E-commerce, also known as electronic commerce, is the transaction of merchandise and services over the internet. It comprises business to business, business to consumer, consumer to consumer and consumer to business models. E-commerce can therefore be defined as the buying and selling of goods and services through the use of the internet, it is as a result widely accepted as being an essential component in today's economy. In particular, the emergence of electronic commerce has changed the very approach to business and buyers.
Another outstanding feature of e-commerce is globalization. However, e-commerce makes it possible for firms to reach out for customers everywhere without having to take up outlets. This capability has made it possible for small businesses and those that have established themselves to fight for the market share of the global market successfully. Leading examples of how e-commerce has deceased geographical barriers may be found in sites such as Amazon and eBay.
One of the strongly marked benefits of e-commerce is personalization. Based on algorithms and analysis of customers’ information, the internet marketplace provides personalized shopping experience recommending products and services that meet the user’s desire. Unlike the broad company wide approach which just increases the general level of customer satisfaction, this targeted approach also increases sales conversion. Other elements of websites, such as the product reviews, description and comparing options enable the consumers to make rational decisions.
E-commerce has also taken a big hit on logistics and payments. The availability of effective delivery networks, availability of products within the same day and other aspects of safe payment processors have made shopping online a smooth process. Most payment procedures including credit card payments, online wallets, as well as cash on delivery offer convenience to suit people’s preferences across the board.
Not only has e-commerce revolutionized the availability of products for purchase from the comfort of a consumer’s home, it has seen changes in sectors from education, to entertainment, to healthcare. Netflix, edX, Coursera, Udemy, telemedicine, video consulting, and telemedicine are just a few examples of e-commerce applications that have been applied in various fields but the possibility for expansion is enormous.
Conclusion
In conclusion, E-commerce has revolutionized the way companies interact with consumers as well as markets all over the world by eradicating barriers. These factors combined with its use of advanced technology, shopper personalization and efficient supply chain have defined what convenience and operational effectiveness mean. Indeed, e-commerce prevails in changing industries around the world because it allows business to expand beyond physical barriers while conveying relevant information to the customers. In its further evolution e-commerce becomes one of the key successful elements of global trade, which contributes to the growth of economies all over the world and changes the view of the free, global market.
