E-Commerce is defined as the practice of buying and selling on online platforms. Nowadays, E-Commerce has been a trend all over the world. People from various countries have started buying online products. This electronic commerce includes mobile commerce, funds transfer, inventory management and many more. Now, one can send anything to anyone with just a click, be it money transactions or gifts.
E-Commerce includes or supports the following businesses.
- Online shopping portals like Amazon or Flipkart
- Business to business buying and selling online
- Online monetary exchanges for trading purposes
- Electronic data interchange (EDI) from business to business
Over time E-Commerce in emerging markets has been a topic to discuss over. E-Commerce is the future of every nation as everything is about to go online. From vegetables to medicines, everything will be available online in the near future. Everything will be in the reach of smart-phones.
There are certain factors or reasons which prove that E-Commerce will be the future.
- Traditional retailers will develop online capabilities i.e. now small businesses will also run online and the local retailers will now be able to expand their business via online mediums.
- Food delivery will be a priority in terms of online shopping. Due to the pandemic, food delivery has seen rapid growth as people do not find it safe to eat outside. No contact food delivery has been adopted by many food delivery chains.
- Online monetary transactions have also been on the list of factors affecting E-Commerce. People can now download bank apps on their mobile phones and apply for the net banking system. This will help in making financial transactions easy and less time–consuming.
- Consumer growth will be seen if E-Commerce reaches these emerging markets. In the present scenario, E-Commerce accounts for 2 – 6 % thereby, representing future growth.
Now, what is the global impact of E-Commerce? Many think that E-Commerce will prove to be a boon for emerging markets and local retailers. E-Commerce has large and positive economic effects. E-Commerce has and will change the face of business in the near future. The inefficiency regarding the trading and retailing will be sorted if E-Commerce primarily comes to light. This will lead to a positive effect on the economy of the country.
Online businesses will have much better security and these portals will be efficient in providing timely deliveries on ordering. This will reduce the incapability of the offline banking and transaction systems as the payments will be made online which will be hassle-free. Globally, E-Commerce will have a positive effect on the economy and development of all nations.
People also ponder over the fact that what is the impact of E-Commerce on international business? Well, international trade will increase due to E-Commerce in the near future. Local retailers will be able to showcase their products on an international platform through internet commerce. But transportation costs will play a significant role.
The products ordered will take time to deliver with relatively high transportation costs. Sometimes, people are not willing to buy products with a high transportation cost as the delivery cost can be higher than the product. But E-Commerce will make the untradeable things tradable. So, E-Commerce will have a 50 – 50 effect on international business.
What is the impact of E-Commerce on globalization? This is a valid question and holds importance. The performance of the nations, their efficiency and the impact of the markets will improve at a great extent through E-Commerce. This will in turn lead to higher wages which will result in a high standard of living for people. Expansion of business globally will lead to higher pay grade jobs and an efficient living. E-Commerce will have an overall positive effect globally including a rise in the economy of the nations thereby, developing them.
This is the emerging Scenario in E-Commerce. The local retailers will have a fair chance to showcase their products on the digital platform and more and more people will be able to witness their products. This will lead to positive growth for these local retailers.
Moreover, there will be a positive approach in terms of international business and online trading. The buying and selling will take place at a rapid and at a positive rate. The financial transactions will be easier and everything will be online and this will be hassle-free. This will be the impact of E-Commerce on emerging markets. E-Commerce holds a lot of importance in the near future i.e. in online trading and online transactions.