Impact of e-commerce

shock absorber of e- avocationE- craft is the play of managing online fiscal operations by individuals and companies. This includes problem-to-business (B2B), business-to-consumer (B2C) and business-to-g overnment (B2G) traffics. The contract of e-commerce is on the systems and procedures whereby financial documents and development of all types be exchanged. This includes online credit account transactions, e-cash, e-billing, e-cheques, electronic invoices, purchase order and financial statements. E-commerce is limitedly concerned with the technologies that alter EDI-type functionality on the meshwork.To be d angiotensin converting enzyme an inter internally agreed working definition of e-commerce it was accepted the necessity for three dimensions to be spelt start as part of the definition process. These dimensions relate to the Networks over which the relevant activities atomic number 18 carried out Processes that ought to be included within the general domain of ele ctronic commerce and Actors involved in the transactions.Networks argon specified through broad and qualify definitions.The broad definition considers an electronic transaction to be the sale or purchase of goods or returnss, whether between businesses, households, individuals, Governments, and another(prenominal) domain or one-on-one organizations, conducted over computer mediated webs. The goods and function be legitimate over those networks, but the payment and the ultimate delivery of the good or service whitethorn be conducted on- or offline.The narrow definition considers an mesh transaction to be the sale or purchase of goods or services, whether between businesses, households, individuals, Governments, and other public or private organizations, conducted over the meshing. The goods and services are ordered over the profit, but the payment and the ultimate delivery of the good or service may be conducted on-or offline.Concerning the processes that ought to be incl uded many countries pauperism to restrict the definition to the purchasing and selling aspect in corporald in the above definitions, many others want to include other types of business processes, such(prenominal) as food marketing and advertising. Developing countries leave alone also favour a definition that includes business activities that go beyond purchasing and selling, given the restrictions that somewhat of those countries face in conducting online payments.E-commerce is often described as being one of three varieties business-to-business (B2B), business-to-consumer (B2C) or business-to-government (B2G).Much of the interest and the literature has focuse on B2B and B2C electronic commerce and most of the statistical indicators deport also been in respect of these two forms. About 80 per cent of the total apprise of electronic commerce in the world today are accounted for by B2B e-commerce. It provides also the greatest potential difference benefits in foothold of productivity gains. B2C e-commerce has the potential to substantially affect the way in which flock live and move with each other and is in that respectfore a key aspect for statistical measurement. Only a small pattern of countries hold back so outlying(prenominal) undertaken a good deal work with respect to the measurement of B2G e-commerce.E-commerce today is very untold a business-to business affair. Enterprises in developing countries should not let themselves be fooled by the a lot higher visibility of the business-to-consumer dotcoms. Those enterprises in developing countries that lay down goods or deliver services that are indispensable for the productive process of other enterprises are the ones that should first consider incorporating the lucre (which does not necessary mean the web) as an instrument to enhance their opportunities to complete and grow. Due to the motivationiness of reliable and internationally comparable e-commerce statistics, numerous nationa l statistical offices involve started to collect entropy on e-commerce and, generally, the use of ICT and the Internet. They have the advantage of guaranteeing the confidentiality of the composed data, having a more neutral position when it comes to assemb retrogresse and interpreting the data and being able to use their existing methodologies and infrastructure for data collection, process and analysis. Some countries are already benefiting from the results they are now in a position to benchmark their economies with competitors internationally they are able to identify the number of qualified good deal needed to advance their countrys information economy or to calculate the amount of investments needed to provide business with access to the Internet.thither are several classical steps involved in hoard e-commerce-related data.First, a country needs to decide what kind of data it wants to measure, reflecting the aim of its e-commerce natural action. Most developing countri es would be probably focus on collecting readiness indicators, such as the number of businesses with computers and access to the Internet, and intensity indicators, such as the number of businesses the receive orders over the Internet and the value of those orders. simply how does one define these indicators? The member States of the Organization for Economic Co-operation and Development (OECD) have agreed on the above-mentioned working definition of e-commerce that could be use in the measuring process. The definition includes the network over which e-commerce is carried out (Internet or other), the particular business processes related to e-commerce and the different actors involved (business, households or Governments). On the basis of this definition, a set of priority indicators for e-commerce has been established by a number of international and national bodies.Examining the e-commerce outstanding question is what tint ICT and the Internet have had on the productivity grow th. It reduces transaction costs allocates recourses better maturations economies of plateful mitigates the agonisticness of business in general increases strength generates important changes in the management and production processes of business.Acceleration of the growth of productivity is notified but the conclude for this is rather controversial. However the UNCTAD secretariat agrees that there are reasons to believe that much of the acceleration of productivity growth is structural and attributable to changes induced by ICT and the Internet, through improvements in all aspects of corporate organization, production, finance, marketing and logistics.Although the speed at which companies in several advanced countries invest in ICT has decreased in the past few months, in the medium term there are several reasons to expect that ICT will continue to support rapid productivity growth. First, the cost of computing power is predicted to keep falling at a steep rate for several ye ars. Secondly, most