Online Shopping Is a Form of E-Commerce - Research Paper Example

ONLINE SHOPPING By: Online shopping is a form of e-commerce which allows consumers to directly purchase products from the producer or seller over the internet using a web browser (WINDWALKER 2002, pg5). An online shop eliminates the physical aspect of buying products or services at a bricks-and-mortar or shopping center. The consumers can be in form of individuals or business (WINDWALKER 2002, pg5). In case of individual shopping the process is called business-to-consumer (B2C) online shopping; while whenever business entities do shopping the process is called business-to-business (B2B) online shopping. The largest online retail companies include eBay, Amazon.com and Alibaba (BLUSCHKE 2011, pg8). The growing business and consumer demands a lot of creativity and this cannot be achieved through physical only. This is evident with the increasing number of retailers now offering online stores interface to consumers. With the enhancements in online shopping, there is an emergence of new market footprint coverage opportunities for stores that can appropriately cater to offshore market demands and service requirements (WINDWALKER 2002, pg19). Online shopping is an all-round benefiting process that does not only benefit buyers but also the sellers. Setting up a physical store comprises huge setup costs and recurring operational costs. Products that remain unsold can only occupy premium space, as opposed to resources required to manage them. Additionally, virtual stores ensure product movement based on orders. Physical shopping limits customers through factors such as distance, shopping time and time. These limitations do not exist when it comes to online (KÜHN 2010, pg77). Those who undertake online shopping argues that searching a product online is very easy and relatively less time consuming. Moreover, most of the time products are sold at a cheaper price online. Online customers must have access to the internet and a valid payment method so as to undertake a complete online purchase. Basically, high education levels and personal income is directly related to more favorable perceptions of online shopping (KÜHN 2010, pg19). Online shoppers generally use a credit card or a PayPal account in order to make payments. Nevertheless, some methods such as debit cards, postal money order, wire transfer, cheque, cash on delivery and many others are also preferred. Financial part of online transaction may be processed in real time or may be done later as part of the fulfillment process (KÜHN 2010, pg31). Technological developments bring greater benefits to human being. Commerce is also an important area that witnessed and benefited from technological enhancements in the form of e-commerce and online shopping. With the online shopping there is no need to visit malls to make purchases. We can buy products at the comfort of our homes. Online shopping is fast, convenient with the goods being delivered at your door steps (KÜHN 2010, pg20). With the advanced technology across the global, business has revolutionized tremendously. Production technologies have enhanced efficiency of operations and human effectively in most businesses. Moreover, Firms, individuals and other business organizations have improved their levels of productivity at a lower cost. This is because e-commerce has enabled them to do business transactions without necessarily going into the physical market (KÜHN 2010, pg11). Customers have been able to do their e-shopping with fewer problems incurred at the expense of traditional business and communication methods. ICT has promoted the globalization of businesses that have seen many business entrepreneurs investing their capital beyond national levels hence diversifying the market niche (BLUSCHKE 2011, pg77). Online shopping involves dividing the customer market through variables such as age, gender, education level, socioeconomic status, religion, culture, occupation and nationality (GRALLA 1999, pg71). Most online retailers are aware of this concept hence they sell varied brands of products that suits well with the demographic strategy to target its market. For example, it uses magazines, online newsletters, websites, and other publications to advertise its products and to target families and young children. The benefits associated with online shopping are undeniable, and must count at least partially for the significant rise of internet usage since the 1990s. Apparently, few retailers who want to operate in the global business market can afford to not maintain an online presence. In most circumstances, the internet permits consumers the privilege of browsing and purchasing without leaving the comfort of their homes (KÜHN 2010, pg101). This in turn leads to the generation of better designed websites, as retailers have learned that the best and most detailed presentation of merchandize reduce the value of “hands-on” shopping. It is worth noting most consumers will have the confidence to undertake online shopping if they can fully see and know the product. The internet marketplace is bid hence the retailers are aware that with a single click a consumer can be connected with a competitor (INFORMATION RESOURCES MANAGEMENT ASSOCIATION, & KHOSROWPOUR 2006, pg14). Therefore, they are always on the forefront to make their products attractive to the consumers. Even though online shopping has been able to cut across the global, goods ordered online appears to be cheap and they are not as still there is yet another cost of transport and delivery to be incurred. The international transactions have been too expensive compared to those done within the location of the consumers (INFORMATION RESOURCES MANAGEMENT ASSOCIATION, & KHOSROWPOUR 2006, pg12). It is prudent if individuals, firms and other business organizations are able to invest their capital beyond national levels. This can also be through forming partnerships with other people with like-minded ideas to improve accessibility of their products hence cutting the transport and delivery costs (KÜHN 2010, pg63). It should be done after one has had the definition of the targeted consumer, what is the location of the customer, when are the goods and services consumed most. Having the knowledge of the consumer helps the producer to have their focal point on the products and services and hoe quick they can reach him. This will help reduce the time spent while waiting for the goods to be delivered if they have to be transported for long distance. Online shopping is credible and convenient to most consumers, but still most people are faced with the major problem of internet security in terms of identity and credit card fraud. In addition, they are required to make transactions through the use of credit cards or bank accounts which they are afraid of releasing such information (KÜHN 2010, pg45). While some of this is likely the result of simple changes of mind, it is apparent that security measures together with financial account safety fears frighten consumers away from committing to online purchases (GRALLA 1999, pg56). It is therefore important to conclude that: no matter how well a product is advertised online, consumers still tend to enjoy the satisfaction of literally seeing and feeling an item before they purchase it. References BLUSCHKE, N. (2011). Factors influencing consumers intention to purchase clothing online. München, GRIN Verlag GmbH. GRALLA, P. (1999). The complete idiots guide to online shopping. Indianapolis, Ind, Que INFORMATION RESOURCES MANAGEMENT ASSOCIATION, & KHOSROWPOUR, M. (2006). Emerging trends and challenges in information technology management. Hershey, Penn, Idea Group. KÜHN, S. (2010). A Comparison of Online Shopping Behavior of American and German Consumers. München, GRIN Verlag GmbH. WINDWALKER, S. (2002). Buying books online: finding bargains and saving money at Booksense Stores, Amazons marketplace, and other online sites. Belmont, Mass, Harvard Perspectives in Entrepreneurship. Read More