Skip to main content

Features of E-Commerce

Features of E-Commerce
  • Ubiquity: Any time Any where
Internet and web technology has facilitated e-commerce ubiquitous by breaking the physical boundaries of the traditional media.
Business Significance: Customer convenience, shopping costs reduced, leads to more opportunities, saves cognitive energy, involves any kind of payment or booking.
  • Global Reach/Measure of Reach
Allows transaction across national boundaries and the potential customer are maximum(infinite).
  • Universal Standards
There are universal standards for business deals, price, staring a business, running a business.
  1. Reduced market entry cost
  2. Reduces search cost
  3. 1 world market space
  4. Easy price discovery 
  5. Information regarding supplier, dealer, vendor 
A one world market space(no boundaries) is the one where price and product description are inexpensively displayed universal to all. Price discovery is very fast and more accurate.
  •  Richness
Richness of information is more in traditional technology. As the number of people increases the richness of the information decreases. In Internet Technology there is no difference in the richness after a certain point. Now richness can be increased via audio, video, flash, 360 degree revolution…

Richness v/s Reach graph
  • Interactivity
In traditional technology or offline mode interactivity is more due to face to face conversation, there is more touch and feel and the vendor can convince or manipulate the customer easily but in online mode there is no such manipulation possible. Thus to increase interactivity online we have introduced online chat system, feedback, complaint, query…
  • Information Density
Total amount and quality of information available to all market participants, consumers is same. There is an increase in accuracy and timeliness of information which in turn increases e-commerce.
  • Personalization/Customization
Personalization means providing personalized messages and services to specific individuals. Eg: If we get a membership from a store like Allen Solly or Monte Carlo then we get messages about special offers, discounts from them. Customization means changing a delivered product or service based on user’s preferences and prior behaviour. Eg: If we purchase a product from fernsnpetals.com or wengers.com then we can choose the day of delivery and timings according to our preference.
Labels:

Comments

Post a Comment

Popular posts from this blog

Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
1 comment
Read more

Inter-Organizational Value Chain

The value chain of   a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1.  Supplier     2.  Firm       3.   Channel 4 .   Buyer
Post a Comment
Read more

Big-M Method and Two-Phase Method

Big-M Method The Big-M method of handling instances with artificial  variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we  simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the  respective variables' inclusion is warranted algorithmically, such variables will ...
Post a Comment
Read more