E-commerce has brought about a qualitative leap in business, and has developed the work of other economic fields, taking advantage of the digital revolution that the world has witnessed in the past two decades.
The e-commerce made the universe a small global village, linking markets together and facilitating bank transfers and electronic payment, which led to the emerge many of electronic stores and the prosperity of their business compared to their traditional counterpart, as e-commerce enabled them to enter new markets to expand their customer base.
Here, the role of e-commerce in business development for individuals and companies has emerged and has become the focus of attention by economic experts and researchers.
Therefore, it is necessary to know what e-commerce is and its importance in the lives of individuals and companies, and this is what we will know in the following article.
The nature of e-commerce:
The E-commerce is an advanced form of traditional commerce, as it includes all commercial activities, concludes of deals and contracts, and transfers the funds that take place between individuals or companies using the information technology.
Simply it is every commercial transaction that takes place between the seller and the buyer which the internet contributed in whole or in part, such as providing information about a product or service to be purchased, whether the payment was made electronically or through checks.
Anyone who is able to complete a business deal, conclude a commercial agreement, or purchase a product without the need to travel, as e-commerce facilitated all transactions through the characteristics of the Internet, it creating a market open throughout the day, month and year. So, the online stores were a product of e-commerce that has become an essential tool for large companies and a suitable place for start-up entrepreneurs.
The importance of e-commerce:
All the characteristics and features that e-commerce contains are clearly reflected in societies, where the importance of e-commerce is evident on several levels, which are:
Importance of e-commerce for companies or institutions:
The e-commerce allows to communicate effectively with partners and customers by approximating distances and borders, and exchanging information and data, as well as it enables the users to get benefit from the products and services offered by other companies, i.e. suppliers, and this is known as e-commerce from one company to another.
The e-commerce reduces companies’ expenses, as the operations of setting up and maintaining stores or websites have low costs compared to office maintenance, and it also does not require a large number of employees to carry out inventory operations and administrative work, but it works on online databases that store sales history, customer names and other necessary data, as well as it easy to retrieve that data when needed.
The e-commerce has enabled commercial companies to reach a large number of customers by entering new markets in a fast and efficient manner, which leads to a significant increase in sales and is positively reflected in the profits of those companies.
Also, the e-commerce has reduced the time to complete the purchase process, that is, the time between obtaining a service or product and paying for it, and has also enabled companies or e-store owners to manufacture products that meet customers' needs and tastes.
The importance of e-commerce for individuals:
In the e-commerce the individuals can make any choice. Through e-commerce purchases, customers can compare the prices and forms of products and services available online, and they can visit many websites to choose the most appropriate. Some stores also allow to try some products such as computer programs or games, in addition to communicate with international companies.
E-commerce reduces the prices of products and services, as online shopping provides customers with avoiding additional costs and reducing their expenses compared to regular shopping, and they can also benefit from discount offers that offered by many e-stores.
As well as the e-commerce works to achieve customers satisfaction and provide them good products by providing support services and online chat to answer all their questions and inquiries.
E-commerce has also allowed many people to enter the field of business without the need for large capital through e-stores and other possibilities, as it has provided real job opportunities for special needs and housewives to start emerging businesses in order to participate in community development.
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As for the procedures for purchases, e-commerce has facilitated these procedures for customers in any country they are lived, as it has created many shipping methods to send products and goods easily to any country, as it deals flexibly with all different shipping methods.
It has also provided an electronic payment method which considered as one of the most important advantages of e-commerce, as many electronic payment gates have spread that facilitate the payment process within a few minutes.
E-commerce has helped to create online communities so that individuals can exchange experiences and views about the products offered by online stores.
The importance of e-commerce in society:
The management of enterprises, especially small and medium-sized ones, which represent the main part of economic development, enables e-commerce to reach global markets, due the low costs of marketing and advertising, and saving time and space needed to achieve commercial transactions.
In addition to improving the technological level and raising the skills of workers which is the most important ingredient for the success of e-commerce, as the success of small and medium enterprises contributes to an increase in the international trade movement effectively and efficiently.
With the spread of e-commerce worldwide, it has led to the growth of specialized sectors in the field of technology and communication in order to support the infrastructure of e-commerce, as investment in these new areas has begun to develop that structure and support economic development in many countries.
The E-commerce is an advanced form of traditional commerce, as it includes all commercial activities, concludes of deals and contracts and transfers the funds that take place between individuals or companies using the information technology.