E-commerce - Wikipedia

E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws ... E-commerce FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Typeofbusinessindustryusuallyconductedovertheinternet E-commerce Onlinegoodsandservices Digitaldistribution Ebooks Software Streamingmedia Retailservices Banking DVD-by-mail Delivery(commerce) Flowerdelivery Fooddelivery Onlinefoodordering Grocery Pharmacy Travel Marketplaceservices Advertising Auctions Comparisonshopping Auctionsoftware Socialcommerce Tradingcommunities Wallet Mobilecommerce Payment Ticketing Customerservice Callcentre Helpdesk Livesupportsoftware E-procurement Purchase-to-pay Super-appsvte E-commerce(electroniccommerce)istheactivityofelectronicallybuyingorsellingofproductsononlineservicesorovertheInternet.E-commercedrawsontechnologiessuchasmobilecommerce,electronicfundstransfer,supplychainmanagement,Internetmarketing,onlinetransactionprocessing,electronicdatainterchange(EDI),inventorymanagementsystems,andautomateddatacollectionsystems.E-commerceisinturndrivenbythetechnologicaladvancesofthesemiconductorindustry,andisthelargestsectoroftheelectronicsindustry. E-commercetypicallyusesthewebforatleastapartofatransaction'slifecyclealthoughitmayalsouseothertechnologiessuchase-mail.Typicale-commercetransactionsincludethepurchaseofproducts(suchasbooksfromAmazon)orservices(suchasmusicdownloadsintheformofdigitaldistributionsuchasiTunesStore).[1]Therearethreeareasofe-commerce:onlineretailing,electronicmarkets,andonlineauctions.E-commerceissupportedbyelectronicbusiness.[2] E-commercebusinessesmayalsoemploysomeorallofthefollowing: Onlineshoppingforretailsalesdirecttoconsumersviawebsitesandmobileapps,andconversationalcommercevialivechat,chatbots,andvoiceassistants;[3] Providingorparticipatinginonlinemarketplaces,whichprocessthird-partybusiness-to-consumer(B2C)orconsumer-to-consumer(C2C)sales; Business-to-business(B2B)buyingandselling;[4] Gatheringandusingdemographicdatathroughwebcontactsandsocialmedia; B2Belectronicdatainterchange; Marketingtoprospectiveandestablishedcustomersbye-mailorfax(forexample,withnewsletters); Engaginginpretailforlaunchingnewproductsandservices; Onlinefinancialexchangesforcurrencyexchangesortradingpurposes. Contents 1Historyandtimeline 2Businessapplication 3Governmentalregulation 4Forms 5Globaltrends 6Logistics 7Impacts 7.1Impactonmarketsandretailers 7.2Impactonsupplychainmanagement 7.3Impactonemployment 7.4Impactoncustomers 7.5Impactontheenvironment 7.6Impactontraditionalretail 8Distributionchannels 9Recommendation 10E-commerceduringCOVID-19 11Seealso 12References 13Furtherreading 14Externallinks Historyandtimeline ThetermwascoinedandfirstemployedbyDr.RobertJacobson,PrincipalConsultanttotheCaliforniaStateAssembly'sUtilities&CommerceCommittee,inthetitleandtextofCalifornia'sElectronicCommerceAct,carriedbythelateCommitteeChairwomanGwenMoore(D-L.A.)andenactedin1984. Atimelineforthedevelopmentofe-commerce: 1971or1972:TheARPANETisusedtoarrangeacannabissalebetweenstudentsattheStanfordArtificialIntelligenceLaboratoryandtheMassachusettsInstituteofTechnology,laterdescribedas"theseminalactofe-commerce"inJohnMarkoff'sbookWhattheDormouseSaid.[5] 1976:AtallaTechnovation(foundedbyMohamedAtalla)andBunkerRamoCorporation(foundedbyGeorgeBunkerandSimonRamo)introduceproductsdesignedforsecureonlinetransactionprocessing,intendedforfinancialinstitutions.[6] 1979:MichaelAldrichdemonstratesthefirstonlineshoppingsystem.[7] 1981:ThomsonHolidaysUKisthefirstbusiness-to-business(B2B)onlineshoppingsystemtobeinstalled.[8] 1982:MinitelwasintroducednationwideinFrancebyFranceTélécomandusedforonlineordering. 1983:CaliforniaStateAssemblyholdsfirsthearingon"electroniccommerce"inVolcano,California.[9]TestifyingareCPUC,MCIMail,Prodigy,CompuServe,VolcanoTelephone,andPacificTelesis.(NotpermittedtotestifyisQuantumTechnology,latertobecomeAOL.)California'sElectronicCommerceActwaspassedin1984. 1983:KarenEarleLile(AKAKarenBean)andKendallRossBeancreatee-commerceserviceinSanFranciscoBayArea.BuyersandsellersofpianosconnectthroughadatabasecreatedbyPianoFindersonaKaypropersonalcomputerusingDOSinterface.PianosforsalearelistedonaBulletinboardsystem.Buyersprintlistofpianosforsalebyadotmatrixprinter.CustomerservicehappenedthroughaPianoAdviceHotlinelistedintheSanFranciscoChronicleclassifiedadsandmoneytransferredbyabankwiretransferwhenasalewascompleted. 