Impact of e-Commerce for Small Business


The use of e-Commerce at this point is a requirement for an organization or business, in order for company that can complete globally. Many studies find impact of e-commerce for small business. In addition, researchers many see the positive impact that is provided by e-commerce compared the impact downside.

E-commerce in general can be defined as any form of trading goods or services with the use of electronic media. Obviously, apart from the already mentioned above, that the trading activities are part of a business activity.

One of the keys to the success of small and medium business is the availability of a clear market for the product. Meanwhile the fundamental weakness of business in the field of marketing is low, weak market orientation in the complex rivalries and sharp as well as marketing infrastructure inadequacy. Facing more market mechanisms open and competitive, market domination is a prerequisite for increased competitiveness. Therefore, the success of small business to expand market access through web based e-commerce that can be used as a media business communications globally to increase sales.

Conventional trade and electronic commerce 
Traditional trade is essentially the Act of companies selling goods and/or services to generate income in the form of money, which in turn generates a net profit from the difference in income minus the market price plus operating costs.

Electronic commerce does things similar to traditional trade, but is has these advantages directly can be beneficial to increase the revenue and profits of the company. With the flexibility of trade electronics can trim costs by marketing its convenience and sophistication in conveying information about goods and services directly to consumers wherever they are. Companies that are doing business electronically also can trim operational costs for stores because they don't have to post his stuff in stores that are large with many employees.

Impact of e-Commerce for Small Business

Comparison of Traditional Trade Media Commerce Trade 

Sales cycle of traditional electronic commerce trade 

- Looking for information goods/services needed magazine, catalogs, newspaper, printed forms websites.
- Check the price of a printed catalog online catalog.
- Maintain the availability of items and price phone, fax website.
- Booking, fax, mail and other printed forms.

The advantages of e-commerce 
Trading electronic offers to small businesses short term gains and long term. Electronic commerce not only opens up new markets for products and services offered, reaching new consumers, but also can simplify the way SMES do business. In addition, electronic trading is also very beneficial to the customers/consumers and the general public. In general, there are a variety of other benefits when performing electronic commerce.

Advantages for companies

1. Shorten the distance 
The company can be closer with the consumer. By just clicking on links that are on the site, consumers can go to companies wherever they are located.

2. Market expansion 
The reach of marketing is becoming increasingly widespread and is not limited by geographical areas wherever the company is located.

3. Expansion of the business partner network 
At first, it is very difficult for a company to know the geographical position of partners located in other countries or other continents. However, partners are crucial for consultation and cooperation on both technical and non-technical. With the electronic commerce via the internet network, it would not be a big issue again.

4. Efficiency 
As mentioned in the previous section, electronic trading will be very trim operating costs. Companies who trade in electronic do not require Office and stores is great, it saves paper used for deals, advertising, and record keeping. In addition, electronic trading is also very efficient from the point of time used. Search for product information and transaction can be done more quickly and accurately.

Barriers to e-commerce 
Implementation of the e-commerce in small countries still has a long and winding road. Various obstacles in its implementation may be technical and non-technical all of it requires full cooperation between the government, the developers of e-commerce, businesses and consumers beneficiaries. Technology products such other information as well as e-government, e-commerce still takes a long time to be recognized and accepted by the public.

E-commerce to enhance competitiveness of small business
Advancement of information technology should be utilized perpetrators of small and medium enterprises to develop its business through e-commerce, chances are wide open and it is technically easy to administer.

Utilization of information technology for trade and services, known as e-commerce can be done both for B2B (business to business) for example between the factory with raw material suppliers or between distributors to dealers, or for B2C (business to consumer) as a transport company with passengers, among hospitals with patients and between merchants with shoppers. Additionally there is the type of use for e-Marketplace, the market and virtually bring together the seller and the seller.

By utilizing the e-commerce in its business operations, small business will have access to a wider market and a chance to hook new consumers. On the other hand, consumers find it easier to get necessary information online. A variety of savings and efficiency will be achieved as in terms of the cost of transportation, telephone or fax communication, shipping, documents, prints, time and labor.

What the conclusion of this article?
The increasingly strict business competition in the era of globalization demands the company to rearrange its business strategy. Information technology as the backbone of the supply chain management, supply management concepts are inseparable from the development of information technology.

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