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Dazzling Jewelry Essay

3388 words - 14 pages

IntroductionE-commerce can be defined as trading of goods and services on the Internet, particularly the Worldwide Web. It also involves the transfer of information across the Internet. It deals with different kinds of businesses, from customer based retail sites, through auction or music sites, to business exchanges trading goods and services between companies. Currently, e-commerce is the essential aspect of the internet to emerge. E-commerce helps to establish new relationships with potential customers and potential business associates. It let customers to trade goods and services without any barrier of time or distance. Over last five years it has expanded rapidly and is predicted to ...view middle of the document...

The Internet users are increasing rapidly and this make e-trade to have more sellers and buyers. The research reveals that 45 percent European online consumers are expected to buy more products online in the coming years, compared to 41 percent of American and Britain consumers last year which spent about 1 billion pounds on online shopping.In a report out by JP Morgan entitled "Nothing but net" (2011 version), it details out the growth of e-commerce in the upcoming years. In 2009, worldwide e-commerce grew by approximately 12%, but is expects to hit a 19% growth rate in 2010 reaching a total of $680B of online sales. It's estimated that online e-commerce sales will reach close to $1Trillion ($963Billion to be precise) in 2013.GLOBAL E-COMMERCE SALES
Year

$ Billion

2009

530

2010

680

2011

720

2012

850

2013

963

Barriers to global E-commerce issues:
Language; Most e-commerce consumers like to perform online transaction in their native language.

Measurement different i.e. metric Vs imperial; some consumers prefer other type of measurement than the other.

Specified of time and date to the correct time zone for customer support.

Use of correct phone prefixes (dialling code) and state codes for customer access.
AdvantagesE-commerce have lower operating expenses and better inventory management due to operating in a virtual business environment. It also increases sales, For instance, 'Amazon.com ' has revenue per employee of nearly $850,000 while its retail counterpart, 'Best Buy' generates revenue per employee of only $270,000. Clearly, e-commerce vendors will have the most to gain if they successfully disrupt retail customer acquisition, disintermediate distributors/resellers, and under-price retail establishments. As a consequence of e-commerce vendor gains, financial transaction processors and parcel shipping companies are among ancillary vendors who will gain. "E-commerce is gaining ground amongst consumers during the holiday season due to its convenience, product selection and lower prices". Heather DoughertyEconomically ; unlike the brick-and-mortar environment, in e-commerce there is no physical store space, insurance, or infrastructure investment. All you need is an idea, a unique product, and a well-designed web storefront to reach your customers, plus a partner to do fulfillment. This makes e-commerce a lot more economical. Higher Margins ; E-commerce means higher margins. For example, the cost of processing an airline ticket is $400. According to one travel agency, processing the same ticket online costs $300. Along with higher margins, the business can gain more control and flexibility and will be able to save time when manual transactions are done electronically. Better customer service ; E-commerce means better and quicker customer service. Online customer service makes customers happier. Instead of calling your company on the phone, the web merchant gives customers direct to their personal account online. This...

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