E-Commerce or eCommerce is a complex term that comes from the English language. In German, ‘Electronic-Commerce’ means electronic commerce or trade. It is part of e-business and generally includes electronic commerce, the advertising, buying and selling of goods and services on the Internet. The term has developed into one of the core business models on the Internet. A typical example of e-commerce is online shopping.
Characteristics
So that the business processes and relationships in a company can be managed, selected information and communication technologies are used for the electronic integration and interlocking of value chains. What is meant here above all is the elimination of media breaks and organizational boundaries in the business processes.
The traditional processes in a company include a variety of media breaks. The information data is distributed in the respective company, between two companies or between the company and customer by telephone, post, fax or in writing. Automated and electronic exchange of information rarely happens. Typical of e-commerce is the electronic handling of business processes and the targeted increase in efficiency of business relationships.
Advantages and disadvantages
Advantages
- The purchasing process can be done through e-commerce without any delay.
- The potential customer can browse online catalogues, select the desired product, pay for it online and buy it right from home so that the product is dispatched on time.
- The advantage for the company is the immediate customer proximity.
- The exchange of information between the customer and the service provider (by telephone or e-mail) is made possible.
- E-commerce speaks for the good performance of the marketing measures and the increasing professionalization of numerous companies (e.g. shop companies like Amazon ).
- 24 hours service
- Fast response time to problems and discrepancies
- Low transaction costs
- Maximum convenience and optimal fulfilment of customer needs
- high customer satisfaction
Disadvantages
- No personal customer approach and personal communication between the customer and the company employee is neglected.
- The procurement of information in the pre-sales area, the phase of processing an order and the phase of customer care in the after-sales area are included and take place exclusively on the Internet.
Trends
For many companies that are active in the online sector, e-commerce means above all optimal and very well-developed business management. A statement about the importance of e-commerce in the German market can only be made if you take a closer look at the statistics. According to a current study by the Apple Retail Institute and Statistics.de, which examines the e-commerce market in Germany, well-known shopping portals such as Redcoon and Amazon are among the top 5 German e-commerce companies. The study shows that Amazon holds first place with a turnover of 3.4 billion euros. The company is being tracked by Amazon. The first 100 companies were ranked listed, with eBay being in the top 20. The study shows that the first companies in the ranking are also some of the most successful shopping portals in Germany.
Another study shows e-commerce sales in Germany from 1999 to 2011 and a forecast by the HDE for 2012. Retail in Germany with e-commerce will generate 5 euros. In 2011 it was 113% less.
Online/offline trading
Germans are spending more and more money online. According to another study from November 2012, entitled “The customer is king again”, the following trend emerges: Germans spend more and more money on the Internet – mostly on books, music, films and video games – almost 70%, in This is in contrast to offline commerce (or “buying in store”) where shoppers spend less money on books, music, movies and video games – only 20%. If you look at the offline shopping scene, Germans spend most of their money on groceries (71%). On average, online shoppers spend 42% of their total consumer spending online. It can also be seen that customers are loyal to online shopping.