1984:GatesheadSIS/TescoisfirstB2Conlineshoppingsystem[10]andMrsSnowball,72,isthefirstonlinehomeshopper[11] 1984:InApril1984,CompuServelaunchestheElectronicMallintheUSandCanada.Itisthefirstcomprehensiveelectroniccommerceservice.[12] 1989:InMay1989,SequoiaDataCorp.introducedCompumarket,thefirstinternetbasedsystemfore-commerce.Sellersandbuyerscouldpostitemsforsaleandbuyerscouldsearchthedatabaseandmakepurchaseswithacreditcard. 1990:TimBerners-Leewritesthefirstwebbrowser,WorldWideWeb,usingaNeXTcomputer.[13] 1992:BookStacksUnlimitedinClevelandopensacommercialsaleswebsite(www.books.com)sellingbooksonlinewithcreditcardprocessing. 1993:PagetPressreleaseseditionNo.3[14]ofthefirst[15]appstore,TheElectronicAppWrapper[16] 1994:NetscapereleasestheNavigatorbrowserinOctoberunderthecodenameMozilla.Netscape1.0isintroducedinlate1994withSSLencryptionthatmadetransactionssecure. 1994:IpswitchIMailServerbecomesthefirstsoftwareavailableonlineforsaleandimmediatedownloadviaapartnershipbetweenIpswitch,Inc.andOpenMarket. 1994:"TenSummoner'sTales"byStingbecomesthefirstsecureonlinepurchasethroughNetMarket.[17] 1995:TheUSNationalScienceFoundationliftsitsformerstrictprohibitionofcommercialenterpriseontheInternet.[18] 1995:Thursday27April1995,thepurchaseofabookbyPaulStanfield,productmanagerforCompuServeUK,fromWHSmith'sshopwithinCompuServe'sUKShoppingCentreistheUK'sfirstnationalonlineshoppingservicesecuretransaction.TheshoppingserviceatlaunchfeaturedWHSmith,Tesco,VirginMegastores/OurPrice,GreatUniversalStores(GUS),Interflora,DixonsRetail,PastTimes,PCWorld(retailer)andInnovations. 1995:AmazonislaunchedbyJeffBezos. 1995:eBayisfoundedbycomputerprogrammerPierreOmidyarasAuctionWeb.Itisthefirstonlineauctionsitesupportingperson-to-persontransactions.[19] 1995:Thefirstcommercial-free24-hour,internet-onlyradiostations,RadioHKandNetRadiostartbroadcasting. 1996:TheuseofExcaliburBBSwithreplicated"storefronts"wasanearlyimplementationofelectroniccommercestartedbyagroupofSysOpsinAustraliaandreplicatedtoglobalpartnersites. 1998:ElectronicpostalstampscanbepurchasedanddownloadedforprintingfromtheWeb.[20] 1999:AlibabaGroupisestablishedinChina.Business.comsoldforUS$7.5milliontoeCompanies,whichwaspurchasedin1997forUS$149,000.Thepeer-to-peerfilesharingsoftwareNapsterlaunches.ATGStoreslaunchestoselldecorativeitemsforthehomeonline. 1999:Globale-commercereaches$150billion[21] 2000:Thedot-combust. 2001:eBayhasthelargestuserbaseofanye-commercesite.[19] 2001:Alibaba.comachievedprofitabilityinDecember2001. 2002:eBayacquiresPayPalfor$1.5billion.[22]NicheretailcompaniesWayfairandNetShopsarefoundedwiththeconceptofsellingproductsthroughseveraltargeteddomains,ratherthanacentralportal. 2003:Amazonpostsfirstyearlyprofit. 2004:DHgate.com,China'sfirstonlineB2Btransactionplatform,isestablished,forcingotherB2Bsitestomoveawayfromthe"yellowpages"model.[23] 2007:Business.comacquiredbyR.H.Donnelleyfor$345million.[24] 2014:USe-commerceandonlineretailsalesprojectedtoreach$294billion,anincreaseof12percentover2013and9%ofallretailsales.[25]AlibabaGrouphasthelargestInitialpublicofferingever,worth$25billion. 2015:Amazonaccountsformorethanhalfofalle-commercegrowth,[26]sellingalmost500MillionSKU'sintheUS. 2017:Retaile-commercesalesacrosstheworldreaches$2.304trillion,whichwasa24.8percentincreasethanpreviousyear.[27] 2017:Globale-commercetransactionsgenerate$29.267trillion,including$25.516trillionforbusiness-to-business(B2B)transactionsand$3.851trillionforbusiness-to-consumer(B2C)sales.