the impact of e commerce on traditional retailing system

Kumar, S., & Petersen, P. (2006). A case study research is an in-depth investigation that consists of an oral, archival, and secondary source-based antiquity of a past or present phenomenon. A part of these … Here is my opinion on the effect of e-commerce on the traditional businesses. E-commerce: Managing the legal risks. Journal of Marketing. Information is distributed form the E-Commerce data center once the customer have made the purchasing of given goods that need to be shipped or transported to the required destination on a timely manner. Lower Costs. impact of e-commerce business on traditional bricks-and-mortar stores from both retailer and shopper perspectives. The impact of ecommerce is far and wide with a ripple effect from small business to global enterprise. Measuring e-commerce-quality: An exploratory review. All sums of high cost shipping need to be highly considered as they are the key determining factor to many people who are interested in starting business in the traditional Commerce (Turban, 2006). Control of the sorting, packaging and shipping process of the organization have to be well controlled for the sake of ensuring that customer satisfaction is increased. In traditional retail shops the companies do not have a good ground of accessing their customers until when they will start emptying the use of information technology in their operations. E-commerce has made it possible for products to be sold at a global scale. E-commerce has shifted the manufacturing industry towards the production of demand –driven and possibly customized, time sensitive manufacturing. Management Review: An International Journal, 9(2), 67-97. Journal of Electronic Commerce Research, 12(1), 78-93. Electronic Commerce, also known as e-commerce, entails purchasing and selling of products or services through electronic systems like computer networks and the Internet; it refers to not only buying and selling but also servicing customers and collaborating with business partners. E-commerce has as well brought the compatibility importance that is connected with the legacy system that has to be employed by any organization that is out to prosper with reduced non-technological transactions costs. As e-retail entrenched itself in the first decade of the millennium, it jostled for space and began to push the traditional or brick-and-mortar retail towards the sidelines. Traditional commerce does not use information technology and this slows its ability to create new markets or even reach potential customers in an easy and a cheap way that is not costly. Workers in this digital age are expected to be so flexible. The decrease in prices of personal computers and increased penetration of smartphones is making the e-commerce market segment to grow larger and larger. Stay up-to-date about the latest happenings in the industry. The cost of attracting new customers has been reduced through the use of the e-commerce wit high effect being experienced on the manufacturing processes. This report will describe retail and the history of retailing that has been taking place and explanations on how e-commerce has been impacting the traditional retail will as well be discussed. Vol. The use of e-commerce has enabled companies to improve on their customer’s knowledge of their product and service offering, integrate most of their internal and external operations and increase their product visibility. Their direct link is cheaper in terms of prices that they pay on items due to the fact that they order them directly. We're committed to your privacy. For an e-commerce website, the costs of storing and referencing a product represent a small fraction of the cost as compared to the cost of storing and referencing a product for "physical" stores. There are three major questions that the case study research can answer, and they include: when there is a “how and why” questions are to be answered, when the investigator has a limited control of events, and when the research focus is situated within a real-life perspective. The importance of using write ups, is that it enables unique patterns of data to emerge, since each case contained a particular unique trait needed to answer the research objectives. Farquhar, J. A descriptive case study starts with a descriptive model where the subjects are then perceived and investigators use the results compared with the original model (Barkley et al., 2005). Since this study was exploratory in nature, a survey methodology was deemed appropriate in answering the research questions. The fall of the prices has led many of the firms to engage in the use of e-commerce in their business. So much more savings are realized when the goods are delivered digitally as compared to when they are delivered through physical means (Turban, 2006). Impact of e-commerce in lowering operational costs and raising customer satisfaction. Bingley: Emerald. The use of internet doing business gives the firm high exposure of exploring new markets that lead to high profits to the firm having attracted customers from all over the whole world. Jahongir, A., & Shin, H. K. (2014). According to Shin-Ping (2008), E-commerce requires specialized systems of both finance and accounting. In addition to that, it has made it relatively easy to keep customer and client database for confirmatory requirements (Bidgoli, 2002). E-Commerce are in a better position of creating new markets because they employ the use of information technology technique that is fast in identifying unexplored markets in various parts of the world. E-commerce has a major impact on the retail industry in a variety of ways. 78, p4-20. Less cycle time: The delivery of goods and services through the digital system can actually be reduced to only a few seconds. Many companies are reducing the number of workers down to core essential staff. In traditional commerce there are middlemen while in the E-Commerce middlemen have been eliminated. The main objective of the study is to determine the impact of e-commerce of the traditional retail. Purchasing of goods through the internet is cheaper following that there is no cost of travelling and time is highly saved. The use of e-ecommerce has benefited the traditional commerce by providing improved competitive advantage that comes with reduced errors, reduced cycle