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There is no use denying the fact that the modern world could be characterized by a great number of changes that happen in every sphere. Blistering development of science and the digital revolution, which could be taken as the direct result of this process, introduced many new approaches, changing traditional issues and adding some new peculiarities to them. That is why it is quite obvious that the spheres which could be taken as the most important for the functioning of society were first to meet all these changes.
Trying to make them more efficient and modern, people implemented new technologies in their functioning, altering traditional processes and creating absolutely new ways to develop and become prosperous. One could see the difference in the functioning of the healthcare sector, which is influenced by technologies greatly, the sphere of mass media, education and economy, Being integral parts of human society, these fields of knowledge nowadays reflect the progress achieved by society, that is why no wonder that some new issues develop. Speaking about the sphere of economy, business, and marketing, it is also vital to admit the fact that a great number of new ideas appeared and became significant. E-commerce could be taken as one of them. Introduced along with the development of technologies, it has become a very important sphere which continues its development.
Speaking about the issue of e-commerce, it is vital to analyze the background which influenced the appearance and evolution of this sphere. The fact is that the 20th century became the period when the Internet gained momentum, becoming more and more influential remedy and spreading its influence. It was primarily used for communication or sharing of information. However, new technologies and new approaches towards the perspectives of the given tool changed the vector of the Internets development, introducing a great number of changes. First of all, it became possible to transfer money with the help of the Internet.
Implementation of this very issue in the functioning of this tool could be taken as the beginning of e-commerce. Having realized the convenience of the given method which lies in the absence of the necessity to have cash, people started to use it for their private purposes, selling some goods, services, or just transferring money. Thus, it was not e-commerce, it was just the first attempt to use the Internet in order to obtain benefit selling various goods. However, admitting the perspectives of this method and being satisfied with the level of income, people obtained the idea of organizing some kind of shop that would function in terms of the Internet.
It should be said that e-commerce is rather similar to the traditional way of selling goods. Speaking about the traditional box store retail, it is possible to outline several important factors that were inherited by the e-retail. First of all, the owner of a traditional box store determines the sector in which it will function. The choice of the sphere is determined by the situation on the market and the level of demand for a certain kind of goods. Having determined the sphere, it is also vital to organize the functioning of the store in accordance with all existing laws and regulations which limit the functioning of the store of this kind.
This step is extremely vital or in case of some rude violations a store could be closed and the owner might be punished. Then, it is vital to create an efficient model according to which the functioning will be organized. The fact is that there are not so many models and they all are similar. The good is stored in a certain place and when a customer needs something he/she should come and choose it. Having paid, a customer could take the good or ask for delivery. This model has been functioning for many decades and is taken as quite traditional and efficient.
Besides, based on the above-mentioned model, the e-shop has a great number of differences that make it more efficient and convenient for customers. It is also vital to determine the sphere of activity of the given shop and organize it in accordance with all rules. Thus, the pattern according to which it will function is different. The development of the Internet and concomitant technologies introduced new possibilities, making e-commerce more convenient for customers. Nowadays, communication between a customer and a shop assistant takes place on the Internet. That is why, the creation of the Internet site, which will be able to meet all firms requirements, guaranty stability of the functioning of a shop and be able to provide customers all services and goods in a clear and understandable way becomes another important step in the process o organization of any e-shop.
The stability and reliability of the given site could contribute to the development of this very shop greatly as it is the place where a customer looks for the needed goods and makes a bargain. Another important aspect of the functioning of any e-shop is the payment system. The fact is that cashless transfers are used on the Internet as all participants of the process do not have direct contact with each other. That is why, payment system should be secure, efficient, and clear for the potential customer, for him/her to be able to use it and order a good (Burns, 2002). Nevertheless, the checkout process is an integral part of e-commerce and should be given great attention as its aligned functioning satisfy customers and show the advantages of the given method.
Thus, speaking about the peculiarities of the functioning of e-shops, it is possible to outline the general model peculiar to the majority of shops of this sort.
