What is The Need of Electronic Commerce
Today, in every aspect of our day to day life internet has become undivided part of our life .People work online, every day the bank system online checks mail online every day, even make friends and date online. So it’s only so it only makes sense that on line shopping has become an increasingly integral part of our society, exceeding $200 billion in sales in 2010 alone. The internet economy is booming E –commerce sales are expanding by leaps and bounds at a rate of 20% and 25% growth each year, indicating a momentous shift in customer spending habit of human beings. If we don’t change with time we will be obsolete .
Shoppers are tuning to the internet rather than phone directories for convenience product reviews and up to date information. A business owner simply cannot rely on an advertisement in phone book. in fact customers are fifteen times more likely to look on the internet than they are to flip through a phone book to call a company .Research consistently shows that customer place less credibility in a business that does have a web site as opposed to one that does.
The more personal the service the more research customer wants to do ensure they are comfortable with the service provider. The more potentially expensive service that causes the more comparison customer wants to make sure they get the best value for the increasing rate of the dollar. In order for increasing rate of business to become more successful t is imperative that selling habits are adjusted to match the change in consumer buying habits more simply expressed business must sell the way their customer shop or they will buy elsewhere .even some of the more elaborate websites that allow customer to make purchases online can cost less annually than a typical monthly phonebook to call to make purchases evolve with the times.
Every business is different, even each business differ but the requirement of power is same for all but today the is important to live in internet to stay competitive. In the long run the net operating cost of a website becomes insignificant compared to the return on the investment that the advertisement delivers.
After hours on weekends, and even while you are away on vacation, your business and is a marketing tool that people can explore regardless of your business hours. Websites are the only marketing as well as selling product tool with the means of effectively helps in contacting with the customer using website to offer a consumer loyalty, help in finding right product of your ideas discounts or special pricing for an upcoming holiday season or sales event, which would generate attention and create purchases.
Websites value to the increasing number of customers the shopping experience while simultaneously increasing growth of your business adding value it in your business .so don’t fall prey to the mindset that if your business is on internet help to gain productivity of material “if my business is not on the internet than the internet is not affecting my business .”quite the opposite is true. If the people can’t find your business online ,you are losing money at every increasing rate as more consumers join the ranks of online shoppers. All while being able to collect data of how many people saw your ad, what words they used to find it on internet how long they read it. While allowing you to-do more income in your business within less time. That just smart business that helps to gain profit.
What are the Goals of e-commerce and they help to increase product marketing?
When we want to decide the goals first understand the basic reason of e-commerce came into existence ecommerce companies started have presence on internet through website here the customer could directly interact with the company.
Goals of ecommerce in short are stated below
1. Direct interaction with the customer
2. Reducing the cost of products
3. Lowering production cycle time.
4. Immediate customer responses.
5. Good services to the customer
6. Continuous improvements in product and services based on the customer response received.
Main activities involved in e-commerce
The first thing that comes to your mind when we think of e-commerce trade or business done through some electronic medium that is exchange of goods or services for money .So when we decide to list the main activities of e-commerce.
They can be listed as follows.
- Buying and selling of goods and services.
- Physical delivery of goods.
- Generation of financial statements.
- The above activities are carried out electronically with the least interference of human element.
The human element comes into play to carry out other activities like.
- Providing services to customers.
- Building the image of company
- Expanding the product line through product development.
Apart from the main activities of e-commerce there are other activities which need to be carried out for the successful implementation of an e-commerce model. These ancillary activities are as follows:
- Online presence: Building up an efficiency presence on the net.
- Payment systems: How will you convince customers be able to pay for the goods they want to buy.
- Security: How to convince customers that buying from you online is safe and secure.
- Distribution methods: How will you get yours good to customer having an online presence may reduce some overheads but delivery cost can be very high especially for bulky items that need to be transported. you have to decide whether you will deliver internationally or just to the UK or Europe? If you do go internationally, that is the implications of each method for tax and import license /duties?
Maintenance and updating of the site
How will you manage the day running of the site if there are problem and the site is down it can lose you potential customer.
After sales services:
What measures are you going to put to place cater after sales service/manager queries? What happen if a customer does not like the product this might be highly relevant to those industries, business where customers sure not able to see the product before they buy
Legal issues
What is the legal requirement in setting up ecommerce system are you aware of the range of legal provision you have to satisfy the provision. What are the rules about the use of any database of customer details that you posses w what role does the EU play in regulating e commerce what is the difference marketing your business by mail and by spam
