The term Electronic Commerce can be used for any type of business, commercial transaction which includes transferring information over the internet. It covers a wide range of business types starting from retail sites based on consumers, with the help of auction or music sites, to business trading goods and services between different corporations. It allows consumers to exchange goods and services electronically overcoming the barriers of time and distance. In the context of both business to business and business to consumer E-Commerce is expanding every day. It is growing rapidly over the last 5 years and it has been assumed to continue this rate of growth or more in the near future too.
The borders in between conventional and electronic commerce will be increasingly hazy due to shift of business operations towards the internet. Fashion Retail and Grocery retailing of the retail industry have caught on to the bandwagon. They have begun to put forward E-trading or Online Shopping. During the period of 1990 companies used to set up websites but have a little understanding regarding commerce and consumer behavior. Companies have realized the importance and need of E commerce strategy in a separate manner but as a part of the whole Retail Strategy. Retail strategy includes framing plans for the increase in the growth of business keeping in view the new and updated current trends in the market, opportunities and threats and builds a strategic which will help companies to deal with all external factors and reach its goals. The strategy also includes identification of markets to be in, making portfolio of product and bandwidth coupled with positioning of brand, different elements of brand visibility etc.
The dynamics of the various elements that contribute to business are totally different when we define E commerce strategies for business. Focus on the customer is the sole factor which is common. The platform provided by E commerce has helped in devising methods to reach virtual customer and build relationship. E-Commerce provides detailed information of any product and even all technical information also to the customers which traditional sales channel didn’t used to offer. E-Commerce defines sales transaction, payment of third party, customer service, financial transaction, etc. it has been noticed that selling intangible products and technical products is easier through E commerce than that those products which need more interaction for gaining more information of the product. E-Commerce Strategies and plans are supposed to be different for companies that are purely engaged in selling through internet to that of already established retail companies who offers online shopping as well as the traditional shopping too. Due to differences between traditional shopping experiences and back end operations being different from virtual and instantaneous online shopping, companies now need to come up with a new distinct sales strategy for traditional and electronic commerce trading channel as well.
PGDM 2nd Year