"Change is the law of life. And those who look only to the past or present are certain to miss the future. "
- John Kennedy
E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence.
E-commerce has altered the workflow of the business. With its introduction, E-commerce has a significant impact on society and business at a global level.
Let us discuss the impact of E-commerce on customers and the economy –
Role of E-commerce in Business
The primary way in which E-commerce will affect the economy is its impact on productivity and inflation. The continuous expansion of electronic commerce can lead to downward pressure on inflation through increased competition.
The role of E-commerce in business is that it helps in the exchange of goods and services through electronic support. Electronic business has grown significantly since the internet has launched.
Today, insignificant facets of our daily lives, the internet has become an essential part of our lives and has a versatile impact on social activities. We cannot go to the bank to withdraw cash or do transactions or go to the market to buy essential commodities and things, due to a shortage of time.
These days, we all have become so busy in our work, and hence, in these circumstances, online purchases are the new norm.
Did you know that E-commerce society did $200 billion in sales in 2010? The internet economy is booming, and E-commerce sales are expanding by leaps and bounds every year by 20% to 25%. The data indicates a change in the spending habits of human clients.
It is an indisputable fact that each business is different, and it differs in style, promotion, and volume. In the long run, the net operating cost becomes insignificant compared to the return on investment provided by the advertisement.
Impact of E-commerce on Economy
The buying and selling of commodities is the most basic economic transaction, and any alteration in this reflects in the supply chain management. Gradually, the number of consumers purchasing online has increased with the increase in usage of the internet.
Today, a buyer is not restricted to a retail store. A list of thousand products can be accessed with a few clicks.
The growth in E-commerce has reduced the search of a consumer and has given him everything in just one click. The larger businesses such as book outlets, furniture outlets, automobile dealers can compete in the environment, whereas smaller companies witnessed a decrease in sales.
The growth in E-commerce sales has provided exponential growth in the branch of logistics as the E-commerce platform. It also integrates third-party logistics vendors such as FedEx, UPS, BlueDart, etc.
E-commerce controls the demand patterns, and technology influences the speed of sales. The economy is affected globally through E-commerce. In past days, it took a while to transform the economy of the two dependent countries, but to sudden changes in sales pattern, the impact is immediate.
Impact of E-commerce on Customers
With the advent of the internet, there has been a sudden increase in online shoppers. E-commerce has made people’s lives more convenient and accessible.
Today, Customers search on google about the products they need, and they get a hundred results matching their needs.
Due to various products, users spend more time on their websites. Digital payment methods allow consumers to pay online or pay on delivery.
The smooth functionality of easy returns helps the customers to return or exchange the goods at the convenience of home. E-commerce has made the shopping experience seamless.
Benefits of E-commerce to Society
Here are a few benefits of E-commerce –
Access for 24 Hours –
It is an online mechanism where people spend low operating costs, have a better quality of service, and the additional costs can be saved. For example, if goods and services are downloadable, then shipping costs will be canceled altogether.
With every online business, more and more free coupons and deals cannot be avoided, and it is quite significant for customers.
Commodities are cheaper online –
Due to low operating costs, the customers are bound to have a good quality of service, and hence additional costs can save unnecessary costs.
Global Marketplace –
Anyone can access any E-commerce site from anywhere. It is not required to visit the business physically. They can buy from the convenience at home; users can easily choose products among various procedures without moving physically.
Easy to Compare Prices –
Everyone can compare product prices of different companies and products in terms of quality and quantity.
E-commerce and Challenges
Here are some challenges in an E-commerce –
- Security is a significant concern in electronic commerce.
- Anyone can open an E-commerce site, and that is why so many cases of cybercrime are also being reported.
- Make sure that you check the site security certifications before making an online payment.
- E-commerce increases the transparency of the market at the macro and micro levels.
E-commerce has changed the practice, timing, and technology of B2B and B2C marketers affecting everything from transportation to customer behavior.
Fortunately, the development of electronic commerce, the basis of economic transactions – the buying and selling of goods. It continues to undergo changes that will
have a massive impact on the way companies manage their supply chains.
To put it simply, e-commerce has changed the way how businesses and customers interact. It affects pricing, product availability, transportation patterns, and consumer behavior.