E-commerce Analysis Essay Example

delivery speed of goods and services. Over time, e-commerce has evolved from relying on private networks and phone networks between companies to encompass retail sales directly to consumers. Advancements have been made in securely sending orders using credit cards. The integration of network applications with databases allows consumers to access information easily and make convenient purchases. The development of software and optimized web-linked databases has enabled the current level of electronic commerce. Additionally, protocols have been improved to enhance security in e-commerce on the Internet.Engaging in e-commerce provides companies with two main advantages. Firstly, it allows them to expand their global clientele as anyone connected to the Internet can visit their web pages regardless of location. Secondly, it helps reduce distribution and customer service costs by sharing information through the internet.

The benefits of e-commerce can be evaluated from three perspectives: the company, consumers, and society. Companies enjoy numerous advantages such as cost savings and a broader reach. Electronic commerce also provides several advantages to consumers. Firstly, it allows easy access to a wide range of products and services from both local and international markets with minimal capital investment. This means that consumers can easily find and purchase items from around the world.

Secondly, e-commerce enables faster communication between buyers and sellers through Electronic Data Interchange (EDI). This promotes closer collaboration with suppliers, ensuring efficient transactions and customer satisfaction. Additionally, e-commerce reduces inventory efforts, ensuring that products are readily available to consumers. Furthermore, it also shortens the time between purchasing products or services online and receiving them at their doorstep.

Moreover, e-commerce utilizes digital platforms to reduce costs associated with traditional paper-based information processing and storage systems.E-commerce has

revolutionized the shopping experience by providing convenient access to diverse products and seamless communication with sellers regardless of location. It serves as a rapid means of sharing updated company information through web pages, allowing for efficient communication of product details to customers worldwide.

By opening an online store, small businesses can effectively compete with larger companies and expand their consumer base in international markets without geographical restrictions or high access costs. Users can make purchases or transactions at any time, quickly find products and services, easily compare prices, and receive fast transportation for goods and digital services. They can also participate in virtual auctions, communities, and electronic meetings to exchange ideas and experiences.

This fosters competition among sellers, leading to significant price reductions. Society benefits from e-commerce as well by allowing more people to work and shop from home, reducing traffic congestion and pollution. Additionally, lower-priced goods enable low-income individuals to afford more items, thereby raising their standard of living. Furthermore, e-commerce grants accessibility to products and services for individuals residing in "third world" countries or rural areas who may not have otherwise had access.Electronic commerce plays a vital role in improving the delivery of public services such as healthcare, education, and government social services. It offers cost-effective solutions with improved quality. However, there are limitations and disadvantages that can be divided into two groups: technical challenges and non-technical challenges.

Technical drawbacks include the absence of affordable security systems and efficient communication standards. There are difficulties in integrating internet access with existing software systems and applications, as well as the need for specialized web servers and infrastructure.

On the other hand, there are non-technical disadvantages such as implementation costs

associated with e-commerce. Quantifying added value from enhanced services or advertising efforts poses a challenge. Concerns regarding security and anonymity arise, especially for applications like BBC (name not further defined). The virtual nature of online transactions limits sensory experiences. Legal framework issues and regulations governing e-commerce activities also pose concerns. The rapid advancement in technology surpasses the adaptation capabilities of both sellers and buyers alike. Inadequate support services add to the list of disadvantages.

Considering both advantages and disadvantages is crucial when evaluating electronic commerce from a globalization standpoint.This assessment covers factors related to macroeconomic development, such as the promotion of free trade and increased opportunities for mobility across borders at reduced costs, while also allowing for flexibility in hiring individuals on a smaller economic scale.
Despite existing for approximately 20 years in commercial transactions between large financial firms, the global electronic marketplace remains both expensive and challenging to access. The main obstacles to achieving globalization of electronic commerce include the global legal framework, telecommunications infrastructure, and financial factors.
Currently, international organizations are working on establishing a global legal framework for electronic commerce. However, this effort faces challenges such as jurisdictional issues, export/import regulations, concerns regarding intellectual property rights protection and information security. Additionally, there are difficulties related to cryptography usage, contract enforcement procedures, document legalization requirements, authentication processes,
anonymity protection measures,cross-border transaction facilitation,data protection measures,content control policies,and consumer safeguarding.
Market access involves obtaining sufficient bandwidth and addressing technical and economic constraints faced by users.Companies must adhere to existing legal standards while swiftly adapting to technological advancements and economic changes in order to successfully participate in global commerce.The financial aspect of globalization encompasses taxes, local financial regulations, and electronic

payment systems. These systems can lead to increased costs for buyers due to imposed fees on imported products. It is crucial for electronic payment systems to have real-time access to exchange rates, especially considering decimal precision. Government roles and policies related to buyer/seller identification processes and security implications also need consideration. Cultural diversity and language translation impact international agreements. The use of local currency for purchases is another factor as fluctuating exchange rates can complicate transactions.

