The advantages e-commerce provides positive changes in the concept of traditional business; it brings missives changes to the business world. E-commerce is the buying and selling of items or products through the internet. It brings revolution to the modern world.
History of e-commerce
The advantages of e-commerce brought a revolution in the business sector. The creation of humans created the concept of business. In the past humans were used to covering long-distance even out for months for the sake of business. Online business was invented in 1979 by Michael Aldrich through a tele[hob phone line. The history of e-commerce goes back to 1970 when electronic data interchange and teleshopping were started. Now it is the modern form of e-commerce. The history of e-commerce is related to the history of the internet. Online business was possible when the internet was publicly opened in 1990. Amazon was the first e-commerce company started in 1994by.Jeff Bezos. The history of e-commerce is related to the innovation of technology and it brought massive changes to our lives.
Below are the main types of e-commerce.
Business to Business (B to B)
It is the type of e-commerce where products, services, or information are exchanged between businesses, not consumers. Here the businessman buys products from another businessman and sells them to consumers.
Alibaba.com is the best example of a b to b business where a businessman buys products in bulk and sells it to customers.
Business to Customer (B to C)
It is a business where businessmen sell products direct to customers and avoid anything third party.
Examples are Amazon, eBay, and wall mat.
Consumer to consumer (C to C)
It is a business model where customers are being traded with each other.
Examples are eBay and Etsy.
Advantages of e-commerce
Work from home
One of the main and major advantages of e-commerce is that it can be operated from home while traditional business does not have this facility. It requires internet and a laptop. Not only from but anywhere in the world you can do e-commerce thus it become unique but other side traditional businesses need you to go outside and require massive time
Time is a precious tool in human life. One of the main advantages of e-commerce is saving time. E-commerce is saving our time and energy while traditional businesses need much time and energy. The buyer searches for his/her desired product within a second he clicks and orders. And the side the businessman is using e-commerce also safely and calmly receive the order then sends it to the buyer.
To establish a physical shop need a physical store in Bazar and a massive amount. To maintain the physical shop need employees. Simply e-commerce saves our time and energy.
24 hours presence
When you create your online store, it would be available for 24 hours while the physical shop is a spere in online store we have this case it is open for 24 hours, your business is not closing hours.
E-commerce is the platform where you could reach your products and services globally. With the swift increase of the internet and modernization, the number of digital buyers is increasing day by day.
In 2020 over two billion buyers purchased goods online, in the same year, retail sales reached 4.2 trillion us dollars.
During covid 19 most businesses shifted to e-commerce because the markets and traditional businesses were closed but online selling and buying are increased round about 25%. With help of e-commerce, we could access international markets while in physical business we do not have these major benefits. In traditional business, we have access to certain areas or regions. With time, the scope of physical business is decreased now a new trend has been started that the traditional; business has been switching to online. In 2021 retail e-commerce was approximately 4.9 trillion us dollars. The figure is forecast to increase by 50 % in the next 5 to six years maybe 7.4 trillion dollars in 2025.
Some countries and their interest in e-commerce are shown in the below graph.
Can be started from low budget
As we know that traditional business needs a handsome amount of money while online business depends on your budget. Even if you do not have the money you can start it on a low budget. There are many programs in e-commerce where you can start even from zero investment. The affiliated programs need no money just copy past to your account or website. If this product is sold you get a commission. But in the physical shop, you do not have this facility need a handsome amount of money. Apart from money the traditional business also needs a team: you have to pay them, thus e-commerce does not have any chance of loss.
Online business or store has a quick service than traditional one. Here client just browser his? the product of her desire and within seconds place the order while in traditional it needs more time to buy something. First, you have to go Bazar search it may take hours to find your order. Then you take it physically to bring it home. In e-commerce place your order soon it would reach your doorstep.
One of the major advantages of e-commerce is the reduction of cost. To buy or sell while using e-commerce you need two things: the internet and a laptop while in a physical shop or business need more than that.
E-commerce is considered to be one of the more trusted business platforms. Due to innovation, the internet and the swift advancement in inter it increased the trust in e-commerce among people. Day by day well-reputed companies are joining e-commerce thus it increased trust. The following are the main companies that operate online.
Amazon is the top-rated company in the online business. It provides quality services and products to the clients. It was started in July 1994 in Washington by Jeff Bezos. Initially, only books and stationery were sold.
Now not only books but almost everything is available on the amazon market. Last year(2021) Amazon sold America 36.4 billion us dollars. The total revenue of Amazon was 46,82 billion dollars.
