We spend our daily time more on the internet for work, study, marketing, business, learning, and entertainment. Now all these commercial and social activities are connected to the internet. And without eCommerce the world around the internet is impossible and it will scare you to imagine. That’s why eCommerce is important in our daily life.
E-Commerce is the demand of time, customers, business, and nations, Now it will compulsion in a few years to use. But why this is happening and how eCommerce is getting importance around the world?
In this article, you will get all these answers about eCommerce uses, industry, its advantages, and importance in our daily life. Why people use e-Commerce and how beneficial it is for consumers and businesses. Read this article till the end to know all about E-Commerce’s importance and how it can help you in your daily life, career, and business.
E-Commerce is the online buying and selling process that is extremely important in our daily life now. The foremost reason behind the growth of Internet users besides social media in e-commerce. E-Commerce is at the heart of the Internet and e-commerce is as important as a heart is for a body.
Worldwide, e-commerce sales are expected to grow to 4 Trillion Dollars by 2020. In India, Amazon and Walmart are vying to outbid each other for buying Flipkart. Whoever finally wins, this merger/takeover by these e-commerce behemoths will leave a lasting impression on India’s eCommerce landscape.
Let’s discuss critically and creatively Why e-Commerce is important:
1. Wide variety of products:-
In small cities or villages, people have to compromise due to the small shops and a limited variety of products and services available locally. Traditional brick and mortar shops and conventional commerce is not able to satisfy customers in terms of variety. Normally people have to visit 5 to 6 shoe stores in 1 market to buy 1 pair of shoes due to size, color, price or design problem, etc. And it’s tough for retailers to provide all the variations. That’s why eCommerce is important. It brings in more variety by expanding the boundaries of traditional commerce.
People can visit more than 5 websites to buy shoes in a few minutes, which is far more convenient than visiting 5 different shops. They can check colors, offers, sizes, models, and various details related to shoes. And it takes 20 to 30 minutes to decide. With the traditional retail method, you need to spend the whole day if you decide to shop for shoes or anything else at the Mall. That’s why I believe that eCommerce is important to provide a variety of products with speed and that too at home.
2. Lower Cost than traditional shopping and selling:-
Selling products and services online is less costly than traditional methods. There are various high overhead costs that are included in offline commerce. Recurring expenses such as store management cost, counter cost, inventory cost, security cost, transportation cost, Shop rent, and salary, etc. So the retailers cannot afford to sell the products at a low cost.
That’s why eCommerce is important because it reduces the fixed cost and variable cost and people get the products and services at a low cost.
3. Less time consuming and faster consumer consumption:-
If we talk about educational eCommerce then it’s really changed the way people consume products and services. For example, traditionally it takes a minimum of 6 months of course offline to learn graphics designing. And people have to visit the study center each day for 2-3 hours for a 6 month period. It’s not providing flexibility, freedom for the learners to choose their own hours, mood, and best focused time of the day. Nor are the teachers available all the time in the offline classroom. As a result, it takes lots of time to build and improve the skills for faster employment.
That’s why online courses, online degree programs are so popular around the world. With eCommerce, students can pay the course fees online, select any course, complete the course at their own speed and time. It’s providing flexibility and freedom for learners. That’s why online courses or educational eCommerce is important in today’s time.
4. Exciting offers and shopping deals notifications:-
Traditionally people don’t know what’s new (shoes, clothes, cosmetics, electronics) in tier 2 and tier 3 cities, village shops, local markets, or even shopping malls until they don’t visit. Even local retailers don’t know what’s hot in the international market.
That’s why in the past you found that there was a difference in the thinking, personality, appearance, and habits of people from metros and those from villages, etc. But owing to the unprecedented development in eCommerce and communication technology, now people from even the most far-flung areas such as Leh and Ladakh get notifications and messages from sellers about existing Diwali and Navratras discount offers.
Today customers can find the best shopping deals within a second by visiting a link on their mobile. Now the same branded jeans are worn by trendy people in Mumbai and also worn by a fashionable Darlaghat village person. Similarly, students from Shimla can join the same career courses as students from California are studying. It means eCommerce has connected people, eCommerce has equalized the appearances, eCommerce removed the gap between metro students or village students.
Ecommerce has leveled the playing field, shrinking physical boundaries in the world. That’s why I think eCommerce was a great internet development. And it keeps going.
