FREE ESSAY ON E-COMMERCE

E-COMMERCE

Introduction
An e-commerce solution for a business is the incorporation of all aspects of the business
operation into an electronic format. Many well-established businesses have been selling
on-line for years. For example, Dell Computers Corp., has been selling computers directly
to end-users for years. Currently, Dell is selling excessive of 1 million dollars worth
of computers everyday on the World Wide Web (WWW). 
When a business has incorporated an e-commerce solution, the business will experience a
lower operation cost while at the same time increasing its profit. The e-commerce
solution will allow businesses to eliminate unnecessary paperwork. All paperwork and data
can be transformed into an electronic format. Thus, it will eliminate valuable shelf
space and data can searched and accessed in matter of seconds. E-commerce will also
automates the sales process. Customers can point & click on the products they wish to
purchase, fill out the customer information, and the product will be shipped and received
in a matter of few days. The administration department does not have to fill out any
paperwork because the customer had done it already. Thus, the efficiency will be greatly
improved. With an e-commerce solution, the business will be open 24 hours a day, 7 days a
week. People from anywhere in the world with an Internet access will be able to visit the
site at any time. They will not be restricted to the normal business operating hours. A
brick + mortar business is normally limited to serving the customers in its local
geographical location. With an e-commerce solution, that business will not be limited a
geographical restriction, rather it opens itself to the global on-line market.
Essentially, the business' market exposure will be greatly increased. 
In conducting my study, I have researched extensively on the Internet for resources. I
chose the Internet as my primary research medium because e-commerce is still a fairly new
technology. Since it is technology related, the Internet will provide the most recent
data available. Printed publications will not be able to adapt to changes as fast and
efficient as electronic publications. I researched many e-commerce related web sites
along with some companies that conduct statistical studies. Some of the e-commerce web
sites that I looked into are E-Commerce Times, eRetail, and eMarketer. The statistical
research firms that I researched are Forrester Research and Jupiter Communication. Both
firms provided valuable statistical data that shows the rise of consumers shopping
on-line and the predicted dollar amount that will be spent in the coming years. 
Methods
In conducting my study, I completed the following tasks:
- I searched extensively on the Internet for sites that are e-commerce related. Upon
visiting the sites, I evaluated each sites for the contents, thoroughness, and
objectiveness. There are literally hundreds of sites that are devoted to e-commerce.
However, after my careful examination of most of them, I narrowed down to four sites that
I will research for this report.
- I have also researched many firms that conducts statistical researches. The two firms
that I will be utilizing for this report are Forrester Research and Jupiter
Communication. Both firms are known for their preciseness, non-objectiveness, and
thoroughness. The statistical data I collected from these two firms will support my
recommendation that every business should have an e-commerce solution implemented. 
Results
From my research, I have developed twenty reasons why every business should incorporate
an e-commerce solution into the business operation. They are listed below.
1. To Establish A Presence
There are approximately 70 million people worldwide that have access to the World Wide
Web (WWW). No matter what industry or business one is in, one can not ignore 70 million
people. To be part of that on-line community, one would need to be on the WWW for them.
Because if one doe not do it, one's competitor definitely will.
2. To Network
A lot of what passes for business is simply nothing more than making connections with
other people. Every smart businessperson knows, it is not what one knows, it is whom one
knows. Passing out one's business card is part of every good meeting and every
businessperson can tell more than one story how a chance meeting turned into the big
deal. Well, what if one could pass out the business card to thousands, maybe millions of
potential clients and partners, saying this is what I do and if you are ever in need of
my services, this is how you can reach me. One can, 24 hours a day, inexpensively and
simply, on the WWW.
3. To Make Business Information Available
What is basic business information? Think of a Yellow Pages ad. What are one's business
hours? What does one do? How can someone contact the business? What method of payment
does one take? Where is the business located at? Now think of a Yellow Pages ad where one
can have instant communication. What is today's special? Today's interest rate? Next
week's parking lot sale information? If one could keep one's customer informed of every
reason why they should do business with them, doesn't one think one could do more
business? One can on the WWW.
4. To Serve The Customers
Making business information available is one of the most important ways to serve the
customers. But if one looks at serving the customer, one will find even more ways to use
WWW technology. How about making forms available to pre-qualify for loans, or have one's
staff do a search for that classic jazz record one's customer is looking for, without
tying up one's staff on the phone to take down the information? Allow the customer to
punch in sizes and check it against a database that tells him what color of jacket is
available in one's store? All this can be done, simply and quickly, on the WWW.
