E-commerce will account for a larger share of the retail market

The Economist magazine recently conducted a survey on e-commerce method B to B and
B to C in the United States. Although online shopping form (electronic shopping) is increasingly being used in many
America than any other country in the world, but it only accounts for 1% of retail sales in the festive period 1999-2000
categories of online sales is also very limited.
The initiative forms online sales today can compare with the initiation form
through catalog sales in the last century. However, while the method through catalog sales from the start
has developed very strong because of its novelty factor, but then plummeted because no novelty
Also, today there are sufficient grounds to support the view that e-commerce will continue to expand the proportion of
its retail market. This view is based on a unique capability of Internet and network-based
on the technical platform and benefit both users and businesses.
Users benefit when shopping through the immediate comparison of price and product (assigned by the
sales agent or product reviews site), the different pricing mechanisms (fixed price, auction, auction
vice). In addition to simplifying commercial transactions between buyers and sellers, the more publicity

valuation products and services, reducing the need to use intermediaries who can make
prices become more competitive.
Businesses can benefit more from the exploitation of data transactions on the network to plan
marketing focus and stronger, even for a very large number of customers. Businesses
can use to thoroughly scope and extent can be reached from the Internet. For example, they can use a site
to sell to all over the world and based on the reputation of this site to expand to other items. The
businesses selling goods and services can be delivered in the form of digitization (digital) network, such as the
computer software, booking on transportation, banking and insurance will be the relevant changes
the largest e-commerce. The Internet also has its drawbacks, though weaknesses picture
contact possible repairs. Results of The Economist poll shows the implementation of orders and
after the delivery of products ordered, though very important, but not always effective in
online sales methods. However, the trend combines online retail with no network, the
delivery system and the new automated storage helps businesses delivered an effective way
more. Another disadvantage of the method of online sales is not all products are
be sold through this method. Sales network far more successful only for items
"Less palpable" such as computers, books, CDs (and those items that buyers do not need to see and touch
found) over the items "felt need" such as clothing. A further weakness is widely recognized for
online sales method is the lack of payment security, especially concerned about the theft of the code
credit card. However concerns have not been confirmed to date clearly because there are very few cases
theft of credit card numbers and other credit card issuers have largely responsible for its
in this case. The question now is whether e-commerce is changing the way
traditional business models or not? The answer appears to be the same. The role of the business
intermediaries are changing. For example, retailers are being replaced because the manufacturer can sell this
products directly to customers, a new model is being created Intermediaries. They include sales agents
and site assessment, the gate (portal) Internet activities as shopping malls and all the other elements of
are giving a new form to be able to bulk sales.
There are two issues surrounding this new mode of business. Issues related to competition that
lead to new methods for intermediary companies that are still tradition has contributed substantially to the wire
line value (value chain). Secondly, the new method will belong to consumers or businesses.
The Economist magazine said that the new intermediate components will act as the agent for
consumers. The best selling business on the internet is to change the distribution system
suit their distribution system called warehouse - cumtruck (this system can communicate each event
every individual to take the family) or distribution system materials to the production of the company
specialized products.
According to The Economist magazine, although the management of traditional business systems without delay
in recognizing the potential threat of e-commerce, but they are facing difficulties in
adopting new ways of doing business, quickly. These difficulties seem to arise from
the fact that managers first need to convince those who have invested time, money and effort
his forces in the past business model as suppliers, employees, banks, shareholders,
even customers, all those who do not want to change.
Concerns about the U.S. control of the network are specified. Although the U.S. is the first initiative
in the world of e-commerce practice, but not necessarily that American companies will dominate
of electronic commerce worldwide. Companies need to solve many different problems such as factor
culture, language and legal barriers to sales and retail payments. One of the difficulties in implementing
orders and deliveries to remote locations did not allow American companies received orders from countries
outside. In particular, the company is now Europe and Asia have joined the network and will compete with the
American companies.
In matters and taxation laws, it seems the non-interference of the U.S. government to promote the development
of e-commerce in this country. Level closer inspection, especially in Europe and Asia may have
the opposite effect.