine companies like EBay and Amazon Inc. could survive this crash as they were able to generate good income. Following 2000, many companies came into existence with new ideas on how they can utilize the Ecommerce potential at its maximum. Role of E-Commerce in the modern Business:
1. You can buy and sell almost everything at your doorstep with the magic of e-commerce in this 21st century which will be known for information revolution. E-commerce has changed your lifestyles entirely because you don’t have to spend time and money in travelling to the market. You can do your e-payments with the help of e-commerce. 2. You can pick up the pace of your online business with the help of e-commerce application development and web development solutions. The ecommerce solutions offer many advantages as follows: 3. E-commerce is one of the cheapest means of doing business as it is ecommerce development that has made it possible to reduce the cost of promotion of products and services. 4. There is no time barrier in selling the products. One can log on to the internet even at midnight and can sell the products at a single click of mouse. 5. The on-time alerts are meant for the convenience of the consumers and inform the consumers about new products.
Role of E-commerce in the Social environments:
1. The major role of social media in E-Commerce is to promote brand awareness.
2. Social media helps passively showing that the brand interacts with their customers and is easily reachable.
3. Social media has cemented itself in today’s society and changed the way many of us communicate. Not only has it affected the way we interact at an individual level, but it has also started to impact the way companies do business.
E-commerce reduces delivery time and labor cost thus it has been possible to save the time of both – the vendor and the consumer. Economic Effects of Ecommerce:
1. Reduction in transaction costs in Ecommerce compared to traditional commerce as Ecommerce removes the traditional geographical and time barriers.
2. Ecommerce is of tremendous advantage to a layman, who does not understand the product- which is new into the market- Ecommerce helps him make a decision by comparing the prices online and allows this comfort at his home rather than driving to different locations and accessing the similar product at different stores.
3. Additionally another main advantage has been shipping of the product to home which saves costs of transportation and time for the buyer. Business Effects of Ecommerce:
1. Various retail stores of a particular product are now connected online and they would have a better idea of the costs incurred to get the product from the manufacturer
2. Business rules in selling a particular product are more synchronized which translates into smooth transition to the end user
3. Major advantage has always been customer satisfaction and retention – and considerable decrease in time in total transaction – right from ordering to shipping of the product.
International Barriers of Ecommerce:
These can be some of the barriers to International Ecommerce
1. Security- As the entire transaction takes place online, and some sites are well constructed and some have their security certificates and https :// links, but still in this communication age, there are hackers who still attack some of the transactions and take advantage of sensitive information related to purchase. This online security issue cannot be reduced unless the buyers and the sellers are equally educated on their free presence on internet and its effects
2. Language- International trade occurs between different countries which can be similar or very different from each other. Language is certainly a barrier as the trade occurs only when the buyers and sellers together dictate the price of the product and are satisfied with the transaction, sometimes the webpages of the business site cannot be written in the same language which the customer understands. In those circumstances, the sellers’ webpage can be made effective by including some software tools for translation by detecting the locale of the customer, or the site itself could provide different language versions of the same website.
3. Lack of Trust- This is the ultimate problem of Ecommerce, unless the webpage is very popular and has a huge base of retentive customers, we cannot be sure if the transaction would be smoother. Sometimes the seller can simply get the sensitive information from the buyer and can take advantage in the transaction, sometimes the product need not be shipped, shipped product might be a different one or it might be defective. The biggest example of lack of trust is the Tech Bubble bursting during 2000 where many companies created their small presence just to be on web and cheated many investors to buy their stocks. We can limit this threat by providing some certifications to the website, in case of individual- individual transactions as that of EBay which are largely based on auction; this point may not be implemented effectively.
In conclusion, there are several benefits of Ecommerce and what it could do to our future and what it has already done and the employment it provided to many through IT industry. Ecommerce has been largely helpful in channelizing the buying power of customer with the product which he desires the most. However, in addition to many benefits, it also has some inherent barriers which might not be eliminated completely; some measures to reduce these risks would be definitely useful for the benefit of Ecommerce at large.
Gary P. Schneider, Ninth Edition CPA © 2011 Course Technology, Electronic Commerce. Lena Johansson, National Board of Trade, November 2012,E-commerce – New Opportunities, New Barriers. Robert Nunn, December 6, 2013, The Role of Social Media in Ecommerce retrieved from http://www.payelp.com/the-role-of-social-media-in-ecommerce/#sthash.hkooJ1G1.
dpbs. Shareef et al, Journal of Electronic Commerce Research, 2008. Role Of Different Electronic-Commerce (EC) Quality Factors On Purchase Decision