According to the above-mentioned peculiarities of e-commerce, it is possible to say that this model will differ from the traditional box stores model. The fact is, that e-shops are organized in a very simple way, which, however, guarantees great benefits and stable income
Thus, looking at the given model, it is possible to outline several important aspects. First of all, it becomes obvious, that there are not so many stages and actors in the process of purchase. Wanting to buy a certain good, a customer addresses some e-shop and concludes a purchase, paying with the help of various payment services. Having obtained the list of the needed goods, an e-shop connects with its suppliers, asking to provide the needed goods and paying for them. Having obtained the order, an e-shop uses the services of various delivery companies to assure that a customer will obtain the needed goods. The choice of the company depends on various factors, such as convenience, rates, or customers demands. Being quite simple, this model guarantees the clear and efficient functioning of a company as there are not many actors or points which may fail.
Thus, it is also vital to remember that like any business, e-commerce should follow all rules which regulate the functioning of the given sector. Additionally, great importance should be given to taxation as it is a very important aspect of every small or large business. First of all, it should be said that the choice of taxation policy depends on several factors. If a company, which sells goods online, has “a physical presence in a state, such as a store, office or warehouse” (Collecting Sales Tax Online, n.d., para. 2) it is supposed to collect all applicable state and local taxes from the customers which use its services. Thus, if there is no presence in any state, a company is not required to collect taxes from its customers. It is vital to remember, that every state has its own definition of nexus, which is the presence of physical presence, that is why, it is vital to use the lawyers services to determine the kind of taxation policy (Ecommerce and Sales Tax Legislation, n.d). Thus, it is obvious, that as any registered company, or shop, e-shop should pay taxes in accordance with the existing laws. However, if a hypothetical e-shop works at the international level, it should take into account peculiarities of the laws that regulate this sort of shop and apply the appropriate taxation policy.
With this in mind, it is possible to say that an e-shop and traditional box store have a great number of differences. It has already been said that the functioning of the box store is more complicated and has more stages. Additionally, another great difference is the process of making a purchase, as the traditional face-to-face communication, peculiar to box-stores, is replaced by the mediated one in e-shops. This fact has a great impact on the functioning of these two kinds of business, introducing new ways of communication and relations with customers. Thus, another difference lies in the fact that box-stores should have the stock of goods as customers buy them directly and have no time to wait. At the same time, e-shop works with suppliers, ordering goods only when they are needed. This difference also influences the way in which the work of these kinds of shops is organized. Finally, the taxation policy is also different. It has already been admitted, that if a shop has a physical presence, it is allowed to collect taxes from the customers. It is obvious, that all box-stores do it, while e-shops could work according to another pattern. There is a great number of other differences that influence the work of traditional and e-commerce, predetermining the appearance of some advantages and disadvantages.
Thus, speaking about the advantages of various kinds of shops, it is possible to say that the fact that e-commerce continues its development and obtain more and more adherers, becoming popular in various countries, could be taken as the evidence of its great profitability and efficiency. First of all, it is more convenient. A customer should not go to the shop, looking for the needed goods. He/she could use the Internet and find the needed thing in one of the e-shops. Additionally, a customer could pay using his/her credit card which is also quite easy. The needed goods will be delivered on time and there is no need to go somewhere. Another great advantage is the absence of some extra agents or stages which make the process more complicated.
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Besides, it should also be said that a company could also benefit from adherence to e-commerce. According to the pattern described in the Model 1 e-shops are not obliged to have the stock of goods for customers to choose or take them. E-shop could order it directly in case the demand for this good appears. It helps to save money as the company does not have to pay rent for some room which is used as the warehouse. It helps to make the price for some goods lower, attracting customers and obtaining some extra benefits. Finally, the difference in taxation policy also contributes to the development of e-commerce. Having no physical presence in any state, it could not collect taxes from the customers and make the price of goods lower. With this in mind, it is possible to see that there are many various advantages peculiar to the given kind of business.
Another important aspect of the functioning of every business is advertising. In the age of digital technologies and mass media, it could be taken as the main way to attract customers and guaranty the prosperity of a company. That is why various companies traditionally devote great attention to the issue of advertising. Speaking about the box-stores, it is possible to say that they also organize various companies, trying to attract peoples attention and make them use the services of their shop. The success of the given company very often determines the level of income of the whole business. However, e-shops also depend on advertising very much.
