Online E Commerce example essay topic

Running Head: E-COMMERCE: SHOPPING ONLINE E-Commerce: Shopping Online Hector Acevedo Eastern Nazarene College Abstract E-commerce is still a new frontier. It continues to redefine the marketplace, alter business strategies, and allow global competitors to spring-up overnight. The term "electronic commerce" has evolved from electronic shopping to representing all areas of business and enabling market processes due to Internet and other technologies. Retail stores have joined the e-commerce market. Many retail stores have wised up and recognized the huge growth of people using the Internet.

The Internet has virtually changed the way retailers do business. Twenty years ago the focus was on quality. Ten years ago it was on reengineering. Today E-commerce is being highly stressed; fast electronic interactions due to the Internet and other connected networks.

E-commerce deals with how quickly the nature of business is changing. In addition, it also deals with how rapidly business itself is being transacted, and how access to information is changing the lifestyle of consumers and their expectations of business. E-Commerce: Shopping Online James O'Brien defines e-commerce as " the buying and selling, and marketing and servicing of products, services, and information over a variety of computer networks". (O'Brien, J. p. 26). Electronic Commerce seems to be everywhere.

It is virtually impossible to open a newspaper or magazine without seeing an article about how Electronic Commerce changing today's businesses. With rushed life-styles and more double income homes across the country, consumers are left with very little time to spare for shopping. Therefore, retailers are trying to create a 'home shopping experience' where people can order items through the medium of mail order catalogs, video catalogs and through E-commerce on the Internet. It is the reverse of the old saying, "why go to them when they can come to me". Where instead of the customer going to the store, the store goes to the customer. With this break through in retailing, the company is linked on the principle of convenience to the customer.

"Research is presented describing the big economic advantages and tiny disadvantages of companies offering goods and services online compared with traditional retail markets" (Bakos, 2001, p. 69). This means businesses of all sizes are bombarded with adverts that seem to imply that any company not investing in E-commerce will be left behind. E-commerce sites offer everything that a normal brick and mortar store would offer and more. A person can wake up in the morning and shop for clothes on a retail site, or buy electronics from an electronic site. Then they can have whatever they purchased sent to their door at no charge. This can all be done from the privacy of their own home.

People who do not like having a salesman breath down their neck can shop hassle free for a product on an e-commerce site. These sites also help the customer save much time by not having to go to a store. Soon all businesses that exist will use the Internet as a selling tool. Many people have found using the Internet for shopping is easy and non-stressful. That sounds like music to many retailers' ears.

Well, those retailers who are in the process of making an e-commerce site. However, for those who are not interested in pursuing an Internet site or have not started on it yet, it sounds like death. Many small stores that have not ventured on the web can feel this impact. The long-term prospects for online retailing are strong. The demand for goods and services online will continue to grow as consumers become more accustomed to multi-channel shopping.

"Online consumer purchases, excluding travel, will rise 27 percent during the holidays, and despite the dot-com shake out, online spending is on track to account for 8 percent of consumer retail purchases by 2007, according to forecasts out this week" (Reidy, 2002). Retailers found when customers are using the Internet, they usually go to sites that are more user-friendly and easier to get around. Focusing on the customer is the main ingredient to being successful on the web. James O'Brien said, "The key to this goal is to optimize factors such as performance and service efficiency, personalization, community, the look and the feel of the site, offering incentives to purchase, and security" (O'Brien, 2001, p. 321). "Consumer behavior associated with shopping online, focusing on marketing research suggests online shoppers tend to be more goal-oriented and enjoy the control of quickly navigating through websites.

They said that retailers should create and online environment that emphasizes convenience, selection, and information" (Wolfinbarger, Gilly, 2001, p. 34). People, both on and offline, have existing perceptions of online retail as a way to save money and online retailers need to fuel these perceptions through marketing and communications efforts. The customer does not want to get on a website and find that it does not work. That is why an e-commerce company must and should always test their sites for any "bugs" in the system. Consumers also should feel like they belong to a group; so many of the "e-tailers" personalize their sites according to the customers surfing on it the most.

