The Definition of E-commerce

E-commerce is the buy and selling of harvest-tides and works by twain worryes and consumers over the Internet. Such practices have exploded over the last grade as security has improved with much and more consumers now buying goods and services online. This coupled with the computer revolution of the late twentieth light speed has lead to e-commerce now becoming the buzzword of trade and industry as hundreds of companies ar now moving online in an attempt to broaden their product retch and direct contact with customers.Firstly we must understand wherefore companies ar exis tennerce drawn towards selling their products online. An e-commerce site that is implemented nearly can significantly lower both order taking appeal up front and also customer service after the change has been made. For example being located on the Internet means that congeal does non enter into the marketing mix of an e-commerce comp solely(a). As its customers volition not visit the business, i t means having a prominent high street localisation of function is no longer of importance in fact a business can be cross off up in someones home (if space for storage allows). Also when considering mail order companies in that location is no longer the need to endure the costs of designing, printing and send step forward sorts. These factors contri only whene to e-commerce companies being suit fitting to offer products at greatly reduced prices as overheads have been minimised.A company now has the strength to provide customers with a catalogue that has a off the beaten track(predicate) more abundant range than that of which any mail-order catalogue could provide. Recently Amazon have announce that they currently offer more than 3 million books, to further their service they also give the customer the luck to read a verbal description of every book supplied and also other titles buyers of the book have purchased. It is unimaginable to imagine all this information being p rovided in any catalogue that comes through the letterbox.So we now can see some of the benefits that firms happen from locating on the blade alone what do the consumers get out of this? It is now far easier to collect market research and make bonnie comparisons as by using the Internet you have the ability to amass, essay and control large quantities of specialised data. The Internet can give the opportunity for customers to try before they buy. For example the online record store Klik-Klik-Whirly-Bleep-Bleep gives the online shopper the opportunity to take heed to any record before they buy it, an essential factor to first-string purchasers of records and especially djs.There is also the potential of wider availability of hard-to-find products and wider plectron of items due to the width and efficiency of the Internet. One much(prenominal)(prenominal) example being Squaddies Online, this company has developed its success by selling goods that ar formula in everyday lif e in the United acres but be sorely missed by those that are overseas for any great length of term. For instance amongst the current best selling items are Heinz Tomato Ketchup and HP Brown SauceThe increase in the ability to undertake market research has inevitably led to the reductions in prices as more suppliers are able to compete in an electronically open market place. This increase in competition has lead to part quality and variety of goods through expanded markets and the ability to produce customised goods. When the motorbike company Dukati recently launched their online site they sold their stock within 31 minutes of opening with a popular feature being elephantinehearted the customer the opportunity of designing the exact colour scheme of the bike.So far the benefits of e-commerce are outlined and you would be forgiven for immediately wanting to ambitiousness up your own way of becoming rich through the internet. save it is by no means plain sailing. Seven out of ten internet businesses located within the United Kingdom fail to tribulation their service before it is launched. Even then almost all are probable to have experienced problems and over a fifth are now experiencing significant customer service disruption as a result of sudden surges in demand or server overload.Hundreds of web sites and not just e-commerce services have been launched in the United Kingdom during 1999. The Pricewaterho part Cooper group informs us on there website that this figure is set to explode to 60 billion within the next three years. but market shares are going to be effected in ways previously unseen before through the failures of sites and service providers. Failure in e-commerce is not always going to be conditiond by poor products but rather by not building sites that are as good and usable as its competitors.For an e-commerce business to be successful it is essential that the sites are given thorough pilot tests so that faults can be rig and also customer behaviour patterns can be learnt. It is possible that such a venture can take off as an dread(a) success however there is also the danger of overselling. This can hit potentially lethal consequences as if the server engrossd is not big replete to cope with the demand then the site is likely to disunify or be severly disrupted through overload. Indeed any e-commerce musical arrangement should have some sort of early warning device to state the programmers that there are problems as soon as possible.So far the e-commerce has only been covered in terms of the internet through use of the home computer. Digital television uses television to access a range of interactive services including e-mail and the internet.Once companies build websites to generate businesses they start up to recognise the role the Internet could play in the communication theory process. nonetheless there are still worries that the Internet is still not receieving enough coverage in terms of those with access. However didgital television has the potential to cause a far greater impact.Digital television provides access to a larger target audience as its popularity is currently growing at an exponential rate. The large range of channels also means that communications can be tailored to suit the person viewing more effectively especially with the wide range of visual and audio devices at the sellers disposal. Security is not seen as the same potential mishap as on the internet as there arent fears hackers being able to break into sites and accessing personal information.By accessing the Open interactive service on digital television you are able to visit stores such as Next, Woolworths, WH Smiths and Dominos Pizza. All of which are firms that are highly reputable which will also give the customer confidence when using. However it is not such an easy options for companies as there is currently a high cost of entry when wishing to move into such ventures. Indeed currently compan ies are having to rely on the consumer having access to this technologyE-commerce is growing at an fickle rate on the Internet. Before the end of this decade, millions of people will be buying, selling, bidding and advertising on a daily basis as the internet merges with other branches of the information highway. The new economies of scale that are unambiguous for such companies drastically lower the cost of establishing and maintaining a successful company.It is snappy that any business wanting to start up in e-commerce should continually examine the risks and opportunities created by such a venture. It is essential that designers make use of the technologies that are available. In the long-term the risks of lagging now are likely to exceed those of continuing with less then maximum adoption strategies. soon the Internet does have its limitations that may not make it suitable for all ventures. However with the rate that technology is expanding the Internet will soon locomote in dustrial strength whereby it will be possible to comply with all requirements and safety regulations. This will also include what services can be accessed and by who.The emergence of Digital Television has also increased the importee of e-commerce as now even more people are able to purchase goods within a matter of seconds even if it is in a slightly different way. By encouraging e-commerce all sides will assume through lower prices and better quality. It is only a matter of time before e-commerce becomes an obvious part of our lives.