What is E-commerce?
Internet is an enabler for e-commerce as it allows businesses to showcase and sell their products and services online and gives potential customers, prospects and business partners access to information about these businesses and their products and services that would lead to purchase as mention by Andam, (2003). He refer E-commerce as the use of electronic communications and digital information processing technology in business transactions to create, transform, and redifine relationships for value creation between or among organizations and between organizations and individuals. Anon, (2009) have found that there are certain features can be found on e-commerce sites. Features may include a shopping cart, ability to process credit cards, online product catalog, automated inventory system, databases, bulk email program, statistics tracking and other non-computer technologies such as product warehousing and shipping transportation. Wen, Chen, and Hwang (2001), have stated that E-commerce offers functionality and new ways of doing business that no company can afford to ignore. The basis for moving to an electronic commerce is a belief that electronic markets have the potential to be information based goods and services, finding global customers and trading partners to conduct business. Electronic commerce via the internet or the next generation Internet Protocal, IPv6, will change business institutions, operations and products or service.
Gartner Advisory Group, a reseach and advisory services firm have acknowledge that the Internet and the Web are essential components of an E-commerce strategy. Therefore, companies must participate in external business relationships by using computer interactions (i.e. transactions, support, marketing, communication and collaboration) by either business-to-business or business -to-consumer. Andam (2003), also found that there are major different types of e-commerce which is business-to-business (B2B), business-to-consumer (B2C), business-to-government (B2G), and consumer-to-consumer (C2C). Liu (1997), have examined web sites in US Fortune 500 companies and services on their Web Site, and about 26 percent of them provide for some type of online business with their customers through website. E-commerce is a potentially growing business for today's market. The traditional boundaries will soon be replaced with a whole new technology as well as a mechanism and media for purchasing goods and services. The electronic payment system provides opportunities for new global and national trading relationships. Doing transaction online will bring many benefits for both companies and consumer.
Benefit of E-commerce.
There are many benefits that can be derive from E-commerce. There are:-
New Market Opportunity
E-commerce will help small and medium sized enterprise to reach global market. E-commerce allow business to be assessable to user all around the world regardless the location of the business office. Customer can request supplier and product and services from any business around the world using E-commerce.
Product Promotion
Through a direct, information rich and interactive contact with customer, E-commerce enhance the promotion of the product. E-commerce offers and opportunity for new promotion strategies, enhancing the branding of products. Product information trough E-commerce is more compact and range from various sites. User can choose and compare products they intent to purchase and easily find and select specialize products. Example like www.canon.com or www.dell.com.
Cost saving
By using a public share infrastructure such as internet and digitally transmitting and reusing information, E-commerce systems lower the cost of delivering information to customers including personnel,phone,postage, and printing costs. Cost saving result through reduced brochure printing and distribution costs and reduction in order taking as customers use fill-in forms to orders. Companies also can run with less employees and did not required to have physical building in order to stay operational. Thus this will reduce costs related to building leases, phone bills,utility bills and other cost. Example like www.Microsoft.com.
24x7 hours business and timely information
E-commerce allow a reduction of the cycle-time required to produce and deliver information and services. E-commerce sites give the ability to have unlimited store hours, giving customers 24 hours a day, 7 days a week access to shop and buy items from business regardless of time differences and locations. Example buying through www.apple.com.
Shortened remittence time
With electronic funds transfer (EFT), customers sent their remittances electronically to the company bank. The arrangement eliminated the time delay associated with the remittance in the mail system. Example like www.publicbankonline.com.
Information consistency
E-commerce ensure the consistency and accuracy of information through sharing of information and use of electronic forms for doing business. Example like www.fedex.com where customer can know the movement of their parcel through fedex.com website.
Better customer services
E-commerce provide the ability to provide online answers to problems through resolution guides, archives of commonly encountered problems and electronic mail interaction 24 hours a day, 365 days a year have build customer confidence and retention. Example like www.canon.com and www.nikon.com.
Customization of products
The information-based nature of the E-commerce process allows for new products to be created or existing products to be customized based on customer exact needs. Company will produce the specific product based on the requirement of the customers. Example like www.dell.com.
Increase brand and product awareness
Having e-commerce mean businesses can literally reach out to millions of consumers looking for what product and services being selling anywhere in the world. By reaching out to the new markets and displaying the business website prominently in front of the customers, it will be able to help increase the company/domain brand name and also increase customer awareness about the product line. Thus this can lead to recognizable brand name.
Convenience of doing business
There is no limit on time and location to conduct a business with related parties. The information delivered to manufacturers, suppliers and warehouses is almost real time. Customers can do their business transaction regardless of time constrain. Example business through CIMB Bank (www.cimbclick.com).
Better customer relationship
E-commerce enables the learing about customers due its ability to record every event in which a customer asks for information about a product, buys one, requires customer services. Through these interactions the need of the customer are identified and will feed future marketing efforts.
NURHIDAYAH BINTI KHALID 2008771481
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