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253SAM-Ecommerce: Adit Bakkesh Shamanur
253SAM-Ecommerce: Adit Bakkesh Shamanur
253SAM-Ecommerce: Adit Bakkesh Shamanur
The purpose of this particular report is discussion about the importance of the
Ecommerce and the use of ecommerce in our daily lives. This report also showcases
the challenges and drawbacks of the Ecommerce. It is also about converting brick and
mortar business into successful venture through Ecommerce. Therefore it also offers
viable opportunity to any organization to improve its operations and widen its
customer base. Ecommerce consists of platforms that enable the interaction of buyers
and sellers. It is also a platform for every individual to make profits through
Ecommerce by selling his products and making his/her services available to the
people. A business can choose to operate online entirely or partially. Coventry City
Books exists as a brick and mortal retail store hence consists of a physical business
premise where the customers make over the counter purchases and borrowing of the
books.
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Contents:
3.0 Recommendations………………………………………………………………...13
4.0 Conclusion..………………………………………………………………………...13
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1.0 Introduction:
networks like the Internet. It facilitates the buying and selling of commodities as well
as services across the Internet. Modern ecommerce mainly utilizes the World Wide
Web in conducting business though it may also incorporate some technologies such as
the email. Ecommerce offers various services; online shopping enabling the direct
demographic data, electronic data interchange, and marketing platform through email
and fax. Ecommerce enhances the market presence and position of a business. This
enables the business attain its revenue targets and realize profit maximization. The
growth of a business may also result from adoption of ecommerce in the running of an
enterprise.
visiting the store hence preventing their access to the facilities. The bookstore must
undertaking its operations. This begins with understanding ecommerce, its available
facilities, and choosing the most appropriate for the business. Various kinds of
ecommerce transactions exist with the major ones being business-to-business and
business to customer.
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2.0 Main Report:
transactions and just one B2C transaction through sale of the finished product. It
businesses. B2B market consists of two basic components; the e-frastructure and the
functions such as web-hosting, customer care services and security solutions, auction
(Investopedia n.d.)
channel, and payment management. Various websites facilitate B2B transactions such
brokering sites and information sites. Company websites target the audience of other
among other features. Brokering sites act as intermediaries between a company and
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potential clients for services and commodities. Information sites offer information to a
company and its employees. It offers specialized search engines to facilitate this. For
relationships with other businesses that facilitate its operations. A breakdown in the
B2B transactions negatively affects B2C transactions and result in business failure. A
retailer needs to maintain a healthy relationship with the wholesaler who supplies
commodities in bulk and at a lower cost. A poor relationship will amount to shortages
for the retailer and tainting of the corporate image. (Investopedia n.d.)
This form of transaction involves a business and its customers for the
exchange of physical goods, services, information goods among others. This became
the earliest form of ecommerce since it inspired the other forms of businesses. Its
establishment began in the 1990s with the sole purpose of enhancing online retailing.
It mainly emerged to assist e-tailing for the online direct sales to customers on
platforms like Amazon.com, E-trade, among others. It holds the second position in the
e-market after the B2B transactions. The most common examples of this form of
advertising based models, community based models, and fee based models. The
subdivision of direct sellers falls into two categories; manufacturers and e-tailers. The
manufacturers use the Internet as a platform to sell their finished products directly to
Direct sales assure the manufacturer of establishing a loyal clientele since the
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products reach the customers at low prices. E-tailers on the other hand make direct
sales to customers from their warehouses. This enlarges their customer base and
enhances the delivery channels. The online intermediaries take the brokerage role
between customers and the business. They facilitate the transactions by assisting the
for consumers to fasten the shopping process and minimize the costs incurred.
Facilitation of financial transactions also falls under their docket. The advertising-
based models utilize specialized sites as well as high-traffic sites to advertise for
income from the amount of traffic the direct to the respective adverts. Companies may
utilize these services to attract a niche market since people with certain characteristics
visit certain sites. Community- based model seek to disseminate product information
to various communities on the web such as chat groups. Fee-based models obtain
income depending on the value of content they post on the Internet. (InvestorWords
n.d.)
business. Since a business requires customers to survive and grow, it must capitalize
on the opportunity to widen its market base. Ecommerce offers a perfect platform for
transactions since every business requires selling of its products to consumers to raise
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2.3 Opportunities:
eliminates the geographic barrier placed by a brick and mortar business that can only
market its commodities to customers near its physical location. Ecommerce facilitates
Potential customers may find the ecommerce websites through following certain
links. This enables them to learn about a company and its products for the first time.
The information may further trigger them to make purchases of the products offered.
Costs Reduction
Conducting business on the online platform helps the business save on various
costs. A brick and mortar business requires a large initial investment to cater for the
establishment of physical premises. This entails the cost of building the offices,
Internet platform does not require a physical office hence saving on establishment
costs. Ecommerce also saves the business marketing costs since the Internet offers a
undertake door-to-door sales promotions. The cost reduction enhances the pricing
Time Saving
Running an online business saves on time since the Internet enables the
stakeholders visit the business premises at the click of the mouse. The customers do
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not need to make physical visits to the premises to make enquiries or to purchase
Communication Enhancement
services to customers and timely delivery of raw materials for production purposes. It
also eliminates misunderstandings that may delay operations. The business can also
utilize the communication channels to communicate with its employees and offer
guidelines.
Information
business at the click of a button. An investor may require information on the financial
also obtain information concerning the available products and their respective prices
from the Internet. The business provides information on their offers, new
2.4 Challenges:
Ecommerce eliminates the need for personal interaction between the service
provider and the customer. This may cost the business customer loyalty due to the
lack of customer satisfaction. Personal touch complements the customer service and
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Virtual Existence
A business whose existence appears only online may face extinction in cases
where its websites becomes dysfunctional. This may cause drastic loss of customers
that the business may not recover. Online existence may deter customers from having
faith in the business since it may collapse and cease to exist any minute.
The rising trend of cyber crimes has lowered the confidence of customers and
businesses on online transactions. Online transactions have posed a great risk in the
as businesses have become sceptical about electronic payments due to the risk of
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2.5 How Consumer Preferences can be satisfied using the
With the operation of a brick and mortar business, the customers must make
physical visits to the bookstore to borrow books, make enquiries, and make purchases.
The bookstore maintains records that facilitate the buying process and the customers
obtain evidence of purchase or borrowing of books. The use of the Internet in running
the business will enable the customers make book purchases at lower costs. They can
therefore increase the number of their orders, which consequently raises the revenue
of the business. Initially, the customers had to consider the travelling costs, which
cease to become an issue with the introduction of online transactions. The customers
redirect the amount spent on travelling into buying more units of the commodity.
Elimination of the queuing system improves the corporate image and attracts more
customers who perceive the bookstore’s operations as efficient. The minimal effort
from hence the consumer obtains maximum satisfaction from the commodities
purchased. The World Wide Web offers search engines that facilitate obtaining
attracts more customers who learn about the commodities offered by the company.
customer attention. The World Wide Web offers the bookstore information on the
highly demanded books and the emerging trends of bookselling. This offers the
bookstore competitive advantage and ensures it stays ahead of its competitors. The
elements of ecommerce also facilitate the translation of physical books into eBooks
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that facilitate the transacting process. EBooks facilitate book storage and management
of the inventory. Tracing of books becomes easier hence, customers receive quick
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Recommendations and Conclusions
The adoption of ecommerce by a brick and mortar business therefore offers it a viable
opportunity to improve its operations and widen its customer base. Ecommerce helps
the achievement of the major goals of every business entity, which involve revenue,
and profit maximization. The benefits obtained and gained from ecommerce
Ecommerce enhances transaction between a business and its stakeholders such as the
transactions dominate the ecommerce platform due to interactions with raw material
dominated the original ecommerce market at the initial introduction of the World
Wide Web. The World Wide Web continues to facilitate the transactions on the online
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Reference List
1. Investopedia (n.d) Business-To-Business [online] available from
http://www.investopedia.com/terms/b/btob.asp (n.d.)
2. Investopedia (n.d) Business-To-Business [online] available from
http://www.investopedia.com/terms/b/btob.asp (n.d.)
3. DigitSmith (n.d) Ecommerce Definition [online] available from
http://www.digitsmith.com/ecommerce-definition.html (n.d.)
4. InvestorWords (n.d) B2C [online] available from
http://www.investorwords.com/5410/B2C.html (n.d.)
5. Triua (2014) Advantages of E-Commerce [online] available from
http://www.triua.com/100/5-advantages-and-disadvantages-of-e-
commerce.html (25 December 2014)
6. ESalesTrack (n.d) Advantages of Ecommerce [online] available from
http://www.esalestrack.com/blog/2008/09/advantages-and-disadvantages-
of.html (n.d.)
7. Triua (2014) Disadvantages of E-Commerce [online] available from
http://www.triua.com/100/5-advantages-and-disadvantages-of-e-
commerce.html (25 December 2014)
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