Hitomi Satyanegara
E-commerce or electronic commerce, according to shopify.com, refers to the buying and selling of goods or services using the internet and the transfer of money and data to execute these transactions. Those on sale are usually physical products that can be bought online but they can also come in the form of service where the orders and payments have to be done over the internet whether through a third-party app or their website. With technology advancing, the amount of people who are more interested in buying their needs and wants have increased drastically, especially with the current situation where everybody is just stuck at home for their safety. This amount of growth affects the growth of online stores compared to regular commercial stores where they are usually located in a mall or somewhere more accessible for the people around them. Third-party apps are also significantly affected in a beneficial way. More people trust these apps because they ensure the customer gets their products first before they transfer the payment to the seller.
The pandemic contributed to the extreme growth of e-commerce and digital businesses in both their sales and incoming future businesses. However, well prior to the pandemic, everybody has been online shopping for quite some time. With everybody staying at home, the alternative choice of a mall are online businesses where everything is accessible with just a click of a button, and it doesn’t only limit to local businesses but includes international brands as well. This also lessens the chance for people to get in contact with a large crowd of people since everything can just be bought online, whether it’s make-up or even dumbbells to exercise at home. This benefits both the customer and the seller since it brings a significant amount of profit for these businesses, as well as their third-party app, while the customers can shop happily with lower chances of them getting infected with the virus. Even though shipping or deliveries would be delayed because of the pandemic, at least the customers would still get their items safely, and it increases sales for digital businesses. The volume of the digital market will increase as new up-coming sellers start their businesses. Such businesses can vary from food products to make-up lines, and whether it would be raising funds to help others or for their own benefit, the innate creativity of humans will indefinitely cause the digital market to grow.
The question whether digital business is the path one should take in order to have a successful business is very complicated since they both have their own advantages and disadvantages, it just depends on what these upcoming businesses are willing to give up or even adapt to in order to fit in the community of either digital or regular commercial businesses where they have their own physical store. Online or digital businesses would reduce the cost of having an office building, so the staff would be able to stay at home yet work on the business with no hassle. The internet has enabled people trying to run their businesses in a more accessible and straightforward way where they can set automated systems to share information or to promote their business to their loyal or even potential customers about their products. This allows their customers to be updated with all the upcoming products or even just to promote themselves when a big sale happens, making sure to pique the general public’s interest in their business. This inexpensive method does not require having to spend extra cost on physical stores, and as long as they’re willing to, sellers would be able to have an expansive reach across countries, which subsequently expands their customer base.
The internet has helped increase sales for different types of businesses, whether it’s clothing or even painting kits, it became a convenient platform for everyone to access and buy the items they want, but due to its inherent accessibility, competitors are able to spy on other businesses to gain the upper hand. To attract a massive swarm of customers, some may need to slash prices drastically, which then reduces the profit margins. That means these businesses should be prepared to lose potential customers just because they saw other offers that are cheaper than the original shop. Another thing that online businesses lack compared to physical shops is the physical interactions, even though the internet has succeeded in connecting people, but it is not able to replicate human interactions face-to-face with colleagues and customers. The internet is a very competitive place because everybody has an equal playing field unless they spend extra for more promotion. Businesses are bound to get negative reviews, no matter how perfect or ideal they are. Nowadays, people go on to social media to voice their opinions and concerns about a business, where people are more likely to complain rather than compliment the business, which could potentially damage the company’s reputation resulting in a loss of revenue.
The internet is a powerful tool that is advantageous for both businesses and consumers; when handled correctly, it would bring success for the business. Every day technology grows and improves itself, especially the internet, while there may be some technical issues now; eventually, the future will introduce new ways to improve them. Online businesses may not always be the key to a successful business, but it is definitely a start, especially for those who are inexperienced. It is a place for self-expression, whether it is to voice out one’s opinions or even start their own business based on their hobbies, so everybody can grow and find their interest on the internet. It all depends on what these businesses are willing to adapt to in order for them to reach their peak of success and for how long they can hold on to such success.
Works Cited
“Advantages and Disadvantages of Digital Marketing.” Nibusinessinfo.co.uk, Nibusinessinfo.co.uk, 5 Aug. 2019, www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-digital-marketing.
“Ecommerce Definition - What Is Ecommerce.” Shopify, Shopify, 2020, www.shopify.com/encyclopedia/what-is-ecommerce.
LaMarco, Nicky. “The Advantages & Disadvantages of a Business Using the Internet for Business Activity.” Small Business - Chron.com, Chron.com, 4 Mar. 2019, smallbusiness.chron.com/advantages-disadvantages-business-using-internet-business-activity-27359.html.
“What Is Digital Business?” Liferay, Liferay, 17 Aug. 2018, www.liferay.com/resources/l/digital-business.
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