Role of Technology in Supporting E-commerce Practices

This report discusses the role of technology in supporting and improving the e-commerce operations of an organization. It covers communication tools, social networks, advertisements, Web 2.0 applications, virtual reality and augmented reality, entertainment, and transactions/purchases.

E-Business

1
Table of Contents
Introduction...............................................................................................................................2
Role of technology in supporting e-commerce practices..........................................................2
Communication tools.............................................................................................................2
Social networks......................................................................................................................2
Advertisements......................................................................................................................3
Web 2.0 application...............................................................................................................3
Virtual Reality and Augmented Reality..................................................................................4
Entertainment........................................................................................................................4
Transactions/purchases.........................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

2
Introduction
With the popularity of the internet and online-based services, the importance of
internet infrastructure is growing significantly in organisations. The popularity of the
internet influences the e-marketing strategy of corporations by assisting them in reaching a
wider audience while operating efficiently. The internet and web features make it easier for
companies to improve their profitability by allowing users to access their products online
and purchasing them. There are a number of ways in which the internet and mobile features
are used by organisations to support and improve their e-commerce facilities. In this report,
the role of the internet and mobile feature will be discussed in improving and supporting
the e-commerce operations of an organisation.
Role of technology in supporting e-commerce practices
Communication tools
One of the key features of e-commerce strategy is that it enables the organisations
to reach a global audience without incurring significant cost on the expansion. The internet
is a global platform, and it enables individuals and organisations to communicate globally.
The internet infrastructure provides a significant communication tool to organisations who
engage in e-commerce activities since they enable them to communicate with their
audience without any delay or issues. The customers can easily write their issues and
problems on the message boards, or they can chat with the customer case assistance from
VOIP or voice over internal protocol (Azfar, Choo & Liu, 2016). Due to the ability to chat with
the organisations and customers assistance over the phone or through emails, the
customers become confident while purchasing the products online which resulted in
increasing the overall sales of the company. Customers can simply use their smartphones to
communicate with the organisation, and it also enables them to give their review of the
products or services of the company which benefits others.
Social networks
With the growing number of smartphone and internet users, the number of social
media users is increasing globally as well. Currently, there are 3.8 billion internet users

3
across the globe from which 3.0 million actively use social media site (Kemp, 2017). The high
number of social media users assists corporations in their e-commerce strategies since the
company can connect with its customers through social media sites and blogs. Organisations
such as Starbucks use the social media sites to their advantage in order to connect with
their customers and promote their products. Moreover, corporations use these websites to
share information regarding their upcoming products and features of their products which
creates hype between customers and it resulted in increasing the sales of companies. Social
media sites are also good way to communicate with customers where they can resolve their
queries while shopping online (Aguirre, Mahr, Grewal, De Ruyter & Wetzels, 2015). The use
of social media sites is a good way to advertise the products of the companies as well.
Advertisements
Along with social media sites, the online infrastructure enables corporations to
improve their promotional strategy which resulted in increasing the awareness regarding
the products and services of corporations. The cost incurred on the online advertisement is
significantly lower than compared to the traditional medium of advertisements such as
television, radio, movies, and others (Saini, 2018). Online companies such as Amazon track
the online activities of their customers to collect information regarding their likes and
dislikes and advertise their products to them while they are surfing the web. It assists them
in categorising their e-commerce marketing strategy to selected individuals who are
interested in their products and services. Moreover, the companies can easily create their
social media profiles where they can advertise their products and reach the audience who is
interested in their products.
Web 2.0 application
The Web 2.0 is referred to social uses of the web; it includes a collective term of
certain application related to the internet and online services such as social media sites
including Facebook, Instagram, and Twitter along with wikis, blogs, video sharing services,
and others. All these applications focus on interactive sharing and encourage participants to
collaborative which each other which benefits the companies in their e-commerce strategy
as well since it enables them to reach a wider audience (Berthon et al., 2012). The online
shopping websites are also using Web 2.0 applications to make shopping a collaborative
effort in which customers can create wish list with others and share their likes and dislikes

