Case Study: Local and Global E-commerce System

Background:
A fashion retailer based in New York City, with a brick-and-mortar store and an
online presence, is looking to expand its reach and increase its sales revenue
through e-commerce. The company wants to evaluate whether to implement a local e-
commerce system, focused on the domestic market, or a global e-commerce system,
targeting customers worldwide.

Local E-commerce System:

The local e-commerce system will focus on selling to customers in the United
States. The company will use a domestic payment gateway and shipping methods to
ensure fast and reliable delivery. The website will be optimized for US customers,
with prices displayed in US dollars and shipping fees calculated based on domestic
rates.

Pros:

The local e-commerce system will enable the company to cater to the needs of its US
customers more effectively, as it can provide customized payment and delivery
options.
The company can leverage its existing infrastructure, such as its US-based
warehouse and logistics partners, to fulfill orders more efficiently.
By focusing on the domestic market, the company can establish itself as a leading
fashion retailer in the US, and create brand loyalty among its US customers.
Cons:

The company will miss out on potential sales revenue from international customers
who are interested in its products.
The company will have limited exposure to international markets, which may hinder
its growth in the long run.
Global E-commerce System:
The global e-commerce system will target customers worldwide. The company will use
international payment gateways and shipping methods to enable customers from all
over the world to make purchases. The website will be optimized for a global
audience, with prices displayed in multiple currencies and shipping fees calculated
based on international rates.

Pros:

The global e-commerce system will enable the company to tap into new markets and
reach customers from all over the world.
By catering to international customers, the company can diversify its revenue
streams and reduce its dependence on the US market.
The company can establish itself as a global fashion retailer, which can enhance
its reputation and brand image.
Cons:

The global e-commerce system will require the company to invest in additional
infrastructure, such as warehouses and logistics partners, to fulfill orders from
international customers.
The company will face increased competition from other global fashion retailers,
which may make it harder to differentiate itself in the market.
The company will need to comply with different regulations and customs requirements
in each country it operates in, which can be time-consuming and costly.
Conclusion:
After evaluating the pros and cons of both local and global e-commerce systems, the
fashion retailer has decided to implement a global e-commerce system. The company
believes that the potential for growth and diversification outweighs the challenges
associated with compliance and competition. The company plans to invest in the
necessary infrastructure and logistics partners to ensure efficient and reliable
delivery to customers worldwide. By establishing itself as a global fashion
retailer, the company hopes to enhance its brand image and reputation and increase
its sales revenue in the long run.