times, lower operational costs, and increased real time information. Production cycle time has been reduced by about 50%, especially when the production is done in areas different from the location of designers and engineers (Lakshimi, 2010). E-commerce education in china: Driving forces, status, and strategies. Once the product arrives in the wholesale, it is stored in the storehouse until, the retail store demands for it to imply that transportation to various retail stores has to occur in with products packed in bulks (Christopher et al, 2010). Fortunately or unfortunately, the smaller businesses end up being put under pressure to close up, or to become completely online. There is high personalization that is evident in the E-Commerce type of business and in traditional commerce personalization is low. Before, when there were no e-commerce, retailers were restrained to only local and domestic consumers which was tough for them to create sales. E-commerce reduces the cost of logistics by ensuring that speed and precision is highly employed for use in the production of goods and services in the industries and even in delivering them to the customers on the required time. When they are in need of doing mass shopping they shop in the merchandise stores and the specialty stores where they are assured of getting all the commodities they need in large quantities. Information Systems Research, 12(2), 135-154. Therefore, customers are assured of safe shopping experience especially when they are searching for high quality products that are urgently needed at their premises. Sales taking place at the same time makes it possible for the retailer to sell various products to several clients. The case study was selected as it provided the best avenue for the exploration of the research questions. It’s the largest world retailer and has matured to the sale of forty categories of goods despite it being an E-Commerce company that is highly technology platform. Willis, J. L. (2004). E-Commerce is highly advantaged due to the fat that it’s in a better position of carrying out its activities day and night (24hours round the clock). Halim, M. S. A., Musa, N. M., Embat, A. M. B. M. S., Amin, Wan Abd Aziz B. Wan Mohd, Muda, M. S., & Noor, N. M. M. (2012). Traditional commerce requires purchasing, advertising that have to be carried for people to be made aware if its existence and staff employment who will coordinate all the activities of the industry. Bidgoli, H., 2002. The microelectronics have really been advanced leading to the decline in prices of the memory chips and semi-conductors. Such a corporate change must be planned and properly managed if success is to be witnessed (Christopher et al, 2010). It is always said that e-commerce is to replace traditional retail. The goal of a case study is to deliver a three dimensional picture of the situation elucidating relationships, organizational and political questions and patterns of influence within a specific framework (Barkley et al., 2005). 24 Sin Ming Lane Midview City #07-93, Singapore 573970, Unit C8, 21/F, Mai Wah Industrial Building, 1 Wah Sing Street, Kwai Chung, N.T., Hong Kong, How to Provide Exceptional Customer Service for E-commerce, 6 Reasons Why People Don’t Buy From Your Ecommerce Website, We're committed to your privacy. The regulatory environment has led to the impact of prices evident through the use of e-commerce in many of the organizations. Yin, R. K, 2009, ‘Case study research: Design and methods’ (Vol. In this fast-paced world we now live in where there is a rapid increase in innovation, E-commerce have created a big impact on the retailing industry all over the world. With an aim to stay competitive and … It saves shopping time; increases speed of service delivery, creating generally a wide access of assistance to customers from experts and peers. E-commerce offers buyer and sellers a new method of communication and offers opportunities to create new marketplace and has created new activities and features in which consumers and businesses can participate. This can be done through the use of an airplane or through the use of heavy-duty tracks depending on the bulkiness of the product. Thought the E-Commerce, the whole world has been created to be global village where anyone is capable of buying anything at any given to form all the corners of the world. The business productivity and the costa are highly affected by e-commerce at a very high rate due to the simple applications that it has. E- commerce have good impact on markets like reduce the cost of advertisements as many customers can attract through internet, new brand can be developed, can maintain a good relationship with customers and can make customized products according to customer’s needs. E-Commerce facilitates fundamentally the movement of goods from suppliers to customers. This is possible since the use of e-commerce employs the use of World Wide Web, which enables millions of people from all corners of the world to have a glance at the products under sales. E-Commerce is comprised of tactic that has enabled it to break through the conventional rules and employed the use of information technology for it to thrive in the fast growing economy. E-commerce was a totally new way of shopping . E-Commerce is advanced on global matters where it can access its customers from all the part of the world within a short period of time. This is the reason as to why internet is now becoming popular in usage by many individuals who are making money in a fast way through it. With e-commerce, shops will be able to sell their products 24/7 while keeping their costs at a minimum. E-Commerce deals with high increased variety of goods that are produced within the limits of the company as they believe that the market will expand and the goods that are available will as well expand because a wide variety of goods are now available than before. E-commerce in India: Opportunities and challenges. Traditional commerce do not have teamwork and this slows down the functionality of the organization and they as well do not use e-mail in communication to solve any arising problems or even give information where required. This is made possible by creation of a website and uploading it into a server that is accessible by millions of servers in a given country. 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