E-commerce, ecommerce, on-line or internet commerce; all of these words refer to buying and selling of goods or services by using electronic information technology. It is believed that the Internet is the most important technology.
However, other processing and data transmission methods like mobile phone electronic customer databases accounting software, utilized in this area as well.
Digital marketing agencies or advertising agencies makes us think about how far the potential of electronic commerce is extending and more specifically what is electronic commerce and what are its benefits as well as disadvantages, and what are the current developments.
How do you define electronic commerce?
Alongside the purchase process itself, e-commerce encompasses all the steps that allow you to start and complete an order. A shop online functions as an online sales platform which potential customers can not only peruse the range of products but also place an order and make payments using a specialized electronic system. A system for managing merchandise electronically stores the items sold and also updates the inventory. A RFID chip tracks the shipment route. In addition, CRM systems let users to control their relationship with customers effectively.
In a more narrow sense, the e-commerce industry is part of the e-business. This covers the entire automated business process that utilizes technology for electronic information and communication. Utilizing this highly automatized business procedure to increase efficiency and boost turnover.
The advantages of e-commerce
For businesses, the aim of e-commerce is to improve the sales process to earn more money. The goal is to make sales processes more efficient and decrease expenses. The companies have created new sales channels on the Internet via online stores review sites, product reviews, marketplaces, or even constructing an auction site .Thanks the power of social media internet advertisements, newsletters, as well as automated CRM platforms sellers can gain new customers and strengthen their relations with them with no effort.
The advantages of electronic commerce
Businesses can profit from e-commerce in a variety of ways. Here are a few of its major advantages:
Overcoming distances: The Internet allows you to stop merchants being dependent on the location of their sales point. They can open new markets of sales in different countries around the globe. Even though the distribution of goods is still requiring an expansion of logistics capacities There is no requirement to create new locations. The capabilities for communication that are provided through the Internet can reduce some traveling requirements for business. From a consumer’s perspective, the benefit of online shopping is that they are able to choose from a vast selection of products and evaluate prices and quality in a single click.
E-commerce speeds up purchasing: it allows you to buy items quickly and without delay. Customers do not have to visit a store to purchase their goods. Instead they can place their orders all day, every day at home, or via any device or computer. A confirmation of order sent by email is sent immediately via special systems. In terms of sales it’s easy to manage and offer your services on the internet. For instance an agent for travel could quickly advise potential customers about destinations and book reservations.
Costs of transactions can be reduced through online shopping: E-commerce could save the need for renting new warehouses and shops. Cash register, inventory and other systems specifically designed to manage online stores automate the tracking of inventory and cash flow.
Multichannel and Omnichannel marketing If the circumstances permit it’s a good idea to establish an offline and online presence that utilizes all channels you have at your disposal. If you are using an online store or social media as well as your own business, consumers will have more places for them to connect to your services.
Advertising that is extensive: Social media blogs, corporate websites are cost-effective ways to promote offers. Companies that are active on Facebook gain the most by the huge coverage of the network. SEO advertising and marketing agencies in Dubai can be efficiently built with an advertising budgets that are often smaller than traditional ads like those that are printed by magazines, or broadcasted on TV. Furthermore the online advertisements are more customizable as compared to traditional advertising.
The drawbacks from electronic commerce
There are also negatives for both customers and businesses. It is largely dependent on the field within which you work and the resources you have available to you.
Complex implementation: Creating an infrastructure for digital requires both time and money. Small retailers may not have the expertise or financial and human resources to create an online store, or to manage their social media accounts on an ongoing basis.
Know-how and experience in advertising to determine the extent to which you can save expenses, you need to look at the field that you are working in. With highly competitive marketplaces, businesses need to fight with all their might to get attention from their presence on the World Wide Web. An easy Google AdWords advertisement isn’t enough. Additionally, thanks to phones and the rise of social media the users pay attention shorter. For the search engines marketing (SEO) it needs knowledge or at times the costlier assistance of an agency that is specialized.
The latest patterns in Internet commerce
Because of the new developments that are expected in the near future, e-commerce is expected to continue to grow.
Shopping online is by no by any means restricted to only younger people. Age disparities play an increasingly less significance: a lot of elderly people are at ease with the Internet. Companies that focus on digital natives in their marketing could therefore miss out on potential customers. But, the way they shop differs greatly between these groups. For shoes and clothing older people still favor physical stores. On the other hand younger people go to the internet more frequently regardless of the product.
One of the biggest challenges for online shopping is to tailor the online shopping experience. It is now trending toward individualized offers and using dynamic content to personalize your advertisements. A lot of customers appreciate such things as the possibility of purchasing gifts that are custom-designed for them or arrange a trip with the most favourable conditions. The most loyal customers are accustomed to discounts, personal attention and a judicious selection of purchase suggestions. Tools for analysis and monitoring like Google Analytics allow the collection of personal data that makes this process more efficient.
