E-Commerce and the Impact to Business

Trading and business activities have been taking place among humans for long time because human is a social creature and dependent on others for many reasons. Since its existence, the world has gone under numerous changes and developments and in the same way the methods, tools and techniques used to conduct business also transformed along with time.

History defines earliest trade to be barter system. Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, which had lost its significance due to the natural flaws in it. Following that medium of exchange is introduced to value things accordingly which initially was precious metal, gold and subsequently paper currency by which world entered in to the era of mass production and industrialization with sales oriented approach.

The arrival of internet had revitalized not only the ways in which business was conducted, but also to the normal human life. Websites have been introduced and the real world has started to merge with the digital universe. Conducting business on the internet is known as e-commerce.

E-commerce is currently the latest technique to conduct business where websites act as shops that sell goods/products and internet users are the buyers. Initially internet and websites were used for communication and social networking, but with the increased trend of internet and the exponential growth of users have compelled businesses to increase their online presence to cope up with present trends.

E-commerce is the order of the day in modern business environment because economic climate and the increase of competition has made it mandatory for any business to cut costs and increase revenue for survival in the market in short span of time. E-commerce website is a benefit to the modern world in which it behaves as an online shop that gives many advantages to both the seller and buyer. It also gives many competitive advantages over competitors if managed efficiently and effectively. Modern business approach is marketing oriented which means customer satisfaction is the ultimate objective and providing ease of access and simplicity is one of the key to success.

E-commerce website does not only reduces the cost of outlets, advertisement and publicity, but also provides a facility where the customer has the ease of access with variety of choices. The specialty of e-commerce website over conventional shop is the saving of time of customer wasted in bargaining and finding correct product or services. The issue involved in conventional shop is that customer is given a limited amount of choices, and has to search for the right product which involves additional cost and time. E-commerce is a success because of simplicity and privilege to the customer. It requires one click to find right product or service without even going out to the market and leaving the comfort of home.

It is a challenge for web developers to act smart in e-commerce website development and incorporate variety, links and user friendly design to retain customers and attract potential customers. Modern web design trend has made it necessary to have platform for customers to raise their concern and share their thoughts through blogs and comment box which can be a way to understand customer's behavior by receiving feedback information about their needs.