Conclusion

In general, today’s businesses must always strive to create the next best thing that consumers will want because consumers continue to desire their products, services etc. to continuously be better, faster, and cheaper.  In this world of new technology, businesses need to accommodate to the new types of consumer needs and trends because it will prove to be vital to their business’ success and survival.  E-commerce is continuously progressing and is becoming more and more important to businesses as technology continues to advance and is something that should be taken advantage of and implemented.

From the inception of the Internet and e-commerce, the possibilities have become endless for both businesses and consumers.  Creating more opportunities for profit and advancements for businesses, while creating more options for consumers.  However, just like anything else, e-commerce has its disadvantages including consumer uncertainties, but nothing that can not be resolved or avoided by good decision-making and business practices.

There are several factors and variables that need to be considered and decided upon when starting an e-commerce business.  Some of these include: types of e-commerce, marketing strategies, and countless more.  If the correct methods and practices are followed, a business will prosper in an e-commerce setting with much success and profitability.

E-Commerce Evolution

The following YouTube video shows the evolution of e-commerce from its inception to present-day.  It shows how consumer purchases have evolved from traditional store fronts to endless possibilities via the Internet.  It describes different methods of marketing  and how e-commerce came to be.  The video had many interviews with several major company representatives from companies such as JCPenney and QVC.  The company representatives described how they got started with e-commerce and where they have come, including their thought processes and ideas.  Companies not only learned that this concept was not just a passing trend but, in fact, a great opportunity to be taken advantage of.

The history and evolution is a very important aspect of how e-commerce got started and how it has progressed to what it is today and would be a key element to include in the final project.

Disadvantages

Despite e-commerce having many advantages and benefits, there are also many disadvantages and constraints. 

Some of the disadvantages include the time for delivery of physical products.  Although products can be purchased from businesses all over the world, it will take longer to ship and be more costly, the further the business is located from the purchaser. 

Another disadvantage is the uncertainty of purchasing online, especially from a website like eBay with millions of sellers, because the consumer does not have physical access to the business and much of it is based on trust.  Some questions that arise are whether the product is actually how it is described, whether it is a scam, whether the product will actually get shipped or get to the designated address, etc.

Another disadvantage is that not everything can be sold online as easily as others, such as perishable goods, which can be done with the right resources, but the majority of products sold online are durable and non-perishable.

Returning products online can also be an area of difficulty resulting from consumer uncertainties such as the questions of whether the item will get back to its source, who pays for the return postage, will the refund be paid etc.

One of the main problems people have with online purchasing deal with issues of the privacy of information, the security of that information and payment details, identity theft, contract, and laws and legal jurisdiction.

Other disadvantages include issues with defined services and unexpected consumer requests.  E-commerce is an effective means for managing the transaction of known and established services, such as day to day activities; however it is not suitable for dealing with the new or unexpected because such unexpected requests would need human interaction.  Although some human interaction can be facilitated via the web, e-commerce can not provide the richness of interaction provided by personal service.

To learn more about the advantages and disadvantages of e-commerce you can visit: http://www.workingfutures.com.au/sample_courses/amc/ec1/ec1_3.htm

Advantages

There are numerous advantages and benefits of operating an e-commerce business.  It allows people to carry out  business practices without the barriers of time or distance.  Not only does it allow a business to operate more efficiently, but it also allows consumers to purchase whatever they wish to buy with a single click of the mouse at anytime or anywhere, whether a customer lives one mile away from a business’ location or 10,000 miles away.

Another advantage is that the direct cost-of-sale for an order via website is many times lower than through traditional means, since there is no person to person interaction during an online purchase order process.  Online purchasing not only eliminates many of the possible processing errors that can be made by a person; but it is also faster and more convenient for the shopper.  Some operational benefits of e-commerce include reducing both the time and personnel required to complete business processes, while also reducing strain on other resources.

Some of the more significant benefits include: E-commerce is the cheapest means of doing business by reducing many costs that a traditional business may incur, and it improves a business’ competitive position.

From a consumer’s perspective, e-commerce can offer much more intangible advantages.  These can include a reduction in a buyer’s decision time, better buyer decisions, and increased opportunities for purchasing alternative products.

It’s because of all of these advantages plus many more that a business is able to be successful  in an e-commerce setting and proves that there are countless factors and variables that need to be considered to become an effective and stable e-commerce business.

Marketing E-Commerce

The following YouTube video is very relevant to key concepts related to e-commerce, especially aimed towards Internet marketing.  These concepts are good ones that would be good ideas to further research for the final project. 

In general, the video defines e-commerce, it gives the different types of e-commerce domains such as Business-to-Business and Business-to-Consumer, and describes Internet marketing and its relation to e-commerce.  It shows examples of the four P’s of E-commerce Internet marketing, as well as main sources of improvement and key areas to consider.

E-Commerce Introduction

The final project topic that my partner, Caitlin, and I have chosen to research and discuss is e-commerce.  To begin, this particular blog will consist of a general background of what e-commerce is and the importance of it from a business standpoint.

E-commerce is a rising industry that has exploded into the world with full force because of one main factor known as the Internet.   Before the Internet, shoppers bought items they wanted or needed in stores or shops.  However, in today’s society, the Internet has become such a prominent figure in our everyday lives, that traditional shopping methods are being replaced by the conveniences of online shopping. 

The Internet also allows us, the users, to access much more information than we ever could before, which creates even broader possibilities for consumers, but even more challenges and opportunities for businesses.  These ideas force businesses to become more competitive and adapt to the changing times because their success depends on reaching designated targets that may happen to be more reachable through an online market.  This may be a challenge to accomplish, but by doing so, businesses are expanding and targeting a whole new group of consumers, who may not have been interested before the conveniences of technology, which can lead to more profits and other opportunities.

If you want to learn more about e-commerce, you can visit: http://www.businesstown.com/internet/ecomm-definition.asp

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