The concept of e-commerce and its benefits and challenges at the present time

Want to buy and sell services or products on electronic means or enter the field successfully. Please understand the concept, classification, forms of e-commerce and know about its laws and regulations. Below, Tat Thanh web design company has summarized the necessary knowledge for those who want to start the path of e-commerce. For all of the above reasons, this article will explain exactly and in detail what the e-commerce industry is for you to understand and understand before making decisions related to studying and working with commerce. electronic.

Since when was e-commerce developed? e-commerce concept

The history of e-commerce can be traced back to the 1960s, when businesses started using electronic data interchanges (EDIs) to share business documents with other companies.

In 1979, the American National Standards Institute developed the ASC X12 electronic data system as a universal standard for businesses to share documents over an electronic network.

After the number of individual users sharing documents electronically with each other skyrocketed in the 1980s, the proliferation of channels offering services and products such as eBay and Amazon in the 1990s revolutionized the e-commerce industry. Consumers can purchase an unlimited number of products and services online.

Recording the first order through e-commerce was made on August 11, 1994. A man sold a CD to his friends through his website through a retail channel. of America. And he had a consumer buy his product from a business through the World Wide Web and it was recognized as the first e-commerce transaction in history.

e-commerce concept

What is e-commerce?

E-commerce with English name is e-commerce, e-comm or EC for short, or internet commerce, refers to the buying and selling of goods or services using the internet to make purchases and transfers. , data to perform these transactions. E-commerce is often used to refer to the sale of products online, but it can also describe any type of commercial transaction that takes place through the internet.

These business transactions happen either from business to business, business to consumer, consumer to consumer or consumer to business.

Benefits and challenges of e-commerce e-commerce concept

What are the benefits of e-commerce?

Since then, e-commerce has evolved to make it easier for products and services to be discovered, bought and sold through online retailers and marketplaces.

Indeed, the internet has become an essential requirement of daily life, businesses are learning how to take advantage of it to develop e-commerce.

Possibility

Another great benefit of e-commerce is that running an online business is really simple, it's always open 24/7. For a merchant, that's a significant increase in their chances of selling; For a customer, it's a convenient and immediately available option. Not limited by working hours, day/night e-commerce businesses can serve customers 24/7/365.

Global market pretty e-commerce concept

A physical store will always be limited by the geographical area it can serve. An online store, or any other type of e-commerce business will solve that problem. Accessing the global market at no extra cost is indeed one of the biggest advantages of e-commerce.

Budget saving

E-commerce businesses benefit from much lower operating costs than traditional commercial businesses. Because there's no need to hire salespeople or maintain physical storefronts. When sellers are able to save on operating costs, they can offer more deals and better discounts to their customers. This is very convincing, isn't it?

Most Accurately Targeted Marketing

With access to rich customer data and the opportunity to track customer buying habits and emerging industry trends. E-commerce businesses can quickly define and redirect the marketing strategy of their items, products, and services to match the user experience.

Inventory management e-commerce concept

E-commerce businesses can automate their inventory management using electronic tools to expedite ordering, shipping, and payment processes. It saves billions in operating and inventory costs.

Work from anywhere

Running an eCommerce business allows you to not have to sit in an office or just sit in one place. What you need is a laptop and an internet connection. You need to be able to manage well all matters of business anywhere in the world.

Challenges of e-commerce e-commerce concept

In addition to the advantages, e-commerce also has many difficulties and challenges. So, what are the challenges of e-commerce?

Lack of trust:

While payment platforms have grown to be quite secure as any business is still not fully trusted by consumers. Distrust in both buyers and sellers leads to many incomplete transactions.

Internet access required:

This is obvious when engaging in e-commerce, but to be able to buy and sell you need a device connected to the internet. Today, most people have access, but it's still limited to a lot of people, a lot of areas. e-commerce concept

Products and services must not be seen, touched, handled or felt with your hands

Everyone loves to see, taste, or experience ant eggs with their own eyes. However, they can only see through images, videos, and detailed product descriptions.

Competitors:

The initial investment to start an e-commerce business is relatively low, but it equates to a lot of competition.

… and many more other challenges. e-commerce concept

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