[28] Businessapplication Anexampleofanoldergenerationofavatar-styleautomatedonlineassistantonamerchandisingwebsite. Somecommonapplicationsrelatedtoelectroniccommerceare: B2Be-commerce(business-to-business) B2Ce-commerce(business-to-consumer) Conversationalcommerce:e-commerceviachat DigitalWallet Documentautomationinsupplychainandlogistics Electronictickets Enterprisecontentmanagement Groupbuying Instantmessaging Internetsecurity Onlineauction Onlinebanking Onlineofficesuites Onlineshoppingandordertracking Onlinetransactionprocessing Pretail Printondemand Shoppingcartsoftware Socialnetworking Teleconference Usenetnewsgroup Virtualassistant Domesticandinternationalpaymentsystems Governmentalregulation IntheUnitedStates,California'sElectronicCommerceAct(1984),enactedbytheLegislature,andthemorerecentCaliforniaPrivacyAct(2020)enactedthroughapopularelectionproposition,controlspecificallyhowelectroniccommercemaybeconductedinCalifornia.IntheUSinitsentirety,electroniccommerceactivitiesareregulatedmorebroadlybytheFederalTradeCommission(FTC).Theseactivitiesincludetheuseofcommerciale-mails,onlineadvertisingandconsumerprivacy.TheCAN-SPAMActof2003establishesnationalstandardsfordirectmarketingovere-mail.TheFederalTradeCommissionActregulatesallformsofadvertising,includingonlineadvertising,andstatesthatadvertisingmustbetruthfulandnon-deceptive.[29]UsingitsauthorityunderSection5oftheFTCAct,whichprohibitsunfairordeceptivepractices,theFTChasbroughtanumberofcasestoenforcethepromisesincorporateprivacystatements,includingpromisesaboutthesecurityofconsumers'personalinformation.[30]Asaresult,anycorporateprivacypolicyrelatedtoe-commerceactivitymaybesubjecttoenforcementbytheFTC. TheRyanHaightOnlinePharmacyConsumerProtectionActof2008,whichcameintolawin2008,amendstheControlledSubstancesActtoaddressonlinepharmacies.[31] Conflictoflawsincyberspaceisamajorhurdleforharmonizationoflegalframeworkfore-commercearoundtheworld.Inordertogiveauniformitytoe-commercelawaroundtheworld,manycountriesadoptedtheUNCITRALModelLawonElectronicCommerce(1996).[32] InternationallythereistheInternationalConsumerProtectionandEnforcementNetwork(ICPEN),whichwasformedin1991fromaninformalnetworkofgovernmentcustomerfairtradeorganisations.Thepurposewasstatedasbeingtofindwaysofco-operatingontacklingconsumerproblemsconnectedwithcross-bordertransactionsinbothgoodsandservices,andtohelpensureexchangesofinformationamongtheparticipantsformutualbenefitandunderstanding.FromthiscameEconsumer.gov,anICPENinitiativesinceApril2001.Itisaportaltoreportcomplaintsaboutonlineandrelatedtransactionswithforeigncompanies. ThereisalsoAsiaPacificEconomicCooperation(APEC)wasestablishedin1989withthevisionofachievingstability,securityandprosperityfortheregionthroughfreeandopentradeandinvestment.APEChasanElectronicCommerceSteeringGroupaswellasworkingoncommonprivacyregulationsthroughouttheAPECregion. InAustralia,TradeiscoveredunderAustralianTreasuryGuidelinesforelectroniccommerceandtheAustralianCompetition&ConsumerCommission[33]regulatesandoffersadviceonhowtodealwithbusinessesonline,[34]andoffersspecificadviceonwhathappensifthingsgowrong.[35] IntheUnitedKingdom,TheFinancialServicesAuthority(FSA)[36]wasformerlytheregulatingauthorityformostaspectsoftheEU'sPaymentServicesDirective(PSD),untilitsreplacementin2013bythePrudentialRegulationAuthorityandtheFinancialConductAuthority.[37]TheUKimplementedthePSDthroughthePaymentServicesRegulations2009(PSRs),whichcameintoeffecton1November2009.ThePSRaffectsfirmsprovidingpaymentservicesandtheircustomers.Thesefirmsincludebanks,non-bankcreditcardissuersandnon-bankmerchantacquirers,e-moneyissuers,etc.ThePSRscreatedanewclassofregulatedfirmsknownaspaymentinstitutions(PIs),whoaresubjecttoprudentialrequirements.Article87ofthePSDrequirestheEuropeanCommissiontoreportontheimplementationandimpactofthePSDby1November2012.[38] InIndia,theInformationTechnologyAct2000governsthebasicapplicabilityofe-commerce. InChina,theTelecommunicationsRegulationsofthePeople'sRepublicofChina(promulgatedon25September2000),stipulatedtheMinistryofIndustryandInformationTechnology(MIIT)asthegovernmentdepartmentregulatingalltelecommunicationsrelatedactivities,includingelectroniccommerce.[39]Onthesameday,TheAdministrativeMeasuresonInternetInformationServicesreleased,isthefirstadministrativeregulationtoaddressprofit-generatingactivitiesconductedthroughtheInternet,andlaythefoundationforfutureregulationsgoverninge-commerceinChina.[40]On28August2004,theeleventhsessionofthetenthNPCStandingCommitteeadoptedTheElectronicSignatureLaw,whichregulatesdatamessage,electronicsignatureauthenticationandlegalliabilityissues.ItisconsideredthefirstlawinChina'se-commercelegislation.ItwasamilestoneinthecourseofimprovingChina'selectroniccommercelegislation,andalsomarkstheenteringofChina'srapiddevelopmentstageforelectroniccommercelegislation.