Seines offers the Wordplay System which utilizes the SET protocol (Secure Electronic Transaction) and provides real-time exchange rates. With this system, traders can purchase products in 126 currencies and receive payments in 16 currencies. Electronic commerce is widely used today in various forms and can be categorized based on transaction nature. One category is business-to-business (BBB), which involves electronic transaction systems such as EDI, VAN, FT, securely connected Extranet sites, integrated messaging with email and electronic forms through EDI, shared databases on extranet sites, and supply chain management. Another category is business-to-consumer (BBC), focusing on transactions between businesses and consumers.The text examines different types of retail transactions involving individual buyers. It explores various models of electronic commerce, including the Consumer-to-Consumer (C2C) model where individuals directly sell to other consumers. The Consumer-to-Business (C2B) model is also mentioned, which involves individuals selling products or services to organizations. Additionally, non-business activities carried out by non-profit organizations, academic institutions, religious groups, social agencies, and government entities using e-commerce are discussed.

The involvement of governments in economic activities has given rise to the Government-to-Citizen (G2C) and Government-to-Disgorgement (G2D) models. These models entail governments providing information or services to citizens. Another model called Intra-business focuses on internal

activities within an organization on an intranet. This includes the exchange of goods, services, and information among corporate employees.

Collaboration between companies is another emerging model where multiple companies come together to produce and sell products and services. This collaboration often employs the BBC (Business-to-Business Collaboration) and EBB (Extended Business-to-Business Collaboration) models. Other models may have slight modifications as well.

In the consumer-centric BBC model for online retailing, there is a vast range of specific products available for purchase by consumers.The text highlights various categories of products and services available in the electronic market, such as travel bookings, IT software and hardware sales, groceries delivery, book purchases, clothing and accessories shopping options, ticket sales for events or shows, gifts purchasing, music downloads, toy buying, and electronics sales. To ensure success in this market, certain factors need to be considered - having a recognized brand, guarantee from reliable producers, acceptable price range meeting standard specifications. It also emphasizes on regular purchases and simple procedures for use as demonstrated through audiovisual means.

For a company to thrive in e-commerce on the internet platform specifically, effective management of three key elements is crucial - competition customers and change. Ensuring high-quality products becomes essential to remain competitive against other businesses. Managing change is vital for growth while acquiring and retaining customers. In order to foster customer loyalty with online shoppers an interactive website is necessary that showcases offerings and tracks customer behavior.

Researchers have extensively studied consumer behavior to better customize products/services according to their preferences and buying habits. Figure 1 presents an adapted model for internet commerce where consumer decision-making gets influenced by external stimuli like individual characteristics cultural environment technology advancements

logistics.

Analyzing these factors has resulted in identifying business models that determine how companies approach the consumer electronics market.These models encompass direct or indirect marketing globally or regionally. Direct marketing involves manufacturers advertising and distributing products directly to consumers through channels like electronic shops or telemarketing. Indirect marketing, however, utilizes intermediaries or third parties such as malls for product distribution.

While the internet allows for global coverage, certain products and services are restricted by transportation costs and legal issues. This necessitates regional marketing in specific areas. Perishable and grocery products can still be transported long distances but may face logistical and legal constraints in various regions.

In the virtual realm of specific marketing activities, online advertising plays a crucial role. Different techniques like search engine registration, partnership links, marketing pyramid strategies, public relations, traditional Edie (possibly referring to traditional media), email advertising, and paid advertising can achieve this.

Buyers' personal characteristics such as age, gender, nationality, education level,lifestyle occupation knowledge values personality traits; environmental factors like social influence family influences community factors all impact the decision-making process.In addition to these influences, marketing efforts and external factors also shape buyer decisions in electronic commerce (e-commerce). These factors include pricing strategies, promotions, product quality, economic conditions, technological advancements, and cultural norms. The decision-making process in e-commerce involves considering whether to make a purchase or not, what to buy, where and when to buy it, and how to allocate spending. It also includes determining whether or not to make repeat purchases.
The seller has control over certain systems that assist with this process. These systems include logistics support for payment and delivery processes; technical support for website sign-up procedures and intelligent agents; and

customer service channels like FAQs,email communication call centers,and one-to-one interactions.
Consumer behavior in e-commerce is influenced by cyber-marketing techniques that measure online servicesand provide valuable information about website traffic patternsand user behaviors.Cyber-marketing can be implemented either fully or partially depending on the specific needs of the company.E-commerce companies exclusively operate through digital platformsand emerged during the internet eraas an extension of traditional brick-and-mortar businesseslike Barnes & Noble and Ford.Manufacturers with well-known brands and reputable websites can sell their products directly to customers without intermediaries. However, lesser-known websites need to gain publicity by being listed in an electronic guide or using a similar 301 service through another website. Electronic brokers provide value by offering information on open networks or integrated business systems, including customized classified catalogs, business opportunities for sale, investment tips, and specialized advice.

