Growing Importance of E-Commerce in Global Market
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Growing Importance of E-Commerce in Global MarketAbstract:Electronic commerce, commonly known as e-commerce which consists of the buying and selling of products or services over electronic systems such as the internet and other computer networks. Electronic commerce is rapidly growing as an impressive manifestation of globalization. The rapid expansion of ecommerce is a major opportunity for local and international trade development of LDCs including Bangladesh. The amount of trade conducted electronically has grown dramatically since the spread of the internet. In this world of new technology businesses need to accommodate to the new types of consumer needs because it is very important for business success. Ecommerce enables organization to improve their competiveness. It crosses geographic boundaries, save time and cost. There are many positive impact of e-commerce on many areas and disciplines of business management studies such as marketing, finance, accounting. Bangladesh has also stepped into the arena of e-commerce slowly but surely. In our paper we have describe growing importance in global market and Bangladesh . (khan, 2014) (Farmeena, 2014)History of E-commerce In 1950 companies began to use computers to store and process internal transaction records.By 1960 businesses that engaged large volume of transaction has begun exchanging transaction information on punched cardIn 1979 first online shopping was introduced in the UK by Michael AldrichIn 1984 world first recorded B2C online home shopper.In 1990 when internet become fast growing Tim Berners -Lee writes first web browser (Saleh, 2010)Different Types of E-Commerce1. Business-to-Business B2B : This type of e-commerce shows electronic transaction between businesses. The B2B e-commerce increases the speed and decrease production cost by eliminating manual activities. Some of the major vendors of e-commerce and B2B solutions are Oracle, SAP, Baan, Vertical net, Vignette etc.2. Business-to-Consumer B2C : We can define business to consumer e-commerce as exchange of products, information or services between business and consumer in a retailing relationship. B2C is the indirect trade between the company and consumers. It provides direct selling through online. B2C supply chains normally deals with business that are related to the customers.3. Consumer-to-Consumer C2C: In C2C e-commerce the online dealing of goods or services held among people. Eg. Quicker.com, E-bay, OLX etc. The main advantages of C2C e-commerce are Consumer prepares the product of market Places the product for sale Products can be easily displayed and discovered by other consumer4. Peer to Peer : In peer to peer e-commerce no intermediary is required i.e. users can share their files and computer resources directly without going through central web server. This kind of e-commerce has very low revenue propagation.
5. Mobile Commerce : In mobile commerce the transactions are done with the help of mobile and once connected the consumers can (Farmeena, 2014) (Saleh, 2010)Growth of E-CommerceIn present E-Commerce is claiming an ever –larger share of commerce in more and more regions. In past E-Commerce businesses growth much slower because that time Internet was not speared most of the people don’t have any smart phone or computer .By this people did not able to done online marketing business. But at present time most of the people have access in the internet by this E-commerce business become growing .one reputable source says that, for 2014 e- commerce was 8.2% of retail in Asia-pacific; 6.7% in western Europe; and 6.3% in North America . By 2021 these figures are forecasted to be 25% , 17% and 15% respectively . many source said that Global Retail Ecommerce Sales Will Reach $4.5 Trillion by 2021. E –commerce market figure will be look like by 2021.[pic 1]( Orendorff, 2017)Growing importance of E–commerce in worldwide day by day But By comparing different country we have know about which country achieved number one E-commerce market .many people think that U.S gain number one E-commerce market .But U.S is not the number one E-commerce market. China is the number one market in the world .China is expected to generate $672 billion dollars in sales market in 2017.and shopping is the fastest growing online activity among Chinese consumers. Smartphone and tablet penetration is also better in china with 33 percent of spending happening on mobile and 33 percent happening on tablet. The E-commerce market is still huge in the U,S: It,s more than $349 billion dollars in E-commerce spending makes the U.S the NO 2 market in the world .As only 28% percent of small business have an online presence despite 57.4 percent of the US population shopping online And UK is the fourth in the E-commerce marketplace. They have more then $99 billion dollars in E-commerce mark place Japan, which is fourth on the list, is a case study in optimizing for mobile. 46 percent of all e-commerce spending comes from mobile, and about 80 percent of the population of Japan shops online, according to Remarkety’s data. Trust is also very important in the Japanese market, as users want high quality products from companies with good reputations. Transparent public feedback is also important in e-commerce, but especially if you trade in Japan. There are also many other country doing well in global E-commerce market. By comparing the E-commerce marketplace there we made an top ten E-commerce market place in the world .China: $672 billion United States: $340 billion United Kingdom: $99 billion Japan: $79 billion Germany: $73 billion France: $43 billion South Korea: $37 billion Canada: $30 billion Russia: $20 billion Brazil: $19 billionIn Bangladesh E-commerce: In Bangladesh E-commerce business started before 1990 but the progresses was much slower because at the time people did not get the internet also internet was slower ,minimum number of user of website ,poor telecommunication infrastructure ,High price of computer and hardware ,online banking connectivity was poor, absence of sufficient cyber law. After the increasing ICT more facility in the internet then E-commerce market start growing in the Bangladesh market place. Slowly and steadily ecommerce started to grow from 2000 and in between 2008. But the major issues were payment gateway, delivery system and customer education against its rapid growth. In 2009 Bangladesh bank approved online payment and in 2013 the bank approved the use of Debit and Credit card for online payment. After that time E-commerce market of Bangladesh start growing