E-commerce, The last decade has seen the rise of many new technological developments. One of the most important of these developments is the Internet. We use the Internet from simple sending of e-mail to finding large volumes of information.
More recently, businesses have found new uses of the Internet. The most important is electronic commerce. Sometimes it is also called e-commerce for short. It consists of carrying out financial transactions money matters using the Internet. Its important form is online shopping.
Electronic commerce offers many advantages to both consumers and firms. It is very convenient for consumers as there are no shop hours, and orders can be placed at any time of the day. Electronic commerce also allows companies to have much larger markets.
A consumer in Pakistan can buy exactly what a consumer in Germany buys from the same electronic store. The capability to purchase products at ease from all over the world would increase trade between countries.
E-commerce brings about price control. It is nearly impossible for firms to sell their products at higher prices because there is competition among them.
Furthermore, electronic commerce also reduces the overhead costs for firms. Location is no longer an issue for firms. The number of staff required to maintain the online store is considerably less. The online store keeps their stock in a warehouse; they do not use expensive marketplaces.
The inability of electronic online stores to display their products physically to consumers is, however, a disadvantage. This leaves e-commerce best suited only to services such as books, finance, travel, and cars.
Another disadvantage of electronic commerce is the language barrier. Although most people who use the Internet speak and understand English. There are still very many people who speak other languages. Furthermore, most people throughout the world do not own computers.
Electronic commerce could be unsafe. When a person shops online, his personal details and credit card number are stored on computers. A hacker could gain access to these details and use them.
Also, there may be fake sites claiming to be selling legitimate products and services, that only want your credit card details. To guard against these threats, several new technologies have been developed and new laws are being enacted.
E-Commerce has enabled people to do business from home and during non-standard business hours. It has decreased trade barriers and resulted in increased trade. Above all, it has started a competition among various businesses and has caused large price drops.