Analysis of E-commerce Activities

Running head: ANALYSIS OF E-COMMERCE ACTIVITIES
ANALYSIS OF E-COMMERCE ACTIVITIES
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ANALYSIS OF E-COMMERCE ACTIVITIES
Answer 1
E-commerce refers to the activities related to the selling and buying of the services
and products over the internet. The process of selling with the help of e-commerce related
activities depends on the various technologies like, electronic transfer of funds, mobile
commerce related activities, management of supply chain, marketing with the help internet.
The modern e-commerce related activities are supported by the usage of the world wide web
for one part of the life cycle of the transaction. The typical types of e-commerce activities
include the purchase of online books from Amazon, purchasing music from the various music
apps and many more. The e-commerce activities mainly include three major areas which are,
online retailing, online auctions and electric markets (Mazzarol, 2015). The e-commerce
related business organizations can further employ other areas like, online shopping, providing
and participating in the online marketplaces, business-to-business transactions. The
ecommerce related activities consist of different types which are, business-to-business,
consumer-to-consumer, business-to-consumer, consumer-to-business, business-to-
administration and consumer-to-administration.
For example, Tesco had been operating its physical stores all across the various areas
in UK. However, the organization had started its online operations to compete with the
ecommerce giant Amazon. This had proven to be a huge step by Tesco which further led to
the increase in revenues of the organization within a shorty span of time. The ecommerce
business is able to provide major advantages to the business organizations like Tesco and the
consumers. Convenience is one of the most important factor that affects the ecommerce
business revenues. The facility that is provided by the ecommerce services are related to
shopping related activities at any time of day or night from the website of Tesco, is able to
attract more consumers (Hiles & Hon, 2016). The consumers can receive the entire details of
the products in the website from where they are to purchase the same. The visibility of

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ANALYSIS OF E-COMMERCE ACTIVITIES
products in the search engines is another major benefit that is received by Tesco after it
transformed its physical processes. The inventory management related costs of the company
were also reduced to huge levels which helped the business in saving huge amounts of
money. The organization was easily able to understand the buying related behaviour of the
consumers. The reviews that are provided by consumers on the website of Tesco has helped
in increasing the sales and the revenues of the organization (Doloto & Chen-Burger, 2015).
The reach of the ecommerce based services of Tesco is quite high and further helps in
increasing the customer base of the organization. The products that are sold on ecommerce
platforms have 24*7 availability as compared to the products sold in the physical stores of
Tesco. The investment that was required for the ecommerce based business of Tesco is low
and this has proved to be the best option for an organization like Tesco. The awareness
related to the brands of Tesco is increased among the customers which has been helpful for
the company to increase its profitability in the market. The various costs that are decreased
with the application of ecommerce include, advertising and marketing costs, personnel costs
and many more (Kumar & Vijayalakshmi, 2016).
Answer 2
The six different impacts that are caused on the business organization due to the
advent of ecommerce are,
 Firms now have a global presence and the customers have global choices as
well – The global presence of the firma demand higher levels of strategies
which can be helpful in understanding the global customers and managing the
operations in the various countries.
 Firms can improve their competitiveness and the quality of the services with
the help of access that is allowed to their services at any time of the day – The