E Commerce Explained - A Research Paper

E-Commerce

Introduction

An e-commerce solution for a business is the incorporation of all aspects of business management in electronic format. Many well-established companies have been selling online for years. For example, Dell Computer Corp., has sold computers directly to end users for years. Currently, Dell is selling excessive of 1 million dollars worth of computer all day on the World Wide Web (WWW).

When a business has a built-in e-commerce solution, the company will suffer a lower operating cost, while at the same time increasing profits. The e-commerce solution will enable companies to eliminate unnecessary paperwork. All documents and data can be transformed into an electronic format. In this way, it will eliminate valuable shelf space and data can searched and accessed in seconds. E-commerce will also automates the sales process. Customers can "point and click" on the products you want to buy, fill out the customer information, and the product will be shipped and received within a few days. The 'administration must not fill in any paperwork because the customer had already done. Thus, the efficiency is greatly improved. With e-commerce solution, the company will open 24 hours a day, 7 days a week. People from all over the world with Internet access will be able to visit the site at any time. There will be limited to the hours of exercise work "normal". A "brick + mortar" business is normally limited to serve customers in its local geographic location. With e-commerce solution, that companies will not simply a geographic restriction, but rather opens the world's online marketplace. In essence, market exposure of the business' will be greatly increased.

In conducting my study, I studied a lot on the Internet for resources. I have chosen the Internet as my primary means of research because the e-commerce is still a relatively new technology. Since it is on technology, the Internet will provide the most recent data available. Printed publications will not be able to adapt to changes, such as electronic publications quickly and efficiently. I studied a lot of e-commerce related web sites along with some companies that perform statistical studies. Some of the e-commerce web sites that I looked at E-Commerce Times, eRetail and eMarketer. The statistical research firm Forrester Research that I have researched and Jupiter Communications. Both companies provided valuable statistical data showing the increase in consumers shopping online and the dollar amount expected to be spent over the next few years.

Methods

In conducting my study, I completed the following tasks:

- I tried a lot of internet sites that provide e-commerce related. After visiting the sites, I evaluated each site for content, completeness and objectivity. There are literally hundreds of sites that are devoted to electronic commerce. However, after my careful examination of most of them, I have narrowed it down to four sites that I find this relationship.

- I have also researched many companies conducting research statistics. The two companies will use this report are for Forrester Research and Jupiter Communications. Both companies are known for their precision, non-objectivity and completeness. Statistical data are collected from these two companies will support my recommendation that every company should have an e-commerce solution implemented.

Results

From my research, I developed two reasons why every company should integrate e-commerce solutions in business management. They are listed below.

1. To establish a presence

There are about 70 million people around the world who have access to the World Wide Web (WWW). No matter what industry or business you are in, you can not ignore 70 million people. To be part of the online community, one would need to be on the WWW for them. Because if a doe does not do it, will surely be a competitor.

2. For Network

Much of what passes for business is simply nothing more than making connections with other people. Any smart businessman knows, not what you know, is that you know. Moving on from your business card is part of every good meeting and every businessperson can tell more than one story how a chance meeting turned into a big problem. Well, what if we could move the business card to thousands, maybe millions of potential customers and partners, saying this is what I do and if you ever need my services, so that I can achieve. You can, 24 hours a day, cheap and simple, the WWW.

3. Making Business Information Available

What are the basic business information? Think of a Yellow Pages ad. What are your business hours? What do you do? How can I contact the company? Which payment method do you take? Where is the business? Now think of a Yellow Pages ad where you can have instant communication. What is so special about today? Today the interest rate? The next week the car sales information? If you could keep your customer informed of every reason why they should do business with them, do not think you could do more business? You can on the WWW.

4. To serve customers

Making business information available is one of the most important ways to serve customers. But if you look at serving the customer, you will find even more ways to use WWW technology. How about making forms available to pre-qualify for loans, or have your staff do a search for that classic jazz record your customer is looking for, without tying up your staff on the phone to take note of the information? Allow your customer to punch in sizes and compare them with a database that tells him what color of jacket is available in your store? All this can be done, fast and simple, the WWW.

