International Barriers to E-commerce
Aravind Alluri
Abstract
In the recent years, the internet has been known for an impressive evolution, having a major impact on all aspects of life esp., e-commerce (EC). This paper mainly explains the EC and also identifies the various international barriers to e-commerce and they can be evaluated for EC success.
Introduction
E-commerce is a combination of three different areas of study, namely technology, business and law/policy. EC is a kind of electronic medium for trading in goods and services. It is considered as exchanges between individuals/organizations channeled through technology, supported by electronic means. Worldwide business growth of the Internet and the
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b. Integration of Legacy Systems:
The actual issue is to integrate EDI transactions into legacy mainframe systems. Even though some have the updated high end systems, they don’t give much flexibility to integrate. This might not be a severe issue in some countries which have upgraded systems and give some flexibility.
c. Language:
Support for national languages in IT industry is necessary for true GEC. There should be language specific standards especially in EDI to resolve this issue. Every firm has to look for internationalizing their EC website i.e. language specific basing on the language in that country.
d. Security:
Unsecured transmission on the internet is quoted as the main deterrent for rapid growth of GEC. Although the security has been improved in recent years but still it’s a risk for commercial transactions. Globally many think that Internet is widely insecure esp. financial payment transactions. Security technologies such as pretty good privacy (PGP) are instantly available to use as a plugin to a web browser for enabling the secure environment for commercial transactions. The reinforcement of a secure internet payment method is crucial for the development of GEC.
2. Cultural Barriers
In some countries esp. India, trade/business will be done face to face. They prefer to shop their needs by personally going to the local merchants rather than shopping online. Attracting the
University, Adapted by Faculty of Business- Athabasca. Electronic Commerce for Managers. Pearson Learning Solutions, 2014. VitalBook file.
E-commerce abbreviation stands for Electronic Commerce. In E-commerce we do business online that is on internet. It is part of the IT (information technology) revolution and now days used widely in the world trade and in Indian economy. E-commerce showing tremendous business growth in our country, due to increasing number of internet users in India. In this paper I attempt to highlight the various essential factors required for growth of E-commerce and various challenges E-commerce facing in India.
E-commerce is the capability of an organisation for having dynamic presence over Internet that allows the company for conducting their business electronically, in spirit of having an electronic shop. Thus, the products can be sold, paid and advertised electronically without the requirement to be processed with the help of human being. Because of massiveness of internet advertising and website can be un-covered to millions of people all around the globe with the information being able to be transformed almost promptly the site can always be kept updated with all latest products for matching with the demand of the consumers (Lee, 2005).
The state of e-commerce in the Philippines has been slow in comparison to other countries including fellow Southeast Asian countries. Ranking only 89th out of 132 countries in terms of readiness to
I am choosing to do my Business Analysis paper on e-commerce. I will explain the importance of it as well as the effects on the global economy. I will discuss the advantages of telecommunications and information technologies in a business versus those businesses without e-commerce. I will also discuss the marketing strategies involved with e-commerce and how it helps businesses. Due to the global nature of internet business, electronic commerce (e-commerce) standards have become a priority on the national and international level. While most traditional businesses are subject to local, state, and national
Lubbe (2003) establishes that “E-commerce presents unique opportunities for less developed countries to greatly expand their markets, both internally and externally. Externally, the Internet and other technologies may allow for low-cost international trade, even for small, local businesses. Internally, many groups of citizens who had been considered "marginalized" and "unbanked" may gain affordable access to financial services, and may thus participate more readily in all aspects of the economy.” Since e-commerce opens frontiers and eliminates the long distances now you can buy products that seem imposible to reach the economical impact depends on the industry involved for some can be beneficial such as walmart because they still have physical store and for some others can be not as beneficial.
