Essay on The E-Commerce Reforms in Developing Countries
The E-Commerce Reforms in Developing Countries
In order to bring the same level of usage of the internet and e-commerce reforms in developing countries as it is in developed countries, there is the need to address regulatory, economic as well as social issues. It is easier to make consumers realize eCommerce benefits if the political and regulatory barriers are overcome.
The above-mentioned barriers are easier to overcome as compared to socioeconomic barriers. From previous literature, it is evident that the primary factors negatively affecting e-commerce adoption and growth are low internet usage, high costs of using the internet, inefficient delivery systems, and low penetration of electronic payment modes such as credit cards.
These factors are critical in relevance to developing economies. It is clear that there is a need for a mechanism that supports electronic payment which means there needs to be a strong link between the financial institutions and eCommerce development if the eCommerce business is to be promoted.
Such an electronic payment system needs to be efficient in order to facilitate the adoption as well as diffusion of eCommerce. Previous literature also reveals that there is a strong need for high security so that clearance and authorizations can be trusted. The method of cash on delivery that is utilized by many eCommerce businesses is not effective when the business is online.
E-Commerce is a technique of doing business transactions through the internet. It is concerned with developing customer-buyer relationships, as well as business-to-business (B2B) purchasing and providing. It entails trading products or doing administrative tasks on computers.
There are several benefits and drawbacks for both consumers and economies. It has unknowingly aided company growth in industrialized countries such as the United States. With the capacity to promote things online globally, it aids in the expansion of the customer base.
Electronic commerce, sometimes known as e-commerce, is the purchasing and selling of goods and services using computer networks such as the Internet.
Electronic money transfer, supply chain management, Internet marketing, online transaction processing, Electronic Data Interchange (EDI), inventory management systems, and automated data gathering systems are all used in electronic commerce.
Electronic information interchange between businesses, appealing to prospective and established clients by email or fax and engaging in retail for the delivery of extra things and administrations.
History of E-Commerce
E-history commerce began with the development of the very ancient concept of “sell and purchase,” as well as electricity, cables, computers, modems, and the Internet. When the Internet was made available for business usage in 1991, ecommerce became feasible.
Since that time, many companies have moved into websites. E-commerce originally referred to the practice of carrying out business transactions electronically with cutting-edge technologies like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT), which allowed users to conduct electronic transactions and exchange business data.
As these technologies were available in the late 1970s, it became possible for businesses and organizations to communicate commercial paperwork electronically.
The security protocols and DSL that enabled quick access and a constant connection to the Internet took about four years to build, despite the fact that the Internet started to gain popularity among the general public in 1994.
In 2000, a sizable number of commercial enterprises in Western Europe and the United States advertised their products online.
The definition of the term “ecommerce” altered at this point. The technique of buying readily available goods and services via the Internet while employing secure connections and electronic payment services has come to be known as ecommerce.
Even though many ecommerce companies went out of business as a result of the dot-com crash in 2000, “brick and mortar” retailers still saw the benefits of electronic commerce and started incorporating it into their websites.
Business-to-Business (B2B) ecommerce, the most popular type, had almost $700 billion in transactions by the end of 2001.
Modern Electronic Commerce
Contemporary electronic commerce often makes use of the World Wide Web at some point throughout the transaction’s life cycle, while it may also use other technologies such as e-mail, mobile devices, and telephones.
Electronic commerce is commonly regarded as the sales part of e-business. It also includes data exchange to help with the finance and payment parts of company transactions.
Even today, several years after the so-called “dot com/Internet revolution,” electronic commerce is still a relatively new, growing, and ever-changing sector of company management and information technology.
E-commerce and e-business have rapidly become a crucial component of corporate strategy and a powerful stimulus for economic development in the expanding global economy.
The incorporation of Information and Communications Technology (ICT) into business has transformed connections both within businesses and within and among enterprises and individuals.
In particular, the use of ICT in business has increased efficiency, fostered greater consumer engagement, and permitted mass customization, in addition to cost savings.
With advancements in Internet and Web-based technology, boundaries between traditional markets and the global electronic marketplace are increasingly blurring.