Besides, resting on the peculiarities of their functioning and conditions which exist in modern society, it is possible to say that e-shop has more opportunities to start a successful advertising company and attract people. The fact is that in happy states the majority of people have access to the Internet. Additionally, according to the latest statistics, more and more people prefer to obtain news of some other information from this very source (Strauss, 2014). That is why the online advertising company could be taken as more efficient and modern than the traditional one. E-commerce has a great number of modern technologies which are used to advertise some phenomenon on the Internet. Besides, this sort of advertising company could be taken as the cheaper one.
However, speaking about the issue of e-commerce and comparing it with the traditional approach to business, it is vital to mention another important aspect that influences the development of various kinds of shops. This aspect is the revenue obtained by the companies. It is obvious, that nowadays box-stores are still very popular and the level of their incomes is stable and high. There is a group of people who could not use the Internet to make a purchase and they contribute to the development of these shops. However, e-stores obtain more and more significance and increase the level of their incomes.
Analyzing the latest statistics, it is possible to say that various online companies like Amazon have benefits exceed incomes of some traditional box-stores and are expected to continue their development (Page, 2015). Additionally, speaking about the general trend, it is possible to say that the shift towards the online sector could be observed, as more and more companies organize various e-shops, trying to obtain some extra benefits and guarantee further existence o the company in terms of the blistering development of various technologies (Statistics and Market Data about E-commerce, n.d). That is why it is possible to say that the revenue of e-shops could be compared with the revenue of the traditional business and there is a tendency towards its growth.
With this in mind, having outlined all these important peculiarities of e-commerce, it is possible to start the discussion about the perspectives of the given issue. The fact is that the level of interest towards various technologies and their implementation in the functioning of various spheres does not decrease. People try to make their life easier by creating new ways to perform some traditional tasks, which could guarantee better results. Being one of these new approaches, e-commerce also develops. Introducing new ways to make a purchase on the Internet, people contribute to the development of this sort of activity. That is why the further blistering development of the given kind of business could be predicted. E-commerce has achieved great success, however, it is just the beginning of its evolution and there are many good perspectives that await it because people will obviously adhere to the given practice, making it more efficient and simple.
Speaking about the perspectives of e-commerce and success, which awaits it, it is possible to provide a good example that could be taken as good evidence to these words. There are many companies that work on the Internet and provide their services, however, Amazon and its e-shop could be taken as an exemplary company. The fact is, that the company managed to evolve in very short terms. Nowadays, it is the most well-known organization which provides its services online and suggests a great number of goods for its customers. Amazon is characterized by great reliability, efficiency, and a high level of service. If a person wants something from Amazons e-shop, he/she will obtain the good of a high quality, which will be delivered in time. These peculiarities made Amazon one of the most beneficial and prosperous companies which work on the Internet, with the revenue that exceeds the incomes of some firms working in the traditional way. Resting on the given example, it is possible to say that e-commerce has good perspectives for its further development.
Nevertheless, resting on the above-mentioned information, it is possible to make a certain conclusion. It is obvious that e-commerce could be taken as another way to work with the customers, providing all services with the help of the Internet. Being rather new, it is based on technologies that are still developing and contribute to the evolution of e-commerce. The combination of efficiency, convenience, and availability makes e-commerce a rather popular issue that obtains a great number of adheres every day and which is doomed to become the main trend of the new age, characterized by the development of digital technologies.
Burns, S. (2002). Unique Characteristics of Ecommerce Technologies and their Effects upon Payment Systems. Web.
Collecting Sales Tax Online. (n.d.). Web.
Ecommerce and Sales Tax Legislation. (n.d.). Web.
Page, V. (2015). The Future of Retail Is Not Big Box Stores. Web.
Statistics and Market Data about E-commerce. (n.d). Web.
Strauss, M. (2014). Retail reboot: How e-commerce is forcing an industry transformation. The Globe and Mail. Web.