Economic Forces and

Electronic Commerce
Group 1
 ECONOMIC FORCES
•Level of Employment
•Rate of inflation
•Rate of Interest
•Demographic Changes
•Fiscal
•Monetary Policies
How Do Economic Forces
Affects E-Commerce
Organization?
 Economic Forces
Vs E-Commerce
•Economic forces are factors such as inflation,
interest rates, labor and government monetary
policies that influence levels of production and
demand for goods and services.
•E-commerce involves transacting business
through the use of automated information
technology applications.
 Level of Inflation
•Inflation is the sustained rise in the prices of
products.
•This affects your e-commerce business,
particularly if you deal in nonessential or
luxurious items.
•Inflation also increases the costs of your inputs,
such as electricity, Internet, online advertising
and computer maintenance.
 Rate of Interest
•Low of interest encourageLow interest rates
encourage borrowing, while high interest
rates discourage borrowing.
•Prevalence of low interest rates boosts
e-commerce business because it increases the
amount of money in circulation as a result of
heightened lending and borrowing activities in
the financial sector
 Rate of Interest
•Consumers can spend more on your
e-commerce products when they have more
money at their disposal. In contrast, high
interest rates stifle money circulation and
suppress demand for e-commerce products.
•They also increase the financing costs of your
business, especially if you borrow loans with
variable interest rates.
 Trends of Employment
• Trends of employment are important indicators of
economic progress.
• Low unemployment rates translate to growing
demand for e-commerce products because more
people earn income.
• High unemployment rates signal worsening
economic conditions, as no new jobs are created
and many people lose jobs. As a result, the demand
for e-commerce products declines with increased
rates of unemployment and vice versa.
The economic impact of
e-commerce
E-commerce has altered the practice, timing, and
technology of B2B and B2C markets, affecting
everything from transportation patterns to consumer
behavior.
It has affected pricing, product availability,
transportation patterns, and consumer behavior in
developed economies worldwide.
Quintos at delcastillo
E-Commerce influences Demand
Pattern
• As technology, ecommerce, and globalization become
more intertwined, buyers and sellers are increasing their
connectivity and the speed with which they conduct sales
transaction. As we saw during the recent turmoil in the
financial markets and some supply chain networks,
speeding up sales transactions can be very positive attribute
when small market corrections are taking place. However,
during a major economic correction like the one we
witnessed during the Great Recession, a quicker response
to sales transactions can have cascading impacts on supply
chains, resulting in large contractions or expansions in
orders, production, shipments and inventory.
 Philippine E-Commerce

Describe how widely e-Commerce is used, the

Primary sectors that sell through e-commerce,
and how much product/service in each sector is
sold through e-commerce versus
brick-and-mortar retail. Includes what a company
needs to know to take advantage of e-commerce
in the local market and, reputable, prominent
B2B websites.
Current Market
Trends
 Social Media
• Filipinos are prolific users of social media.
Estimates this year show that there are 76
million active social media user from the
Philippines. Of this number:

✓ 75 million are on Facebook;

✓ 12 million on twitter and
✓ 4 million are linked in user.
 Social Media
However the country faces the following
challenges:
✓ Infrastructure gap
✓ Need further improvement on internet
speed
(Philippines ranking is 23rd in Asia Pacific in mobile
broadband)
 Social Media
Most internet user gain access to
smartphone:

✓Low broadband penetration

✓ Low digital payment penetration
✓ Security concern
E-Commerce Intellectual
Property Rights
•The Philippines has passed adequate legislation
to promote eCommerce ;the eCommerce Law,
Cybercrime, and Data Privacy Laws. However ,
enforcement agencies like the Department of
Justice and Philippine National Police, and the
local courts are not yet adept to handle cases
involving electronic transactions. The system is
simply not yet in place. The National Privacy
Commission (NPC) is tasked with implementing
the Data Privacy Law,
•And they have had significant achievement
through Philippine-based companies
designating “Data Privacy Officers” or DPOs.
The NPC is also leading the way for the
Philippines to be complaint with international
privacy agreements such as the European
General Data Protection Regulation (GDPR)
and APEC Cross Border Privacy Rules (CBPR)
E-Commerce Popular Site
www.b2bpricenow.com – A trading portal with close
to 8,000 members that are mostly from cooperatives.
It is officially endorsed by the Philippine Congress as
the Philippine e-Market place for Agriculture and
Fisheries.
https://e-order.asiarx.com/ - Caters primarily to the
pharmaceutical and medical supply industry, has a
regional scope, multilingual capabilities, tight real-time
integration with supplier systems, and focus on the
customer’s perspective and business processes.
E-Commerce Popular Site
http://philippines.tradekey.com – A B2B marketplace
connecting Filipino exporters with overseas buyers. It
connects traders with global wholesalers, buyers,
importers and exporters, manufacturers and
distributor’s in over 240 countries.
www.philippinecompanies.com – A Philippine business
directory with 413,282 registered companies.This
website builds its database from publicly accessible
directories such as Business Registrations from various
municipalities.
E-Commerce Popular Site
https://www.kenresearch.com – Global industry
research and information service company.
Provides industry intelligence, equity research
and business consulting services covering several
sectors.
https://www.olx.ph/ - Global online marketplace
open in 45 countries in world used for buying and
selling of goods and services.
E-Commerce Popular Site
http://philippines.tradeford.com – Provides
global importers with information on products,
exporters, suppliers, manufacturers and
wholesalers.
Online Payment
• Online payment refers to money that is exchanged
electronically. Typically, this involves use of computer
networks, the internet and digital stored value
systems.
• E-business (electronic business) is derived from
related terms as "e-mail" and "e-commerce”.
• An electronic payment (e-payment), in short, can be
simply defined as paying for goods or services on the
internet. It includes all financial operations using
electronic devices, such as computers, smartphones
or tablets.
 Function of
Electronic Business
How Electronic Payment Works?
•Customer action
•Payment authentication by the operator
•Payment to the seller’s account
Ocampo