E- Commerce Essay, Research Paper

E-Commerce

With each generation since WWII there has been a shift in the retail focus. And now

most experts agree that we are experiencing much more than just another shift. We are on the

verge of a new revolution: an Internet revolution.

Today, the Internet appears to be everywhere. Whether it s an update on the stock

market, research on the car you want to buy, or a simple email to your mother, people of all ages

and backgrounds are definitely relying on the net more and more. Since it was launched in

1991, it has seen unbelievable growth. In 1995 only 4% of Americans used the net everyday and

today there are more than 30% . Internet usage in our schools has grown from 35% in 1994 to

over 95% today. The net is being called the greatest free marketplace of information and ideas

that has ever existed, and anyone who chooses not to get plugged in is going to be left in the

dark.

The segment of electronic commerce that will experience revolutionary change is

consumer shopping. For decades, consumers have wanted convenient access to a limitless

selection of products that they could conveniently research before they bought. But very few

ever dreamt that it would happen right from the comfort of their own home or office.

Consumers can already purchase a variety of products and services on the net, and it is

obvious that we are only seeing the beginning of that. The 10 million people in the US who

bought something over the net in 1997 rose to 17 million in 1998, and 28 million by June 1999.

By 2003, it is estimated that 183 million people will buy on-line, some 36% of the user

population. Non-U.S. users will account for 65% of the total user population, generating just

over half of all economic revenue by that time (compared with 56% of the traffic and 26% of the

revenue in 1998). This certainly helps to explain why consumer shopping on the net is projected

to grow to between $1.4 trillion and $3.2 trillion by 2003, which will obviously have a major

effect on our economy.

Companies of all shapes and sizes are rushing to get their products on the net, and there have

already been some spectacular success stories. Take, for example, Amazon.com, which from a

starting start in 1995 is now worth over 17 billion dollars. For many companies it won’t happen

overnight. Sophisticated, user-friendly web sites can take many months to design, and at costs that

could very easily take years to recoup. But for companies that can offer their own line of products,

along with those of other manufacturers and suppliers, and can quickly position themselves to

service the future demands of the Internet, the potential rewards can be enormous.

There are many reasons for an existing business to hook themselves up to the web and start

working with electronic commerce. An e-commerce solution for a business is the incorporation of

all aspects of the business operation into an electronic format. Many well-established businesses

have been selling on-line for years. When a business has incorporated an e-commerce solution, the

business will experience a lower operation cost while at the same time increasing its profit.

The e-commerce solution will allow businesses to eliminate unnecessary paperwork. All

paperwork and data can be transformed into an electronic format. Thus, it will eliminate valuable

shelf space and data can searched and accessed in matter of seconds. E-commerce will also

automates the sales process. Customers can “point & click” on the products they wish to purchase,

fill out the customer information, and the product will be shipped and received in a matter of few

days. The administration department does not have to fill out any paperwork because the customer

had done it already. Thus, the efficiency will be greatly improved. With an e-commerce solution,

the business will be open 24 hours a day, 7 days a week. People from anywhere in the world with

an Internet access will be able to visit the site at any time. They will not be restricted to the “normal”

business operating hours.

A “brick + mortar” business is normally limited to serving the customers in its local

geographical location. With an e-commerce solution, that business will not be limited a

geographical restriction, rather it opens itself to the global on-line market. Essentially, the business’

market exposure will be greatly increased.

There are a variety of advantages to doing business electronically on the Internet. First, let s

look at the advantages for the provider. The World Wide Web allows a business is to build a name

for their company, quickly and inexpensively. Another thing is that it offers suggestive selling.

The user can recommend, via survey, similar or alternative products that they might/will buy. Also

transactions can be completed very quickly in e-commerce.

Second, is advantages for the user. The information can be updated without having to

redesign the page. Site visitors can maneuver and control the data, as it is displayed, to suit their

preferences and need-to-know. The interactive capabilities such as purchasing on-line can be

utilized, and the site visitor can filter information. They can do almost all of their purchasing on-

line without leaving the comfort of their own home.

E-Commerce has delivered a solution to businesses that will help their clients better interact

with their customers, suppliers, and partners. It has opened up a new way for the retail market to

move in the future. More and more businesses are turning to on-line marketing techniques and

many more customers are doing in-home buying than store buying. On-line use is going up several

hundred percent every year and businesses need to be there. Many forecasters predict that

companies must go on-line or they will not survive.

Works Cited

“E-Commerce Times: Everything You Wanted to Know About Doing Business Online.” E-

Commerce Times. 1999. . (9 August 1999).

“E-Marketer, Where Business Begins On-line.” E-Marketer. 1999. . (9 August 1999).

“E-Retail, News and Information for Internet Retailers.” E-Retail. 1999. . (9 August 1999).

“The Electronic Commerce Guide.” Internet.com’s Electronic Commerce Guide. 1999. . (9

August 1999).

“Forrester Research: Helping Businesses Thrive on Technology Change.” Forrester Research.

1999. . (9 August 1999).

“Jupiter Communication: Market Research on the Consumer Online Industry.” Jupiter

Communication. 1999. . (9 August 1999).