Today e- commerce has become an integral part of everyday life. Accessibility to e-commerce platforms is not a privilege but rather a necessity for most people, particularly in the urban areas. The first E-Commerce site in India was rediff.com. It was one of the most trafficked portals for both Indians and non-residents Indians. It provided a wealth of Indian related business news a reach engine, e-commerce and web solution services. Today the number of internet users in the world is close to 3 billion. Out of this, India has a total of 259.14 Million internet and broadband subscribers. (Source: Internet Usage Statistics - The Internet Big Picture - World Internet Users and Population Stats” available at http://www.internetworldstats.com/stats.htm ) This penetration of internet coupled with the increasing confidence of the internet users to purchase online, has led to an enormous growth in the e-commerce space, with an increasing number of customers registering on e-commerce websites and purchasing products through the use of mobile phones. It is not surprising, therefore, that India is in a prime position for the growth and development of the e- commerce sector. In particular, e-commerce presents one of the greatest opportunities in the retail sector. The mergers and acquisitions are also taking place in e-commerce
Electronic commerce has been there for a long time now, and it is a practice that is practiced by peoples from Germany, France, and the US on a daily basis. Since its inception around 40 years ago, e-commerce has continued to grow as innovations, technologies and a lot of business reverting to the use of the e-commerce. The aspect of buying and selling of goods in the early 1960s was sluggish with the traditional way of mailing of documents being replaced with the Electronic Data Interchange (EDI), which would later pave a way to the electronic commerce. After the e-commerce, however, the practice was not more reliable as it still had many challenges (Tsolis, 2009). For instance, it was not easy for buyers to see products from the comfort of their homes and more so, the methods of accessing the information were limited.
Conducting business online using the internet has continued to experience significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet users has grown from an estimated 16 million users in 1995 to 2.9 billion users in 2014. This world of interconnectivity has provided a way for people all around the world to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity is helping to establish the foundation for a globalized community.
In 1991, the internet became available for commercial use, which introduced the possibility for what we now know as electronic commerce, or e-commerce. By 2000, “a great number of business companies in the United States and Western Europe represented their services in the World Wide Web” and it was at this time that the e-commerce that we utilize in today’s business world took shape (e-commerce Land, n.d.). “People began to define the term ecommerce as the process of purchasing of available goods and services over the Internet using secure connections and electronic payment services” (e-commerce Land, n.d.). Through continued growth of the internet, brick and mortar stores came to realize that electronic representation would be an
E-commerce is a product that has been available since the early 90’s. It is something that people are familiar with. A product that is now part and parcel of people’s lives.
Many organizations industriously look for the opportunity to gain the competitive advantages in their industries. One of the opportunities that frequently used by the organization is the implementation of e-commerce. Thus, the e-commerce and the online sale transaction become popular in each industry. E-commerce provides many benefits, such as the saving of shopping time, the cost savings, convenience, and free from geographical constraints.
For a country as big as ours the Internet penetration has covered only 10% of our population. This is in stark contrast to the global average of 35%, and much below the average of the developed nations at 78%. We have a population base, which is big enough for a thriving e-commerce industry but the e-commerce potential at the moment is limited because of the broadband penetration.
E-commerce is platform of communication through internet that takes place between companies and their customers (Whiteley, 2000). The e-commerce provides various services such online shopping, online bank and E-enterprise which are also emerging trends on their own. Online shopping is one biggest service of e-commerce which allows consumers to buy, order and view goods and service on online through their gadget, anywhere they are (Dennis et al. 2004; McCormick, 2009). Based on fact that world is connected through internet and the new generation prefer to utilise technology than do things in manual process (going physical retail). .
This is a research project aimed at four different topics within e-commerce and the dynamic landscape of logistics within this emerging field. I will first be focusing on current landscape of e-commerce. Secondly the focus will be shifted to a global perspective and the difference of markets based on region. Thirdly I will cover the future trends of e-commerce, and the differences that we may see. Finally, I will present data on select countries and how they are affected by e-commerce currently and the changes that we can expect to see in the future. While researching this broad and developing topic, I have found that there are a handful of takeaways that can be seen in the entirety of this paper: