E-COMMERCE

7. PRESENT AND FUTURE OF E-COMMERCE

As seen in the first chapter, e-commerce is becoming more popular year after year, both
with companies and customers, who feel increasingly safer with this type of purchase.

Regarding this evolution of electronic commerce, the following elements in relation to

its current situation can be highlighted:

▪ The number of visits and online purchases has greatly increased by small-scale
consumers who buy gifts, articles or services.
▪ The big companies that have managed to adapt to electronic commerce have
greater success in their fields, from banking to department stores.
▪ There is a growing trend for businesses to be only internet-based.
▪ The number of internet users is over 2,300 million, one third of the world's
population approximately, and electronic commerce is the most direct way to
reach international markets.

7.1 FUNDAMENTALS OF E-COMMERCE

To understand the growth of e-commerce, it is necessary to review the main virtues that
we have analysed throughout the course and that Vee24 Marketing Consultancy
considers fundamental for the success of this type of commerce:

▪ Usability. One of the main problems when it comes to web browsing is pages
with tedious information and unstructured designs that can result in a negative
experience for the user. Sometimes "less is more" and a simple presentation,
without unnecessary menus and a clear and attractive image with summarised
information can retain users and improve their experience.
▪ Speed. As mentioned, patience is not usually the greatest virtue of online users.
This is why a quick service should be provided, both when loading the content of

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the website, in the purchasing process, and when answering their questions in
customer service.
▪ Personalisation. The biggest challenge of e-commerce is still the search for the
physical store experience. To overcome this barrier, all efforts must be made to
assist customers in the most human and personal way possible and to use online
resources to meet their demands.
▪ Customer service. One of the keys for customers to choose one service or
another, and so that they purchase again in the same company and strengthen
their online loyalty. Meeting the customer's expectations and showing
personalised attention must be considered the pillars of online commerce.
▪ Transparency. Users do not like surprises. They do not like when the conditions
of a payment are changed or transferring money to an anonymous entity whose
reputation is unknown. Therefore it is important to be transparent and have
clear information about the company and about the steps to follow when placing
an order.

7.2 NEW TIMES, NEW CHALLENGES

The aspects that have consolidated e-commerce for years have previously been
discussed and now it is time to see what the new trends and the new challenges are to
evolve towards new electronic commerce. Large companies work hard to anticipate
these new guidelines and stay ahead of the competition.

▪ M-commerce. Mobile commerce is undoubtedly one of the environments that

has grown the most in recent years. Mobile sales are estimated to surpass the
rest of the devices, so any company that decides to move to the online market
should take into account m-commerce. For good multi-channel integration, an
online store needs to be adapted to any type of screen and device.
▪ Personalisation. Personalisation has been considered one of the most important
factors for the development of e-commerce so far, but it should further evolve
to become a new showcase for each user based on their tastes and preferences.

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The new technological systems in data management must store all possible
information about users and use it to optimise and personalise their purchase
and browsing experience.
▪ Offline sales and showroom. E-commerce is changing purchasing dynamics, but
it does not seem that this will result in the closing of physical stores. Many
traditional stores will end up working as Showrooms, product exhibition centres
to test or experience the product and then buying the article online. However,
conversely, some users navigate to get information and comparisons of the
product but they buy it in person (offline sales). In short, physical stores are part
of the strategic plan.
▪ Social Commerce. An e-commerce channel that uses social media as a
collaborative tool to sell. A growing number of people share information on
Facebook or Twitter at breakneck speed. Companies need to have a strong
presence on them, not only to promote themselves but also to identify problems
or complaints and prevent "word of mouth”, which can harm the brand. Social
media also leaves aside catalogue photos to offer more attractive videos and
demonstrations.
▪ Web Positioning. Search engine optimisation (SEO) is one of the most direct
ways to reach customers when they are looking for a product. That is why
companies must improve their positioning and content that places its offer
among the top positions of Google results.
▪ Remarketing. A technique that seeks that the customer who has searched for a
product receives specific advertising from that same brand on the different sites
they navigate.

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7.3 VISIONARIES

Given the new trends applied in electronic commerce that are the new guidelines, we
may be wondering what will happen next.

Although it is very difficult to make accurate predictions, there are many visionary
experts who have ventured to foresee what the future of a business as variable and
unpredictable as e-commerce could be.

▪ Patrick Curtis (www.wallstreetoasis.com) thinks that e-commerce will allow

everything to be ordered. He hopes that it will not be necessary to leave the
comfort of home to get any item as everything will be sold online.
▪ According to Liam Martin (www.staff.com) the key in the field of fashion will be
to customise clothing plans: specific looks for each person based on their data,
trends and sizes.
▪ Kelly Azevedo (She's Got Systems) talks about the future of virtual sizes.
Technology will allow you to digitally see how your body adapts to one size or
another and will avoid numerous returns for problems with size, design or style.
▪ Bhavin Parik (Magoosh Test Prep) believes product designs will be customised.
Customers will be able to create their own designs based on templates where
different characteristics can be combined.

