Ecommerce or electronic commerce has enabled financial transactions on the internet that provide a variety of services which include sales, insurance, marketing, online advertisements and the like. With the current estimated value of ecommerce being $591 billion, there are various large-scale and small-scale companies that want a share of these financial transactions to promote their business. However, there have been innovations in the area of electronic commerce as home-based businesses have greatly profited form online marketing. Ecommerce continues to grow as a major economic sector.
What is Ecommerce?
In general terms ecommerce is the market place of the Internet where buying, selling and distributing of goods and services takes place through an electronic medium. It is a virtual environment where the buyers and the sellers decide upon financial services. Therefore, any economic transaction that is enabled over an electronic medium i.e. Internet it is termed as Ecommerce.
Since the advent of the Internet, Ecommerce has grown steadily enabling optimization of businesses. The following figures elaborate the growth of Ecommerce:-
o Online population in the U.S. has increased by 50% from 141.5 million in 2001 to 210.8 million in 2006.
o Online U.S. retail sales have grown from $47.8 billion which was estimated in 2001 to $130.8 billion in 2006.
o The total number of small companies in the U.S. is 2.3million out of which only 60% of them are based on the Internet. 16% of these companies specialize in retail trade.
o The annual expenditure of the buyers has increased from $457 which was in 2001 to $784 in 2006.
However, there are various large and small companies that offer products and services in order to meet the overall customer requirements. Companies such as Ebay, Amazon, and CoinStar Inc are just some of the top 50 online retailing sites. These companies are able to sell their goods and services to consumers through credit card... [continues]
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