5. To increase public interest

You will not get Newsweek magazine to write about your local store opening, but you could get them to write their own web page address if it is something new and interesting. Even if Newsweek would write about a store opening, would not benefit from someone in a distant city reading about it, unless, of course, came to your city sometime soon. With Web page information, anybody anywhere who can access the Internet and hear on your site is a potential visitor to your Web site and a potential customer for your information there.

6. To release time sensitive material

What if your materials must be issued no earlier than midnight? The quarterly earnings statement, the grand prize winner, the press kit for the much anticipated film, the merger news? Well, one sent the materials for printing with the statement "The-do-not-release-first-come-and-such-time" and hope for the best. Now, the information may be available at midnight or at any time a specific, with all related materials such as photographs, biographies, etc. issued exactly the same time. Imagine the anticipation of "All materials will be made available on our Web site at 12:01 AM". The scoop goes to those who wait for information to be published, not what makes your information soon.

7. To sell things

Many people think that this is the number one thing to do with the World Wide Web, however, I made the number seven to make it clear that I think you should consider selling things on the Internet and World Wide Web after one has done all the things above. Why? Well, the answer is complex but the best way to put it is, do you consider the telephone the best place to sell things? Probably not. It is believed that probably the phone as a tool that allows you to communicate with his client, which in turn helps you sell things. Well, that's how I think you should consider the WWW. The technology is different, but before people decide to become customers, who want to know one, what you do and what you can do for them. What you can do easily and inexpensively on the WWW. Then you might be able to turn them into customers.

8. To take pictures, audio and video available

What happens when a widget is great, but people would really like if they could see it in action? The album is great, but with no airplay, nobody knows that sounds great? A picture is worth a thousand words, but there is no space for more than a thousand words? The WWW allows you to add sounds, images and short videos to your company info if that will serve your potential customers. No brochure will do.

9. To reach a highly desirable demographic market

The WWW user population is probably the highest mass-market demographic available. They are usually college or graduate education in both making a high salary or soon to make a high salary. It's no wonder that Wired magazine, the magazine of choice for the Internet community, has no problem getting Lexus and other high-end advertising marketing. Even with the addition of online trading community, the demographic will remain high for many years to come.

10. To answer frequently asked questions

Who answers the phones in your organization can say that their time is usually spent answering the same questions over and over again. These are the questions customers and potential customers want to know the answer, before tackling a. Post in a WWW page and one of them have removed another barrier to doing business with a free and a little 'time for that phone operator tormented.

11. To stay in touch with sellers

Employees on the road may need up-to-the-minute information that will help them make the sale or put together the deal. If one knows what that information is, you can keep it posted in complete privacy on the WWW. A quick local phone call can keep your staff supplied with more detailed information, without long distance phone bills and tying up the staff at the home office.

12. To open the international market

One can not be able to make sense of the e-mail systems, telephone and adjustment

all potential international markets, but with e-commerce solution, you can open a dialogue with international markets as easily with the company across the street. As a matter of fact, before one goes on the Web, you must decide how you want to manage the international business that will own the road because their messages are certain to bring international opportunities for their own way, whether it is part of their floor or not. A further advantage: if your company has overseas offices, home offices can access information for the price of a local call.

13. To create a 24 hour service

If one has ever remembered too late or too early to call the opposite coast, you know the hassle. Not all businesses are on the same schedule. Business is worldwide but your office hours are not. Trying to reach Asia or Europe is even more frustrating. However, Web pages serve the client 24 hours, customers and partners a day, seven days a week. No overtime both. And 'possible to customize information according to the needs and collect important information that will put one ahead of the competition, even before arriving at the office.

14. To make information quickly available Change

Sometimes, changes of information before it becomes of the press. Now you have a pile of expensive, worthless paper. Changes in electronic publishing with its requirements. No paper, no ink, no printer bill. You can also link your website to a database which customizes the output page in a database you can change many times a day as you need. No printed piece can match that flexibility.