It is an online Canadian-based company founded in2006 by Tobias Lutke. It provides worldwide online business to buyers and sellers. There are 10000 workers in Shopify. The total revenue in 2021 was 4.62 billion us dollars Approximately 1700000 businesses were using this platform in 2021in 175 countries. According to Buitwith 1.58 million websites run on Shopify.
The above figures show the trust and trend of online businesses.
An online company provides a good platform for selling and buying. It was launched in 1995 by American enterpeunur. Pierre Omidyar. The net revenue from 2013 to 2020 was around about 10 billion us dollars in the next year8.6 billion us dollar
Walmart was launched on July 2, 1962, It is an online store founded by Sam Walton.
There are many online companies in e-commerce but the above are well known. The above figures also show the interest and trend of people.
The advantages of e-commerce are many but its plays an importing role by creating millions of online jobs.Some people might think that e-commerce may replace workers and could lead them jobless. This claim is opposite e-commerce is creating millions of jobs and businesses.
The youth who are getting jobs find their source of income
The youth who are getting jobs find their source of income from the internet. The companies that operate online provide good jobs to their workers, with the expansion of their companies they hire more workers for stores, deliveries, and management.
Millions are sitting in homes earning good money. The young generation does not find a job easily so e-commerce is filling that gap.
During covid-19 commerce provides jobs to jobless. The major company in e-commerce generate good jobs like Amazon, Walmart, eBay, and Esty.
There are approximately 1608000 employees in Amazon and these numbers are increased day by day.
There are about 13300 employees on eBay.
The above numbers are just the physical workers those who are work online are more and increased and day by day.
The major contribution of e-commerce is creating more business opportunities. While the traditional business does not create such opportunities. To start a traditional business need a massive amount of money and time. After starting your physical shop it may be a chance to get success not may not. In the beginning, the business might not be successful but you have to pay your electricity bills and employees’ salaries But other side online businesses only need internet and laptop. E-commerce is creating the concept of business for those jobless people who have not found a job yet. It is a major change for those who even can not find a job but e-commerce provides them a chance to having own business.
E-commerce is motivating small businesses and industries and spreading their products worldwide.
E-commerce can easily solve the problems of females related to job issues. It is difficult for females to go outside for a job or business but thanks to e-commerce these issues have been solved. Now women can safely and easily work from home. The opportunities of jobs or businesses for females will also improve the economy and could reduce the burden on males. E-commerce could make them independent financially.
E-commerce in covid
The response of e-commerce during covid was positive. Due to the spread of the coronavirus the bazaars, markets and shops were closed. But another side online business was flourished and scope increased. After covid the growth in online business is increased, it proves itself punctual and good service.
The past, present, and future of E-Commerce
In the past humans were traveled far for their business, even they were out from their homes for weeks. After the innovation of transport and other facilities, trade became easy. Then the innovation of technology and the internet created the concept of online business so-called e-commerce.
The history of e-commerce goes back to when the first electronic data was invented. Some historians claim that the first transaction happened in 1972. It is said that Standford student sold cannabis to MTI student Via on apparent amount.
In 1979 the English inventor developed the concept of online business Michael Aldrich went to market with his wife for shopping where an idea came to his mind then he connected television with the supermarket. He ordered pizza from the supermarket through his telephone.
In the past e-commerce was not flourished but then technology and the internet make it more advanced.
The presence of an E-commerce is bright attracted more people. The scope of online cuisines is increasing day by day. Now it is becoming a trustworthy platform in the current world.
Amazon is becoming the world’s largest company. It attracts 65 million people across the world. In 2018 Amazon made a record sales of 900 billion us dollars.
The switchmen toward e-commerce are at their peak.
Due to smart advantages of e-commerce ,the future of e-commerce is bright. It is capturing the market while eliminating the concept of traditional business. The young generation is attracting more toward online business. Due to technology and the internet, e-commerce is dominating day by day.
In 2016 China’s online sales were almost 900 billion us dollars while the USA made 423 billion.
In near future, almost 90% of businesses will shift online.
Hence the future of e-commerce is bright and shining.
As we deeply read that the start of e-commerce was poor but then technology made it more easily and more advanced and the near future is the bright time of e-commerce. Here you can place your order any time, e-commerce does not require you to be present every time. It is likely that if have a traditional store in the street you have to be there all the time physically because you can not miss any sale while in an online store it does not need
The youth who are getting jobs find their source of income from the internet. The companies that operate online provide good jobs to their workers.
In the past e-commerce was not flourished but then technology and the internet make it more advanced.