Introduction of E-commerce
E-commerce refers to commercial transactions conducted online. This means that whenever you buy and sell something using the Internet, you’re involved in ecommerce. Suppose you bought a shirt by ordering from the internet and the next day the shirt by ordering from the internet and the next day the shirt arrives in your house in the ecommerce. If you open a shop in a market the customer will be limited, but when you open a shop in the internet your customers will be worldwide.
History of E-commerce
The first e-commerce company founded was CompuServe (i.e. CIS, CompuServe Information Service) in United State at 1969. In 1970 to 1980 decade, very basis systems of electronic commerce emerges, using new technologies electronic funds transfer (EFT) and electronic data interchange (EDI), used by a relatively small number of people.
In 1980 to 1990 decade, ATM Machines and credit cards were invented which laid down the foundation for the growing world of e-commerce. The Boston Computer Exchange and Minitel become among some of the first most notable e-commerce platforms in the world.
In 1990 to 2000 decade, the advent of the World Wide Web opened the door for many new e-commerce services to have a global scope. Services like Amazon.com and eBay were some of the most notable e-commerce websites to be released in this time period.
In 2000 to 2010 decade, hundreds of e-commerce services such as online food ordering, media streaming, online advertising, online marketplace, brick and mortar retailers, e-commerce payment systems and online storefrontsemerge. Up to 2020 bs there are nearly 24 million of e-commerce companies have been established.
After 6 years Amazon.com was established. In the same time Muncha.com.np was established in Nepal. Similarly, when the time reached up to 2020 many ecommerce companies was established in Nepal, such as thamel.com, hamrobazar.com, ESewa, Urban Girl, Daraz, Sastobook, Nepal Express Delivery, Khalti, Tootle, etc. are running in Nepal now.
Benefits and limitations of E-commerce
1. Customer E-commerce eliminates the need for physical stores and allows business to expand their base.
As e-commerce is online business, there is no need of show room, no physical stores and business expands their customer base. The business men have to serve the order door-to-door. Busy customers will order from online and they will get the goods. There will be online payment or e-payment.
2. Business can save money on rent, utilities, maintenance, and other costs associated with physical stores.
The rent of a shop is costlier than the general room. For online business you do not require a shop center of the market. As there is no physical shop business men save the money of rent, maintenance, and other costs associated with physical stores.
3. Digital products can be sold online with little-to-no overhead cost.
Intangible materials or digital products like music, videos, e-books, photos, etc. can be bought instantaneously by downloading from the internet. Stores can now sell unlimited copies of digital items, without having to worry about they’ll store the inventory. No bar of landlock or difficulty of transportation to deliver the goods.
4. E-commerce also allows business to scale up easier than physical retailers.
Problem may grow when the business increases. After growing a store, it needs to consider how it will serve more customers in the same small space. More employees are needed toexpedite check-outs, more of the floor gets dedicated to forming lines, shoppers feel more crowded as customer base and inventory grows. Logistics always get tougher as a business grows, no matter how the business operates. However, e-commerce companies can manage this growth without worrying about the physical store aspects.