Insights and research work on the Effects of e commerce to globalization - vice versa

1. FITZERALD D. LIM
DIT Student - St. Paul University Philippines

2. Electronic commerce, or e-
commerce, (also written
as eCommerce) is a type
of business model, or segment
of a larger business model, that
enables a firm or individual to
conduct business over an
electronic network, typically the
internet.

3. 1. Business to consumer (B2C) – Transactions happen between
businesses and consumers. In B2C ecommerce, businesses are
the ones selling products or services to end-users (i.e.
consumers).
Online retail typically works on a B2C model. Retailers with online
stores such as Walmart, Macy’s and IKEA are all examples of
businesses that engage in B2C ecommerce.
2. Business to business (B2B) – As its name states, B2B ecommerce
pertains to transactions conducted between two businesses. Any
company whose customers are other businesses operate on a
B2B model.
Examples include Xero, an online accounting software for small
businesses, ADP, a payroll processing company, and Square, a
payments solution for SMBs.

4. 3. Consumer to business (C2B) – Consumer to business ecommerce
happens when a consumer sells or contributes monetary value to
a business. Many crowdsourcing campaigns fall under C2B
ecommerce.
Soma, a business that sells eco-friendly water filters is one
example of a company that engaged in B2C ecommerce. Back in
2012, Soma launched a Kickstarter campaign to fund the
manufacturing of their product. The project was successful, and
Soma went on to raise $147,444.
4. Consumer to consumer (C2C) – As you might have guessed, C2C
ecommerce happens when something is bought and sold between
two consumers. C2C commonly takes place on online
marketplaces such as eBay, in which one individual sells a product
or service to another.

5. 5. Government to business (G2B) – G2C transactions take place
when a company pays for government goods, services, or fees
online. Examples could be a business paying for taxes using the
Internet.
6. Business to government (B2G) – When a government entity uses
the Internet to purchases goods or services from a business, the
transaction may fall under B2G ecommerce. Let’s say a city or
town hires a web design firm to update its website. This type of
deal may be considered a form of B2G.
7. Consumer to government (G2C) – Consumers can also engage in
B2C ecommerce. People paying for traffic tickets or paying for
their car registration renewals online may fall under this category.

6. A Larger Market
eCommerce allows you to
reach customers all over
the country and around
the world. Your
customers can make a
purchase anywhere and
anytime, especially more
people are getting used
to shopping on their
mobile devices.

8. Customer Insights Through Tracking And Analytics
Whether you're sending visitors to your
eCommerce website through SEO, PPC ads or a
good old postcard, there is a way to track your
traffic and customers' entire user journey to get
insights into keywords, user experience, marketing
message, pricing strategy, and more.

9. Fast Response To Consumer Trends And Market Demand
The streamlined logistics, especially for merchants who do
"drop ship," allow businesses to respond to market
and eCommerce trends and consumer demands in a nimble
manner. Merchants can also create promotions and deals on
the fly to attract customers and generate more sales.
Lower Cost
With the advance in eCommerce platform technologies, it has
become very easy and affordable to set up and maintain an
eCommerce store with a low overhead. Merchants no longer
have to spend a large budget on TV ads or billboard, nor worry
about the expense for personnel and real estate.

10. More Opportunities To "Sell"
Merchants can only provide a limited amount of information
on a product in a physical store. On the other hand,
eCommerce websites allow the space to include more
information such as demo videos, reviews, and customer
testimonials to help increase conversion.

11. Personalized Messaging
eCommerce platforms give merchants the opportunity to serve
up personalized content and product recommendations to
registered customers. These targeted communications can
help increase conversion by showing the most relevant content
to each visitor.

12. Increased Sales With Instant Gratification
For businesses that sell digital goods, eCommerce allows the
delivery of products within seconds of making a purchase.
This satisfies consumers' need for instant gratification and
helps increase sales, especially for low-cost items that are
often "impulse buys.“
Ability to Scale Up (Or Down) Quickly And Unlimited "Shelf Space"
The growth of an online business is not limited by the
availability of physical space. Even though logistics can
become an issue as one grows, it's less of a challenge
compared to those for running a brick-and-mortar store.
eCommerce merchants can scale up or down their operation
quickly, and take advantage of the unlimited "shelf space," as
a response to market trend and consumer demands.

