E-Commerce has developed as a result of technological development, especially the appearance of the Internet, growth of social networks and the widespread use of smart phones.
This has affected many areas of business activity changing the way how many companies around the world produce, market and sell their products.
Definition of E-Commerce
E-Commerce means the trading of goods and services using technologies such as the Internet, electronic systems and computer networks.
Businesses use those technologies to market and sell their product to customers as more and more consumers are making purchases entirely online.
E-Commerce takes place via the use of computers, smartphones and tablets linked to the Internet. Buying and selling happens virtually with customers making purchases of groceries, books, clothes, home appliances, electronic devices, etc.
Examples of E-Commerce
The technological development in recent decades has had huge impact on transforming traditional distribution channels in many industries such as retailing, financial services, entertainment, education, healthcare, art, tourism, communication, advertising, real estate, etc.
Let’s take a look at those examples of E-Commerce in details. Here are the most popular E-markets:
- Retailing. Online shopping has become increasingly popular for items such as groceries, books, clothing, home appliances, electronic devices, CDs and DVDs, toys, etc. Due to companies trading those products online, customers often make price comparisons before making a purchase.
- Financial services. This includes online access to personal and corporate banking services, electronic payments, foreign currency exchange or brokerage accounts for trading securities. All transactions can be executed online without leaving your home or office.
- Entertainment. The Internet has intensified competition in the TV streaming industry as well as among music stores which used to operate traditional retail stores. The Internet also enables the sale of online gaming, gambling and sports betting.
- Education. Learning a foreign language has never been easier – just open YouTube to find thousands of teachers from around the world. Many websites these days such as Bloomberg.com, world’s leading provider of business news, operate in multiple languages to cover the languages that most people in the world understand.
- Healthcare. Many medical services can be done online these days such as making doctor’s appointments, chatting with your family doctor using online messengers, receiving medicine prescriptions, purchasing medication online, etc.
- Art. Online art auctions have grown in popularity. There are also many specialized e-stores on the Internet that sell rare antiques, old movies or vinyl records.
- Tourism. Tourists can make hotel reservations and purchase their flight tickers or train tickets on the Internet or in the smartphone apps. Prices of holidays, hotel rates and flight tickets all over the world can be research and compared through price aggregators.
- Communication. Many businesses use the Internet, especially their own websites and social media, to post information about their new products, promotions, etc. Customers can send feedback instantly by using ‘Like’ buttons or sharing their comments.
- Advertising. Thanks to technology, much more detailed information can be communicated via online advertisements using Above-the-Line Promotion techniques. That is why many companies are businesses are engaged both in running physical stores as well as operating online stores. E-Tailers such as Google and Yahoo! allow customers to carry out searches on their websites as well as sell advertising slots in search engines or advertising banners to other businesses to support promotion.
- Real Estate. These days many real estate agencies and real estate agents are using the Internet to showcase homes and apartments for sale and rental. It is not only possible to show photos and video clips to promote those properties, but also some use 360-degree digital camera technology to offer clients virtual tours around those properties.
Companies in these industries used to sell their products in retail stores, but now significant structural changes are happening – the rise of E-Commerce and the decline of physical outlets.
In summary, the Internet has caused exponential growth of E-Commerce. Many businesses as small as sole traders and partnerships to large multinational companies sell their goods and services online. More and more customers purchase products over the Internet.