[41] Forms Contemporaryelectroniccommercecanbeclassifiedintotwocategories.Thefirstcategoryisbusinessbasedontypesofgoodssold(involveseverythingfromordering"digital"contentforimmediateonlineconsumption,toorderingconventionalgoodsandservices,to"meta"servicestofacilitateothertypesofelectroniccommerce).Thesecondcategoryisbasedonthenatureoftheparticipant(B2B,B2C,C2BandC2C).[42] Ontheinstitutionallevel,bigcorporationsandfinancialinstitutionsusetheinternettoexchangefinancialdatatofacilitatedomesticandinternationalbusiness.Dataintegrityandsecurityarepressingissuesforelectroniccommerce. Asidefromtraditionale-commerce,thetermsm-Commerce(mobilecommerce)aswell(around2013)t-Commerce[43]havealsobeenused. Globaltrends In2010,theUnitedKingdomhadthehighestpercapitae-commercespendingintheworld.[44]Asof2013,theCzechRepublicwastheEuropeancountrywheree-commercedeliversthebiggestcontributiontotheenterprises'totalrevenue.Almostaquarter(24%)ofthecountry'stotalturnoverisgeneratedviatheonlinechannel.[45] Amongemergingeconomies,China'se-commercepresencecontinuestoexpandeveryyear.With668millionInternetusers,China'sonlineshoppingsalesreached$253billioninthefirsthalfof2015,accountingfor10%oftotalChineseconsumerretailsalesinthatperiod.[46]TheChineseretailershavebeenabletohelpconsumersfeelmorecomfortableshoppingonline.[47]e-commercetransactionsbetweenChinaandothercountriesincreased32%to2.3trillionyuan($375.8billion)in2012andaccountedfor9.6%ofChina'stotalinternationaltrade.[48]In2013,Alibabahadane-commercemarketshareof80%inChina.[49]In2014,therewere600millionInternetusersinChina(twiceasmanyasintheUS),makingittheworld'sbiggestonlinemarket.[50]Chinaisalsothelargeste-commercemarketintheworldbyvalueofsales,withanestimatedUS$899billionin2016.[51]ResearchshowsthatChineseconsumermotivationsaredifferentenoughfromWesternaudiencestorequireuniquee-commerceappdesignsinsteadofsimplyportingWesternappsintotheChinesemarket.[52] Recentresearchclearlyindicatesthatelectroniccommerce,commonlyreferredtoase-commerce,presentlyshapesthemannerinwhichpeopleshopforproducts.TheGCCcountrieshavearapidlygrowingmarketandarecharacterizedbyapopulationthatbecomeswealthier(Yuldashev).Assuch,retailershavelaunchedArabic-languagewebsitesasameanstotargetthispopulation.Secondly,therearepredictionsofincreasedmobilepurchasesandanexpandinginternetaudience(Yuldashev).ThegrowthanddevelopmentofthetwoaspectsmaketheGCCcountriesbecomelargerplayersintheelectroniccommercemarketwithtimeprogress.Specifically,researchshowsthatthee-commercemarketisexpectedtogrowtoover$20billionby2020amongtheseGCCcountries(Yuldashev).Thee-commercemarkethasalsogainedmuchpopularityamongwesterncountries,andinparticularEuropeandtheU.S.Thesecountrieshavebeenhighlycharacterizedbyconsumer-packagedgoods(CPG)(Geisler,34).However,trendsshowthattherearefuturesignsofareverse.SimilartotheGCCcountries,therehasbeenincreasedpurchaseofgoodsandservicesinonlinechannelsratherthanofflinechannels.ActivistinvestorsaretryinghardtoconsolidateandslashtheiroverallcostandthegovernmentsinwesterncountriescontinuetoimposemoreregulationonCPGmanufacturers(Geisler,36).Inthesesenses,CPGinvestorsarebeingforcedtoadapttoe-commerceasitiseffectiveaswellasameansforthemtothrive. In2013,Brazil'se-commercewasgrowingquicklywithretaile-commercesalesexpectedtogrowatadouble-digitpacethrough2014.By2016,eMarketerexpectedretaile-commercesalesinBraziltoreach$17.3billion.[53]IndiahasanInternetuserbaseofabout460millionasofDecember2017.[54]Despitebeingthethirdlargestuserbaseintheworld,thepenetrationoftheInternetislowcomparedtomarketsliketheUnitedStates,UnitedKingdomorFrancebutisgrowingatamuchfasterrate,addingaround6millionnewentrantseverymonth.[citationneeded]InIndia,cashondeliveryisthemostpreferredpaymentmethod,accumulating75%ofthee-retailactivities.[55][citationneeded]TheIndiaretailmarketisexpectedtorisefrom2.5%in2016to5%in2020.