Nowadays E-Commerce is the buzz word. Although it is omnipresent but we never realize its importance primarily because it is known by different names. People do site promotion, SEO, affiliate marketing, and many other things but the goal is same i.e. to get clients and sell the products or services of the company. ‘E’ is just a medium to transact online. I will be listing some peculiar features of e-commerce which makes it considerably appreciable.
Ubiquity – In traditional commerce, a marketplace is a physical place we visit in order to transact. For example, television and radio are typically directed to motivating the customer to go someplace to make a purchase. E-commerce is ubiquitous, meaning that it is available just about everywhere at all times. It liberates the market from being restricted to a physical space and makes it possible to shop from your desktop. The result is called a market space. From consumer point of view, ubiquity reduces transaction costs – the cost of participating in a market. To transact, it is no longer necessary that you spend time and money traveling to a market. At a broader level, the ubiquity of e-commerce lowers the cognitive energy required to complete a task.
Global Reach – E-commerce technology permits commercial transactions to cross cultural and national boundaries far more conveniently and effectively as compared to traditional commerce. As a result, the potential market size for e-commerce merchants is roughly equal to the size of world’s online population.
Universal Standards – One strikingly unusual feature of e-commerce technologies is that the technical standards of the Internet and therefore the technical standards for conducting e-commerce are universal standards i.e. they are shared by all the nations around the world.
Interactivity – Unlike any of the commercial technologies of the twentieth century, with the possible exception of the telephone, e-commerce technologies are interactive, meaning they allow for two-way communication between merchants and consumer.
Information Density and Richness – The Internet vastly increase information density. It is the total amount and quality of information available to all market participants, consumers and merchants. E-commerce technologies reduce information collection, storage, communication and processing costs. At the same time, these technologies increase greatly the accuracy and timeliness of information, making information more useful and important than ever. As a result, information becomes plentiful, cheaper and of higher quality. Information richness refers to the complexity and content of a message.
Personalization – E-commerce technologies permit personalization. Merchants can target their marketing messages to specific individuals by adjusting the message to a person’s name, interests and past purchases. The technology also permits customization. Merchants can change the product or service based on user’s preferences or prior behavior.
E-commerce technologies make it possible for merchants to know much more about consumers and use this information more effectively than ever before. Online merchants can use this information to develop new information asymmetries, enhance their ability to brand products, charge premium prices for high quality service and segment the market into an endless number of subgroups, each receiving a different price.