Trade has been one of the necessities of human life throughout history, starting with social life associated with it.
At the most basic way of doing business that are going directly were parties to the transaction, the buyer were negotiated at a specified location together, beginning this transaction is in the form of barter exchange, in this case, the seller of the product must be individualized. He was found to have bought the product and are instead subject to product demand have also done exchanges.
Bank of entry monetary system in the field of trade, commerce also changed the way the money was used as a means of exchange. So that the seller would receive for selling their product and they could make money at the same time or in future time spent or required to see the savings it.
With the arrival of paper in the field of trade, commerce has changed the way business was through the paper, this could be somewhat difficult previous methods, which require a physical presence for the exchange of commercial documents, and that work to solve by correspondence and through paper documents to do, but the problem of high transaction costs for trade long time was still in force.
It was not resolved, but the invention of the telephone entry to the field of trade, created profound change. This evolution was completed With the Internet growth and expand its business into the field of information and communications technology trade instituted new procedures, which later called e-commerce.
If what this new way to solve some problems in the way the previous trading, because of the new and still in its infancy and is not a pandemic and widespread, although the speed of growth and spread of the impressive expected in the near future and to allocate the greatest volume of trade, however, developed countries have failed to carry out all transactions through e-commerce, and seeks to extend and expand it.
E-commerce concept deployment of new technologies for the Electronic communications chain between manufacturers, dealers, suppliers, general goods and services providers of the purchaser, consumer or client, in general, on the other hand, to adopt decisions better optimization of goods and services, reducing costs and opening new channels.
Impact of the Internet on E-Commerce:
Extra boost the purchasing power of buyers today, just with a click of the price of competitors’ products and features will be notified. They quickly answer your needs will no longer mileage to store, search chin presentation will be all woman. Bulk products and services available now a person can buy and sell almost anything on the Internet. The volume of information about things people can almost any newspaper in any language they want from anywhere in the world in Internet access. Large easy to deal not just now buyers can customize their desired goods from home, work or anywhere else 24 hours a day, seven days a week to order. The ability to negotiate on services and products customers can enter only through a large number of people Chatroom to talk about goods and services of their choice and to receive the necessary information for the transaction.
Internet access solutions inexpensive in the villages:
The cost of providing ICT in rural areas due to limited population much more than the cost of the city is needed. In addition, for low-income villagers, the villagers are not allowed to pay the costs. Given that the rural economy is less complex than the urban economy, the information required villagers also far less and can be created according to the needs of the IT costs more’s actions.
The important thing to note is that the issue of e-commerce, the issue of e-commerce technology and technical knowledge are not discussed further determine new patterns of trade and communication in the electronic environment. It also should be noted in marketting that e-commerce set Telecommunication Technology, process and store data related to markets, organizations, customers, media and electronic payment systems.
In contrast to industries, businesses in E-Commerce need a long time to achieve profitability, many businesses are known to be incurring losses on each sale they make. In such a scenario, the primary goal for the companies is to capture the market share and build brand loyalty. It is said that Amazon took 13 years to break-even.
Even after investments worth billions of dollars, most of the E-Commerce companies are draining out financially as large portion of investment goes into promoting discounts which may be 70-90% at times. Snap deal, is still in loss even after raising funds close to billion dollars last year Flipkart, valued at about $12 billion too faces a similar predicament. The combined losses of three major, E-Commerce companies’ exceeds. There is an increasing pressure from investor firms for cutting down on discounts suggesting profit making. The more matured firms in business are gradually changing their strategy to sustain. Conclusively, E-commerce business needs to rework on the loss-making discount model to sustain in the long run.