The E-Commerce o eCommerce comes from English and means "Electronic commerce". It is part of e-business and covers the purchase and sale of products and services on the Internet. This term has become the main business model on the web. A clear example of e-commerce are online stores.
characteristics
This branch of commerce is characterized by the elimination of barriers in communication and organization. For example, in a traditional company many different communication processes are observed: telephone information, by email between companies, within the company, between customers and company, by fax or in writing. In spite of everything, in the e-commerce the organization is usually mostly electronic throughout the business procedure to increase the efficiency of the company. Another typical aspect of electronic commerce is the Digital Management, digital organization.
Advantage
- Quick purchase processes
- Comfortable: Customers can see all the products from home, select the one they are interested in, pay and receive it at home in a few days
- An advantage for the company is proximity to the customer
- Exchange of information between company and customer by email or phone
- Increased results of marketing campaigns
- 24 hour service
- Short response time to problems
- Low transaction costs
- Satisfaction of customer needs
Disadvantages
- No personal contact with the client
- The information related to the procedure prior to the purchase, the order stage and the item purchased are all made on the internet
Trends
For many companies, mainly active on the internet, the e-commerce offers them an optimal organization and a good business development opportunity.
According to the studies carried out by the EHI - Retail Institute and Statista that examines the e-commerce In Germany, among the five best companies that operate online are Otto and Amazon. The study shows that Amazon is in first position with a turnover of 3.4 billion Euros. The ranking analyzes the top 100 best companies and Zalando is also among the top 20 results.
Another study shows billing in e-commerce in Germany between 1999 and 2011, and a prediction for 2012. Retail sales in e-commerce in Germany it will generate 29.5 billion Euros, 13% more than in 2011.
Online and Offline Commerce
Germans spend more on the internet every day. According to another study in November 2012 that says "The customer is King again" it has been observed that: Germans spend more money every day on the internet on products such as: books, music, movies and video games with almost 70% of total online sales. In spite of everything, the Offline trade (the purchase in the stores) of these products is only 20% of the total purchases made in the stores. In the Offline framework, the Germans dedicate the 71% from shopping to food. Nonetheless, Germans spend 42% of total consumption on online purchases.
Web links
- E-commerce in Europe 2015: Facts and Figures By twenga-solutions.com