5. To Heighten Public Interest
One won't get Newsweek magazine to write up about one's local store opening, but one
might get them to write up one's Web Page address if it is something new and interesting.
Even if Newsweek would write about one's local store opening, one would not benefit from
someone in a distant city reading about it, unless of course, they were coming to one's
town sometime soon. With Web page information, anybody anywhere who can access the
internet and hears about one's site is a potential visitor to one's Web site and a
potential customer for one's information there.
6. To Release Time Sensitive Material
What if one's materials need to be released no earlier than midnight? The quarterly
earnings statement, the grand prize winner, the press kit for the much anticipated film,
the merger news? Well, one sent out the materials to the press with
The-do-not-release-before-such-and-such-time statement and hope for the best. Now the
information can be made available at midnight or any time one specifies, with all related
materials such as photographs, bios, etc. released at exactly the same time. Imagine the
anticipation of All materials will be made available on our Web site at 12:01 AM. The
scoop goes to those that wait for the information to be posted, not the one who releases
one's information early.
7. To Sell Things
Many people think that this is the number one thing to do with the World Wide Web.
However, I have made it number seven to make it clear that I think one should consider
selling things on the Internet and the World Wide Web after one has done all the things
above. Why? Well, the answer is complex but the best way to put it is, does one consider
the telephone the best place to sell things? Probably not. One probably considers the
telephone as a tool that allows one to communicate with one's customer, which in turn
helps one sell things. Well, that's how I think one should consider the WWW. The
technology is different, but before people decide to become customers, they want to know
about one, what one does and what one can do for them. Which one can do easily and
inexpensively on the WWW. Then one might be able to turn them into customers. 
8. To make picture, sound and video available
What if one's widget is great, but people would really love it if they could see it in
action? The album is great but with no airplay, nobody knows that it sounds great? A
picture is worth a thousand words, but one does not have the space for a thousand words?
The WWW allows one to add sound, pictures and short movie files to one's company's info
if that will serve one's potential customers. No brochure will do that.
9. To Reach a Highly Desirable Demographic Market
The demographic of the WWW user is probably the highest mass-market demographic
available. Usually they are college-educated or being college educated, making a high
salary or soon to make a high salary. It is no wonder that Wired magazine, the magazine
of choice to the Internet community, has no problem getting Lexus and other high-end
marketer's advertising. Even with the addition of the commercial on-line community, the
demographic will remain high for many years to come.
10. To Answer Frequently Asked Questions
Whoever answers the telephones in one's organization can tell one that their time is
usually spent answering the same questions over and over again. These are the questions
customers and potential customers want to know the answer to before they deal with one.
Post them on a WWW page and one will have removed another barrier to doing business with
one and freed up some time for that harried phone operator.
11. To Stay in Contact with Salespeople
One's employees on the road may need up-to-the-minute information that will help them
make the sale or pull together the deal. If one knows what that information is, one can
keep it posted in complete privacy on the WWW. A quick local phone call can keep one's
staff supplied with the most detailed information, without long distance phone bills and
tying up the staff at the home office.
12. To Open International Market
One may not be able to make sense of the mail, phone and regulation systems in
all the potential international markets, but with a e-commerce solution, one can open up
a dialogue with international markets as easily as with the company across the street. As
a matter-of-fact, before one goes onto the Web, one should decide how one wants to handle
the international business that will come one's way, because one's postings are certain
to bring international opportunities to one's way, whether it is part of one's plan or
not. Another added benefit; if one's company has offices overseas, they can access the
home offices information for the price of a local phone call.
13. To Create a 24 Hour Service
If one has ever remembered too late or too early to call the opposite coast, one knows
the hassle. Not all businesses are on the same schedule. Business is worldwide but one's
office hours aren't. Trying to reach Asia or Europe is even more frustrating. However,
Web pages serve the client, customer and partner 24 hours a day, seven days a week. No
overtime either. It can customize information to match needs and collect important
information that will put one ahead of the competition, even before they get into the
office. 
14. To Make Changing Information Available Quickly
Sometimes, information changes before it gets off the press. Now one has a pile of
expensive, worthless paper. Electronic publishing changes with one's needs. No paper, no
ink, no printer's bill. One can even attach one's web page to a database which customizes
the page's output to a database one can change as many times in a day as one needs. No
printed piece can match that flexibility. 
