Assignment on Electronic Commerce

   

Added on  2021-06-14

10 Pages3466 Words100 Views
ELECTRONIC COMMERCE (E-COMMERCE)Insert Your Name HereInsert Your Tutor’s Name HereInstitution AffiliationDate
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1. How is e-commerce profitable?E-commerce has become totally inevitable to most businesses. Most business today that have adopted e-commerce have made big profit margins. E-commerce has boosted the way most people perform the business (e-commerce, 2013). Most of the challenges encountered in businesses can be overcome by adopting the e-commerce technology. Most loopholes in businesses are avoided by use of e-commerce.Using e-commerce brings along use of analysis tools. Much data is generated in the e-commerce systems. This data can be used to make valid decisions by the business. The data is analyzed using e-commerce data analytic tools such as Google Analytics. For a business to achieve profitability then, the business must achieve a positive balance in revenue andexpenses. Every business aims at getting the highest profit margin. Every profit margin is expected to be higher than the previous profit made. The internet is one major aspect that leads to huge profit margins. Each business that incorporates e-commerce, is likely to use the internet in many ways to ensure that the profit increases gradually.With the use of e-commerce, businesses reach many customers in many different areas. When businesses can access quite a number of potential customers, there are high chances of making more sales, thus increasing the profit margin (Jelassi and Enders, 2015). E-commerce increases traffic to the website by implementing: Search engine optimization, social media marketing and email marketing. Search engine optimization, involves increasing visibility on most search engines such as Google, Bing, Yahoo and many more. Social media marketing involves marketing the business through channels such as; Facebook, Twitter, You Tube or Instagram (Liang and Turban, 2011). Email marketing involves using email newsletters. The subscribers in the newsletters will keep the potential customers with the update of the latest products in store.When the website has traffic, then the business should work on enhancing the people visiting the site tobuy the products. The website should be designed in a more friendly way. A good website design is achieved by, ensuring the navigation to different pages is efficient. The website should contain high quality images. The high quality images will attract more users and all the users could end up buying the products. The website should also display alternative products, in order for the customers to choose the product they want. The site should be responsive to any device, the customer could be using to access the website. On implementing the above factors, then the sales will increase and the conversion rate will also improve. Business increase profit by increasing the sale and reducing the cost. The more the customers the online business reach, the higher the chance of more sales. More sales leads to more
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profit. On the other hand the cost of market will be reduced, less labor is required. The less the cost, thegreater the revenue. E-commerce is profitable to the businesses today.2. A report of incorporating of e-commerce in a businessIntroductionE-commerce is one of the newest and most helpful technologies. Electronic commerce is the current trend of most businesses. E-commerce is a business model that has been incorporated by most business;due to the many advantages it brings to a businesses. E-commerce is applied in various market segments. The market segments include: business to business, business to customer, customer to business and customer to customer. Business to business is also referred as B2B. The B2B e-commerce category involves online trading between companies. B2B architecture involves: application service providers that include: hosting, content management and data management, logistics and auction software solution software which manages the content on the website and the delivery of purchased products to the customers. B2B applications that are helpful in the industries. The benefits include: inventory management system, payment management systems, distribution management system and channel management application.Business to customer e-commerce architecture is also referred to as B2C. It involves companies and customers. This type of architecture is widely used all over the world. Most business such as Amazon.com, Noble, Drugstore, Beyond.com, ToysRus among others, have incorporated the architecture in their businesses. Mainly B2C involves selling and purchasing goods and services through the internet. The products involve both informational and physical goods. The informational goods involve music, movies, software among others. The physical products include the electronics, furniture, books, clothes, shoes, bags among many others. The services include food delivery, car packing services, holiday vacations and many more. Consumer to business is also referred to as C2B. The C2B e-commerce architecture involves consumer initiated transactions such as airline tickets. The consumers determine the routes they need to follow to reach their destinations. C2B involves the reverse auction by the customer.Finally, Customer to customer which involves transaction between the individuals. The C2C e-commerce is in different forms such as peer to peer systems, classified adverts and auction that require bidding on the items being sold.E-commerce involves transactions of various products and services such as books, clothes, music, plane tickets, financial services and hotel accommodation services. Electronic commerce has enabled establishment of a wide market globally. It has also enhanced efficient distribution of products and
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