The Impact of Internet on E-Commerce Market
Apr 16, 2018

Internet- the most transforming invention in human history, the most dynamic fragment of technology, evolving ever so rapidly that it has come down to the irony that we humans are catching up with the internet rather than it catching up with us. The advent of technology has opened many doors for us in all spheres. Today even imagining a day without smartphones may crank up our routines. The internet has seeped into our lives to such an extent that now its impact is almost non-reversible.

One hardly can be a part of tech-dominated society without connectivity. Today, everything from grocery shopping to car cleaning has a dedicated online store. Therefore, it is imperative for the enterprises to reach out to millions by connecting with them through the internet.

Internet- The driving force behind E-commerce

The truth of the matter is, Internet sells fast. Selling through websites is the fastest growing method of trading worldwide. There are two main forms of e-commerce:

• Business to business (B2B) trading where companies trade and exchange information using the World Wide Web.

• Business to consumer (B2C) trading where companies deal directly with customers through web pages, and ordering is carried out online.

There are many different types of products and services that are traded on line including books, CDs, holidays, and insurance.

Nowadays, the consumers can purchase goods online too, basically a business to consumer transactions where a consumer can select the product online and order it, the company will deliver it at his/her residence. Everything is done and controlled by the internet.

Expansion of E-commerce through internet

Thanks to the mid-2000 internet boom for online shopping, online trading, businesses online, etc., e-commerce has flourished and spread like wildfire. Now the net has become an indispensable part of the structure of a business. Before the advent of internet, a business model was geographically constrained by the limits of the area of the business. Everything, from socializing to grocery stores and stock markets, has been e-zoned. Ever since the hit of internet, the business has turned into e-commerce, thus opening itself to millions of customers that it could previously not reach out to before.

Internet Generating Employment through E-commerce

The Internet accounts for a significant portion of global GDP. The consumption and expenditure related to internet alone can be comparable to that of agriculture or energy sector.

Being a vast mosaic of economic activity, the internet regularly hosts millions of daily online transactions and communications. Because of this, it generates direct and indirect employment on a daily basis. Millions of people are getting gainfully employed in skilled and semi- skilled jobs through the internet whether it is for programmers or website developers, or freelance writers. The advantage to internet is that it gives the comfort of switching your work space as well; one can work from home too if one wants. Which is a great benefit for new mothers, or disabled persons or people who prefer working in the comfort of their homes.

Results in Cheaper and Better Quality Products and Services

Internet is such a boon in our lives. Indeed, the world has become one tiny global village and this has also resulted in a massive customer base for e-commerce websites. With every website and online store competing against one another for monopolising over the sector, the competition just gets tougher for them. The customers are the real winners in this situation. In a bid to win, these stores work on different strategies like enhancing the quality of products and services, slashing prices, bringing out lucrative offers and schemes for long term investments, etc. At the end of the day, it’s a win-win for the customers as they get massive discounts of products and services. It is the time for customers to make the most of this and shop smartly. There are several websites like Zoutons which offer coupons for other e-commerce websites. One should make use of such coupons to get the best deal possible.

Making Shopping Easier for the Customer

Consumers of today have more places and ways to shop than ever. They are not just limited to their local markets. Today, they can shop, sitting in India, from any store around the world. The e-commerce websites have made things as easy as they can be. Door to Door delivery, customer reviews and added information about the products, multiple payment options, reliable customer services to name a few. E-commerce websites are actually investing in providing comfort to their buyers and giving them the most convenient and relaxed experience, as when the prices cut down on products everywhere, this is many a times, what it comes down to- giving customers a satisfactory experience.

Mobility Emerged as a New Driver of E-commerce

With the increase in numbers it is clearly evident that mobile phones lead the E-commerce market it is crucial for the enterprises to up their game and be a part of the mobile phones to reach bigger numbers in terms of their sales. In this era of smartphone technology and growth in mobile internet traffic, a significant impact can be witnessed in e-commerce sector too. Mobile phone users are slowly moving from desktop version to mobile app usage and this is evident with the changing traffic to few top e-commerce stores in India. 44% of the Amazon traffic is coming through mobile devices as per 2016 Recode statistics. At this time, one can only switch up their game and join the app frenzy.

E-commerce has made huge impact on business culture. Customer can shop online in privacy of their own houses. This has also strengthened small businesses to be completely online or modify their marketing strategies. With the advent of the internet technology, E-commerce has been affected in all spheres, be it retailer picture, or products and services quality or promotions and schemes. Costumer’s approach to spending money and purchasing has also been permanently altered. It is undeniable that this is all to stay and that the dynamic trends on internet will continue to pressure companies to change their marketing strategies.

Photo by Daniel von Appen on Unsplash