Online Shopping - Term Paper Example

Module Online Shopping or e-Retailing Innovativeness in technology has been a vital factor that has influenced development of e-Commerce in the whole world. Electronic commerce is an industry that allows sellers and buyers to connect via the internet to trade products and services. Computer networks and the internet are vital in that they allow constant communication between traders and buyers. This makes it easier for speedy negotiations, trade and exchange of products and services. Online shopping is, therefore, an important development that has helped both sellers and buyers to trade in an effective and efficient manner as they communicate constantly and exchange products in the meanest time. This has replaced the traditional way of trade since buyers do not meet in a market but meet online and exchange services after communication (Lu 100). In ancient times, it was not easy to find the products and services that a person would need since it indulged scouting the market place to find an appropriate supplier. However, in this century, finding the appropriate products and services is easy as most traders are involved in online shopping. As a matter of fact, many service providers use the internet to conduct most of their businesses. This is attributed to the large number of buyers that search the internet to find the appropriate services and products they need. The new economy grows when there is constant exchange of products from sellers and buyers. As such, an economy will grow at a faster rate when there is increased exchange of products and services from buyers and sellers. Online shopping has increased the exchange of products from sellers to buyers at a faster rate. Therefore, online shopping is an ingredient to the new economy (Qin 45). When sellers and buyers have knowledge about online shopping, they make sure that they engage in online shopping to optimize their sales. In the current world, a better part of the population is literate and knows how to use computer networks. For instance, in the United States alone, over 60% of the homesteads have access to computer and internet (Kuhn 65). This creates a large demand niche for products and services that are sold online. This has been triggering online shopping since there is a ready demand for the products and services. With the increased exchange of products via the internet, the economy has been able to gain tremendously. Secondly, online shopping requires the services of middle-businessmen who will transport the products to the buyers. The middlemen serve an important purpose of ensuring the products and services are availed at the most appropriate time. This creates job opportunities to the many people that are unemployed (Miller 121). With such a development, the new economy develops since there are some people that have a disposable amount of income which is spent in the economy. Therefore, it is evident that online shopping has developed the proceeds of the economy by creating job opportunities and enhancing the economy through constant exchange of products from the sellers to the buyers. Similarly, it has enabled constant flow of money in the economy since the quality of products is improved. The buyers and sellers are the first hand benefiters from online shopping. Online shopping connects buyers to sellers in a more elaborate and easy manner. First, buyers get to know the location of sellers and how they can be contacted. This eases the process of acquiring products and services. As such, the buyers will have an easy time in locating the sellers. Secondly, the buyers will not waste time looking for an appropriate supplier of the products that need (Rich 167). This is convenient to people that have a busy schedule. As such, they will spend limited time in contacting an appropriate seller of the products they need. Thirdly, buyers do not have to physically access the sellers’ shop for the products. They can make communications via the internet and provide all the information that is needed. This eases the transactions as the seller will know how to complete the transaction without the physical presence of the buyer. Lastly, the buyer is a beneficiary since some online businesses ensure the products are delivered to the residence of the buyer. As such, the buyer will not have a hard time in getting the products they need. The sellers also have extended benefits in online shopping. To begin with, the online market has a bulging market niche for products. The population that uses online shopping has been increasing with each passing day (Qin 98). This is an advantage to the sellers as they have a bulging demand for their products. This explains the reason why sellers have been flocking the internet to attract a larger market niche for their products. Secondly, online shopping extends the use of electronic money transfer. This is where buyers send electronic cash to the sellers to commence the transfer of products and services. This is a safe way of transferring money as compared to the traditional way of handling hard cash. This limits any instances of losing money especially in places where security is jeopardized. Thirdly, online shopping is beneficial to sellers in that they have a plan on how to supply the services and products, depending on the orders. Online shopping allows traders to pre-plan on how to supply the products and services (Bracker 4). Most of the buyers place their orders via the internet and it is easy to plan on supplying the products without fail. This leaves satisfied customers who will cement their trade with the sellers. Lastly, sellers benefit since there are minute chances of giving products and services on