Friday, January 3, 2020

Online businesses, a way towards better economy

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Online businesses, a way towards better economy

ONLINE BUSINESS

An online business is a business which is totally online, GOODS and SERVICES are marketed , advertised , purchased  ,sell and delivery is organized thereafter once the order has been placed and paid for.
Often the receiver never beholds the product as they are provided by the shipping   of manufacturer or producer.


E-COMMERCE (EFFECTS ON ECONOMY)

The main way in which e-commerce will affect the economy,is its Impacts on productivity and inflation. The continued expansion of electronic commerce could also lead to downward pressure through increased competition , cost savings and changes in sellers pricing behavior.
The role of e-commerce in business is that electronic commerce is synonymous with electronic commerce and involves the exchange of goods and services through electronic support. The number of electronic businesses has grown considerably since the internet was launched.

 POSITIVE EFFECTS

Online business have save our time in such a way that you can easily buy goods and services through internet from anywhere in the world , you can purchase goods from overseas and get more satisfied by getting your product from overseas.
Today we are living in modern world and this is 21th Century where everyone mostly depends on internet, everyone have smartphones, tablets , computers . they can easily purchase their need , and they feel more satisfied. -commerce make our lifestyle better , in such a way that we can choose a variety of product from different manufacturers and producers.

EFFECT ON ECONOMY

Over the past decades e-business has helped and provided various methods in which buyers and sellers can transact In the decades to come, exploiting the full potential of developments could have profound impacts in individual sectors of the economy as well as for macroeconomic performance and economic policies. At the aggregate level, productivity and economic growth could rise, at least for some time, as a result of more efficient management of supply and distribution, lower transaction costs, low barriers to entry and improved access to information. In the business-to-business context, higher efficiency can be gained from B2B e-commerce and B2B exchanges via lower procurement cost and better supply chain management. Many companies claim that putting their supply chains online has led, or will lead, to major cost savings. According to Goldman Sachs (2000) study these gains range from between 2 and 40 percent of total input cost depending on the industry which may subsequently reduce the price in the overall economy

As I am giving an example of  an retail industry and travel industry.

Retail sector

Retailing is one of the most important industry sector in the world, with no exception of the EU. In 2004 the EU retail sector, the industry comprised of approximately 17 million firms that employed people in the EU27 (e-business watch 2007).

In the retail sector, e-business has had great impact on the value chain. It has made a great difference in terms of shelf life of products and stock rotation time. It also highlighted the relevance of inter-business exchanges. In fact, retailers, beside their relationship with suppliers and consumers, have significant impact on intercompany exchanges through CEDI (centre of distribution). In essence, retail companies will want to rationalize and reduce costs of supply and management of the supply chain, starting with purchasing cost. They will also want to differentiate their own offers from the competitors, exploiting customer relation management techniques as to communication, sales and customers’ loyalty (e-business Watch 2000).

The UK figures released by the Office of National Statistics in February 2009 showed that internet retail sales, as a percentage of total retail sales, rose by 13.2% (average weekly value of £167 million). These figures closely match figures released by the IMRG/Capgemini Sales Index which showed that the e-business retail market rose by 17% in July compared to July 2008, this increase has been driven by the clothing, accessories and electrical goods online retail sales.

Travel and tourism Industry

In the last few years travel pattern has changed in the EU. The travel sector in the EU is so large that even a small share of it produces a major online market. Taking the internet for example, it has had a very high impact on the air travel industry. It can provide a direct connection between airlines and customers without the need to use travel agents or Computer Reservation Systems (CRS), thereby leading to cost savings in the distribution of air tickets (Law and Leug, 2000) the internet has become very extensive in the travel industries and its impact has been particularly significant on the distribution channel for air travels and the use of the Internet for searching and purchasing airline tickets has become common in travel markets. The introduction of e-business to the airline industry has enabled most travellers to bypass travel agents alltogether, with most agreeingthat the most current air market will shift form traditional travel agents to internet based agents like www.opodo.com. Recent studies shows that firms that have reinforced their e-business strategy in the airline industry has had an increase in sales volume for airlines’ website. The internet has contributed strongly to the growth of most budget airlines taking easy jet as an example. Easy jet has never used the travel agent network, they rely on the internet because all their flights are booked online by customers. (Journal of Air Transport Management.


Over the past decades e-business has helped and provided numerous ways during which consumers and sellers will interact within the decades to come back, exploiting the complete potential of developments might have profound impacts in individual sectors of the economy still as for economics performance and economic policies. At the mixture level, productivity and economic process might rise, a minimum of for a few time, as a results of additional economical management of offer and distribution, lower dealing prices, low barriers to entry and improved access to datawithin the business-to-business context, higher potency are often gained from B2B e-commerce and B2B exchanges via lower procural price and higher offer chain management. several firms claim that golf shot their offer chains on-line has LED, or can lead, to major price savings. in step with Goldman Sachs (2000) study these gains vary from between a pair of and forty p.c of total input price reckoning on the business which can afterwards cut back the worth within the overall economy.

The social impact of e-commerce

·       Greater use of the web The quickest growing demographic section includes students and youth.
·       This section is that the leading user of advanced applications and on-line technologies.
·     According to a survey conducted by the web and Mobile Association of Republic of Indiathe amount of net users within the country was a hundred ninety million at the top of Gregorian calendar month 2013.

·      With additional and additional users on the net through telephoneit had been expected that the country reached 243 million in Gregorian calendar month 2014, representing a growth of twenty eighth over the previous year.

·    The growth within the range of net users has additionally light-emitting diode to substantial growth in alternative digital industries like e-commerce, mobile commerce, and digital advertising. The government of Republic of India has created efforts within the education system through the implementation of laptop tools and techniques, essential for all academic levels, from primary education to the top of studies.

·     Students from urban and rural areas were super-sensitized by provision the private laptop, Laptops, tablets or laptops with the utilization of the web and its benefits to enhance modus vivendi and supply electronic books and e-books.

·         Entrepreneurs also are interested in advanced laptop technologies and their quality for electronic commerce.
·    The development of academic standards the least bit levels has allowed a good demand for electronic commerce and m-commerce within the market. Changes in on-line looking habits the net looking method is consistently being worked on to create it easier, additional intelligible and easier to use.

·         As on-line offers provide some discounts and enticing costs.
·  This, along side higher offers, has brought changes within the shopping for habits of on-line patrons

Acknowledgements

Online business makes us more efficient and makes us more satisfied, its help to increase the economy on an country in such a way that everyone want innovation and variety of products, that’s thing are provided by  e-commerce


References



Authors:

Students of BBA 2K19 Batch, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Sindh. 

  • BILAL MUGHAL
  • ALI RAZA
  • ABDUL QADEER SANDHU


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