I am getting to much anxious to write on this subject because there so much I have in my mind that I cannot downpour in this concise post, anyway I will try to explain the importance of ecommerce and its impact on human life and how can we leverage this great business.
Ecommerce is not a new term but it has been practiced since 1970 which involves Electronic Data Interchange (EDI) and Electronic Funds Transfer as by its definition it says “Trading through Electronic signals”. Online shopping was first invented by Michael Aldrich of UK in the year 1980 but it was too restricted and was out of rich of common masses.
Hence when the web came into being in 1990 it begins to spawn innovate ideas and ultimately several online shops came into being. In 1994 an entrepreneur named Jeff Bezos (I hope many of the reader are aware of this great personality) launched Amazon.com which was and is the most successful ecommerce portal ever. Currently it has a market cap of 36 billion dollars with an employee strength of more than 20K has been one of the encouraging enterprise to the venture capitalist who are in mood of investing in ecommerce business.
So what is the importance of ecommerce in our life, is it “Desire, Want or Demand” or something else. I would that still the ecommerce is in rudimentary phases but it has become a part of our life especially the HNI (High Net worth Income) citizens. It has helped both the businessmen and the customers to transact with interactions.
• Ecommerce has facilitated the people to order any tangible item just sitting in their home thereby securing time, energy and transportation costs of an individual. • Ecommerce has facilitated people to pay bills online, once again saving a lot of physical movements. • Ecommerce has facilitated a common business to sell his product across the globe with paying any commission to the 3rd parties. • Today millions of transactions do occur whether its an FMCG product, some handicraft, a mobile, software or a computer etc. There was a news that a women from a village in Karnataka, India sold his buffalo online as she was not getting its actual prices (the deal occurred on Indian auction website Bazee.com which now an ebay company) • Daily millions of transactions occur via paypal which is an online payment gateway system. • Booking of railway, airline, theatre tickets via online has really boosted up the travel and entertainment industry to a great extend. • Online stocks trading is another remarkable feature of ecommerce. Now you are just a click away for NASDAQ, S&P etc.
So eCommerce is good, I would say its better than the best because it has helped in reducing road traffic to some level. For instance in New Delhi there are hundred of Pizzas which are ordered on phone or web, if they donot provide home delivery then imaging how many people will rush with their cars to pizza to taste this newly food which is in great fashion now a days. (How much traffic, pollution would it create is beyond imagination). Anyways if we count from any end we will see numerous benefits of ecommerce and we can simply involve this in our life and save our precious time, effort and help the environment ultimately.
As per Nielson here is the % stake of ecommerce transaction with respect to leading countries : • South Korea (99%) • UK (97%) • Germany (97%) • Japan (97%) • US (94%) Here are the most purchased items over the net: • Books (41% purchased over the past three months) • Clothing/Accessories/Shoes (36%) • Videos / DVDs / Games (24%) • Airline Tickets (24%) • Electronic Equipment (23%)
Inspite of its great potential the industry was and is threat because of several factors :
• Most of the people still belive that online transactions are not safe. (This is not true as all transactions occur on https which is secure server thereby offering the encryption during the sensitive data) • People are reluctant to disclose their credit card information on web due to security concerns. (This is really a bullshit as when we pay for our food and handle our credit card to a waiter, didn’t we disclosing our card no., its expiry date and CVV number) • But in real there are several online frauds sitting and cheating people with their phishing sites (This is in great vigilance with cyber police haunting all around and the troublesome guys were sentenced too when caught) • Several online entrepreneurs start selling their products online with poor site structure full of bugs, no security seal thereby tending the customer to bounce rather than to trade. There are sites which uses “Add to cart” button leading to contact us form, so funny but in real some sites might be handful its there (This is the problem from the vendor as well as the company who has designed / developed the site but it can be ensure at the businessmen atleast that his site meets all criteria for an ecommerce site) • If some fraud occurs the company should help its customer in escalating the issue rather than running away as it will create more trust in the customers and the retention rate is high. (There were several cases in travel portals where hackers, hacked several people account and did the transaction but still the portals compensated for the real consumer to maintain the good faith) • Last but not the least it’s the education which we need to spread across our planet that come online and trade here. (I am not an enemy of brick and mortar store but the same guys can transform their business and drive parallel profits i.e. from their physical as well as virtual shops).
Here is my story, I was having the credit card since long but I didn’t used it for long but one day when I was filling my vehicle with gasoline, the person who has already get his vehicle filled was paying via his credit card, I was little bit curious and asked him you are paying via your credit card and he said “Yes sir” its safe, secure and even I may have some bonus points if there is an offering going on, moreover I hardly carry lots of cash so credit card is my lifeline”…………………………………So embarrassed, so amused, so surprised I am that I begin to use my credit card and you know I do several transactions on my weekend whether in physical shops or on world wide web.
Moral of the story “Practice and Promote Ecommerce if you are not doing so”. We must teach the world about this great marketing, sales and transaction tool and atleast try to put the transactions in multi-trillion. (Big challenge but lets try out)