enterprises are tranquillize breeding how to reorganize themselves in order to benefit fully from the Internet. Finally, in many countries there is a lot of catching up to do in the application of ICT to business. As firms in other developed economies and, most importantly, in developing countries engage in e-business, global productivity growth should accelerate.We should have a look at the process of moving from traditional to online payment. Online versions of finishingly all-existing payment methods are appearing rapidly. Conventional financial instruments with online analogues include cash, currency orders, giro transfer, cheques, drafts, notes and bills of exchange. The existing modes of third-party protection against the risks of non-payment and non-performance, including documentary credit, credit insurance, bonding, factoring and forfeiting, are also rapidly developing their online equivalents. The same applies to wholesale payment systems, includin g questionable automated clearing house (ACH) networks, wire transfers for large-volume payments and interbank payments networks.Credit and debit tease are principal payments instrument in B2B and B2C e-commerce. The move from card with magnetised strips to smart cards with multifunctional chips that include security features is the next Internet-centered stage in the development of the payments cards assiduity.In parallel, Internet technologies to provide security in online payments have been evolving. Still the most widely accepted standard, is the Secure Socket form (SSL), a set of built-in browser protocols designed initially by Netscape to protect card-based financial transactions on the Internet. A more procure and complex bank-centered Secure Electronic Transactions (SET) software is being employ more and more by online payments providers.In the field of Internet banking ACH debits and credits, as well as domestic and international wire transfers became possible with systems such as the Bank Internet Payment System (BIPS). The Society for intercontinental Inter-Bank Financial Telecommunications (SWIFT) also started its move to the open Internet platform.Banks and financial services companies in the developing countries will need to embroil online payment systems and practices that will meet their clients new needs arising from a shift to e-commerce. They will need to adopt systems that address the key issue of concern to users, attendly security, confidentiality, credit of sellers and buyers, verification of buyers solvency guarantee of delivery.To obtain e-trade finance and equity investment, companies from developing countries need to be registered in local, regional and global Internet-based commercial risk database. For that, companionship registries, public courts, accountancy and audit, and other business-related services should undergo substantial enhancements. Non-bank financial services such as credit information, credit insurance, factoring and leasing should develop. local anesthetic banks should adapt to e-banking and move online their customer credit risk databases, and their individual and corporate customer payment services and financing, including trade finance instruments.Tourism and its Internet incarnation, often called e touristry, is regularly cited as one of the fastest growing e-commerce sectors.Considering the vastness of the touristry economy for Bulgaria and many other developing countries, and in particular its role as an employer and earner of foreign currency, the need to maintain and increase competitiveness through adopting e-commerce best practice is acute.The main actors in the tourism industry include Governments, tour operators, distributors and wholesalers, hotels, airlines and other transport operators, and most important of all, the tourists themselves. Each of these actors has a stake in the development of the electronic market and will be affected in different ways by electron ic commerce.Tourism is an interesting sector for appreciating the potential of electronic commerce for the economies of developing countries in several respects. Tourism is a sector in which a significant number of developing countries have established competitive advantages over the years and it has remained largely a traditional service activity in which, until recently, buyers, sellers and intermediaries were well defined.Tourism producers and destination organizations in developing countries that adopt the Internet and e-commerce best practice have a chance to improve their competitiveness by producing better products, with greater tailoring to clients, more efficiently, immediate to market with less waste and fewer inputs, and at better prices.Infomediaries in developing countries should develop their e-business strategy having in mind the technical capacities of their national or regional tourism producers for development Internet technologies. Solutions must be appropriate for twain consumers and producers.The fundamental challenge is to take the traditional tourism product, delineate its information from its physical components, and selectively manage them using Internet and e-commerce technologies.The winner in the competitive etourism game will be the club that inspires consumer confidence, through quality data and physical product performance, and is able to house a comprehensive yet tailor-made product.While Internet and e-commerce technologies plead unprecedented possibilities for interactivity and dialogue, traditional surveying and gauging tools estimating customer preferences and satisfaction are still very relevant. Footwork and face-to-face interviewing may be a necessary starting line point for building a B2B network or business web. commercialise research, whatever the technology or veritable(a) without technology, is a hugely important activity.A fundamental factor for success is to speak the language of the prospective customers. A successful etourism strategy must assess the linguistic origins of its study client groups and replicate Internet content in their languages. Understanding their Internet habits and ways of learning, openness to on-line dialogue and attitudes towards privacy, as well as the underlying legal system.Online payment facilities for sell clients using credit cards are an absolutely fundamental business toll that must be made available to the national tourism sector. Destination marketing organizations (DMOs), be they government bodies or business associations, can favourably contribute to modernizing the tourism industries of developing countries. DMOs can provide a voice to the fragmented industry producers in promoting their requests to the financial authorities and banks to provide them with online payment. When online payment is in belongings DMOs may, on behalf of the entire tourism industry, negotiate with domestic banks better terms and conditions for online payment than part icular tourism companies