[56] ThefuturetrendsintheGCCcountrieswillbesimilartothatofthewesterncountries.Despitetheforcesthatpushbusinesstoadapte-commerceasameanstosellgoodsandproducts,themannerinwhichcustomersmakepurchasesissimilarincountriesfromthesetworegions.Forinstance,therehasbeenanincreasedusageofsmartphoneswhichcomesinconjunctionwithanincreaseintheoverallinternetaudiencefromtheregions.Yuldashevwritesthatconsumersarescalinguptomoremoderntechnologythatallowsformobilemarketing. However,thepercentageofsmartphoneandinternetuserswhomakeonlinepurchasesisexpectedtovaryinthefirstfewyears.Itwillbeindependentonthewillingnessofthepeopletoadoptthisnewtrend(TheStatisticsPortal).Forexample,UAEhasthegreatestsmartphonepenetrationof73.8percentandhas91.9percentofitspopulationhasaccesstotheinternet.Ontheotherhand,smartphonepenetrationinEuropehasbeenreportedtobeat64.7percent(TheStatisticsPortal).Regardless,thedisparityinpercentagebetweentheseregionsisexpectedtoleveloutinfuturebecausee-commercetechnologyisexpectedtogrowtoallowformoreusers. Thee-commercebusinesswithinthesetworegionswillresultincompetition.Governmentbodiesatthecountrylevelwillenhancetheirmeasuresandstrategiestoensuresustainabilityandconsumerprotection(Krings,etal.).Theseincreasedmeasureswillraisetheenvironmentalandsocialstandardsinthecountries,factorsthatwilldeterminethesuccessofthee-commercemarketinthesecountries.Forexample,anadoptionoftoughsanctionswillmakeitdifficultforcompaniestoenterthee-commercemarketwhilelenientsanctionswillalloweaseofcompanies.Assuch,thefuturetrendsbetweenGCCcountriesandtheWesterncountrieswillbeindependentofthesesanctions(Krings,etal.).Thesecountriesneedtomakerationalconclusionsincomingupwitheffectivesanctions. TherateofgrowthofthenumberofinternetusersintheArabcountrieshasbeenrapid–13.1%in2015.Asignificantportionofthee-commercemarketintheMiddleEastcomprisespeopleinthe30–34yearagegroup.Egypthasthelargestnumberofinternetusersintheregion,followedbySaudiArabiaandMorocco;theseconstitute3/4thoftheregion'sshare.Yet,internetpenetrationislow:35%inEgyptand65%inSaudiArabia.[57] E-commercehasbecomeanimportanttoolforsmallandlargebusinessesworldwide,notonlytoselltocustomers,butalsotoengagethem.[58][59] In2012,e-commercesalestopped$1trillionforthefirsttimeinhistory.[60] Mobiledevicesareplayinganincreasingroleinthemixofe-commerce,thisisalsocommonlycalledmobilecommerce,orm-commerce.In2014,oneestimatesawpurchasesmadeonmobiledevicesmakingup25%ofthemarketby2017.[61] Fortraditionalbusinesses,oneresearchstatedthatinformationtechnologyandcross-bordere-commerceisagoodopportunityfortherapiddevelopmentandgrowthofenterprises.Manycompanieshaveinvestedanenormousvolumeofinvestmentinmobileapplications.TheDeLoneandMcLeanModelstatedthatthreeperspectivescontributetoasuccessfule-business:informationsystemquality,servicequalityandusers'satisfaction.[62]Thereisnolimitoftimeandspace,therearemoreopportunitiestoreachouttocustomersaroundtheworld,andtocutdownunnecessaryintermediatelinks,therebyreducingthecostprice,andcanbenefitfromoneononelargecustomerdataanalysis,toachieveahighdegreeofpersonalcustomizationstrategicplan,inordertofullyenhancethecorecompetitivenessoftheproductsinthecompany.[63] Modern3Dgraphicstechnologies,suchasFacebook3DPosts,areconsideredbysomesocialmediamarketersandadvertisersasapreferablewaytopromoteconsumergoodsthanstaticphotos,andsomebrandslikeSonyarealreadypavingthewayforaugmentedrealitycommerce.Wayfairnowletsyouinspecta3Dversionofitsfurnitureinahomesettingbeforebuying.[64] Logistics Logisticsine-commercemainlyconcernsfulfillment.Onlinemarketsandretailershavetofindthebestpossiblewaytofillordersanddeliverproducts.Smallcompaniesusuallycontroltheirownlogisticoperationbecausetheydonothavetheabilitytohireanoutsidecompany.Mostlargecompanieshireafulfillmentservicethattakescareofacompany'slogisticneeds.[65] Contrarytocommonmisconception,therearesignificantbarrierstoentryine-commerce.[66] Impacts Impactonmarketsandretailers StoreclosingflagsoutsideaToysRUsinNewJersey.Despiteinvestments,thechainstruggledtowinmarketshareintheageofdigitalcommerce. E-commercemarketsaregrowingatnoticeablerates.Theonlinemarketisexpectedtogrowby56%in2015–2020.In2017,retaile-commercesalesworldwideamountedto2.3trillionUSdollarsande-retailrevenuesareprojectedtogrowto4.891trillionUSdollarsin2021.