Information Technology Management

CP-204

Assignment on:
Role of E-Commerce in Today’s Business.

Submitted To, Submitted By,

Dr. D. Choudhury Kumardeep Singha
MBA 2nd Semester,
Roll No. 22
 E-commerce has become an integral part of business in the modern world. It is
generally associated with buying or selling a product by using the Internet as the
platform. Information and communications technology (ICT) is used in e-
commerce marketing to create and add to relationships among organizations and
between an individual and an organization. At present, about half of the world
prefers purchasing items online at their convenience. Business-to-business (B2B),
business-to-consumer (B2C), and business-to-government (B2G) are some of the
types of e-commerce marketing.

With increasing the need of e-Commerce industry, every businessman is looking

to have an online store where they can sell their range of products and services.
One can get a lot of benefits by opting for e-Commerce as it delivers a
comprehensive range of benefits to retailers and merchants.

With increasing demand for online purchasing, more and more businesses are
moving to e-store from brick and mortar stores. In the US, more than 60% of
people are purchasing goods online from the comfort of their home and this figure
is increasing constantly. By considering this percentage, we can say that e-
commerce is expanding tremendously because of its complete range of benefits that
any industry vertical can enjoy.

Today, e-Commerce has revolutionized the way companies are doing business.
Now, consumers can purchase almost anything online 24*7 a day and get an
ultimate shopping experience.

Role of E-commerce in Today’s Business:

E-commerce played crucial role in the present day business. Some of them are
explained below:

 Convenience & Easiness:

For many people in the world, e-Commerce becomes one of the preferred ways of
shopping as they enjoy their online because of its easiness and convenience. They
are allowed to buy products or services from their home at any time of day or night.

The best thing about it is buying options that are quick, convenient and user-friendly
with the ability to transfer funds online. Because of its convenience, consumers can
save their lots of time as well as money by searching their products easily and
making purchasing online.

 Offer Product Datasheets:

Consumers can also get description and details from an online product catalog. For
your customers, it is very much important to get information about the product no
matter whether the time of day and day of the week. Through information, your
customers and prospects are making decision to purchase your products or not.

 Attract New Customers with Search Engine Visibility:

As we all know that physical retail is run by branding and relationships. But, online
retail is also driving by traffic that comes from search engines. For customers, it is
not very so common to follow a link in the search engine results and land up on an
ecommerce website that they never heard of.

 Comprise Warranty Information:

No matter whether you are looking to choose including warranty information with
product descriptions and datasheets or providing it from within an ecommerce
shopping cart, you need to make sure that customers must be aware of important
terms and conditions that are associated with their purchase.

 Decreasing cost of inventory Management:

With e-commerce business, the suppliers can decrease the cost of managing their
inventory of goods that they can automate the inventory management using web-
based management system. Indirectly, they can save their operational costs.

 Keep Eye on Consumers’ Buying Habit:

The best thing is e-commerce retailers can easily keep a constant eye on consumers’
buying habits and interests to tailors their offer suit to consumers’ requirements. By
satisfying their needs constantly, you can improve your ongoing relationship with
them and build long-lasting relationships.
  Competence:
For effective business transactions, e-commerce is an efficient and competence
method. Setting-up cost is extremely low as compare to expanding your business
with more brick and mortar locations. Very few licenses and permits are required to
start-up an online business than physical store. You can save your lots of money by
using fewer employees to perform operations like billing customers, managing
inventory and more.

 Allow Happy Customers to Sell Your Products:

With lots of customers’ reviews and product ratings, you can easily increase your
sells as new customers find that your products are good and effective. Make sure
that you mention your clients’ testimonials, reviews and product ratings as such
things can help your new customers to purchase your products.

 Selling Products Across the World:

If you are running a physical store, it will be limited by the geographical area that
you can service, but with an e-Commerce website, you can sell your products and
services across the world. The entire world is your playground, where you can sell
your complete range of products without any geographical limits. Moreover, the
remaining limitation of geography has dissolved by m-commerce that is also known
as mobile commerce.