5. Transparent business system:-
Developing countries are trying to increase transparency in commercial activities to remove corruption at ground zero, where trillions of rupees are transacted between buyers and sellers for goods and services. POS (Point of Sale) machines, digital transactions, UID integration with Bank accounts, etc. are few steps taken to increase transparency.
And in commercial transparency eCommerce is playing a responsible role in explaining buyer’s and seller’s debit, credit, and bank account details. It enables banks/government to check where they spend, wherefrom they earn, and how they earn and transfer, everything is accounted for.
Most of the eCommerce transactions are digital such as by using credit, debit cards, and net banking. Sellers or online retailers receive payments through a payment gateway (mostly connected to a current account). Because of this method buyers and sellers are always under Government scrutiny.
And the government can trace any account for doubtful activities at any time, they can also match or compare the expenditure with earned income in bank statement versus income/expenses details from ITR, GST. That’s why eCommerce is important to build and enhance transparent business or commercial activities system.
6. Faster business expansion
Gone are the days when it was tough for local retailers to sell or expand their business, products, and services all over India or the world. It was tough due to the market conditions, local competition, low advertising reach, higher expansion cost, small brand equity, consumer interests, and various other factors.
But eCommerce is a boon for such visionaries who strive for business expansion. One eCommerce website or online store is doing the job for small scale businesses, companies, and retailers with 30 to 50000 monthly operational costs. Not only are they able to expand rapidly, but they are also making a higher profit with lesser hassles.
This is happening because of several reasons. If we see the stats according to Internetlivestats.com, 3901908900 people are using the internet around the world on phones, computers, and tablets each day. 2351502 phones are sold today. 409376 laptops sold today etc.
It means the world is running, walking, socializing, eating, buying, selling, sleeping, educating, learning, and enjoying due to the internet. And eCommerce is the power supply to all these activities on the internet.
That’s why eCommerce is the faster method to expand and grow the business worldwide.
Related: How eCommerce has changed business
7. More employment opportunities:-
Traditional commerce was known as a job provider for people living in the metros and bigger cities. 30 years ago metros, cities were the biggest source of work and money for people. Villages were known for poverty, less skilled workforce, and poor living standards when compared to the metros based on economics.
But today, whole economics has changed due to the development of eCommerce. Today, people living in the metros are more stretched for money, more worried, more populated, and morbid with various things than a village or small city people.
This is because today, a mid-level graphic designer can earn 70000 to 100000 monthly from home by using freelancing platforms, providing services online, and selling creative products, from any village in India with internet connectivity.
Today’s skilled village people will very soon be tomorrow’s experts. Metros are becoming destructive for humans in many ways. Internet and eCommerce have provided great platforms for local retailers to sell online, market online, educate online and stand or compete with the people living in the metros.
That’s why I think eCommerce is really the best thing that has ever happened for villagers, farmers. And I truly hope they will get the benefits of this development.
8. Enhancement in digital products and services production:-
eCommerce enhanced the creativity of people to create new and innovative products and services. Online courses, on-demand expert services, books, gifts, and various other e solutions are increasing the speed of development. Today any expert can write an ebook and is able to sell online. Any teacher can create tutorials and educate people online by launching online courses. Most things are possible by the use of the internet.
That’s why small scale business owners, small city students, and villagers need e-education so that they too can innovate and reduce poverty and improve the living standard of people.
9. Low maintenance cost:-
Ecommerce is an important profit driver for business. Most of the things in the online store are automatic. Costs incurred in everything from inventory, customer details, payment details to product selection, and management of customers’ interests are lower than traditional commerce expenses.
There are various online store builders, platforms, who update automatically. Websites get automatic updates. Most of the time, the investment in an online store is a one time task. And the operational cost and maintenance cost is also minimum.
The use of Artificial intelligence, cloud computing, and machine learning in eCommerce has further minimized the running and operational cost of business. As a result, owners can get maximum profits in low-level input costs. One can operate the whole eCommerce business from a single room with the help of 2-3 people.
There are various couriers, delivery services, payment gateway, inventory, and online support available for the eCommerce website. And using such services do not require an end to end maintenance of online store and websites by the business owner himself.
Ebooks, online courses, and digital product sellers, subscription models do not require too much maintenance. And most of the things are automatic and do not require that much labor that is needed in traditional commercial activities.