15. To Allow Feedback From Customers
One passes out the brochure, the catalog, the booklet. But it doesn't work. No sales, no
calls, no leads. What went wrong? Wrong color, wrong price, wrong market? Keep testing,
the marketing books say, and one will eventually find out what went wrong. That's great
for the big boys with deep pockets, but who is paying the bills? One is and one doesn't
have the time nor the money to wait for the answer. With a Web page, one can ask for
feedback and get it instantaneously with no extra cost. An instant e-mail response can be
built into Web pages and can get the answer while its fresh in one's customers mind,
without the cost and lack of response of business reply mail.
16. To Test Market New Services and Products
Tied into the reason above, we all know the cost of rolling out a new product.
Advertising, advertising, advertising, press release and advertising. Expensive,
expensive, expensive. Once one has been on the Web and know what to expect from those who
are seeing one's page, they are the least expensive market for one to reach. They will
also let one knows what they think of one's product faster, easier and much less
expensively than any other market one may reach. For the cost of a page or two of Web
programming, one can have a crystal ball into where to position one's product or service
in the marketplace.
17. To Reach The Media
Every kind of business needs the exposure that the media can bring, as I touched on in
reason #5 To Heighten Public Interest, but what if one's business is reaching the media,
as a newswire, a publicist or a public policy group. The media is the most wired
profession today, since their main product is information and they can get it more
quickly, cheaply and easily on-line. On-line press kits are becoming more and more
common, since they work with the digital environment of more and more pressrooms. Digital
images can be put in place without the stripping and shooting of the old pressrooms and
digital text can be edited and outputted on tight deadlines. All these can be made
available on an e-commerce solution.
18. To Reach The Education and Youth Market
If one's market is education, consider that most universities already offer Internet
accesses to their students and most K-12's will be on the Internet within the next few
years. Books, athletic shoes, study courses, youth fashion and anything else that would
want to reach these overlapping markets needs to be on the WWW. Even with the coming of
the commercial on-line services and their somewhat older populations there will be
nothing but growth in the percentage of the under 25 market that will be on-line.
19. To Reach The Specialized Market
Sell fish tanks, art reproductions, flying lessons? One may think that the Internet is
not a good place to be. Well, think again. The Internet isn't just for computer science
students anymore. With the 70 million and growing users of the WWW, even the most
narrowly defined interest group will be represented in large numbers. Since the Web has
several very good search programs, one's interest group will be able to find one's
company, or one's competitors. 
20. To Serve One's Local Market
I've talked about the power to serve the world with a e-commerce solution. How about
one's neighborhood? If one is located in San Francisco Bay Area, the Raleigh NC area,
Boston or New York, there is probably enough local customers with Internet access to make
it worth one's while to consider Web marketing. A local Palo Alto, CA restaurant even
takes lunch orders through the Internet! But no matter where one is, if the big client
has Internet access, one should be there too. 
Charts
The following chart illustrates the projected Internet commerce revenue for the next four
years. It is categorized by industries. 
The following chart illustrates the different projected revenues that will be generated
online from different research firms.
The following chart illustrates the percentage of people shopping around on-line versus
the percentage of people making purchases on-line. The chart also illustrates the
comparison between 1996 and 2000.
Conclusion
After detailed analyzing and studying of the effects and benefits of incorporating an
e-commerce solution to an existing business, it is clear that an e-commerce solution will
benefit the business in every aspect. 
The implementation of an e-commerce solution will generate a brand new revenue stream,
expand the market exposure, and decrease the operation cost. Many Fortune 500 companies,
such as Dell Computer Corp., have already adapted e-commerce into their business
operation. As I have mentioned earlier, Dell Computer Corp. is currently generating over
1 million dollars in revenues from their web-site. Many well-known brick & mortar
businesses are starting to establish their presence on the web. For example, Barnes &
Noble Booksellers, the top book retailer in North America, has just launched their
web-site earlier this year following the success of Amazon.com. Amazon.com, the top book
& music seller on the web, has been referred to have one of the most efficient business
operation in the world today. 
Bibliography
Recommendation
Based on the conclusion of this study, I recommend the following:
- Every business should implement an e-commerce solution into the business operation. 
Works Cited
E-Commerce Times: Everything You Wanted to Know About Doing Business Online. E-Commerce
Times. 1999. . (9 August 1999).
E-Marketer, Where Business Begins On-line. E-Marketer. 1999. . (9 August 1999).
E-Retail, News and Information for Internet Retailers. E-Retail. 1999. . (9 August
1999).
The Electronic Commerce Guide. Internet.com's Electronic Commerce Guide. 1999. . (9
August 1999). 
Forrester Research: Helping Businesses Thrive on Technology Change. Forrester Research.
1999. . (9 August 1999).
Jupiter Communication: Market Research on the Consumer Online Industry. Jupiter
Communication. 1999. . (9 Au