15. Lack Of Personal Touch
Some consumers value the personal touch they get from visiting a
physical store and interacting with sales associates. Such personal
touch is particularly important for businesses selling high-end
products as customers not only want to buy the merchandise but
also have a great experience during the process.
Lack Of Tactile Experience
No matter how well a video is made, consumers still can't touch and
feel a product. Not to mention, it's not an easy feat to deliver a
brand experience, which could often include the sense of touch,
smell, taste, and sound, through the two-dimensionality of a screen.

16. Price And Product Comparison
With online shopping, consumers can compare many products and
find the lowest price. This forces many merchants to compete on
price and reduce their profit margin.
Need For Internet Access
This is pretty obvious, but don't forget that your customers do need
Internet access before they can purchase from you! Since many
eCommerce platforms have features and functionalities that require
high-speed Internet access for an optimal customer experience,
there's a chance you're excluding visitors who have slow
connections.

17. Credit Card Fraud
Credit card fraud is a real and growing
problem for online businesses. It can lead
to chargebacks that result in the loss of
revenue, penalties, and bad reputation.
IT Security Issues
More and more businesses and
organizations have fallen prey to malicious
hackers who have stolen customer
information from their database. Not only
could this have legal and financial
implications but also lessen the trust
customers have in the company.

18. Globalization can be defined as any economic
transactions where the buyer and seller come
together through the electronic media of the
Internet, form a contractual agreement
concerning the pricing and delivery of
particular goods and services, and complete
the transaction through delivery of payments
and goods and services as contracted

20. Global village
Today, we are all incredibly aware of what
is happening anywhere around the world.
The war in Syria, the Arab Spring, the
Academy Awards, all of these are always
fresh news to us because they are brought
to us by the correspondents and live
telecast, thanks to technology, right where
we are. This makes us incredibly up to date
with current events. Also, thanks to the
fact that there are multiple news agencies
across the globe, there is nothing that
misses our notice anymore.

21. The importance of the media in spreading news
and facilitating globalization cannot be
undermined. In fact, it is not just a device for
keeping us up to date and knowledgeable about
current events, although its importance cannot
be stressed enough. The news media’s incessant
work has also facilitated raising awareness of
issues, which can lead to great social change.
When we see something great taking place in
some part of the world, we attempt to make it a
part of our own culture as well, and this gives
rise to social and political advancement.
Social awareness

22. Personal communication
Technological advancement has allowed us to
make great strides in personal communication
as well. Today, we are always connected to our
friends and families in various parts of the
world, thanks to the telephone and social
media. We can reach out to loved ones
immediately and for a minimal cost any time we
need, and we are also constantly updated about
what is going on in their lives through social
media. This ability to stay connected has made
globalization an even more widespread
phenomenon, and this, in turn, has broadened
our social horizon and allowed us the scope to
grow as individuals.

23. Globalization has increased our scope
for earning a livelihood manifold.
Today, it is highly common for people
to travel and relocate to foreign
countries in search for employment
and education. With communication
so convenient, the world has truly
become our oyster. We can easily look
for opportunities elsewhere and take
them as they come. We can
pursue disciplines and work fields of
our own choice in other countries if
we do not find ample opportunity in
our own.
Economic opportunities

24. Free trade
Globalization has immensely helped in the building
and spreading of business. Although the topic is
controversial with its own set of pros and cons,
globalization has given rise to the concept of free
trade. Free trade has allowed businesses to set up
manufacturing and administrative units outside of
their home ground. This has led to the spreading of
the business, increasing its market, diminishing costs,
and creating a lot of employment for nations which
are often otherwise starved for job opportunities.
Although there is a lot of downside to this aspect of
globalization, the positive impact is makes on local
and global economies cannot be undermined.

27. Firm globalization is heralded as a key driver of e-commerce
diffusion .It is expected that highly global firms are likely to employ
e-commerce more intensively than less global firms. Firms facing
foreign competition are under greater pressure to adopt
technologies such as e-commerce that enable them to protect or
expand market share and operate more efficiently.
Firms doing business outside their own country may be more
motivated to lower their transaction costs (such as search for
information, negotiation, and monitoring of performance) by using
information technology. Using the Internet for transactions and
coordination can save time and money on delivery of goods by
using rich information flows to simplify and streamline the flows
of physical goods in the supply chain.

