About E-Commerce

E-commerce can remove layers of distribution which will reduce the final cost to the consumer. For example, before there’s e-commerce, company needs manufacturer, distributor, and retailer for the goods to reach to the customer and it will take more cost. But if the company use e-commerce it can be just from manufacturer to customer and it will reduce the cost and then reach customer satisfication. Company can also use Electronic Data Interchange (EDI). The supplier systems and firm systems will keep the update for the shipping data, payment data, and production/inventory requirements. Suppliers can automatically send data about shipments to purchasing firm. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.

E-commerce have unique futures that can be used for business.  There ubuquity, global reach, universal standards, richness, interactivity, information density, customization, and social technology. Ubuquity is a web technology that available everywhere and anytime. The effect of ubuquity for business is that it can enchanced customer convenience and reduced shopping costs. Global reach means that the technology reaches across national boundaries. The effect of global reach is that it can make more potential for the business, have billions of consumers and millions of businesses worldwide. Universal standards. Richness means that e-commerce supports video, audio, and text messages. Because of the richness, it is possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people. The video, audio, and text marketing messages can be integrated into single marketing message and customer experience. Interactivity means that the technology works through interaction with the user. The effect of interactivity on business is that consumer becomes co-participant in process of delivering goods to market. It also can be an experience to the consumers. Information density means the total amount and quality of information available to all market participants. The effect of information density are it can make greater price transparency, greater cost transparency, and enable merchants to engage in price discrimination. Customization means that technology permits modification of messages and goods. The effect of customization for business is that personalized messages can be sent to individuals and group. Also, products and services can be customized to individual preferences. Social technology means that the technology promotes user content generation and social networking. The effect is new internet social and business models enables user content creation and distribution and support social networks.

Oleh: Ditya Nafira Paramaputri & Gunawan Wang