E-Commerce and the New Economy
The web has transformed our global economy. It is a powerful tool that has changed the way we produce, market and distribute goods and services. Finances and culture have been altered. New styles of commerce have developed. For example, a business call placed in North America could be handled by a technical expert in Asia as business is conducted internationally as well as transnationally. The purpose of this essay is to examine the issues, challenges and opportunities related to commerce in the “new economy”.
The internet became popular in 1995. It creates many opportunities in different kind of industries. Ecommerce is one of the successful examples of buying and selling on the web. It is like a cocoon, which became mature in these recent years. Low start-up costs make online businesses attractive to new entrepreneurs. Establishing their businesses online can eliminate store rental expenses; they don’t have to hire anybody to take care of it (Charles Steinfield). They can upload some pictures and descriptions of their products online. This allows their customers to see what they are buying. Moreover, customers can search for their needs whenever they want as long as they have an access to the internet (Charles Steinfield). Because of globalization, the national boundaries are eliminated as well. Customers can make their purchase anywhere around the world. This expands target markets.
Buying products online, customers can ask questions anytime when they encounter any problem or have doubts about what they are buying (Charles Steinfield). Many websites have provided online support services. Buyers can contact sellers directly and discuss their concerns. Therefore, the interaction between buyers and sellers has been increased. This is a good thing for both buyers and sellers. Sellers can get responses and opinions from buyers and buyers can tell the sellers what they need to know. Online business is further developed, because sellers can keep track of what is important to sellers, and sellers can discuss concerns with buyers (Charles Steinfield). They can keep improving their services and quality of the products. This is both benefits to these two parties.
However, there are some challenges that online business has to face. Although internet is now an indispensable tool in developed countries and wealthy family, yet many people who live in underdeveloped nations have no access to internet. This disparity limits the expansion of online business because online purchasing seems like a superior knickknack, only designed for rich people.
Another challenge that affects firms directly is the web measurement problem and maintenance of their sites (Donna L Hoffman, Thomas P Novak and Patrali Chatterjee). It is hard to estimate how many people will visit the site, even after a survey has been done. The actual number of people who visit the website is still not determinable. As a result, it is a hard job for...