Market Issues in E-Commerce - Essay Example

? Electronic commerce Introduction For a long period of time, many people have since confused electronic commerce with electronic business. Electronic business is just an application of technological aspects and the internet in support of the business without transactions while E-commerce refers to tractions that are carried through the internet and the World Wide Web with the aid of digital enabled gadgets which, allows for transmission and receptions of market data between the seller and the buyer. Therefore, without actual exchange of value then such transaction is considered as an e- business and not electronic commerce (Satterlee, 2001). Just like any other business enterprise, the government owns a role of interest in e-commerce, not as stakeholders but as partisan to ensure that the necessary levy are paid besides enhancing fair, smooth competitiveness across all the business boundaries. While there is a general acceptance that private organizations should be given the mandate of steering up the development of ecommerce, most governments have already showed recommendable participation either as supplies or consumers of ecommerce products and services. For instance, the government may offer robust, reliable and communication system to the members of the society through acquisition of telecommunication and internet facility so as to reduce the cost of e-commerce to the citizens (Blakeley & Matsuura, 2001). The government may also use an e-commerce site in determining unpaid dues such as packing fee. This is made possible by simply longing through the specific site and keying the relevant identifier which would then give a result as to whether a person has paid his dues or not. Conclusively, most government also uses e-commerce site for purchase and procurement activity in drawing the attention of private organizations. For instance, in U.S, the government has provided a control mechanism by availing all the government online tenders at an affordable cost as a way of cutting down the cost for the local citizens (Blakeley & Matsuura, 2001). Advantages and disadvantages of e commerce As compared to traditional markets where the buyers and the seller had to avail themselves physically for sales negotiation before a transaction is usually concealed, e-commerce is perceived to have numerous benefits. For instance, it offers the most convenient shopping method as compared to traditional markets. This is because the system allows logging in and making purchases at any time of the day where a buyer can simply make payments through electronic transfer. Besides, it helps in sustainable management of time and overhead cost of travelling. E-commerce offers unlimited boundaries of trade since customers can be sourced globally. This enables online trade to have a higher competitive advantage in contrast to the rival traditional markets which are constrained regionally (Satterlee, 2001). Electronic commerce is a convenient type of trade because it requires very minimal fund and regulation requirements to set up. Besides, all the transactions are integrated electronically, and this would, therefore, call for a cut down in the cost of hiring employees that is always synonymous with traditional markets in handling physical procurements. Consequently, it gives room for a choice of a range of commodities because everything is simply click away and does not require any physical set up of an organization (Satterlee, 2001). Despite the above merits, e-commerce does not offer a guarantee of quality product because the customers are never physically attached to the product and can only view its image. Besides, any sudden technical failure may lead into a very huge loss since everything is operated through the system. Several sources have also noted that some customers still do not trust the security mechanism under e-commerce since most of the electronic transactions involves disclosure of physical address and accessibility to virtual account which, may cause dire consequence in case of unethical breach such cyber vandalism (Satterlee, 2001). Importance of e-commerce to consumers With respect to time management, e-commerce enables consumers to carryout numerous transactions at different time of the day, this gives more room for time utilization on other activities which, can also be of high value in due cost. Additionally, it has triggered cut down cost in the economy with emergence of profitable global business organizations that deal in trade such as internet securities amongst others. E- Commerce also offers a high sense of rationalization through availing numerous varieties of commodities where customers can make an informed decision before the actual transaction is fulfilled. It is also presumed to eliminate the barriers of middlemen that are known to inject an input to the overall price of the product unnecessarily as in traditional markets (Satterlee, 2001). E commerce in Arab world Nathan, (2004) Arab countries share some similarities such as customs and religion, but they have been known to have variations when it comes to the distribution of wealth. Despite the fact that most of these countries are rich in oil and considered as business hub, a lot of technological business exploration has never been adopted. However, countries falling within the UAE have drastically adopted the use of technology with Saudi Arabia perceived to be better placed to take a niche in investing in e-commerce. Recent researches have indicated that most of the locals’ in Saudi Arabia is characterized by fear that the use of e-commerce does not offer appropriate mechanism in terms of security. Besides, Arab community believes in enriched culture where personal communication is valued in contrast to written forms. This perception has derailed progress of development of ecommerce integrations. Finally, possible sources have also cited that most software’s are developed in English language, and this deters the adoption into the Arab world as it would be seen an encroachment of culture. The future of e commerce With the trust in e commerce building up, the organizations have been advised to avail all the necessary information to convince the customers that the securities of their details are compromised. A lot of effort has also been showed in simplifying transactions with a projection that, almost all commodities would suite an online trade. Besides, most of the customers especially from the UAE would also be convinced to adapt e commerce especially after they have been convinced the security of the transactions Nathan, (2004). Conclusion E-commerce is considered as one of the most reliable method of doing global business. It has been clarified how this type of trade is efficient, cost effective and timely since a person can easily make more than one transaction in a day. Many people have since embraced this type of trade with minority especially the Arab community whose culture of socializing and physical interaction has inhibited this kind of adoption. References: Blakeley, C & Matsuura, J. (2001). E-Government: An Engine to Power E Commerce Development. Published in the Proceedings of the European Conference on e-Government (Trinity College; Dubin, Ireland; Sept 27 – 28, 2001) Nathan, R. (2004). Electronic Commerce Adoption in the Arab Countries – An Empirical Study. Multimedia University Malaysia. Satterlee, B. (2001). E-commerce: a knowledge base. San Jose: Writers Club Press. Read More