▪ Mitch Gordon (Go Overseas) predicts 3D printing for clothes. Customers will be
able to use these techniques to print clothes according to their size.
▪ Chuck Cohn (Varsity Tutors) thinks there may be human agents for online
purchases. This process will help stores in their transition to online and will build
confidence in people who need help and advice to purchase.

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7.4 CONCLUSION

It has been many years since the beginning of electronic commerce, when selling on the
internet and uploading your banking information to the network seemed crazy. Since
then, advances in technology and security have made this type of business increase its
figures every year.

Fashion, electronics, travel and downloads will continue to play an important role in
electronic commerce, even though other segments such as food can become
increasingly important. The future of commerce and business is online and it depends
on increasing the budget for e-commerce and online marketing. Only then will we be
able to face or stay ahead of potential competitors and consolidate our position in a
market sector.

7.5 REVIEW

Here is a brief review for some of the concepts that have been discussed throughout the
manual:

▪ E-commerce is the process of buying, selling or exchanging goods, services and

information through communication networks: the internet, cable or interactive
TV.
▪ The advantages of e-commerce are its 24-hour continuous activity, access to an
open and global market, the opportunity to get cheaper prices, user feedback
and loyalty, personalised service offers, convenience of purchase, options
provided by comparators, its greater capacity for growth and online support.
▪ Its disadvantages are the lack of face-to-face contact in the purchases, the
insecurity of the users, claims and incidents in the distribution, the connection
problems and the economic investment needed.
▪ ISPs are companies that provide an internet connection through different
technologies and can create websites, emails, payment systems or shopping
carts.

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▪ The value chain is the theoretical model that describes the development of all
the actions and activities of a company that increase the value of a product.
▪ The B2B model (Business to Business) deals with the interaction between
companies, while in B2C (Business to Customer) companies interact with final
consumers.
▪ To create a virtual store it is necessary to create a website, set up the visual
format and the catalogue, establish the payment systems and the shipping
method, and add extras such as search engines, shopping carts, order tracking,
discounts and promotions.
▪ Advertising must look for the differential factor of the company and the
personalisation of the product. Companies must understand the profile of
buyers and adapt to the market. For this, they must take into account usability
and ease of navigation, the confidence that the company generates, marketing
management and customer service.
▪ Marketing is the set of activities designed to increase trade and demand, while
achieving consumer satisfaction through their product or service.
▪ A good e-marketing strategy should consist of the following steps: market study,
strategy planning, market segmentation, positioning and consolidation.
▪ Customer service in e-commerce is available 24 hours a day and it does not have
physical or geographical barriers, the attention is becoming increasingly
personalised and storage systems allow creating specific profiles for each
consumer and offer the type of promotion that best fits their needs, thus
creating a very effective feedback.
▪ Good management of delivery and distribution of orders can be a differential
factor for the company and add value to the service. It must be consistent with
the capabilities of the company and the needs of users when setting services,
prices and conditions.
▪ The TLS Protocol allows a secure connection over the network through an
encrypted channel that guarantees the transport of private and secure
information.

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▪ The SET Protocol is a communication system designed to safely carry out
commercial transactions with a credit card over the internet.
▪ Symmetric cryptography uses the same secret key to encrypt and decrypt the
information shared by the sender and receiver.
▪ Asymmetric cryptography uses two keys, a public key known by both parties and
a private key only accessible to the receiver.

7.6 FINAL RECOMMENDATIONS

In this manual, we have been able to review all the concepts and tools that help us
understand what e-commerce is and how to manage it successfully.

But before we finish, we should put aside the purely technical aspects and conclude with
some tips based on the experience in e-commerce that companies should take into
account when venturing into the online market:

IT IS NOT THAT FAST. It is true that the internet moves very fast, but that does not mean
that benefits will suddenly appear. It takes time to start getting benefits from electronic
commerce and a good strategy that guarantees a mid-term return on investment should
be developed.

IT IS NOT THAT CHEAP. E-commerce requires investment, strategy, experts, designers,

marketing, etc. Some executives think that the investment needed to build the online
channel as a business is very low, but the truth is that apart from technology, a good
sum is required to run an online company.

IT IS NOT THAT EASY. An online business requires time and knowledge. This manual lays
the foundations of e-commerce, but this business is continuously updating, which
means that we should be alert to changes to not fall behind: new systems, new
platforms, new features, etc. Luckily, information also moves very quickly and formulas
to be updated can be easily found in forums, media, blogs, articles, etc.

DO NOT FORGET ANY AREA. E-commerce cannot be considered an "extra" apart from
the rest of the company. It affects the entire organisation.

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NOT EVERYONE CAN WORK ON IT. The new members of the staff of a company must
understand the online market and be clear about the objectives of the online business.
The rest of the workers must think about the online channel as an incentive for the
company and not as a threat to their position.

After dealing with these “NO", we want to finish with the big “YES” of hundreds of
entrepreneurs who have joined the internet and the e-commerce challenge. They have
made great profits in a sector that grows more than 20% every year, which makes it
clear that there is still a long way to go.

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