The key to success is strategic positioning, which refers to a company’s capacity to identify emerging opportunities and make the most of them by utilizing the necessary human capital skills through an e-business strategy that is straightforward, workable, and practical in the context of a global information milieu and new economic environment.
E-commerce levels the playing field, allowing small and medium-sized firms to compete with large, capital-rich companies when used in conjunction with the right strategy and regulatory approach.
On a different level, emerging nations are granted wider access to the global economy, where they may compete with and support more established economies.
Electronic Payment System
The need for an electronic payment system is evident in the case of business-to-business transactions if cost-effectiveness, as promised by the service provider, is to be achieved.
Another area requiring attention is the security of financial transactions where liability must be clearly identified and practiced. The use of credit cards varies in the countries as in China; consumers avoid audit trials possible through credit cards.
On the other hand, in Taiwan, consumers fear theft of identity and unlimited liability in case of fraud which makes them unwilling to use a credit card for online internet transactions.
Another obstacle to eCommerce business success is the absence, of any central bank or financial institution payment mechanism that can monitor eCommerce transactions in order to ensure full efficiency.
In order to allow on-time delivery through eCommerce, it is necessary that the transactions are authorized in real time between the payment institution and the internet business. There is a comparatively, lower institutional risk if the time between authorization and actual payment is shorter.
Lastly, there needs to be an effective delivery system that can enable faster development of eCommerce. This is because the prime benefit of eCommerce is speed and thus just-in-time processing is the key to success. If there is an absence of efficient physical delivery and distribution system, then eCommerce cannot sustain itself.
Need For E-Commerce
E-business and e-commerce encompass more than just the Internet, websites, and dot com businesses. It concerns a brand-new company idea that combines all prior business management and economic ideas.
Issues with marketing tactics, consumer behavior, and cultural differences. Direct marketing is one of the areas it particularly affects. This was mostly done in the past through door-to-door sales, house parties, and mail orders utilizing catalogs or flyers.
2. Study of Computers:
Development of various network and computer languages and technologies to assist e-business and e-commerce, such as integrating legacy front and back office systems with “web-based” technology
3. Accounting and Finance:
Online banking, questions relating to transaction costs, and consequences for accounting and auditing when intangible assets, such as human capital, need to be physically valued in an increasingly knowledge-based economy are all discussed.
Understanding the notion of a digital and knowledge-based economy and how it fits into economic theory, as well as the effects of e-commerce on regional and global economies.
5. Management of Production and Operations:
Cycle times have been shortened thanks to the effects of online processing. Delivering digital goods and services electronically just takes a few seconds, and processing requests may be done in minutes rather than days, a reduction of more than 90%.
Production systems are connected with marketing, finance, and other functional systems as well as with customers, partners in business, and other functional systems.
6. Operations and Production Management:
Moving away from mass production and toward mass customization driven by customer demand as opposed to past manufacturer push.
Communication, collaboration, and coordination are essential in sub-assembler businesses where a product is put together from a variety of different components sourced from various manufacturers.
Electronic bidding can result in cheaper components, and having flexible and adaptable procurement systems enables quick changes at a minimal cost, allowing inventories to be reduced and money saved.
7. Management of human resources:
issues with remote employment, intra-pruners who work on a project-by-project basis in place of permanent staff, and issues with online hiring.
8. Business Ethics and Law:
The various ethical and legal problems brought on by a worldwide virtual economy. Copyright rules, client data privacy, and the validity of electronic contracts are all issues.
Currently, we can observe that practically all management and commerce courses include e-commerce as a topic of study. It constitutes a substantial portion of this material as well as is an essential component of any book or article on retailing.
This is due to the fact that e-commerce technology is unique and more potent than any other technology we have seen in the last hundred years.
While these other technologies revolutionized economic life in the 20th century, the Internet’s development and other ITs will have a significant impact on how the 21st century is shaped.
The first of them is the emergence of a sizable class of Internet-savvy customers, followed by the development of an ecosystem vital to the expansion of e-tailing.