[67]Traditionalmarketsareonlyexpected2%growthduringthesametime.Brickandmortarretailersarestrugglingbecauseofonlineretailer'sabilitytoofferlowerpricesandhigherefficiency.Manylargerretailersareabletomaintainapresenceofflineandonlinebylinkingphysicalandonlineofferings.[68] E-commerceallowscustomerstoovercomegeographicalbarriersandallowsthemtopurchaseproductsanytimeandfromanywhere.Onlineandtraditionalmarketshavedifferentstrategiesforconductingbusiness.Traditionalretailersofferfewerassortmentofproductsbecauseofshelfspacewhere,onlineretailersoftenholdnoinventorybutsendcustomerordersdirectlytothemanufacture.Thepricingstrategiesarealsodifferentfortraditionalandonlineretailers.Traditionalretailersbasetheirpricesonstoretrafficandthecosttokeepinventory.Onlineretailersbasepricesonthespeedofdelivery. Therearetwowaysformarketerstoconductbusinessthroughe-commerce:fullyonlineoronlinealongwithabrickandmortarstore.Onlinemarketerscanofferlowerprices,greaterproductselection,andhighefficiencyrates.Manycustomerspreferonlinemarketsiftheproductscanbedeliveredquicklyatrelativelylowprice.However,onlineretailerscannotofferthephysicalexperiencethattraditionalretailerscan.Itcanbedifficulttojudgethequalityofaproductwithoutthephysicalexperience,whichmaycausecustomerstoexperienceproductorselleruncertainty.Anotherissueregardingtheonlinemarketisconcernsaboutthesecurityofonlinetransactions.Manycustomersremainloyaltowell-knownretailersbecauseofthisissue.[69][70] Securityisaprimaryproblemfore-commerceindevelopedanddevelopingcountries.E-commercesecurityisprotectingbusiness'websitesandcustomersfromunauthorizedaccess,use,alteration,ordestruction.Thetypeofthreatsinclude:maliciouscodes,unwantedprograms(adware,spyware),phishing,hacking,andcybervandalism.E-commercewebsitesusedifferenttoolstoavertsecuritythreats.Thesetoolsincludefirewalls,encryptionsoftware,digitalcertificates,andpasswords.[citationneeded] Impactonsupplychainmanagement Mainarticle:Supplychainmanagement Foralongtime,companieshadbeentroubledbythegapbetweenthebenefitswhichsupplychaintechnologyhasandthesolutionstodeliverthosebenefits.However,theemergenceofe-commercehasprovidedamorepracticalandeffectivewayofdeliveringthebenefitsofthenewsupplychaintechnologies.[71] E-commercehasthecapabilitytointegrateallinter-companyandintra-companyfunctions,meaningthatthethreeflows(physicalflow,financialflowandinformationflow)ofthesupplychaincouldbealsoaffectedbye-commerce.Theaffectionsonphysicalflowsimprovedthewayofproductandinventorymovementlevelforcompanies.Fortheinformationflows,e-commerceoptimizedthecapacityofinformationprocessingthancompaniesusedtohave,andforthefinancialflows,e-commerceallowscompaniestohavemoreefficientpaymentandsettlementsolutions.[71] Inaddition,e-commercehasamoresophisticatedlevelofimpactonsupplychains:Firstly,theperformancegapwillbeeliminatedsincecompaniescanidentifygapsbetweendifferentlevelsofsupplychainsbyelectronicmeansofsolutions;Secondly,asaresultofe-commerceemergence,newcapabilitiessuchimplementingERPsystems,likeSAPERP,Xero,orMegaventory,havehelpedcompaniestomanageoperationswithcustomersandsuppliers.Yetthesenewcapabilitiesarestillnotfullyexploited.Thirdly,technologycompanieswouldkeepinvestingonnewe-commercesoftwaresolutionsastheyareexpectinginvestmentreturn.Fourthly,e-commercewouldhelptosolvemanyaspectsofissuesthatcompaniesmayfeeldifficulttocopewith,suchaspoliticalbarriersorcross-countrychanges.Finally,e-commerceprovidescompaniesamoreefficientandeffectivewaytocollaboratewitheachotherwithinthesupplychain.[71] Impactonemployment E-commercehelpscreatenewjobopportunitiesduetoinformationrelatedservices,softwareappanddigitalproducts.Italsocausesjoblosses.Theareaswiththegreatestpredictedjob-lossareretail,postal,andtravelagencies.Thedevelopmentofe-commercewillcreatejobsthatrequirehighlyskilledworkerstomanagelargeamountsofinformation,customerdemands,andproductionprocesses.Incontrast,peoplewithpoortechnicalskillscannotenjoythewageswelfare.Ontheotherhand,becausee-commercerequiressufficientstocksthatcouldbedeliveredtocustomersintime,thewarehousebecomesanimportantelement.Warehouseneedsmorestafftomanage,superviseandorganize,thustheconditionofwarehouseenvironmentwillbeconcernedbyemployees.