E-Commerce

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1468

3E-COMMERCE

Е-Соmmеrсе

Digital Divide

The term digital divide refers to a socioeconomic gap created between those who can get access to information as well as communication technologies and those who cannot (Schneider, Perry, 2015). In Australia, the area several factors that can contribute to the digital divide in the region. To begin with, some socioeconomic factors such as low income, in this region contribute largely to the digital divide. This is because families with low income hardly get access to internet services. Subsequently, education attainment is also a strong factor which can contribute to this divide. People with more education are likely to access the internet more often than those with less education. However, the government of Australia has put in several measures aimed at reducing this divide. In the education sectors, the government has ensured that the cost of internet access in school is subsidized to enable more schools to have Internet access. More so, it developed some policies that focused on enabling low-income households to enable them get access to the internet and get some training on how to properly utilize the internet services.

Internet, Intranet and Extranet

The Internet refers to a world- wide system of computer networks that are interconnected which mainly uses an internet protocol that connects many devices worldwide (Psaila, & Wagner, 2008). The intranet refers to a network that has been restricted within a certain enterprise. An extranet is a type of intranet network which permits some members who are not part of a specific organization to partially access the internet. However, what is similar to the three networks is that they all entail extensive information and services for example hypertext documents and some applications. The internet is open to the public and contains extensive information. In business, it reduces the marginal costs of sales, services as well as marketing. An intranet is beneficial as it enables the employees in a specific organization to communicate efficiently and organize information pertain the business. It cut on the operating costs in the firm and as such reduces the individual’ coast of the transaction. Extranet helps an organization to share information with its client and as such reduces the process of purchasing goods hence reduces the cost of procurement.

Network Effects

A network effect is an impact that is perpetuated through the examination of the size of the network on particular goods or services. This is to mean that the value of the products to an individual is shaped by how many people are using the some good (Schneider, Perry, 2015). In Ecommerce, network effects determine the popularity of a good or services offered online and how well many people will buy. For example, the Microsoft Window application is valuable due to its popularity among many people. Furthermore, many software is designed for windows and hence, people prefer it more than other applications. When the product becomes more popular and attracts more clients, this increases the returns which impact on the rate of competition substantially.

Website Designs

The functionality of a website design is a major factor that impacts on the success of a website. It entails pages that load quickly and is functional which helps to point clients to the services provided efficiently. Subsequently, a site should be informational as well as entail legible texts in order to attract many people. Customers prefer links that contain the entire information on a product. Another factor that is also necessary is the web designs that are easy to use. In order to ensure efficient operation of the site, it should be designed in a way that anyone can use it with ease. Moreover, the designs should entail redundant navigations. This is to means that there are alternatives links of the some content. Another important factor is the ease of purchase of products on a site. If it is complicated, it will drive away clients and impact negatively on the operation of that site. Moreover, its multi-browser functionality impacts on the design as well as the graphics that have been used. All these factors attract clients to the site or drive them away hence reducing the functionality of a site which impacts on all its transactions (Psaila, & Wagner, 2008).

Features of E-commerce

E-commerce is able to stand out from traditional methods of commercial operations due to its unique features. To begin with; its ubiquity feature makes it accessible globally since the internet is global. As such people can transact globally without necessary having to be physically present. Social media technologies also help in creating awareness of certain products to clients. Subsequently, ecommerce also contains the aspect of global reach. Many retailers can now sell their goods to the world since the businesses are not confined to geographical settings. It also contains Universal standards which have been formulated to govern how information is passed through. As such this ensures equality of all business regardless of the geographical settings. Moreover, it entails richness of information in regards to availability of audio, videos, and printed material. Interactivity is another feature which enables a business to excel in ecommerce. Clients get assistance from online agents, and their feedback is also valued. Information denseness and personalization also help to make it unique. However in the traditional commerce transaction, all these features are absent and attracting large turnovers in small business is almost impossible (Bhusry, 2006).

Intellectual Property

Intellectual property is the term that is used to refer to the legal rights over inventions or ideas both in industrial as well as personal sectors, for example, the copyrights. The copyright laws are formulated in order to protect the original ideas and works of authors. By so doing, they encourage the authors to be more creative by assuring them of rights exclusive to them which protect them from infringement. However, the authors work should lie in a particular field, be unique, perceptible and recorders in some form. These rights are best in increasing innovation because the original work is protected and not exploited by other people. Hence, an individual is encouraged to go on creating better ideas. However, in some cases, it can provide lender protection to work that is not supposed to be receiving it under the laws (McJohn, 2009).

Measures to improve ecommerce by government

The government is tasked with critically examining the business operations policies that enable E-commerce in the country. It should create an environment in which there is a completion of electronic transactions which will lure many companies to this field. More legislation should be made regarding the independence of all enterprises in electronic commerce. The government should put a lot of effort in ensuring there is cooperation of a country with the others in order to make Ecommerce more efficient. This is because where a certain country is not relating well with another, trading activities are heavily affected. As such the government needs to develop ways of ensuring harmony as well as a corporation is maintained. Moreover, the government should ensure that there is regulation of taxes on goods acquired through E-commerce from another country. This will play a big role in luring many enterprises in the e-commerce sectors. Moreover, the government can help enterprises in the formulation of policies that assure clients of privacy and confidence when they transact in electronic commerce (I. A. G. B. U. W., 2009).

Building/hosting Websites and Outsourcing

In order to decide on whether to build your website or outsource several aspects of the site development, there are major issues that should be evaluated according to (Psaila, & Wagner, 2008). To begin with, the price should be well evaluated. In consideration of outsourcing more resources are required unlike in building your website. However, if you affiliate with the right company, then rewards are bound to be attractive. In building your website, it will be relatively costly however one has the ability to decide the kind of design that is budget friendly. Subsequently, it is important to consider the security of the website. Building a website to manage it on your own is more secure as one has the ability to control the activities unlike in outsourcing. However, it is more costly as you will have to put in all security measure. None the less in outsourcing the liability of security is in the company you choose.

References

New Delhi: Firewall Media.E-commerceBhusry, M, 2006.

. Available from: https://www.w3.org/tr/egov-improving/ [Accessed 20 May 2016]. Improving Access to Government through Better Use of the Web. Improving Access to Government through Better Use of the Web, 2009.[online]

. New York: Aspen Publishers. Intellectual property: examples & explanationsMcJohn, S.M., 2009.

. Berlin: S pringer. E-commerce and Web technologies: 9th international conference, EC-Web 2008, Turin, Italy, September 3-4, 2008; proceedingsPsaila, G. and Wagner, R., 2008.

Schneider, G., Perry, J. T,. (2015), Electronic Commerce, 11th edition Cengage Learning Australia.