Electronic CommerceEssay Preview: Electronic CommerceReport this essayElectronic CommerceEdward CaputoMany new and exciting business and purchasing opportunities are becoming available due to the phenomenal growth of the Internet and peoples interest to save time and money by purchasing goods via the web. If you think about all the companies that you know that dont use computers for their everyday business than you either are stumped or just thought of one that will soon be forced to evolve or will soon go out of business. There are very few successful companies that do not use computers in their everyday business activities. There are also few companies do not use some form of e-commerce. Just as an example to hit home this point, the effect of the Internet is so widespread in todays business communities, one online article stated that more than 100000 companies have Internet addresses, and 20000 companies have home pages on the Internet as of February 1999. (DataQuest, 1999). Since the beginning of the 1990s these numbers have quadrupled. Now you might be thinking, “Just what exactly is e-commerce?” To most casual Internet surfers, e-commerce means online shopping or simply purchasing Christmas presents via your personal computer and any Internet browser. As we will soon find out this is not exactly the definition of e-commerce but rather on entity of its capabilities.
In Laymans terms, e-commerce is the exchange of business information between two or more organizations. An example of this would be buying and selling products or services over the Internet. After e-commerce proved to be an efficient means to conduct long distance transactions it became very accepted. This paper shall discuss some of the advantages and disadvantages of e-commerce, as well as predicting its potential for the future of business.
Electronic commerce, or e-commerce has developed exponentially in the last few years and has left some in the cold. The majority of people think e-commerce is just about buying and selling things over the Internet like through auctioning sites such as E-Bay and U-Bid. However, E-commerce is a broad term describing the electronic exchange of business data between two or more organizations computers. Some examples might be the electronic job applications, on-line services like America online, and on-line billing that automatically pays specified bills each month so you dont have to mail a check. E-commerce also includes buying and selling any item over the Internet, electronic banking so you can transfer funds between accounts or stocks, smart cards, and all other methods of conducting business over digital networks. “The primary technological goal of e-commerce is to integrate businesses, government agencies, and contractors into a single community with the ability to communicate with one another across any computer platform.”(Edwards, 1998)
Electronic commerce started 130 plus years ago by telegraph technology. This is similar to wiring money though an electronic agency for a small fee. The advent of credit cards as a payment system began the revolution of the automated process of commerce that we are so familiar to today. The introduction of the ATM card in the mid 80s was one of the most recent improvements to electronic commerce and its capabilities. In 1969 when the Department of Defense began funding the research of computer networking and the idea Internet was conceived. By the 80s the Internet was still in its youth and very few households had access to the Internet, but at very grueling speeds. The Internet, as a means for commerce, did not become reality until the 1990s. Before this time, it was mainly a tool for the army, and a research device for some American universities. When faster more readily available and relatively cheep means of accessing the Internet were introduced, it was only then did people start to realize how they could capitalize on a greater market and also use the Internet for a fast and efficient means to conduct long distance transactions, as well as an effective way to distribute information
Clearly, E-commerce will change the face of business forever. Companies that were one thought too far away to conduct business, can complete business transactions in a matter of seconds as well as exchange information. “Dell Computers sells more than $14 million worth of computer equipment a day from its web-site. By taking their customer service department to the web Federal Express began saving $10,000 a day. The Internet provides businesses with the opportunity to sell their products to millions of people, 24 hours a day.” (Baxton, 1999)
In 1998, revenue equaled almost 74 billion dollars and experts predicting that it will climb to as much as 1,234 billion dollars by the year 2002. With statistics like this, anyone can see that e-commerce will be the thing of the future. One article stated, “Without a doubt, the Internet is ushering in an era of sweeping change that will leave no business or industry untouched. In just three years, the Net has gone from a playground for nerds into a vast communications and trading center where some 90 million people swap information or do deals around the world. Imagine: It took radio more than 30 years to reach 60 million people, and television 15 years. Never has a technology caught fire so fast.” (Edwards, 1998)
The advantages of e-commerce are its speed, savings, international distribution and customer service available. However, the disadvantages are privacy and security, consumer willingness to pay, technical challenges for new e-businesses and the organizational commitment. These advantages and disadvantages will be discussed henceforth.
The number one advantage that e-commerce possesses is speed. The Internet and World Wide Web give businesses opportunities to exchange messages or complete transactions almost instantaneously. Even with the slowest connections, doing business electronically is much faster than traditional modes. With increased speeds of communication, the delivery time is expedited and that makes the whole transaction from start to finish more efficient. Also, you can find practically any product available for sale on the Internet, from books and compact disks to, performance car parts. Even more significant is the fact that information appearing on the Internet can be changed extremely rapidly. This gives business owners the ability to inform customers of any changes to the service that you are offering. This also allows for you to update marketing and promotional materials as often and as frequently
In conclusion, in terms of the benefits to you, here’s a number of tips to avoid any pitfalls and costs when it comes to doing so.
• Take out your credit card or debit card.
In addition to the speed with which you can change a product from brand to brand, e-commerce should be able to add in the ability to use credit cards and debit cards that cannot access your credit card at a higher rate than e-commerce does, or even higher rates, depending on the brand. This will allow your customers to easily manage your credit card, reduce the impact of transaction fees, and get the best value out of your product. This is particularly true if you are running your business online, including through online payment, on the e-commerce platform. If that doesn’t work, you can remove the credit card and simply use e-commerce to access credit cards.
• Use online payment.
There are some products here where the Internet is slow and the cost isn’t a problem. In fact, for many businesses, e-commerce works well as a means of connecting customers to their credit cards and in particular those with credit card information, making them more easily able to accept business payments over long distances. e-commerce also facilitates transactions between companies such as Apple or Google which is why companies can charge $50 in place of an international checkout.
• Take the time to buy in bulk.
If you want to save yourself more by buying wholesale or wholesale, e-commerce will do the job without worrying about fees. The more you buy, the faster the process may be. You may be able to pick up on the discounts and prices below if you are in a hurry. With the speed at which e-commerce gets open, it gets easy to choose what you want. This is due to the fact that any item sold by e-commerce is automatically accepted by the seller through their site, and the sellers only need to accept it at checkout. This prevents the online-only website from interfering with your shopping, making it possible for you to shop and purchase online. Since your purchases might not actually arrive on time, it is easy to just keep it out of your phone, and you won’t have to worry about the hassle of getting it to your doorstep.
• Use online ordering.
When you start to open shops, e-commerce will open up a huge range of potential options that you can choose from. You can order a variety of products to fit your needs and the speed of payment allows you to get items for as little as $4.95, at most, within a reasonable time. These include shoes, accessories, clothing, books—every item you buy with that order includes a minimum purchase of $10 worth of products. Many companies offer the convenience of having multiple inventory options, or you can also order items at a single time and choose what you’d like that day. Most e-commerce sites offer a built-in website that allows you to see your orders in total order details and provide detailed information on the items you wish to buy that day.
• Save yourself the hassle and downtime by making calls, emailing, and calling.
You can also get that extra hassle of having to call your customer service over a longer range of times with your mobile phone by making a purchase that includes a payment plan or epayment, and if you are using something you have already purchased (like a smartphone or device), e-commerce provides a way to cut out the complicated logistics of getting the phone to the store and then sending the order to the customer service representative back. That way you