[21] Impactoncustomers E-commercebringsconvenienceforcustomersastheydonothavetoleavehomeandonlyneedtobrowsewebsiteonline,especiallyforbuyingtheproductswhicharenotsoldinnearbyshops.Itcouldhelpcustomersbuywiderrangeofproductsandsavecustomers'time.Consumersalsogainpowerthroughonlineshopping.Theyareabletoresearchproductsandcomparepricesamongretailers.Also,onlineshoppingoftenprovidessalespromotionordiscountscode,thusitismorepriceeffectiveforcustomers.Moreover,e-commerceprovidesproducts'detailedinformation;eventhein-storestaffcannotoffersuchdetailedexplanation.Customerscanalsoreviewandtracktheorderhistoryonline. E-commercetechnologiescuttransactioncostsbyallowingbothmanufacturesandconsumerstoskipthroughtheintermediaries.Thisisachievedthroughbyextendingthesearchareabestpricedealsandbygrouppurchase.Thesuccessofe-commerceinurbanandregionallevelsdependonhowthelocalfirmsandconsumershaveadoptedtoe-commerce.[72] However,e-commercelackshumaninteractionforcustomers,especiallywhopreferface-to-faceconnection.Customersarealsoconcernedwiththesecurityofonlinetransactionsandtendtoremainloyaltowell-knownretailers.Inrecentyears,clothingretailerssuchasTommyHilfigerhavestartedaddingVirtualFitplatformstotheire-commercesitestoreducetheriskofcustomersbuyingthewrongsizedclothes,althoughthesevarygreatlyintheirfitforpurpose.[73]Whenthecustomerregretthepurchaseofaproduct,itinvolvesreturninggoodsandrefundingprocess.Thisprocessisinconvenientascustomersneedtopackandpostthegoods.Iftheproductsareexpensive,largeorfragile,itreferstosafetyissues.[68] Impactontheenvironment In2018,E-commercegenerated1.3milliontonsofcontainercardboardinNorthAmerica,anincreasefrom1.1millionin2017.Only35percentofNorthAmericancardboardmanufacturingcapacityisfromrecycledcontent.TherecyclingrateinEuropeis80percentandAsiais93percent.Amazon,thelargestuserofboxes,hasastrategytocutbackonpackingmaterialandhasreducedpackagingmaterialusedby19percentbyweightsince2016.Amazonisrequiringretailerstomanufacturetheirproductpackaginginawaythatdoesn'trequireadditionalshippingpackaging.Amazonalsohasan85-personteamresearchingwaystoreduceandimprovetheirpackagingandshippingmaterials.[74] Impactontraditionalretail E-commercehasbeencitedasamajorforceforthefailureofmajorU.S.retailersinatrendfrequentlyreferredtoasa"retailapocalypse."[75]Theriseofe-commerceoutletslikeAmazonhasmadeitharderfortraditionalretailerstoattractcustomerstotheirstoresandforcedcompaniestochangetheirsalesstrategies.Manycompanieshaveturnedtosalespromotionsandincreaseddigitaleffortstolureshopperswhileshuttingdownbrick-and-mortarlocations.[76]Thetrendhasforcedsometraditionalretailerstoshutteritsbrickandmortaroperations.[77] Distributionchannels E-commercehasgrowninimportanceascompanieshaveadoptedpure-clickandbrick-and-clickchannelsystems.Wecandistinguishpure-clickandbrick-and-clickchannelsystemadoptedbycompanies. Pure-clickorpure-playcompaniesarethosethathavelaunchedawebsitewithoutanypreviousexistenceasafirm. Bricks-and-clickscompaniesarethoseexistingcompaniesthathaveaddedanonlinesitefore-commerce. Click-to-brickonlineretailersthatlateropenphysicallocationstosupplementtheironlineefforts.[78] E-commercemaytakeplaceonretailers'Websitesormobileapps,orthoseofe-commercemarketplacessuchasonAmazon,orTmallfromAliBaba.Thosechannelsmayalsobesupportedbyconversationalcommerce,e.g.livechatorchatbotsonWebsites.Conversationalcommercemayalsobestandalonesuchaslivechatorchatbotsonmessagingapps[79]andviavoiceassistants.[3] Recommendation Thecontemporarye-commercetrendrecommendscompaniestoshiftthetraditionalbusinessmodelwherefocuson"standardizedproducts,homogeneousmarketandlongproductlifecycle"tothenewbusinessmodelwherefocuson"variedandcustomizedproducts".E-commercerequiresthecompanytohavetheabilitytosatisfymultipleneedsofdifferentcustomersandprovidethemwithwiderrangeofproducts. Withmorechoicesofproducts,theinformationofproductsforcustomerstoselectandmeettheirneedsbecomecrucial.Inordertoaddressthemasscustomizationprincipletothecompany,theuseofrecommendersystemissuggested.Thissystemhelpsrecommendtheproperproductstothecustomersandhelpscustomersmakethedecisionduringthepurchasingprocess.Therecommendersystemcouldbeoperatedthroughthetopsellersonthewebsite,thedemographicsofcustomersortheconsumers'buyingbehavior.However,thereare3mainwaysofrecommendations:recommendingproductstocustomersdirectly,providingdetailedproducts'informationandshowingotherbuyers'opinionsorcritiques.Itisbenefitforconsumerexperiencewithoutphysicalshopping.Ingeneral,recommendersystemisusedtocontactcustomersonlineandassistfindingtherightproductstheywanteffectivelyanddirectly.