E-commerce is DRIVING FORCE for ensuring the growth of businesses in the face of the epidemic - a challenge that businesses of all sizes cannot avoid and for which they must be well prepared...
What is Commerce? What is E-commerce?
Commerce is the trade of goods, services, or something of value, between businesses or entities. E-commerce is to carry out the above buying and selling activities over the Internet. It is conducted over computers, tablets, smartphones, and other smart devices. Almost anything can be purchased through it today. And we summarize it as E-commerce.
History of E-commerce
E-commerce was started as very avant-garde e-commerce by "transmitting commercial documents (such as purchase orders and invoices) through electronic data". Those origins date to the 1948–49 Berlin blockade and airlift with a system of ordering goods primarily via telex. The current mode of e-commerce was invented by Michael Aldrich who uses online shopping to enable online transaction processing between consumers and businesses, or between one business and another in 1979. Electronic currency exchange, supply chain management, electronic marketplaces, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management, and automatic data collection systems are now part of E-commerce. According to the report, in 2022, global retail E-commerce sales will surpass $5 trillion for the first time, accounting for more than one fifth of overall retail sales. And by 2025, total spending will exceed $7 trillion, despite slowing growth. Today, the world's two top e-commerce platforms are amazon.com & Alibaba where amazon owns 39% of all US ecommerce sales, while Alibaba owns 58.2% of all retail ecommerce shares in China.
Business Value of E-commerce
Why the market so obsessed with E-commerce? Profit is the only answer. E-commerce is one of the ways of pursuing profit maximization since it is / can -
An unlimited source of customers from all over the world
Reducing costs on selling directly to customers & saving the expenditure in maintaining brick-and-mortar stores
Breaking shopping boundaries as customers (especially for millennials & digital natives) purchase anytime and anywhere by their preferred devices
Provide valuable customer database generated through online metrics
Minimize upfront investment on testing market new products, services, brands, and businesses
Providing self-service options to customers & allowing a smaller sales staff to sell to more customers accordingly and hence a highly scalable business model.
Business is nothing more than demand & supply. Enterprises are hungry for E-commerce since it can make businesses (especially those small companies or starters) gain access to & establish a wider market presence by providing a cheaper, accessible platform for their products & services.
Now, no doubt that E-commerce is a thriving industry. And with Linkage, an expert you can rely on for consulting and technical assistance in entering the world of E-commerce, co-working for the growth of your company.