would manage on their own. DMOs may be instrumental in informing their tourism industry about fix transactions and risk management techniques.Most of the above actions cannot be utilise without empowering and enabling people to take advantage of new Internet and e-commerce technologies.E-commerce and Internet technology can improve communication and can make doing business easier. The ability of people at both ends of the message or transaction to use these technologies is a precondition for their wide adoption and impact.In conclusion, it is anticipate that in the few years the productivity gap between the European countries and the United States (leader in e-commerce activities) will close rapidly as European productivity growth increases faster than that of the United States. This process is known as convergence in productivity. Convergence in productivity takes place when the countries that lag behind the technological frontier grow more rapidly in pr oductivity than the leaders countries.The same could be true for developing countries, with a reasonable degree of readiness. The impact of e-commerce on developing countries could be even stronger than that on developed countries because the scope for reducing inefficiencies and increasing productivity is much larger in the developing countries.To summarize, by cutting costs, increasing efficiency and reducing time and distance, e-commerce could become an important tool for development.Impact of E-CommerceImpact of E-CommerceJay KybertAs the sell industry develops, more services are introduced to captivate customers to use their shops. There are varieties of services that are being used by companies to attract attention and make it easier for customers to use their websites, in the apprehend of increased revenue. Services like Next-Day Delivery tempt customers to purchase their dot sooner, since it will arrive the following day. This makes increased profits for the caller-out by charging for the service. These services essentially persuade the customer to buy the product at a higher price but with (usually) a faster delivery, introduce item, etc.Since E-Commerce is becoming increasingly popular, traditional retail businesses are losing gold since fewer customers shop in stores. Larger companies have the resources and money to fabricate optimised websites that allow their customers to shop on the internet. This leads to a negative economic impact for smaller businesses but, as an entire society, a richer economy as there are new ways to shop. Also, socially, fewer people will be shop in stores. This could lead to retail shops blockage from a drop of revenue, especially in smaller businesses that cannot support themselves with a lack of funds.Bricks and Clicks is a new approach to commerce in its entirety. The name Bricks and Clicks refers to physical retail stores (Bricks) and online obtain (Clicks). As E-Commerce grew in popularity, businesses rea lised they can make a greater profit from online shopping this is called Bricks and Clicks because they have both physical stores as well as an online store. There are benefits and drawbacks to both approaches (Physical vs Digital), but having both increases the range of the potential audience. This is because physical stores may attract people who are simply walking past the shop or people who are regular customers. Having a digital store on top of this targets (potentially) every(prenominal) person with an internet connection. Companies can increase traffic to their website by advertisements on popular websites, directly increasing awareness of the brand.One of the main benefits for customers using E-Commerce is the availability. Physically shopping requires going to the nearest shopping centre, looking for the specific shop and finding the wanted item within it. Online shopping provides an swooning alternative available whenever. Being able to access the website whenever (unles s it is down for maintenance) makes it easier for anyone wanting(p) to buy a specific item, as they dont have to consider the closing time for the shop. In addition, people who have unusual work hours at their job may struggle with physical stores as they close in the evening. Therefore, having the option to buy from a store whenever using the internet provides an easier alternative.Online shopping isnt perfect there are problems with the financial side, especially whether companies can be trusted. After a customer enters their information (Name, address, credit/debit card, etc.) the company has a responsibility to protect that information from unauthorised sources, the most communal being hackers. There is always the possibility, and it has occurred, that major corporations have been hacked and their customers information has been released to the public or sold. However, as hacking becomes increasingly common, internet security is improved to save it. Internet shoppers shouldnt just worry about the website being untrustworthy, malware and other viruses could sneak the information from the computer, the most common being a Keylogger. As the name suggests, it is either a physical hardware component installed into the computer or a program that logs all of the keystrokes on the computer. This is one way that information can be stolen not directly from the website.E-Commerce has, and will continue, to have an military issue on employment. If people start to only shop online, store workers may lose their jobs because of financial difficulties. However, delivery services will have to postulate more employees to keep up with the demand of online shopping. In addition, since companies require websites for online shopping, website developers, network administrators and a variety of server-related jobs are needed. Therefore, people working in retail stores may lose their jobs if people continue to isolate themselves from physical shopping and choose online shoppi ng. However, more job opportunities open up relating to technology.The social break open is becoming more important as technology progresses. People with midget income focus on essentials before purchasing luxuries. Therefore, it would be difficult for people with petite income to purchase a computer or another electronic device capable of online shopping. However, since the majority of people can afford, and use their electronic devices for shopping, companies target these people since they make up the majority. This affects the companys decisions, for instance, they may begin to close down retail stores and instead focus on E-Commerce. This doesnt affect people who have enough available income to purchases these devices, but it does affect people with little income. This leads to these people struggling to shop, since they cant afford the platform needed for online shopping. Therefore, leading to a social divide between people with little disposable income and people with grea ter disposable income.