[80] E-commerceduringCOVID-19 Furtherinformation:EconomicimpactoftheCOVID-19pandemic InMarch2020,globalretailwebsitetraffichit14.3billionvisits[81]signifyinganunprecedentedgrowthofe-commerceduringthelockdownof2020.StudiesshowthatintheUS,asmanyas29%ofsurveyedshoppersstatethattheywillnevergobacktoshoppinginpersonagain;intheUK,43%ofconsumersstatethattheyexpecttokeeponshoppingthesamewayevenafterthelockdownisover.[82] Retailsalesofe-commerceshowsthatCOVID-19hasasignificantimpactone-commerceanditssalesareexpectedtoreach$6.5trillionby2023.[83] Seealso Comparisonoffreesoftwaree-commercewebapplicationframeworks Comparisonofshoppingcartsoftware Customerintelligence Digitaleconomy E-commercecreditcardpaymentsystem Electronicbillpayment Electronicmoney Non-storeretailing Paidcontent Paymentsasaservice Typesofe-commerce Timelineofe-commerce SouthDakotav.Wayfair,Inc. 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Humeau,Philippe;Jung,Matthieu(21June2013).Indepthbenchmarkof12ecommercesolutions(PDF).Archived(PDF)fromtheoriginalon5May2021.Retrieved5May2021. Kessler,Michelle(22December2003),Moreshoppersproceedtocheckoutonline,archivedfromtheoriginalon31December2020,retrieved5May2021 Lowry,PaulBenjamin;Wells,TaylorMichael;Moody,Greg;Humpherys,Sean;Kettles,Degan(3February2006),OnlinePaymentGatewaysUsedtoFacilitateE-CommerceTransactionsandImproveRiskManagement,vol. 17(publishedJanuary2006),pp. 1–48,SSRN 879797,archivedfromtheoriginalon5May2021,retrieved5May2021 Kotler,Philip(2009).MarketingManagement(4th ed.).UpperSaddleRiver,NewJersey:PrenticeHall.ISBN 9780136026600.OCLC 1149204899.Retrieved5May2021. Miller,RogerLeRoy;Cross,FrankB.(2002).TheLegalandE-CommerceEnvironmentToday:BusinessinItsEthical,Regulatory,andInternationalSetting(3rd ed.).South-Western.ISBN 9780324061888.Archivedfromtheoriginalon5May2021.Retrieved5May2021. Nissanoff,Daniel(2006).FutureShop:HowtheNewAuctionCultureWillRevolutionizetheWayWeBuy,SellandGettheThingsWeReallyWant.NewYorkCity:ThePenguinPress.ISBN 978-1-59420-077-9.OCLC 1149173925.Retrieved5May2021.{{citebook}}:CS1maint:url-status(link) Seybold,PatriciaB.(2001).TheCustomerRevolution(1st ed.).NewYorkCity:CrownBusiness.ISBN 978-0-609-60772-5.OCLC 1148801120.Retrieved5May2021.{{citebook}}:CS1maint:url-status(link) Externallinks E-commerceatWikipedia'ssisterprojectsDefinitionsfromWiktionaryMediafromCommonsNewsfromWikinewsTextbooksfromWikibooksResourcesfromWikiversityDatafromWikidata E-CommerceResources,SmallBusinessAdministration,archivedfromtheoriginalon21May2017 vteComputerscienceNote:Thistemplateroughlyfollowsthe2012ACMComputingClassificationSystem.Hardware Printedcircuitboard Peripheral Integratedcircuit VeryLargeScaleIntegration SystemsonChip(SoCs) Energyconsumption(Greencomputing) Electronicdesignautomation Hardwareacceleration Computersystemsorganization Computerarchitecture Embeddedsystem Real-timecomputing Dependability Networks Networkarchitecture Networkprotocol Networkcomponents Networkscheduler Networkperformanceevaluation Networkservice Softwareorganization Interpreter Middleware Virtualmachine Operatingsystem Softwarequality Softwarenotationsandtools Programmingparadigm Programminglanguage Compiler Domain-specificlanguage Modelinglanguage Softwareframework Integrateddevelopmentenvironment Softwareconfigurationmanagement Softwarelibrary Softwarerepository Softwaredevelopment Controlvariable Softwaredevelopmentprocess Requirementsanalysis Softwaredesign Softwareconstruction Softwaredeployment Softwaremaintenance Programmingteam Open-sourcemodel Theoryofcomputation Modelofcomputation Formallanguage Automatatheory Computabilitytheory Computationalcomplexitytheory Logic Semantics Algorithms Algorithmdesign Analysisofalgorithms Algorithmicefficiency Randomizedalgorithm Computationalgeometry Mathematicsofcomputing Discretemathematics Probability 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