Ecommerce and Its Impact in Pakistan
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Summary
The technology of today is vastly innovative and beneficial to those who know how to manipulate it. The Internet era is unfolding; anybody can now log on to their computers and take care of their financial business, online in the comfort of their own homes. This is called e-commerce, within the past few years; companies have been excited with the idea of online shopping and connecting with customerЎ¦s worldwide. This is mainly because of over exaggerated headlines, outrageous market appraisals and so-called Ў§instant billionairesЎЁ. The hype began in 1994, when the Internet and the World Wide Web gained popularity; companies competed to be the first ones out with convenient online shopping sites, for busy, tech savvy individuals. E-commerce is a very hot issue these days. After the revolution of Internet, more and more countries are getting involved in it. However, in general, if we use any type of electronic devices in getting orders and sending catalogues, like telephone, fax or any other such instruments, we are supposed to be applying electronic business techniques. However, the real sense of e-commerce is the business on the Internet of which there are different modes, like opening a retail store on Internet, where all transactions are done on line, from selection of product to payment of bills. The over-all volume of e-commerce is more than $4 billion annually. Doing business on Internet is not a very costly investment. It is estimated that in near future, almost 25 per cent of the traditional business will be converted into Internet business. E-commerce is an information technology trend developing fast in the business world. The corporate and the business world, aptly supported by the IT industry, already stand transferred, which by recent estimate will exceed $400 billion this year. The most common and popular forms of e-commerce are business-to-consumers (B2C) and business-to-business (B2B). Business-to-government (B2G) and government-to-citizens (G2C) are other forms, running on the Internet but with low steam. However, the use of former two still dominates the Internet. E-commerce definitely influences the economy in a very constructive way. Investors can now put in orders for stocks 24 hours a day, and trade on markets around the world in real time within seconds, individuals now have any information desired, right at their fingertips. Investors can now work from home and get stats about their stocks off the web and react to the information in a matter of seconds, meaning they can cash in on business opportunities instead of having to wait for their broker to put the transaction through. This means that the investor now has more control over the market and in turn has more effect on the growth in the economy. E-commerce helps to organize all the information needed so information can move faster and orders and needs are fulfilled in shorter time frames, eliminating many middle men, resulting in customers getting what they want quicker and at a lower cost. Organization in e-commerce is evident when a customer places an order on a website; since all information is integrated customers know which products are available and the sellers know how much of each product they have on hand and when they need to purchase more; this saves lots of time for the seller since all inventory is monitored on the computer, meaning faster turnovers and more sales. Increased e-commerce (online shopping) also leads to the production of ЎҐmiddle wearЎ¦, as companies grow, the need for technological solutions becomes more evident and smaller tech companies are called upon to create e-commerce solutions to help industries cope with the new high demands of e-commerce. This produces more jobs for those in the technology industries because they are needed to assist in trouble-shooting and operating of these programs. E-commerce is revolutionizing the way all industries work and is assuring that the futures of these industries are promising.
In Pakistan, e-commerce is still in its infancy and faces many barriers to grow. The notable barriers are: unavailability of proper infrastructure [telephone line of stem lines of steam age, frequent failures of power] limited user of internet hardly one per cent of the entire population have access to the internet, the issue of security of transactions on the internet, high bandwidth rates, and last but not least the rigid and monopoly role of the PTCL. The economy, the people who work in the economy and the accounting industry confirm that e-commerce is here to stay. The economy has only prospered since its introduction, and even though there have been some shortcomings, lessons were learned as companies and individuals acquired knowledge on how to manipulate the availability of information.
Introduction
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