Category:4.8 E-commerce

E-commerce: Involves the buying and selling of goods and services through electronic networks, the inte



rnet.

The Features of E-commerce:
 * Ubiquity : The Internet is widely available at any time. It can be accessed at home, at work, in hotels etc -- 24 hours a day, 7 days a week.
 * Customization : Individuals can customize their messages and decide how they will be delivered to ther individuals or groups
 * Global Reach : The Internet traverses many national boundaries. (The world wide web)
 * Integration : The Internet allows for the combined use of video, audio and text messages to deliver a marketing message
 * Universal Standards :  There is only one set of Internet standards globally

The Effects of Changing Technology and E-commerce on the Marketing Mix:
 * Product : Amazon, for example, can reach a wider target market than ever before which allows them to stock a wide rang of products to meet demand. This can lead to higher sales and profitability.
 * Price : Customers can make easy comparisons using online sites that can search for price information. Therefore they can get access to the competitive global pricings and save money.
 * Netflix-Popup.pngPromotion : E-commerce has helped businesses immensely with promotion. Many businesses are now using online advertising to promote their product or service. The use of pop ups, banners and viral marketing has led to a faster and more cost-effective spread of promotional material than ever before. Feedback from customers through online surveys can benefit businesses to fix or tailor products to their customers’ specific needs.
 * Place : E-commerce has reduced the need for intermediaries in the chain of distributionwhich has led to cost savings for manufacturers for various products. The Internet has made it easier and simpler for customers to have access and purchase products -- considering they no longer have to physically visit stores.



Types of E-commerce
 * Business-to-business (B2B) = Type of e-commerce where a business trades with another business. Example: Automobile manufacturers
 * Business to consumer (B2C) = E-commerce carried out from a business to a  Unknown.png  pecific end user who usually the customer/consumer. Example: Amazon, eBay, Google
 * Consumer to consumer (C2C) =  Refers to e-commerce that allows for transactions from one customer to another. This allows for individuals to interact and exchange with each other as well. Example: eBay & Craigslist

The Benefits of E-commerce to Consumers: * Increased choice. Consumers can make easy comparisons of the difference products beforemaking a decision.
 * Consumers do not have to physically go to the stores and can just purchase on the internetin the comfort of their own chosen location
 * Good online customer service increasers customers’ satisfaction and makes them happy.

The Costs of E-commerce to Firms:
 * Setting up and maintaining a website may be expensive for many businesses and may turn out to be a high-risk venture
 * Firms may be vulnerable to competitors who can easily see and gain access to their business and product information
 * Businesses spend extreme amount of costs trying to prevent online fraud
 * Concerns by consumers about internet security regarding the payment process may decrease the sales and potential growth for firms

The Costs of E-commerce to Consumers: * Consumers may find online pop up advertisements may be considered irritating, distractions and a waste of time
 * Consumers cannot try and or feel certain products before buying them. Example: clothing & furniture
 * Countries, usually LEDCs may lack technology and the access to internet
 * Consumers may be faced with too much information and resort to other means of purchasing the product
 * E-commerce can take away a ‘town feel’. It is impersonal