The Impact of Electronic Commerce on Business in Modern Era
August 23, 2018
Nowadays the internet and virtual companies have dramatically changed the traditional economic markets and have brought about a healthy competition that has been never seeing in the past. The internet opens up a lot of ways to make a flexible competition in the market, most of them offering the better-priced offers to sustain in the market.
Before going in deep into the E-commerce let’s first understand the meaning of E-commerce. It is a process of buying and selling products or services through electronic systems such as computer networks or the internet. It simply means whatever you buy or sell through the internet, you become part of E-commerce.
What are theE-commerce Models?
Depending on the investors involved in the business transaction the E-commerce can be divided into four main models such as
- Consumer to Consumer (C2C)
In this model the consumers directly involved to sell their products to other consumers. This process is done through an online auction website which brings buyer and seller together to make deals. For example, through ebay.com you can search items which are interested in.
- Consumer to Business Model (C2B)
This transaction conducted between the consumer and a business enterprise. In simple the consumer is the seller and the business is the buyer.
- Business to Business Model (B2B)
It is considered one of the fastest growing sectors in the E-commerce industry. In this model the exchange of products or services between the businesses at the wholesale level.
- Business to Consumer Model (B2B)
It involves the trading is conducted between business organizations and consumers. The business firm sells their products to its customers through the internet. The official website provides all information regarding the product through an online catalog and store in a database.
Impacts of E-commerce
The impacts of E-commerce mainly affect three major stakeholders; business organizations, consumers and society. E-commerce reduces the cost of marketing and promotions such as advertisements and so on. For instance now some multinational companies like DELL, LG upload information on their new products on different websites thus saving advertisement cost and invest more in boosting business. The consumers can use the interactive web stores in E-commerce system that helps to see the products their descriptions, reviews and can purchase through online by credit cards, digital wallets and so on. This would reduce the labor cost and get the branded products at lowest rates. These online marketing strategies reduce the time of both vendors and customers in a way that the vendor needs only a well-developed website where he can upload his products. Therefore, the consumer can browse their products according to their real need and just then order directly from vendor sites, to learn more about it. The multiple payment systems bring E-commerce to our hands and improve the business standards in this modern world.