15. To allow feedback from customers

You pass the brochure, catalog, booklet. But it does not work. No sales, no calls, no leads. What went wrong? Wrong color, wrong price, wrong market? Maintain control, the marketing books say, and you end up finding out what went wrong. This is great for the big boys with deep pockets, but who pays the bills? One is and does not have the time or money to wait for an answer. With a Web page, you can ask for feedback and instantly receive no additional cost. An instant e-mail response can be built into Web pages and can get the answer while its fresh in your customers mind, without the cost and lack of response of business reply mail.

16. To test the services of the New Markets and Products

Linked to the above reason, we all know the cost of drawing up a new product. Advertising, publicity, advertising, press releases and advertising. Dear, dear, expensive. Once you have been on the Web and know what to expect from those who are seeing the first page, they are less expensive for a market to reach. They will also let any one know what they think of your product faster, easier and much cheaper than any other market you can achieve. For the cost of a page or two of Web programming, you can have a crystal ball into where to position your product or service on the market.

17. To reach the media

Each type of business needs the exposure that the media can bring, as I mentioned in reason # 5 "to increase public interest", but what happens if your company is reaching the media, as a newswire, a publicist or a group of public policy. The media is the most wired profession today, since their main product is information and you can get more quickly, cheaply and easily online. On-line press kits are becoming increasingly common, since they work with the digital environment of more and more newsrooms. Digital images can be implemented without nudity and scenes of the old press rooms and digital text can be edited and outputted on tight deadlines. All these can be made available on an e-commerce solution.

18. To reach the education market and youth

If a market is education, consider that most universities already offer Internet access to their students and most K-12 will be on the Internet within the next few years. Books, athletic shoes, study courses, youth fashion and anything else that would like to reach these overlapping markets needs to be on the WWW. Even with the advent of online trading services and their people little 'bigger there will be nothing, but the growth of market share under 25 who will be on-line.

19. To reach the specialized market

Sell ​​fish tanks, art reproductions, flying lessons? You may think that the Internet is not a nice place to stay. Well, think again. Internet is not just for computer science students anymore. With 70 million and growing users of the WWW, even the most narrowly defined interest group will be represented in large numbers. Since the Web has several very good search programs, your interest group will be able to find the company or its competitors.

20. To serve the local market

I spoke of the power to serve the world with an e-commerce solution. How about your neighborhood? If one is located in the San Francisco Bay Area, the Raleigh NC area, Boston or New York, it is probably enough local customers with access to the Internet to make it worth a while to consider Web marketing. A local Palo Alto, CA restaurant even takes lunch orders through the Internet! But no matter where you are, if the big client has access to the Internet, you should be there too.

Conclusion

After the detailed analysis and study of the effects and benefits of incorporating an e-commerce solution for an existing business, it is clear that e-commerce solution will benefit the business in every aspect.

The implementation of e-commerce solution will generate a brand new revenue stream, expand market exposure, and decrease the cost of the operation. Many Fortune 500 companies such as Dell Computer Corp., have already adapted to e-commerce in their business operation. As I mentioned earlier, Dell Computer Corp. is generating over $ 1 million in revenue from their website. Many famous "brick and mortar" companies are beginning to establish their presence on the web. For example, Barnes and Noble Booksellers, the top book retailer in North America, has just launched their website earlier this year after the success of Amazon.com. Amazon.com, the book and the top music seller on the web, was referred for a more efficient business operations in today's world.

Recommendation

Based on the conclusion of this study, I recommend the following:

- Each company should implement a solution e-commerce in business management.

Works Cited

"E-Commerce Times: Everything You Wanted to Know About Doing Business Online". E-Commerce Times. 1999. (August 9, 1999).

"E-Marketer, where the business starts on-line." E-Marketer. 1999. (August 9, 1999).

"E-Retail, News and information for Internet retailers." E-Retail. 1999. (August 9, 1999).

"The Guide e-commerce." Internet.com 's Electronic Commerce Guide. 1999. . (August 9, 1999).

"Forrester Research: Helping businesses thrive on technology change." Forrester Research. 1999. (August 9, 1999).

"Jupiter Communications: market research on online consumer market." Jupiter Communications. 1999. (August 9, 1999).