It was realised 40 years back that life without e-commerce will be struggling as working and aged population find it hard to survive for as they are busy earning their living and working passionately for their growth. With this approach, people adapted the new idea of online market that made their life easy through convenience, safety and user experience. But this innovation of introduction of electronic media in buying and selling of goods was initially not found user-friendly as people found it uncomprehendible, complicated and an inconvenience.
The past two decades have witnessed the immense use of internet in B2B commercial transactions since since the spread of internet and household broadband penetration was not strong at that time. But soon it took-off mainly interfacing those consumers who are looking for products that are not locally available. These people also want to enjoy the privilege and comfort of home delivery.
With this advent, a boom has been created for new and small businesses to enhance productivity. The e-commerce soutions were readily available for retail sector, distributional channels, retail logistics and other segments that directly affects retailers, importers and suppliers.
Since the time e-commerce has been introduced, it has reported more than double growth rate till five years and projected to report a growth rate of 15%. However, since the internet popularity has grown, retailing through internet has grown from 2.7% to 5.8 % in the period of five years and forecasted to reach 8.9% in the next five-year span.
One biggest achievement of online trading is that it has become easy to trade across borders that involves buying commodities from the merchants who is situated outside the home country. The concentration of population will vary from buyer to buyer with statistics showing a high of 90% canadians simultaneously with 59% japanese. The international markets were very active as exporters with the top three countries being US, China and the UK.
Recently, lot of online platforms have come up for B2C application but it comes up with the limitation that every so-called retailer is utilizing a web storefront due to which the market got flooded with the retailers who have a conventional retail establishments like Walmart and Tesco, and fashion brands such as Armani and Zara. The beauty is that the companies who are transforming their business from physical stores to online marketplace are adopting the concept of O2O e-commerce that involves taking up of the synergy to a maximum amongst two channels. Although few companies like Apple are doing reverse that is switching from online retailing to physical stores to generate multisensory consumer experiences, better logistics and consumer service offerings, and build brand relationships.
There are two types of online market platforms – one who want sellers to deposit security and charge a total fee with fixed as well as variable components based on real transactions and the other started by the companies and brands itself to have a wholesome control and preservation of the brand identity.
But if either kind of companies face problems either due to lack of resources or reputation then its their responsibility to take up an e-commerce solution for the same.