The Impact Of Electronic Commerce On The Development Of Electronic- Commerce

The advent of Internet has allowed companies to offer their goods and services throughout the world. Not only has the Internet opened up the floodgates of International marketing, it has also brought with it many other challenges such as cultural, political, and geo-economics challenges. In order to be successful in these global markets, companies must be very diligent in handling these challenges.

EBay is an American transnational corporation that utilizes an online interface to transmit its business globally. To become a transnational corporation your business must facilitate its operations in more than one country. EBay hosts an online marketplace where consumers and merchants can trade new and used goods for discounted prices. EBay has made it easier to shop from other countries through the process of deterritorialization. The website is also a good example of globalizing culture; which will be discussed later in the paper. EBay has not only transformed the online marketplace, but has been especially successful doing so. In an interview conducted with Entrepreneur.com, a former Fortune 500 company IT consultant stated that, “EBay became a $10 billion company selling something used cheaper than new,” (Girard, 2011.) This emphasizes how successful this business has become and what the future may hold for EBay as well as companies alike.

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

Online business using the internet has experienced 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 in 1995 to 2.9 billion in 2014. This world of interconnectivity has provided a way for people all around the globe to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity has helped to establish the foundation for a globalized community.

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.

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

E-business uses the digital technology to optimize the business activities of organization in order to increase the efficiency and effectiveness of operation and gain competitive advantages. E-business provides the solution that allows the organization to instantly share database, information of products and services, financial figures and data and nearly anything else that the organization may need to operate the business activities effectively and efficiently (Nguyen, 2013). E-commerce which is the abbreviation of electronic commerce is the subset of e-business. It focuses on the online transaction which includes selling of products or service by using computer network, primarily the Internet.

Electronic commerce (e-commerce) is often thought simply to refer to buying and selling using the Internet; people immediately think of consumer retail purchases from companies such as Amazon. But e-commerce involves much more than electronically mediated financial transactions between organizations and customers. E-commerce should be considered as all electronically mediated transactions between an organization and any third-party it deals with.

E-business is the continuous optimization of a firm’s business activities through digital technology (allows the storage and transmission of data in digital formats.) E-business involves attracting and retaining the right customers and business partners. E-commerce is the subset of e-business focused on transactions. E-marketing is only one part of an organization’s e-business

Electronic Commerce or e-commerce refers to a wide range of online business activities for products and services(Rosen, 2000). E-commerce (or electronic commerce) is defined as the buying and selling of goods and services conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems and automated data collection systems. (Anon, n.d.). It also refers to any type of business transaction where the parties interact electronically rather than

Electronic commerce, more commonly abbreviated as e-commerce, is the action of buying and selling products or services through the medium of electronic information systems such as computer networks - the most common of which being the World Wide Web, or internet (Dorogovtsev & Mendes, 2003). A variety of technologies are used to facilitate e-commerce including electronic funds transfer (EFT) which facilitates the electronic exchange of money, online transaction processing (OTP) which handles the data entry and retrieval for transaction processing and electronic data interchange (EDI) which is responsible for processing orders, warehouse stock control and order tracking (Turban, et al., 2009). Today has become a vital component of the

Electronic commerce or e-commerce is a term for any type of business, or commercial transaction, which involves the transfer of information across the Internet. It is often associated exclusively with online consumer shopping, but the term extends beyond that category. Additional businesses covered under the umbrella of e-commerce includes online auction sites, such as EBay, and businesses that exchange both goods and services.[3]

* Electronic commerce and its related activities over the internet can be the engines that improve domestic economic well-being through liberalization of domestic services, more rapid integration into globalization of production, and leap-frogging of available technology. Since electronic commerce integrates the domestic and global markets from its very inception, negotiating on trade issues related to electronic commerce will, even more than trade negotiations have in the past, demand self-inspection of key domestic policies, particularly in telecommunications, financial services, and distribution and delivery. Because these sectors are fundamental to the workings of a modern economy, liberalization here will rebound to greater economic well-being than comparable liberalization in more narrowly focused sectors. Thus, the desire to be part of the e-commerce wave can be a powerful force to erode domestic vested interests that have slowed the liberalization of these sectors.

This paper is written to address about the adoption of EC by using Indonesia as a case. The aim of the study is to explore about how adoption of e-commerce has developed in Indonesia and explain about the current conditions of e-commerce in the country itself. The findings are gathered through secondary data analysis and review from literatures, statistics and online documents.

Electronic commerce (e-commerce) has been defined in different ways by different researchers. Schneider and Perry (2000), characterize e-trade as business actions directed using electronic information transmission by means of the web and World Wide Web. As per Turban, King, Lee, Warkentin and Chung (2002), Electronic business is a procedure of purchasing and offering items, administrations and data utilizing PC systems and the web. Gibbs, Kraemer & Dedrick (2003) characterize e-commerce as the utilization of the web to purchase, offer, or bolster items and administrations. In this study, e-trade involves the utilization of the web for purchasing and offering items or administrations.