credit. The sellers make their payments before delivery of products. As such, the sellers will have constant revenue in the business. Many buyers and sellers have openly expressed the low costs incurred in online shopping. First, buyers and sellers use low cost internet in finding the appropriate products they need. Since they use low cost internet, they will have saved a substantial amount of cash. This could be used in buying more products and services. Secondly, online shopping limits the number of trips a seller would make in getting the products and services they need. This saves a substantial amount of cash, which makes online shopping a low cost activity. Thirdly, traders will save on transport costs since they are likely to transport products in bulk (Kuhn 69). This is cost effective as they are likely to supply most of the products to customers that reside in the same area. Lastly, online shopping is an activity that provides products that have lower price tags than other shops that are accessed physically. Sellers have to tag a lower price to the products in attracting a large market niche. This helps buyers to get high quality products at a lower cost. Online shopping is widely used in many countries across the globe. It is mostly prevalent in developed countries and other countries that are developing ay a fast rate. Similarly, it is also used in third world countries but at a lower rate. Countries with low-cost internet have perfected the trade as most people find online shopping easy (Lu 19). Apparently, many technology companies have started selling high-notch phones that support internet and online shopping. Since people find it easy to do online shopping using their phones, it will be easy to get an appropriate seller at all times. This increases the number of people that do online shopping. Similarly, the prevalence of online shopping has increased due to the induction of social media. There are some social sites that connect friends, family and traders. Since there are many people that use social media, traders have also noted the importance of using it to conduct their business. This has increased the number of people that rely on online shopping to get products and services. Many people across the globe are confident in online shopping and are using it as a tool of getting all the products and services they need in their business, homesteads and in learning institutions. Online shopping has had an effect on traditional shopping in a number of aspects. First, online shopping has reduced the number of people that rely on traditional shopping. For instance, this has reduced the number of people that physically access shopping centers and the market to buy products and services. Secondly, online shopping has increased the number of people that use electronic cash transfers in buying products. This has affected traditional shopping since very few people carry hard cash. This has had negative effects on traditional shopping since impulse buying has been reduced. As such, people that do not use online selling tactics are disadvantaged. Thirdly, online shopping has changed the world in that people expect to be supplied with the products they have bought. Many people expect the products to be delivered at their homesteads and door steps after making a purchase. This affects traditional shopping negatively since it does not have such services. Though online shopping has its favored advantages, it has a number of drawbacks ((Bracker 6). First, there are some products that are not sold online. This makes it hard for a seller to attract some customers online. For instance, barbers would find it a hard task to sell their services online. Secondly, online shopping needs a connection with other devices which include transfer of cash from one account to another. Therefore, a person has to have a bank account in transferring the amounts to the other account. This makes it hard to people that do not have bank accounts for electronic cash transfer. Thirdly, the seller has to know the physical address of the buyer when supplying the products. This could be a daunting task especially when the physical address is not given in details (Vulkan 165). Lastly, there are security concerns when it comes to privacy of vital personal information. Most of the transactions are done via the internet, which is accessed by a large population all over the world. This would jeopardize a person’s security which includes information that is related to personal belongings and bank accounts. In conclusion, online shopping is an influential approach to business which has helped strengthen transactions between buyers and sellers. Many buyers and sellers are appreciating online shopping due to the convenience, price comparisons, wide variety of choices and secured transfer of products and services. However, the drawbacks should be limited to enhance the growth of online shopping. Works Cited Bracker, Holger. The Perception of e-Commerce in China. London: GRIN Verlag, 2011. Print. Kuhn, Silke. A Comparison of Online Shopping Behavior of American and German Consumers. London: GRIN Verlag, 2010. Print. Lu, Yuzhu. Methods for Augmented Reality e-Commerce. New York: ProQuest, 2007. Print. Miller, Robin. The Online Rules of Successful Companies: The Fool-proof Guide to Building Profits. New York: FT Press, 2003. Print. Qin, Zheng. Introduction to e-Commerce. New York: Springer, 2010. Print. Rich, Jason. Design and Launch an e-Commerce Business in a Week. New York: Entrepreneur Press, 2008. Print. Vulkan, Nir. The Economics of e-Commerce: A Strategic Guide to Understanding and Designing the Online Marketplace. New York: Princeton University Press, 2003. Print. Read More