4
with their family and friends. All these features resulted in increasing the number of online
customers since people can shop online from the comfort of their homes along with their
friends which increases the sales for online retailers.
Virtual Reality and Augmented Reality
With the improvements in technologies such as virtual reality and augmented reality,
corporations are able to provide an option to its customers where they can saw and interact
with a third dimensional model of their products. Customers can see the products in their
house through virtual and augmented reality which help them while making a purchase
choice (Mittal, 2013). This option is not available in traditional commerce methods, and it
encourages customers to purchase the products which suit their needs.
Entertainment
The internet and online based services have expanded the entertainment industry
and the popularity of smartphones play a crucial role in it as well. The modern generation
especially millennial prefers to consume media through their devices such as smartphone,
tablet, and laptop. The entertainment industry is heavily influenced by the e-commerce
practices since corporations can reach their audience through their smart devices.
Organisations such as Netflix, YouTube, Hulu, and Amazon Prime Video have gained
significant popularity in the online streaming field, and they use e-commerce principles to
increase their profitability (Chen & Teng, 2013). Customers can simply pay for their media
online rather than getting a cable or rent a movie from the stores. The companies such as
Apple and Google provide options to their customers where they can purchase new songs
and albums of artists as well without waiting in lines. The number of online customers in
proliferating in the entertainment field which benefits the corporations operating the
industry.
Transactions/purchases
The ability to make transactions/purchases online is another key feature which
assists in increasing the global area of the e-commerce industry. Customers can simply
purchase products through online retailers by their debt or credit cards or through net
banking. It saves their time improves the overall efficiency of the purchase process.
Customers who are sceptical regarding online payment options can choose the cash on

5
delivery option which benefits the corporation (Slade, Williams & Dwivedi, 2013). The
promotion of cashless economy promotes the growth of the e-commerce industry.
Currently, the popularity of e-wallets has grown substantially as well which include PayPal,
Amazon Pay, and other options. These wallets encourage customers to make purchases
online by offering them various offers. Thus, the online-based transaction system is focused
on ensuring the comfort of customers while at the same time ensuring that customers are
more engaged in the online shopping process. Thus, the popularity of the internet and
online transaction system supports the e-commerce industry.
Conclusion
In conclusion, the advancement of specific internet and mobile features resulted in
supporting the e-commerce industry and contributes to its global expansion. The use of
technologies makes it easier for customers to select from a wider range of products while at
the same time ordered them through online transitions. Customers can see the third
dimensional model of products and interact with them before making the purchase, and
they can also communicate with customer care instantly. Organisations use online based
services to advertise their products and connect with their customers through social media
sites and blogs. Therefore, the advancement of technology and specific internet-based
technologies improves and supports the e-commerce practices of organisations and result in
sustaining their future growth.

6
References
Aguirre, E., Mahr, D., Grewal, D., de Ruyter, K., & Wetzels, M. (2015). Unraveling the
personalization paradox: The effect of information collection and trust-building
strategies on online advertisement effectiveness. Journal of Retailing, 91(1), 34-49.
Azfar, A., Choo, K. K. R., & Liu, L. (2016). Android mobile VoIP apps: a survey and
examination of their security and privacy. Electronic Commerce Research, 16(1), 73-
111.
Berthon, P. R., Pitt, L. F., Plangger, K., & Shapiro, D. (2012). Marketing meets Web 2.0, social
media, and creative consumers: Implications for international marketing
strategy. Business horizons, 55(3), 261-271.
Kemp, S. (2017). Number of social media users passes 3 billion with no signs of slowing.
Retrieved from https://thenextweb.com/contributors/2017/08/07/number-social-
media-users-passes-3-billion-no-signs-slowing/
Mittal, A. (2013). E-commerce: It’s Impact on consumer Behavior. Global Journal of
Management and Business Studies, 3(2), 131-138.
Saini, S. (2018). 11 Benefits of Digital Marketing over Traditional Marketing. Retrieved from
https://technians.com/blog/benefits-digital-marketing-over-traditional-marketing/
Slade, E. L., Williams, M. D., & Dwivedi, Y. K. (2013). Mobile payment adoption: Classification
and review of the extant literature. The Marketing Review, 13(2), 167-190.