Importance Of E-Commerce

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Electronic commerce, known commonly as e-commerce, is a term for any type of business or commercial transaction that involves the transfer of information across the Internet. According to Bandyo-Padhyay (2002), electronic commerce has revolutionized nearly every industry in the world. Hence, it is undeniable that e-commerce has the potential to replace traditional business transaction in years to come. E-commerce proves to be a better substitute to traditional business transactions in various ways. One reason would be that it can serve as a platform for local companies. An example would be one of Malaysia’s online fashion site, Fashion Valet. Launched in 2010, it was founded by Fadzarudin Anuar and Vivy Yusof, who have taken on the CEO and…show more content…
Without utilizing e-commerce, customers would be required to travel physically to the location of a retail store in addition to having to follow the opening hours of the store. Thus, customers would be more reluctant to leave the comfort of their home as it is not only inconvenient but also comes at a larger expense compared to when utilizing e-commerce sites. Ordering from e-commerce site reduces the cost of the shopping experience to the few minutes it takes to place items in the shopping cart and type in a credit card number. Cost can also be reduced if free shipping is offered for orders over a certain amount. As a result, it encourages impulse purchases by consumers, in turn increasing suppliers’ revenue without a corresponding increase in expenses. In example, Taco Bell launched a mobile order-ahead ahead app that allows customers to purchase food from the app and pick it up without waiting in line. The app has seen significant early success — with higher average order sales boosting total revenues (Bakker,…show more content…
Businesses are able to grow easily when it is operated online, which is why businesses such as Vemma and Amway are online based (BBC News, 2015). The opportunities for a person to do international trading is higher here compared to the conventional practices of business. In highly populated countries such as India and China, online businesses are becoming more popular as the citizens in those countries find it easier to do business internationally rather than business in their highly competitive mother country. In 2014, there was a growth of about 70% in the e-commerce market in India with only 1/5 of its population using the internet (E-Commerce in US v/s Indian E-Commerce, 2015). With countries which are moving forward to dominating the world in the economical perspective doing more business online, e-commerce has a high chance of dominating the world in the near
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