Ecommerce, What Is It and What Does It Mean To You

A frequently used but just as frequentlycompetition among the businesses involved, thus
misunderstood term, ecommerce is the abbreviatedkeeping prices low. It permits merchants to offer a
term for Electronic Commerce - the transaction orbroader range of transaction options and incentives.
exchange of goods or services through a digitalMost importantly, it allows the consumer more
network.freedom on how to spend his/her hard-earned funds.
Billions upon billions of dollars have been generatedIn the past, a consumer could find reading material at a
through ecommerce in the past decade. While thelocal book dealer. Most booksellers were very willing to
revenue generated is impressive for a relatively novelspecial order a book that was not available on store
phenomenon, even more impressive is the manner inshelves. Through ecommerce, the consumer can order
which ecommerce has transformed the nationala book from any location in the world and have it
landscape of business; both from the viewpoint of thedelivered to his/her doorstep within days. The entire
business owner and the consumer.practice of ecommerce has served to indulge our yen
Ecommerce, as is demonstrated by quarterly figuresfor instant gratification and, in the process, made our
released through The United States Census Bureau,lives easier.
Department of Commerce, has become an important,Who would have thought in a matter of minutes one
powerful, and significant part of our corporate lives.could pay his/her mortgage, download a CD, book a
These staggering statistics indicate the powerful rolevacation, order groceries for home delivery and
ecommerce plays in our changing economy.purchase a gift all with only a few clicks of the
Issued for public consumption in November 2007, themouse?
Q3 2007 ecommerce report showed sales rates ofBeyond aiding the consumer, ecommerce has
34.7 billion dollars. Do these figures indicate people arechanged the face of business full circle. Millions of
buying more, or conversely buying less throughentrepreneurs are using this process to make their
traditional means? A study done by the USCconcepts and wares available to the world, and for
Annenberg Center for the Digital Future suggestsrelatively small start-up fees.
people now spend fewer of their dollars in brick andNew industries have been born from this trend, some
mortar establishments than at any point before inout of necessity and some from sheer genius. The
corporate history.Aberdeen Research Group predicts that the
In fact, reports indicate that people spend 65 percenttechnology of BI (Business Intelligence) will be one of
less in traditional stores since the ecommerce boomthe most sought-after technological solutions for 2008.
commenced. While shopping habits have not changedBI technology, in essence, gives the retailer real time
completely, the gap is shrinking at a swift pace. Theinformation that allows a swift response to consumer
future of retail business will depend a great deal on thedemand on the Internet to create customer retention
traditional retail front partnering with online ventures. Asand loyalty.
the saying goes, if you can't beat them, join them.Without ecommerce specialty, niche industries never
For you, the ever-important consumer, this informationwould have existed. The domino effect filters down to
may be more relevant and important than you think.the manufacturers, sales people and marketers.
Ecommerce is growing at a rate of 25 percent perNo longer a novelty, ecommerce is here to stay. The
year. Growth in any area of business generatesnatural progression of this new corporate art form has
greater choice and availability of both goods andbeen exciting to watch and participate in. To us it may
services.spell convenience; in the eyes of the world, the
Essentially, this level of growth incites some healthypossibilities are endless.