E-commerce in simpler words is the buying and selling of goods online or via the Internet and is also known as electronic commerce. This latest trend in modern technology is still the learning stage of many. Electronic commerce is linked to other technologies such as making online payments, mobile commerce, internet marketing, inventory management systems, data management and so much more.
The impact of E-commerce in European business organizations ranges widely in their methods of conducting business. Organizations have gone through many changes in order to accommodate the concepts of electronic commerce. The initial stages of setting up required streamlining internal processes, developing new communication processes, delivery productivity, improving efficiency and management systems. However, the overall impact has created increased levels of partnership and business connections, has reduced many operational costs of the past, improved efficiency and so much more than the response to change has been gladly accepted.
Online shopping is a fast growing favorite in the business world. Today retailing has boiled down to a simple E-commerce method which the consumer world finds it as very convenient and with the availability of electronic delivery for a range of services and products.
It has been reported by the European Commission that a study carried out in the year 2009 mentioned that E-commerce systems were now an essential part in all European business organizations. Many have adhered to strategic managerial decisions to integrate E-commerce methodologies into their production and management processes, marketing strategies, customer relations and logistics management.
Records show that there are about 75,000 companies in Europe who are well into the concept of E-commerce in selling products as well as services online to the European market. However, records also state that there are still some companies that face difficulties with online selling, especially in cross-border dealings. In order to overcome this difficulty, E-commerce Europe has taken steps to create better structures and frameworks, in order to improve their online sales and increase revenue. The main objective of this organization is to make a platform for the European business community to be able to:
- Have access to a forum or network where they can improve methods, share ideas, discuss difficulties concerning their businesses, and share information
- To work towards a professional digital commerce industry
- Create and improve better methodologies that will develop the online sales within their own country as well as other countries within Europe.
There are notably positive impacts that have been discussed with some organizations. Gains and profits are beneficial to the concept of e-Commerce. Reports have proved that organizations using automatic links to connect their front-line business processes with e-commerce methodologies have an improved and better labor productivity when compared with those organizations who do not any automated links. The methodologies used are processes in communication tools, in workflow and access to data.
The impact of supply chain operations has shown a vast improvement after the introduction of E-commerce in the European business organizations. Business partners exchange market information, data information, schedules of transactions via safe and secure networks. This method has made it possible to share important information related to supply chains within a short period of time, amongst a large section of people. Thus, when all sectors concerned are on the same wavelength of information updates, the entire group can respond quickly and effectively.
Another segment of E-commerce is the introduction of making payments using the card system. Surveys done on 15 European countries show a significant growth on payments with cards, and it has proved that business within the European community will be far more positive than what was predicted in the years before. It has been mentioned that in the year 2017 the value of goods sold over the internet, or online showed an increase of 15% when compared to the previous years. According to eMarketer, there are forecasts that E-commerce in Europe will increase with large percentages, much higher than predicted.
Even though there were doubts during conflicts with the United Kingdom, it is proved that the European business community will enjoy a healthy and thriving economy in the future. Surprisingly, the United Kingdom which is one of the largest markets in e-commerce is showing signs of a decline.
The systems of online ordering, self-checkouts, self-banking methods, have all proven to be extremely effective and efficient since it has drastically reduced costs and improve customer service. Thus, the e-business process has been well accepted amongst the European business organizations. They are even keen on researching on how to develop and improve these systems.
Competition too seems to be taking place in the business community with organizations showing more interest in implementing methods that will support to develop a better quality of service at reduced costs.
Therefore, in a nutshell, it is proven that the impact of E-Commerce in the European business organizations has been extremely positive and shows signs of further improvement.