 Stay open 24*7/365:

One of the most important benefits that ecommerce merchants can enjoy is store
timings are now 24/7/365 as they can run e-commerce websites all the time. By this
way, they can increase their sales by boosting their number of orders. However, it is
also beneficial for customers as they can purchase products whenever they want no
matter whether it is early morning or mid-night.

 Economy:
Now, you don’t have to invest your money in the physical store, insurance or
infrastructure as all you need is a wonderful idea, unique products and well-designed
website to reach your precious customers to sell your products and services. We can
say that this makes an e-commerce a lot more economical and reasonable.
  Boost Brand Awareness:
As like e-commerce business can help B2B organizations to get new customers, so it
will be helpful for e-commerce businesses to boost their brand awareness in the
market. Developing pages that can be indexed by search engines crawlers is one of
the best ways to enhance your website’ search engine optimization and enhance the
target audience on your site.

 Decrease Costs:
One of the most positive things about e-Commerce is that you can decrease the costs
of your business. Below are some of the costs that you can reduce by opting for
ecommerce:

 Advertising & Marketing Cost: If you opt for ecommerce, you don’t have to
spend your money on advertising and marketing. However, organic search
engine traffic, social media traffic and pay-per-click are some of the advertising
channels that are cost-effective.

 Personnel: A complete automation of check-out, billing, inventory

management, payments and other type of operational costs lower the total
number of employees that you require to run your ecommerce business.

 Eliminate Travel Cost: Now, customers do not have to travel long distances

to reach their desired stores as ecommerce allows them to visit the e-store
anytime without traveling. With few mouse clicks, customers can make their
purchase and have wonderful shopping experience.

 Offer Huge Information:

One of the best benefits of ecommerce for customers is they can get huge
information that is not possible in a physical store. We all know that it is quite
difficult to equip employees to respond to customers who are looking for
information on different product lines.

But ecommerce websites offer additional information to their customers without any
hassle. All the given information is provided by vendors so that their customers find
it easy to purchase products with information.
  Analytics:
We can say that business 2 business offers an excellent platform to organizations to
launch their complete range of analytics campaign. Through ecommerce,
organizations can easily calculate and evaluate sales effectiveness, customer
effectiveness, marketing campaigns, product mix, customer engagement and more.

 Expand Market for Niche Products:

It is difficult for buyers and sellers to find each other in the physical world, but it
becomes very easy for them with the inception of e-store. Customers can search
their required products on the web and can purchase it from any corner of the world.
No matter what kind of product customers are looking, they can find all types of
products without any hassle.

 Scalability:
With effective ecommerce solution, you and your organization grow and scale easily
to meet market demand as well as customer requirements by introducing different
sales channels and reaching market segments.

 Ability of Multi-site:
With ecommerce platform, it becomes easy for businesses to launch channel specific
and particular brand ecommerce website. This ability enables you to provide co-
branded websites for your specific customers and allows for websites catering to
specific international spectators.

Future Scope of E-Commerce:

In terms of Future of E-Commerce in the 21st century, experts predict the
promising and glorious figures. In the foreseeable future, e-commerce will be
confirmed as the major tool of sale for the goods and services. Successful e-
commerce will become the notion which will be inspirable from the web because e-
shopping is becoming more and more popular and natural. Thus, prevailing to
future trends, e-commerce will have huge potential growth in sales and promotion.
 Each year, there is a continuous growth in e-commerce deals. The volumes of
sales for online store are much higher than the brick and mortars. To the present
day, the internet sales boom the foundation for magnificent e-commerce future. To
attract more customers, owners will not only have to increase the number of
services available to them but also have to pay more attention to such elements like
design, good presentation, etc.

As India is the heart of e-commerce market in 2016 with the highest and
tremendous growth of 70%. This ensures that the e-commerce growth will
gradually increase in rising till 2018 and further years.