An electronic shop, also known as an e-shop or e-store, is operated by a company to market and sell its products or services. The minimum requirements for an online shop include a database containing product/service information, trade details, and technical descriptions for each item in the catalog. The basic version enables customers to place orders via email or interactive forms, while the advanced version offers online payment options.

Running an online shop has advantages such as cost reduction, sales promotion, and increased sales volume. Companies often offer bundled packages that include both products and services. Websites are designed not only for product marketing but also to provide customer advice and other services. Some companies have separate websites dedicated to sales and service purposes.

Specialized companies provide various online services such as travel booking, employment placement, stock trading, electronic banking, insurance, and auctions (BBC & EBB).The

text emphasizes the importance of understanding the unique characteristics of retail buyers and company buyers when making online purchases. It delves into the specifics of online business-to-business transactions, including factors such as request volume, number of customers, buyer location, distribution structure, nature of purchases, influence on purchase decisions, negotiation style, and promotional methods (Table 1). The EBB model is identified as the most common framework for these transactions. This model enables companies to connect with each other without requiring additional network installations. It offers numerous benefits like cost reduction, inventory management improvement, logistics efficiency enhancement, sales growth facilitation, and reduced sales and marketing costs. The EBB model is particularly well-suited for goods in various sectors such as computers/computer components (17.5%), consumer electronics (5.7%), transportation/storage (2%), motor vehicles (2%), petrochemicals (2%), paper/office supplies (0.7%), food/agriculture (0.4%). Additionally, the B model encompasses diverse applications that provide entrepreneurs access to valuable information across different categories.

The EBB model encompasses a variety of elements such as product specifications, prices, sales history, customer information, terms of sale, production plans, transportation costs, timelines, stock levels, locations, supply contracts, roles and responsibilities of partners in the supply chain network. It also takes into account the competition from other companies in terms of market share and their competitive offerings. Marketing strategies including sales promotions are also considered.

The text discusses the evaluation process for the supply chain process along with quality standards and delivery time. In the EBB model of commerce, companies have the flexibility to function as a salesman, buyer or intermediary depending on their needs and objectives.

The most common form is when a market-oriented company adopts this model to sell its products. This

represents a widespread application where individual buyers and companies buying from the same market follow similar architecture and purchasing processes like traditional retailers. However, there is a distinction since customers in this case are other companies rather than individuals.

A crucial aspect is integrating information management systems for order purchases wherein each buyer company may maintain its own catalog and pricing policy. Company-buyers approach purchasing decisions differently compared to retail buyers.

Moreover, unlike BBC (Business-to-Business Commerce), customer orders within the EBB platform are stored on company servers and can be easily integrated with client company computer systems.Large companies and public authorities utilize electronic auctions to procure goods and services. They do this by posting tender specifications on the web, which helps reduce transmission time and cost. This method also promotes more participation from numerous companies in well-informed auctions, leading to increased competition and ultimately lower prices.

Consumers' purchasing decisions are influenced by various factors including age, gender, nationality, education, lifestyle, occupation, knowledge, values, and personality. Marketing stimuli such as price, promotion, and product quality also play a significant role in affecting these decisions. Additionally, economic, technological,and cultural factors further shape consumers' choices when it comes to buying products or services.

Moreover,the organizational influences like policies,e procedures,and organizational structure have an impact on different aspects of consumer behavior. This includes determining what to buy,w where to buy it when to buy it how much money should be spent,and if repeat purchases should be made (as depicted in the Figure).

The consumer company behavior model relies on an electronic interface known as the 30th party Market Place. Through this interface,sellers can connect with buyers.It provides access to frequently accessed information channels as

well as allows for intermediaries in both BBCand EBB products.Additionally,the market enables service providers to incorporate e-commerce channels while facing challenges such as piracy of intellectual property.E-commerce's worldwide reach and rising competition bring benefits such as customized products and lower expenses. Experts forecast that e-commerce will greatly influence the market, potentially overshadowing conventional sales methods. Additionally, it serves as an alternate distribution channel for businesses aiming to target a broader consumer base.