With so many people surfing on the web, a company should always make sure that their website is user friendly. Nothing irritates customers more than surfing on a site that is complicated and difficult to navigate through. Finally, one of the most important keys in customer service on the net is privacy and security. Now that most businesses know this, many companies take many steps in security. No customer wants to give a credit card number over the Internet, knowing that some person is watching and waiting to steal that number. My mother is one of these people.

She is worried that her number will get stolen and items will be charged her card. "The MORI research, published today, shows that while confidence is growing amongst online shoppers, some remaining concerns are preventing more people from spending their money online. These are: Fear of credit card fraud Having to give out personal information company may not be genuine" (UK, 2002). Consumers are already using the Internet to shop.

Retailers are also using e-mail as a way to gain an edge in customer service. Many retailers have the customer enter their e-mail address so they can proceed with the purchase. Customers with an e-mail address will be entered into the store's database, so that when new products come out, the retailer can e-mail that customer a link to view these products. In essence, the e-mails serve as advertisements or circulars. Businesses use the Internet more often then not within five main ways. The online store is the first area.

Think why were you shopping on line? Probably because you more than likely shop at that company's brick and mortar store. Take Macy's for instance, one would shop on their site because they shop at the actual store. The next way is the order fulfillment and shipping aspect.

After one is through shopping, they check their virtual shopping cart to make sure they have everything they need or want. Third is the payment processing aspect. Once you have everything, you have to pay for it-this is where the credit card is needed. Then customer service would be forth. Once you have gone and purchased your order, you usually get the confirmation e-mail. This states the "thank you", order number, and any questions or problem information.

The final aspect would be promotions. This deals with all the advertisement e-mails you get due to the fact that you gave the company your e-mail address. When companies focus on these five basic areas along with the customer service and a user-friendly site, they will have a good retention rate. This would mean that they get more or better profits. Erin White and Nick Wingfield (2002) said: One of the country's most visible Internet retailers, Amazon. com Inc., put a positive spin on holiday shopping without revealing specific financial details.

The company disclosed that unit orders on the site were 37.9 million between Nov. 9 and Dec. 21. Robertson Stephens, a securities unit of Fleet Boston Financial Corp., estimated that performance reflected a 36% increase over the year-earlier period. "We really are at that point where this is a reliable, mainstream way to shop", Amazon spokesman Bill Curry said online shopping. We cannot speak of e-commerce without speaking of competition between companies. Many retailers try to out do everyone else to ensure more profits. This is the cause for all the "gimmicks" such as special offers, rebates, etc.

They need to understand that the main idea or key is to have that user-friendly site focusing on the customer to ensure a successful website. I will admit that these "gimmicks" can and do give a business an upper hand. "For bargains, I browse SmartBargains. com, Bizrate. com, and DealTime rather than hop from store to store. This sites will cut deals from all over the Web and let you search by category and product" (Walker, 2002, p. E 1) In addition to the gimmicks, many businesses have linked with internet service providers to also gain an upper hand within the retailing realm. Amazon. com, a leader in online retailing, continues to achieve massive strides against their competition by joining forces with other large retailing businesses.

Due to e-commerce's effective way of generating money for businesses, many foreign companies are making a way to enter into e-business. Even places like Russia have dived in the sea of e-commerce. With increasing activity on the web, consumers that do not usually shop on the web are intrigued by it and have started to shop. Mall owners are flabbergasted at the amount of business they are losing due to e-commerce. Now malls are trying to get a piece of the e-commerce action.

Stores and malls are joining together to reap the benefits. Businesses using e-commerce are aiding in the economy while venturing to make huge profits. Even-though businesses are not causing this aid for ethical or even economic reasons, economists are saying this area of business will aid the country economically. "The increase, seemingly overnight, of dot-com and e-commerce enterprises - as well as of Internet operations inside traditional operations, from airplane manufacturers to finance companies - has had an enormous economic impact since the mid-1990's. The internet has boosted productivity and it helped to propel the United States toward the longest economic expansion in its history" (Blanton, K. ). In conclusion, e-commerce will continue to change the course of business in today's age.

People have studied how e-commerce sites are effective and efficient. Also, they have studied how it will be one of the best modes for economics in the future. Michael McCandless said it best when he stated, "The online shopping revolution is changing the retail world" (McCandless, M. p. 2).

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