Now Ecommerce is the buzz word. Although it is omnipresent but we never realize its importance primarily because it is known by different names. People Site promotion, SEO, affiliate marketing, and many other things but the goal is the same ie getting customers and selling products or services. ‘E’ is just a medium to transact online. I will be listing some peculiar characteristics of e-commerce makes it quite noticeable
Distribution -. In the traditional trade, the market is a physical place to visit to transact. For example, television and radio generally directed to encourage customers to go somewhere to buy. E-commerce is ubiquitous, which means it is available just about everywhere at all times. The laser market from being tied to a physical space and makes it possible to shop on your desktop. The result is called market space. From the consumer point of view, ubiquity reduces transaction costs – the cost of participating in the market. Transact, it is no longer necessary that you spend time and money to travel to the market. At a broader level, the ubiquity of e-commerce lowers cognitive energy required to complete the task
Global Reach -. E-commerce technology allows the store to cross cultural borders and more conveniently and effectively compared to traditional commerce. Therefore, the potential market size for e-commerce merchants is roughly equal to the size of the online world’s population
Universal Standards -. One striking unusual features of e-commerce technology is the technical standards of the Internet and the technical standards for the implementation of e-commerce are universal standards, ie they are part of all nations around the world
Interactivity -. Unlike some advertising techniques of the twentieth century, with the possible exception of telephone, e-commerce technologies are interactive, which means that they allow for two-way communication between retailers and consumers
Information density and richness -. The Internet vastly increase the information density. It is the total amount and quality of information available to all market participants, consumers and traders. E-commerce technology reduce data collection, storage, communication and processing costs. At the same time, this technology greatly enhance the accuracy and timeliness of information, making information more useful and important than ever. Therefore, information will be plentiful, cheaper and higher quality. Information richness refers to the complexity and content of the message
Personalization -. E-commerce technologies allow personalization. Traders can target their marketing messages to specific individuals by adjusting the message to a person’s name, interests and recent acquisitions. The technology also allows customization. Traders can change a product or service based on user preferences and previous behavior.
E-commerce technology make it possible for traders to know much more about consumers and use this information better than ever. Online merchants can use this information to develop new equality information, enhance their ability to branded products, put up the price premium for high quality service and market segment in an endless number of sub-groups, each receiving different prices.