Paper details:

Research and apply the content from recent articles about Electronic Commerce. You must cite at least 3-5 sources. Write a minimum of 3 to 5 pages for the body of the research paper (using APA writing style format) discussing your viewpoint on the topic and refer to the content from the articles to support your findings.

Answer;

Ecommerce

Contemporary business world has embraced emerging technology to carry out business transactions. E-commerce has become one of the highest regarded technological innovations that investors use in business operations. E-commerce entails trading products to customers through computer networks. The internet has played an instrumental role in facilitating E-commerce. Technological systems such as inventory management systems, electronic data interchange, mobile commerce, internet marketing, and online transaction processing have equally reinforced implementation of E-commerce. Technologies such as social media, telephones, and email are essential in the modern electronic commerce. Application of e-commerce plays an exclusive role in helping enterprises attain marketing and financial goals.

E-commerce enable businesses to share information, conduct business transactions, and enhance business relations. It further provides efficient business transactions involving customers’ orders, product features, and invoice delivery. It is evidently, that e-commerce has enabled customers to portray business to consumer in form of customer support, shopping, and product delivery. The system has enabled business to replace the old pull model to push model-marketing strategies. The pull strategy is unique compared to the push strategy in the sense that marketing heads of organizations would no longer have to spend heavily on establishing customers. To elaborate, customers can efficiently elicit product information without necessarily travelling to the company’s premises.

The United Parcel Services adopted the similar strategy when it established its official business website. The website helped the company achieve a number of benefits ranging from enhancing customer services, calculate shipping costs, tracking software, estimating arrival time of transit, to tracking packages (Deckman et al, 2008). Buy.com, a service provider firm, achieved a significant price setting decision by choosing internet as the pricing model over traditional sales channel (Kauffman et al, 2009).

E-commerce creates price advantage especially when a business adopts online advertisement. Customers based in developed countries such as the United Kingdom and the United States have already realized the advantage. Customers based in developed countries perceive that prices indicated through online system are cheap compared to prices indicated in stores. Factors such as lower taxes, disintermediation, and lower overhead are contributing factor to price advantage. It is a fact that tax charges highly contributes to in driving prices of products. In developed markets, tax charges can hit margin close to 20 percent. E-commerce vendors realize tax benefits compared to physical retailers because terms and conditions of tax charges are distinct to elaborate, physical retailers have obligations to fulfill many tax charges compared to ecommerce vendors.

Disintermediation equally plays a notable role in pushing product prices down. Consumers have no choice other than to pay dearly on products that go through wholesalers and retailers. With the introduction of ecommerce, manufacturers realize price benefits as they can interact with customer directly without the need to include intermediaries. In essence, customers have to meet increased charges because of involvement of intermediaries in distribution of products.

E-commerce is convenient to customers in the sense that it takes just a few second for customers to assess product information and proceed with purchasing. In many cases, customers have adopted buying habits where they purchase products in business that they had contacted sometimes back. Therefore, customers find it highly convenient to purchase products from such a company via Smartphone. The case is a similar with other companies that customer have never purchased products from provided the company provides ecommerce.

Ecommerce has played a potential role as far as stock performance of a company is concerned. Companies that rely on IT investment gained a significant market valuation. Shareholders investing in these firms have already projected additional value of the firm as far as returns are concerned. IT investments help firms communicate positive news in a bull market. Investors would develop keen interest in such a company implying that they would react positively towards the stock valuation (Dardan et al, 2005). In many cases, companies would do anything to gain stock valuation even if it means adopting IT investments.

Companies have also portrayed positive sentiment over introduction on social media. Social media is regarded as one of the essential ecommerce sales driver. Through the social media, customers have been able to hold commercial interaction to ecommerce purchase. They get an opportunity to search discount information, product information and even go ahead discussing shopping experience with others. In traditional business models, customer could not share shopping experience to many friends as it is in the world where social media become dominant. There is no doubt that manufacturers have recorded increasing level of purchases propelled by the introduction of social media. The strategy has contributed to customers enjoying shopping than it used to be years back. E-commerce vendors have a capacity of offering advanced tools to help customers compare products.

In conclusion, it is true that ecommerce has presented an exclusive market and finance strategy that has benefitted both investors and customers. Benefits ranges from price benefits, better customer relations, customer convenience, increased level of purchases, and competitive advantage. Some companies have already realized significant increase in income. Therefore, ecommerce is an instrumental part of marketing strategies and financialin contemporary world business.

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