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Major barriers and the incentives for the development of e- commerce

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Major barriers and the incentives for the development of e- commerce The whole rationale for e-commerce is that it lowers the operational costs for a business and improves the buying and selling opportunities. As a result profit increase should increase. Lowering costs require: Connecting everyone together Typically B2C E-commerce uses technology illustrated in the figure below. The benefit of this approach for B2B E-commerce is that company 1 using a web browser does not need any special technology to connect with its partners. Company 2 can easily present web pages that can be used by company 1 to order goods or services. The harder job is for Company 2. It has to integrate their eCommerce or Web Server with their ERP or accounting systems. However some, particularly the smaller, companies are reluctant to integrate their Internet and accounting systems. As a result, data captured by Company 2 may, in practice, be re-entered manually into their ERP systems as well as Company 1. A better approach is illustrated by the figure below: In this example both Company 1 and Company 2 have implemented XML technology to make their solutions integrate. This can offer significant cost benefits. Now I will show you examples of purchase order of two different companies. However exchanging documents is not completely straight forward since you need to know which format to use. ...read more.


Are you going to save them time and money by allowing them to purchase online? You probably have a basic web site already; are you getting requests for online buying from potential customers? It is never truly possible to judge in advance whether a market exists, but there should be at least some indication of a demand for an online presence. All of this will help to improve the internal and external organisation of the business. It will improve the customer base in external organisation. Osborne and Harper also have to make sure they have a market for there business, this will help them in the entire organisation. 2. Use a clicks-and-mortar strategy if possible The clicks-and-mortar approach is the most effective and economic. This combines offline resources, such as store brands, channels with an online e-commerce presence. The other option - a pure play dot-com - is now rare. Consumers are looking for brands that they know and trust. They also like the fact that a business has a physical presence, a place where they can go if something goes wrong. Pure play dot-coms found that they had to spend a lot of money on marketing just to maintain awareness. 3. Integrate the shopping experience Consumers look to the web primarily for information; they may use the web site initially to find out about the product, and then buy by phone or in person. ...read more.


While the potential for such systems is substantial, they are complex and difficult to implement, and, if not professionally managed, can lead to the abuse of consumer privacy. 8. Make sure that you buy the right software There is no need to do all the work internally, as there is now a wide range of quality software for e-commerce. 9. Make sure you have a team in place An e-commerce web site needs day-to-day maintenance. Technical problems must be fixed, new content must be published and old content removed, and the web site must be constantly marketed. 10. If you don't market, they won't come Opening up an e-commerce web site is rather like setting up shop at the North Pole: nobody knows you are there. It is not enough just to register with search engines; you will need an aggressive marketing campaign to make your target market aware of what you have to offer. The ideal situation is a seamless integration with marketing strategy of the offline business. Ethical and moral implications I will show some of the ethical and moral implication of eBay . Prohibited items: Aeroplane Tickets Alcohol Animals and Wildlife Products Catalogue and URL Sales Counterfeit Currency and Stamps Counterfeit and Trademarked Items Credit Cards Drugs and Drug paraphernalia Embargoed Items & Prohibited Countries Firearms and Ammunition Fireworks Franking Machines Football Tickets Government IDs, Licences and Uniforms Human Parts and Remains ...read more.

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