The e- commerce is a relatively young but thriving business field. When businesses ventured into e-commerce at the beginning of the internet, the result was not too pleasant but nowadays, with the advancement in the internet technology, it has become a thriving multi-billion dollars industry with unprecedented level of interconnectivity and a huge access to billions of customers worldwide.
What is e-commerce?
The term e-commerce is used interchangeable to describe digital economy or electronic business. It is also used to describe businesses which are in virtual world such as online retailers that handle and deliver customers goods without any physical showroom. It can be used to refer to businesses who incorporate online presence and marketing into their business models. Example include a graphic designing firm which have an office for its business but still uses the internet to market its services mostly through social media platforms and websites to a larger customer base, most time beyond its geographical location.
How the internet aided e-commerce
The internet and personal computer have made it easy for companies or business to maintain an online sales portal. These two technologies are at the heart of the e-commerce revolutions until recently that mobile phones have catapulted its popularity as a result of heavy investment in mobile apps development, increasing mobile data speed and the seamless connections and interactions between business to business and businesses to customers. It is now a common place for customers to interact with e-commerce businesses from the comfort of their home at any time and in any country.
The internet has made e-commerce businesses easier and cheaper to run when compared to the traditional businesses which maintain an office. For instance, most physical retail business owner includes in the final price of the goods it intend to sell, the overhead cost incurred in managing the business. These overheads include cost of electricity, office rent, and telephone bills. While e-commerce businesses do not incur such expenses and as such sell their products cheaper. Additionally, customers nowadays can use their smartphones’ camera to snap the bar code of a particular product they are interested in buying, then in conjunction with a price comparison app bring up the prices of that product as it is available on different e-commerce websites. This will allow the customer to choose the e-commerce platform offering the lowest price.
What all these means is that the internet have provided a conducive and competitive platform for e-commerce businesses to thrive. Even the physical retail business owners are either switching fully to e-commerce to sell their products or have significantly deployed it alongside its physical showroom to boost sale and ultimately increase its customer base. All these would not have been possible without the internet technology.