Understanding E-commerce: Evolution, Trends, and Impact

Understanding E-commerce: Definition and Scope

Electronic commerce, commonly known as e-commerce, consists of the purchase and sale of products or services through electronic media, such as the Internet. It also encompasses a wide range of activities including promotion and publicity, product and service marketing, corporate image building, integral marketing strategies, facilitation of contacts between trading parties, post-sales support, market monitoring and research, and support for electronic business sharing.

E-commerce for Businesses: A Strategic Channel

For a company, e-commerce serves as a vital commercial channel and a means for information provision. It enables businesses to identify potential customers and significantly improve communication with existing clients.

Key Facets of E-commerce

E-commerce is intrinsically linked to several fundamental aspects:

• An Information Exchange Network

  Today, the increased emphasis on the Internet is advertising, so companies utilize it to make themselves known, offer products and services, and attract new customers.

• A Primary Method of Trade

  Currently, e-commerce stands as the main means of purchase and sale globally.

• A New Distribution Channel

  It empowers many companies to reduce or eliminate the role of intermediaries, allowing suppliers to conduct transactions directly with customers.

• A Communication Scenario

  E-commerce provides a new channel for communication between customers and the company, and in turn, between the company and its suppliers.

The Emergence of E-commerce

E-commerce first emerged in 1920 in the U.S., primarily for wholesalers. This innovation allowed customers to avoid the necessity of visiting local sales points.

New Trends in E-commerce Communication

Modern e-commerce communication incorporates several key trends:

• Call Center

  A dedicated unit or department within a company focused on managing all communication functions.

• Infomobility

  A mobile unit designed to provide information to the public, facilitating business relationships. Managers can visit customer locations or areas where vital information exchange is required.

• Virtual Business Office

  Another variant of the customer support system. This interactive web platform allows clients to perform queries via email.

• Telemarketing

  A direct relationship between the customer and the company, primarily facilitated through phone calls or emails for information exchange.

Technological Influence on E-commerce

Technology is a crucial global resource for job and wealth creation. The acquisition, adaptation, and dissemination of technology enhance the competitiveness of traditional sectors and are significant factors in increasing value added in manufacturing.

Impact on Workforce: Staff Reduction

E-commerce often leads to staff reduction, as roles previously handled by sales personnel in company branches are increasingly replaced by internet-based functions, such as automated service, request processing, and order fulfillment.