Imagine a world without Internet. Nowadays, it is like asking people to survive without their basic needs, in other words impossible. During few past decades Internet became essential tool for people to survive their daily needs. And what is the Internet? Internet is network of networks! It connects a vast number of computers, programs, great amount of information and of course it connects people from all around the world. Today, technological world is fast developing. Within the astonishing growth of the Internet, these days businesses are more often, taking place online. Researches done on the Internet are from less serious to very complex, important and serious things. Internet has a purpose for everyone. It can be used for entertainment, just surfing on the web, or to conducting serious business. All over the globe Internet is fast becoming the method of transacting the business.
The large existence of the ways of doing business is available on the Internet, and by using the Internet. For instance from E-commerce to M-commerce and many others ways. Those two ways of conducting business online are the most used, the most known, affordable and perhaps the most user friendly ways to do business. Internet, as well as e-commerce, is preferred due to its ability to provide customers with a lot of informations. Likewise social networking has a huge role in preferring the Internet. It has its purpose to bring people together, but not like the Internet does, connecting people from all around the globe randomly, but to connect those people with the similar thoughts and ideas, and to enable them to share the existing information with the each other from many different locations. A one of the major purposes of the social networking is to make easier for clients to get in touch with target customers. In order to make that connection, people invented and are still trying to invent new ways of online communication. Social networking became extremely popular and appealing.
That has led to creating a new type of E-commerce experience, which is called social shopping.
The basis of E-commerce is predominantly the same for all kinds of it. It differs only in the fields of doing it.
With doing business online, comes the thing with ads. A source of revenues of the online companies are ads and their placement on the Web site. There are few types of ads, which will be discussed within the E-commerce topic. Internet provides us with digital firms, digital goods which may be delivered digitally, over a digital network (i.e. digital goods delivered online are intangible) but most of the products are sold as physical goods. Delivering over the Internet is cheaper than delivering products as physical goods. As it is said in the above text, Internet has a major role in human lives and in business generally. E- commerce and M-commerce are two relatively innovative ways of conducting a business. They are interdependent and they both depend on previously mentioned network of networks, the Internet.
2.E-commerce; B2B, B2C, G2H; Brick and Click; Pure Click
Nowadays, everyone is familiar with e-commerce.
People are aware of its meaning, but there is much more to it than just awareness. “Most people think e-commerce is just about buying and selling things over the Internet” (Wareham, 2000). E-commerce is the way of doing any business process over the Internet. It considers transactions, selection of merchandise, ordering, availability of products, warehousing and the other methods of conducting business over digital network. Doing business online these days is very attractive since it reduces the costs and since it is way faster than traditional business conduction. Every business has its features, so does the E-commerce as well. The time in which people live requires a fast and efficient way of living, thus E-commerce is preferred service because it provides with availability everywhere and at any time. Other words E-commerce is ubiquitous. People can shop from their homes, work and even from different countries owing to its marketspace,( digital marketplace), which makes purchasing much easier, enjoyable and less costly.
As Internet increases from day to day, it enables people to know more about products in which they are interested and provides us with information density, meaning the complete information about products that are available to all market participants. Human beings have their personal needs, wants and demands, and when purchasing they want for them to be fulfilled. Not talking just about needs but also about their wishes to be completed. E-commerce in some ways can make it because it authorizes customization, shaping service or product on the basis of the customers preferences, and personalization. This helps in order to efficiently sell products. With selling products and generally E-commerce unavoidable comes social networking. Social networking is one of the main features without which E-commerce and Internet would hardly survive. It enables the communication between the organizations and consumer. Social networking allows sharing all kinds of information, therefore comes an information asymmetry. But that information asymmetry is very useful in any business so as well in online business. It helps to determine the bargaining power of the companies participating in the marketplace. The marketspace (digital marketplace) offers two types of products. Digital and physical goods. As mentioned before, most of them are sold as physical goods.
Standard used by the Internet and E-commerce are shared by people all over the word, which tells that they are universal standards. They allow connection between any computer. With these standards, both the consumers and customers are in profit. Consumers are obligated to pay just the market entry costs, it is much easier than having to pay all the assets.
Customers in other hand, have the reduced search costs, they do not have to put that much of effort in finding the desired product. All online, E-commerce payments are done by using a credit card. In my opinion one of the most used payment systems is digital wallet. Digital wallet stores the owner identification information and credit card number, so every time when shopper is about to end purchasing, it is completely enough to enter just name, and computer automatically recognize the user. That is how one of the biggest technological company does, Apple. Even though people do not feel very secure while paying on the Internet with credit cards, there are few
ways of doing it safely knowing that there is no chance of any treat for your bank account, for instance paying via PayPal. In order to conduct business online, it is important for E-commerce to have the three main categories.
Business-to-Business relates to selling products and services between the businesses. For instance, a grocery shop cannot exist without fruits and vegetables. So in order to have an efficient job, they need to make business with the other merchants, which is B2B. Business-to-Consumer refers to selling products and services to individuals. Farfetch.com website which sells clothing directly to consumers is an example of B2C. Since there are no enough sources to find exactly what G2H is, the shortest definition is Government-to-households.
On the online market, there are two types of companies.
‘Pure Click’ and ‘Brick and Click’ companies, both of them are in some segment online companies.