28. There is a direct relationship between firm globalization
and firm performance. It is expected highly global firms
to perform better in terms of increased sales, lower
costs, and improved competitive position. It is likely
that global firms will realize greater impacts on
performance, because they can employ knowledge and
resources developed throughout their global
operations to improve business processes and more
effectively deploy ecommerce technologies.

29. Global firms are also in a better position to benefit
from e-commerce as they can achieve economies of
scale and global reach. Globalization should also
have an indirect effect on performance through e-
commerce adoption, since highly global firms will
use ecommerce more extensively, and extensive
use will result in improved performance.
Ecommerce adoption will thus mediate the effects of
globalization on firm performance.

30. According to marketing research firm Coleman Parkes, 21-40% of
a business’s contributions are a direct result of e-Commerce and
that number is expected to grow rapidly over the coming years.
e-commerce promotes communication through emails, social
media and websites. It also facilitates international business by
eliminating geographic barriers, leading to economic growth and
globalization. In addition, e-commerce promotes competition
between smaller and larger companies.
The flexibility and scalability of eCommerce allows companies to
grow rapidly and adapt quickly to satisfy the market demands
without suffering from Decreasing Returns to Scale.

31. The adoption of ICT such as the Internet makes it cheaper and easier for
firms to extend their markets, manage their operations and coordinate
value chains across borders
As Greenspan (2001) mentioned, by lowering the costs of transactions and
information, technology has reduced market frictions and provided significant
impetus to the process of broadening world markets. ICT adoption fosters
globalization by reducing the cost of transaction and coordination and
creating new and expanded markets with economies of scale.
e-commerce will reinforce existing international competitive advantages
rather than leveling the playing field and enabling local firms to compete with
global firms in international markets. The local firms may have valuable
resources that put them at a competitive advantage in their home markets.
These include local knowledge, strong brand names, distribution channels and
service infrastructure.

32. Ecommerce transforms the marketplace: ecommerce is changing the way
business is conducted. Traditional intermediary functions will be replaced,
new products and markets will be developed, and new and far closer
relationships will be created between business and consumers. It will change
the organization of work: new channels of knowledge diffusion and human
interactivity in the workplace will be opened with more flexibility and
adaptability will be needed, and workers' functions and skills will be
redefined.
Ecommerce has a catalytic effect: Ecommerce will serve to accelerate and
diffuse more widely changes that are already under way in the economy, such
as the reform of regulations, the establishment of electronic links between
businesses (EDI), the globalization of economic activity, and the demand for
higher-skilled workers. Likewise, many sectorial trends already underway,
such as e-banking, direct booking of travel, and one-to-one marketing, are
accelerated by ecommerce.

33. ECommerce over the Internet vastly increases interactivity in the
economy:
These linkages now extend down to small businesses and households
and reach out to the world at large. Access will shift away from
personal computers to cheap and easy-to-use TVs and telephones to
devices yet to be invented. People will increasingly have the ability to
communicate and transact business anywhere, anytime. This will
have a profound impact, not the least of which will be the erosion of
economic and geographic boundaries.

34. The introduction of e-commerce over the past 15 to 20 years has had a major
impact on society and the way of business is done on the global scale. E-
commerce is so important because the world is moving more and more into
the digital realm every day.
Change comes quickly in the online world, and companies that move quickly
to assess the changes underway and adjust their business models to meet
shifting market dynamics and customer demands can establish significant
leads over both traditional competitors and new entrants. Today’s truly
successful companies must embrace information technology and leverage it
in order to achieve great results. Fear of change and resilience to technology
will hinder business growth and success. Considering that majority of
consumers nowadays are technology savvy and makes use of mobile
technology for their convenience. E-commerce indeed has evolved and
transformed over time to meet the ever changing whims and needs of the
modern day consumer.

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https://blog.apruve.com/e-commerce-advantages-and-disadvantages
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Commerce_Use_and_Firm_Performance_A_Cross-Country_Investigation
https://www.ukessays.com/essays/information-technology/globalization-and-the-impacts-
of-e-commerce-information-technology-essay.php