The Impact of E-Commerce on Economy, Communities, Business, Culture
Electronic commerce is a new way of conducting business transactions over the internet. In this case, it has the ability to radically transform an economy, community involved, businesses, and culture. Economically, electronic commerce affects the market trade in which businesses are conducted. In this case, it enhances new ways of marketing and how well new goods and services are identified consumer and marketer relationship is transformed making it easier for the latter to reach out to the former within a short time.
Due to the catalytic effect, e-commerce has boosted most contemporary economies. Moreover, it increases flexibility and compliance with market forces since there are several channels of channeling ideas and skills. This ensures that any country participating in electronic commerce remains stable in its economic endeavors. Through this commerce, there is increased interaction in the economy whereby small and big businesses link with customers globally and on large scale. The use of electronic devices like computers and TVs to conduct commerce has eliminated geographical barriers that inhibit trade. Businesses are able to expand their investments without limitations.
Electronic commerce has played an important role in business organizations in various aspects. For instance, businesses have seen this as an opportunity to effectively save costs associated with marketing. It is evident that traditional forms of marketing have been ineffective and time-consuming as opposed to online commerce. With electronic commerce, marketers reach out to clients easily with little time taken. Moreover, it has fostered breakthroughs in consumer/marketer interaction resulting in customer satisfaction. This has made businesses attract more customers within a short period of time. Through this form of commerce, new business skills and ideas spread faster thus making marketers improve product quality, packaging, and varieties.
On the other hand, electric commerce has influenced people’s culture globally. It has influenced the acceptability of certain products and services among different cultures of the world. Long-term orientation of consumers to online products has affected their perspectives and acceptance of certain goods. Different strategies used in advertising and marketing products online have influenced either positively or negatively, how people perceive and accept certain goods against others. However, consumer culture is highly dependent on the transparency and trust built by marketers using such transactions. It is evident that customers shy away from electronic commerce due to inconveniences resulting from a lack of trust.
Additionally, electronic commerce influences the efficiency of a community in its social-economic aspect. For instance, it negatively affects the traditional businesses within the community that lacks the potential to compete globally. In return, local trades have derived the opportunity to gain sufficiently from commerce since prominent businesses sweep all the consumers through online marketing. Nevertheless, the type of commerce has enhanced efficiency in the community by facilitating larger access to quality products. Hence, people in any given community are able to derive relevant information regarding particular goods and services.