By ‘ Pure Click ‘ company means that they have its market just online, so purchasing is done just through the Internet service. With ‘Pure Click’ companies, standing in long queues for necessities, or traveling far for some products can now be easily forgotten. Amazon and ebay.com are two largest ‘ Pure Click ‘ companies. In order to survive, these companies must cover all parts of doing business online. From the design of their web site, no downtime, to be user friendly and to have a good navigating system and to answer customers inquiries in time, these are just few crucial points. Amazon, for instance, has its own web site page, which is easy to access and to manage. It provides customers with good and fast services as it does with products also. Amazon as an online, ‘Pure Click’ company, has no needs for suppliers, retailers, warehouses and it has the advertisement on the Internet.
Similarly work the ‘Brick and Click’ companies. The main difference is that those companies have both presence, online and offline. ‘Brick and Click’ companies allow customer to choose weather to purchase products online or
physically in the retail store, and also enable to choose how they want to get delivered the product.
The important thing about conducting ‘ Brick and Click’ companies is that both, online and offline stores, have to be balanced so it could operate efficiently and to be profitable. Apple belongs to ‘Brick and Click’ companies. It has it online service, web site on which you can purchase goods and it has physical stores in which you can also purchase products. It is on you to choose what kind of purchasing you want to do. 3.M-commerce
With E-commerce came one more innovative way of purchasing products. It is way more easy, and accessible if you decide to shop that way. M-commerce is purchasing goods and services from any location via handheld device called mobile. M-commerce started to grow with the new 3G mobile phones.
It provides us with many different and interesting applications which can be also very useful.
Nowadays, smartphones like iPhone, and Windows Mobile gained popularity across the globe. They have been used as mini computers. Smartphones enable users to use them to browse the Internet, shop online, pay their bills and many other different things. In order to accomplish online shopping over the mobile device, there must be corresponding web site and purchasing system. It should all be easy accessible and user friendly, so the consumers can execute their shopping.
With 3G mobile device, users do not depend on Wireless technology, therefore it is slightly easier to purchase. They can shop from anywhere, the important thing is that they just have their mobile devices with them. Sometimes it saves time when shopping via mobile device. All of this sounds great, and it is a good thing that this way of purchasing is shrinking and will be more able in time. Several countries are not that much in time with the great development of technology, thus using M-commerce is not completely available to them.
M-commerce has also a few others disadvantages which may be of great importance for its growing status. The expensive costs of M-commerce could make customers to switch their purchasing back to the E-commerce, just shopping over their computers as like security does. Mobile devices are not that secure for doing business online as computers are. Thus, E-commerce can be easier for mobile device users because some of the Web sites do not have pages for mobile phones, lager screens cannot be displayed clearly. Besides that, there is limitation while writing messages of long content and slow speed of the Internet. People, nowadays, are accustomed to high speed Internet, so this may sometimes annoy them, and make them to find a better solution by using E-commerce. But, as said before, by each day M-commerce is growing more and more.
4. ‘Brick and Click’ Farfetch company
Farfetch.com – an E-commerce organization
Founded four years ago, in 2008 by Jose Neves, Farfetch is an online fashion marketplace, registered in England and Wales. Farfetch cover over 44 boutiques across USA and Europe and creates one online fashion store which is available to anyone and at any time. The company was founded in order to make purchasing of interesting clothing and accessories pieces from different shops around the world easier for fashionistas and the other people. Even tough Farfetch is currently a mid-size business and relatively young company, it is growing with time. Farfetch brand building is still in progress.
The company has a marketing plan whose goal is to assist in the expansion of the business. One of the plans, for the European markets is to consolidate its network of boutiques, while on the other side developing marketing, technology and operations in order to better target global demand. In the USA is different story. The company is much less known, so they are trying to penetrate the market by opening for the start an office in NYC. On the other hand, Farfetch has an opportunity to prosper on the Brazilian market, since the team has been working on that chance for two years. From the
beginning, the company has reached a great amount of the customers in 100 countries.
Since Farfetch is recently in the market, the company’s aim is to improve the service and the mode of operation in order to have a better global demand. Every beginning is difficult, so Farfetch’s was too.
Talking about products and services, in the beginning Farfetch proved to be poor. Customers were complaining about the poor customer service, the fulfillment of their wishes and not getting the desired products. That problem lasted for the first eighteen months of the operating, after which the company solved all the problems by another operating strategy that proved to be efficient. The main problem was that the company did not publish their contact number phone, so the customers could not reach the responsible in case of mistakes.
Nowadays, the customers, their target audience, fashionistas and people interested in fashion are delighted with Farfetch’s services and products. They are satisfied with the speed of delivering products, the products themselves as well as the customer service. Customers are in touch with the company by an e-mail service, which is fast and efficiently responding to their questions. But, there are still those never satisfied customers, it is good that they are in the minority.
So, ’ A bad beginning may make a good ending ‘, what would say a German proverb. Farfetch’s website is user friendly. It is simple and interesting to browse the site since it is very clear displayed and knowing that you can find the desired product on it, makes it even more interesting. The company’s website is completely filled with the informations about products and services, way of purchasing, all the necessity fittings for the security of users and everything that is of crucial importance for customers. Customers are loving the company’s website as well as they love their products and services, especially because they can relax and enjoy the purchasing now, knowing that they do not have to worry about the payment system which now very secure.
In the end , it is very clear that the E-commerce is the revolution in the way businesses are being conducted these days. Expansion of the commerce and the technological innovations have merged into one and created E-commerce. It is vital for survival of any kind of businesses what have not yet switched to the modern way of conducting business. The old way of operating, the traditional firms are being replaced with new, modern, easier and more efficient ways what belong to the E-commerce. E-commerce provides no geographic limitations in forming a business, lower costs than the traditional firm does, and many others different benefits. Within the years, E-commerce will grow more and more since the amount of the Internet users generally, and in businesses increases significantly.
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