The Importance Of E-Commerce

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Electronic commerce, most commonly referred to as e-commerce, is a term used to describe business transactions which involve the transfer of information and goods using the power of the computer networks such as the internet and the World Wide Web. E-commerce is classified into five different categories depending on the relationship among the participants; the most common examples are business-to-business (B2B), business-to-consumer (B2C), or business-to-government (B2G). (Schneider, 2015) E-commerce has evolved drastically over the past years and this has dramatically changed the way businesses are run today. While there have been constraints and barriers which companies such as Amazon have had to be overcome, currently e-commerce is a key…show more content…
With the power of the internet, consumers are no longer are limited to shopping locally and with the introduction of mobile devices, consumers now have the world in the palms of their hands. According to Nielsen’s Global Connected Commerce Survey Report, online sales are set to “double between 2015 and 2019 and account for more than 12% of global sales by 2019”. Domestic shopping still holds a large portion of B2C commerce the landscape is shifting and international e-commerce is a growing at increasingly rapid rates. This provides retailers with both great opportunity and great challenges. Retailers now have access to consumers they never had to before and must now learn to adapt their marketing, logistics, technology in order to meet new customer cultural and local needs as well as country’s regulatory requirements. This means communicating with shoppers in their own language, providing various payment options as well as offering delivery…show more content…
However, with the third wave of electronic commerce where mobile phones and other handheld devices are introduced to the market B2C is quickly becoming the key to being successful in today’s economy. According to Internet Retailer’s Global 1000 report, in the United States alone, consumers spent roughly $1.74 trillion on Internet sales in 2015. (Zarogan, 2016) with the development of mobile devices, consumers now have the ability to access the internet in a ubiquitous manner which now allows businesses to have nonstop engagement with consumers through the use of a website, email, social media, surveys, and many other venues. One company that has figured out the importance of mobility is Teleflora. Teleflora is a company that built its company on the time-honored tradition of sending flowers mixed with the modern technology of mobile technology. Realizing that their initial business strategy of ordering on-line was cumbersome for their customers who were using mobile devices the company established a new organizational structure in order to support the emphasis on mobility. This shift in business practices, although still new, has shown some significant results. According to Beth Monda Vice President of E-commerce at Teleflora, “year-to-date mobile traffic is up 10% year-over-year, and their mobile

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