Importance of E-Commerce

Abstract

In this modern era, we can see that the technology and internet has become an individual part of human life. There is a huge use of internet in every field and exchange of information is done through the internet. E-commerce is influencing customers rapidly and attracting large base of customers towards it. E-commerce refers to an electronic commerce, in which exchange of goods and services done electronically. E-commerce is influencing customers rapidly and attracting large base of customers towards it. E-commerce refers to an electronic commerce, in which exchange of goods and services done electronically.

Introduction

I. INTRODUCTION

E-commerce is an exchange of goods and services or products and its information through internet and internet-based services. Online shopping was invented by Michael Aldrich an English entrepreneur, in 1979. Basically, there are 4-types of E-Commerce i.e. Business to Business, Business  Customers, Consumer to Business and Consumer to Consumer. On the other hand, the Term Traditional Commerce refers to buying and selling of products or exchange of goods and services directly through physical market.

But nowadays customers are not able to go to market as they are so busy with their work so they prefer to purchase products online through E-Commerce websites such as Amazon, Flipkart, Shopify, Myntra, etc. As we can see people also buying food online. It becomes a need for having such platforms of buying and selling food through E-Commerce sites or apps such as Swiggy, Zomato, etc.

Customers can find any product online that they want. They only have to search for if on E-Commerce sites and the powerful search engine shows their thousands of products matching with their search. In this way, E-Commerce has made the human life more convenient.

II. WORKING

Here we will see Business to Consumer model of E-Commerce.

Figure 1: B2C E-Commerce Architecture

When a customer goes on E-Commerce sites, they can search their products and then place orders of the products whatever they want. Then they make payment for the product and it can be done by any way viz. online payment, card payment, UPI payment and cash on delivery (COD). After completion of payment, the order is processed by concerned shop or mall or company. Then they pack the product and send it to warehouse from where it can be given to distributors. Once distributors get product then they shipped it to the customer's given address.

In this way E-Commerce works and this is a more efficient way than traditional commerce as it doesn't include any wholesalers or retailers. After sales services also provided by E-Commerce sites such as return policy.

A. Why Customers prefer E-Commerce

E-commerce is very easy to use. It can be accessible from anywhere in the world and it constantly makes new inventions for its customers. Customers can access a large data of different products in only one search. Because of commerce people don't have a need to go in markets or shops and find product then carry it  home. As E-Commerce provides Home Delivery of products and services, hence time is also saved. There is no presence of wholesalers and retailers  the supply chain of E-Commerce therefore cost is also reduced so customers prefer E-Commerce more over traditional Commerce. In E-Commerce customers can find large variety of products with different brands and prices at one place. On some of E-Commerce websites, there are reviews of products given by consumers to help new customers  in deciding where to purchase the product or not.

E-commerce has gained more importance during this Covid-19 pandemic. This is because, due to lockdown in the pandemic, people have restrictions to go outside, therefore they can't buy the products or services they want. So, maximum people used E-Commerce to purchase their important things. They ordered medicines online also. Most of the people thought that ordering products online is safer way than going to market. That's why here home delivery feature made E-Commerce popular worldwide.

In this way, E-Commerce is helping in the betterment of life and becoming most important part of our lifestyle. It is influencing human life in various ways with ever-changing creative ideas. That's why its gaini9ng maximum customers over traditional commerce.

III. ANALYSIS

To find out that E-Commerce is better than Traditional Commerce I conducted a survey and its results are as follows:-

1. We observed that people of age between 15 to 30 uses E-Commerce more.

2. 75% people think that E-Commerce is doing very well, while 20% people have opinion that E-Commerce met their expectations and 5% wants improvement in it.

3. 65% strongly want to suggest E-Commerce to other

4. 60% people order products from E-Commerce often and 40% are using it sometimes.

5. 85% people said that they find a variety of products on E-Commerce, while 15% are not sure that E-Commerce have enough range of products.

6. 65% people choose digital payment method over other payment methods.

7. 80% people found E-Commerce easy to use, whereas 20% thinks it is not that easy.

8. Out of 100 every 50 people face problems while using E-Commerce and it needs to resolve.

9. Most of people are satisfied with overall experience of E-Commerce, while some of the others are not that much satisfied.

10. Maximum people found the best quality of products on E-Commerce and they are satisfied with it.

II. 75% people think that ratings and reviews of products are helpful in deciding whether to buy the product or not.

12. E-commerce has an efficient supply chain and that's why 95% people get their ordered products within a given timeline.

13. Maximum people (i.e. about 90%) say that E-Commerce is better than Traditional Commerce.

Conclusion

People having E-Commerce over traditional commerce because its giving benefits such as saving time, home delivery, variety of products in one place, ease of use, flexible payment methods and good customer care services. It is efficiently meeting a need of people in a changing environment. From the above survey, we concluded that E-Commerce is playing an important role in the betterment of human life. That\'s why E-Commerce is convenient than traditional commerce.

References

[1] Book – Essentials of E-Commerce, Author – Dr. Gautam Bapat. [2] https://en.m.wikipedia.org/wiki/E-commerce [3] Rithika Sirvi, Gundla Ranga Ramu, Varun Revelli, Gv Santosh Kumar, Dr Chandra Sekhar Pattnaik, “The Role of E-commerce on Customer Engagement in 2021”, International Journal of Scientific Development and Research, IJSDR2102046.

Copyright

Copyright © 2022 Vaishnavi Panchal , Prof. Reshma Shaikh. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.