The nature of e-commerce

By Gisela Ramensky

It has also been described as a "fusion of telecommunications and computing technology to conduct business. That is the creation and management of relationships between buyers and sellers, facilitated by an interactive and pervasive electronic medium" . Some of the main reasons for the increase in electronic trading are:

  • the drive to reduce the costs;
  • easy accessibility to the Internet;
  • the lack of regulation on the Internet;
  • access to global markets for vendors;
  • greater choice and potentially lower prices for purchasers;
  • lower inventory costs for vendors;
  • the ability to enter new markets more easily.

 

The above is not an exhaustive list. Amazon.com One of the best known examples of a successful entrant into the e-commerce trade is Amazon.com, which sell books and music on-line. It was not an established book or music retailer before setting up its website, htt://www.amazon.com. The company is essentially a software company which has set up relationships with book vendors, warehouses and logistics organisations. It has no shopfront and therefore no expensive rental in a shopping mall. Gisela Ramensky BA (Hons), Dip Law (SAB)



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