For many businesses, the internet has become a springboard to phenomenal success in terms of profit. Traditional commerce may be headed to its twilight years as more and more people are beginning to embrace the enticing allure of online shopping for goods and services. Almost all trade transactions have online features which enable clients and consumers to satisfy their needs without leaving the comfort of their homes. But what exactly is the impact of this growing trend to the volatile economy and to our societal structure as a whole?
- It has level the playing field between small and big business – Not so long ago, big businesses have the sole power to dictate market trends given their explosive arsenal of manpower and resources as compared to the limited capabilities of small-scale businesses. Consequently, these small enterprises have no place in the mainstream market and, if lucky enough, they only thrive in their local area which, of course, entails no room for large profits and the possibility of expansion. Today, with the power of the internet along with the emergence of social networking, the small fish can now swim in the big ocean of global market. Equipped with a carefully crafted online presence, its target market becomes barrier-less and prospects for profit becomes limitless same as the big players who once dominated the consumer jungle.
- In reality, it has the capability of reducing market prizes for goods and charges for services- With an online platform, businesses has cut the cost of their operational overhead. The need for constructing or renting additional commercial buildings for purposes of business expansion and public accessibility has been reduced as consumers can now conveniently order products via websites and online affiliates. While production costs rises, other expenses are avoided. This offsetting of expenses could provide a cushion against sudden rise in market product prices. Same can be said of services where a provider avoids the costs of maintaining numerous offices by establishing an online personae. This is why we should not wonder why products sold at Amazon are sometimes cheaper than those bought directly from shops. Online consultancy services are more economical and cost-effective than hiring professionals as part of an operation.
- It could be a very effective tool in eradicating graft and corruption in Government and Corporations – E-commerce offers Government and corporations a portal where they can transact their official business in a more transparent and easy to record manner. Government fees and charges paid online are more easy to track and record with an online transaction platform than person-to-person which has proven to be a haven for temptation. This is especially the case in third world countries where bribery and extortion are rampant. With the right features, an online presence is likewise a very efficient machinery for people empowerment as Governments open themselves to the public by direct engagement with their constituency.
There may also be some disadvantages of this system but then, with proper regulation and sufficient safeguards, the general impact will be truly amazing and the benefits would far out-weigh the cons.
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