10. Multiple selling and marketing options:-
Buyers and sellers are free to choose any marketplace for selling and buying their goods and services. There is almost perfect competition in eCommerce. There is always more than 1 company selling something to a person. Market rules and opportunities are equal for everyone. Small Business owners can market their products and services on social media, search engines for free. In fact, even the consumers buy services and goods after seeing the posts on social media. Ecommerce platforms provided the way for business owners to maximize their business reach.
This was not the case in traditional selling methods. That’s why eCommerce has been adopted by many businesses due to its extraordinary benefits. So it’s clearly evident, how important it is to use eCommerce platforms for buying and selling to break the monopoly of a few capitalist organizations.
11. More Customer retention than traditional shopping:-
When someone buys goods and services online, their identity and preferences remain saved in the database of sellers. Later the business or e-commerce owners use that data to attract and retain customers with new products and service updates. It’s not possible in a traditional market where sellers don’t know much about the buyers. And they can’t retain them without providing quality and higher satisfaction.
Ecommerce increases cold calling, promotional messages so that consumers keep noticing the development behind the products and services they are using. E-commerce also opens up the market several folds, people who would never visit a physical shop are within range of the same shop’s e-store for advertising. Due to so many advantages of e-commerce, it is the go-to method for small business owners.
12. The quality compulsion for sellers:-
Due to high competition and more quality-wise expectations from consumers, quality in e-commerce has become the biggest compulsion for online marketers and sellers if they want to survive.
This is because if customers are not satisfied with the products or services they can give feedback, bad reviews, comments about the products and they can ruin the product or brand equity and image. That’s why eCommerce matters because it protects users’ interests and opinions so highly than traditional commerce.
13. More Contribution of customers in brand success:-
eCommerce platforms enable buyers to contribute to brand building. 5-star feedback, positive comments, and reviews about the products increase brand awareness and credibility among prospective consumers.
This awareness helps people to choose which one product, services are better than others. People read reviews, existing customer feedback before making up their mind to buy certain products or services. It’s one of the key components of influence marketing.
Today’s brands can’t win customers based on sensational stories, the attractive advertisement, and fake promises. Consumers are more intelligent and empowered than ever. So it’s tough to cheat people and expect your business to grow. Because if they cheat, 1 article with bad customer reviews can destabilize the profit and loss equation towards loss.
14. Personalized customer experiences: –
Every single interaction on an e-commerce website or any other website generates data. That is used by companies to deliver the personalized experience of each customer. So that the right customer can get the right product or services.
Let’s say a person is interested in buying certain types of branded shoes, but the online retailer or e-commerce platform does not have it in his size. Now once the platform realizes (saved data from customer interaction) that it couldn’t provide the product to a willing customer because of inventory issues, it will work towards getting the size from another to go down as soon as possible and notify the customer that the shoes are now available in his size. Some may call it targeting, but it’s more like a personalized experience for consumer benefit.
15. Speeding up national economic development:-
Trillions of transactions per day increase the cash flow in banks. As more and more people use eCommerce day by day it will increase the use of digital banking. That enables banks to retain cash and it’s products it’s because of the fact that people keep holding digital money in their banks more than cash. So not only it reduces the cost of cash management infrastructure but also provides auto-scaling deposits for banks.
The more business goes online the higher it increases the demand for skilled people. The more skilled people get jobs and income the higher is the chance that in the future they start businesses. The more we can create and enhance new generation entrepreneurs the better it is for the economy.
16. Enhancing Technology development in villages:-
The increased use of the internet, mobile, and computers is enhancing the capabilities of online commercial activities by less privileged village people. For example, a farmer can market and sell his crops online direct to customers without the involvement of Mandi or marketplaces.
And it is beneficial for people because they get the products and services at a lower price and farmers get the higher price for their produce, much more than what they could get in the traditional marketplace or Mandi. It will happen once people especially new generation farmers become adapted to technology and rely on their own knowledge and skills rather than depending on others.
There are also various indirect advantages of eCommerce such as petrol savings, water-saving, environment protection, lower pollution, reduced stress, the lesser crowd in the road, buses, and trains All of this is possible because more and more are people using the internet and eCommerce to buy and sell.
So as based on the above explanation and eCommerce facts available on the internet it is inferred that eCommerce is a new truth of doing business. The faster the developing countries, business owners, buyers, and sellers adapt to this technology the faster it enables them and the nation to become developed.