Effects of computer and Technology on Ecommerce and its Impacts on the Community

By lowering transaction costs, removing physical trade obstacles, and enhancing commerce efficiency, information technology has increased the level and quality of ecommerce. Yet, it has raised the ecommerce industry’s security risk. The purpose of this study is to identify and examine the effects of computer and technology on ecommerce, as well as their effects on progress and how they are incorporated into the community’s functions and performance. For the last two years, more than 30% of commerce has been conducted online. The report presents the findings of an in-depth investigation of the influence of technology on internet business based on secondary data gathered in the UAE. It draws conclusion from comparison of traditional ad ecommerce method of business especially in the retail section.

Effects of computer and Technology on Ecommerce and its Impacts on the Community

Introduction

In the past century, communities have been conducting business in a traditional physical method where every task is dependent on the retailer and not automated systems like in the 21st century. It is a vital requirement for any community to consider and implement any available method that improves the overall livelihood of its subjects. E-commerce has evolved over the years from an additional tool to a necessary activity. Over 60% of businesses in the UAE have gone online to keep up with the trend and competition. The main aim of the paper is to inform on the importance and purpose of adopting technological measures in improving the daily business processes. Information technology has revolutionized e-commerce by saving transaction time, eliminating barriers such as physical boundaries, and reducing operational costs, however, limitations such as security threat must be overcome.

Figure 1: the performance of e-commerce over the past years

Analysis

The online market field is a playground for all types of activities the main one being e-commerce. E-commerce is the buying and selling of goods and commodities over the internet. Over the years application of this way of business has been paramount to every organization because of globalization and technological advancements. Computer gadgets are now cheaper, easily accessible and more efficient compared to the 19th century when it was reserved for the fortunate few who could afford it. The dawn of the 21st century has brought innovation and urbanization to most parts of the world raising awareness in the usage of electronic tools. This has made e-commerce the most important professional activity on the internet, and multinational companies are cashing in on it.

The culture, education and assimilation background of the occupants of the UAE show the perception of a reserved but innovative population and thus the improvement in adoption of e-commerce and technology. With the expansion of the capital and the country going into hotel and tourism business, the need for e-advertisement and e-marketing has become the go-to platform for creating awareness and promotions. Small firms and retail stores have aggressively used e-commerce to promote and sell their products online, and this has expanded their customer base and raised awareness at the same time.

If applied correctly, e-commerce could enlarge the market base globally and save on the tremendous cost of storage and marketing. The process requires a technological gadget, a platform or media, a buyer and a seller. The buyer will have to post or advertise his commodities via media or online store applications such as Alibaba and wait for the consumer to order to arrange a delivery path. This will require a strong internet network and a computer, iPad or mobile phone. The seller will keep inventory on the performance of different products and order them according to the request. Electronic funds transfer, inventory management systems, and automated data collection are some of the common applications used in e-commerce.

The Benefits of Information Technology on e-commerce

E-commerce saves time and eases accessibility of commodities. The customer could buy commodities of their choice at the comfort of their home and have it delivered to their door. This earns that there is no geographical barrier or limitation of the market base for both the consumer and the seller. Residents can sale and market their products globally while positioned at their home. Unlike traditional store where one is limited to one geographical area, e-commerce has no boundaries.

Low operational costs and high-quality service make the process efficient and advantageous. With e-commerce, there is little to none operation costs. It saves cost on storage and gives the customer enough time to speculate and choose goods that meet their needs without wasting time or energy. The extent of availability of different types of goods gives the customer enough choices and so the quality is better in comparison with the traditional store (Collin& Zapata, 61).

There is no need to physically set up companies when it comes to e-commerce, and therefore restriction and government regulation are limited compared to traditional setups.Unlike the traditional store where you should be located physically, many retailers and businessmen have opted for the brick and mortar type where they have both physical and online presence. E-Commerce is convenient for the sickly, disabled, fatigues, nursing mothers and the old who would otherwise not be able to walk to the physical store.

Disadvantages of information technology on e-commerce

Customer satisfaction is an issue because many believe in physically looking at the goods and therefore there are some who still opt for physical stores. Although some businessmen have adapted the brick and mortar method that makes them reap the benefits from both sides. Customer loyalty is not guaranteed because of the wide variety of similar goods offered by different stores unlike the traditional setup where there is assurance of services and loyalty. Quality is also not a guarantee because image is maybe deceiving and misleading, unlike physical stores where one can see and determine quality.

Security is a major concern when it comes to online stores. Hackers and spammers have become a major concern for online retailers and customers. Payment methods are becoming complex and insecure especially in urban regions. This has become the main issue and discourages customers from buying online goods. When it comes to large transactions, most customers fear for their money, so they prefer traditional stores.

Conclusion and Recommendation

Information technology has led to increased level and quality of e-commerce processes by reducing costs of the transaction, reducing the time needed to trade, and eliminating significant physical barriers such as distance which reduces the efficiency of e-commerce. However, for full benefits to be realized, challenges such as increased security threats must be eliminated. If the marketing and business strategies are consciously planned and monitored, it will eventually lead to massive revenue and market expansion. In respect to security concerns, brick and mortar methods and strict cybersecurity enhancements-commerce can be effectively managed and monitored to achieve customer loyalty and assurance. Creation of target markets and thorough research on online marketing is a mandatory necessity especially for big companies that have attained stability on the ground and are hoping to attract a different kind of customers. From improving marketing standards and efficiency, e-commerce has proven substantial despite security and quality concerns. There are limited restrictions and liabilities when it comes to online business, and this has encouraged the UAE community to explore this platform and use it to attract and retain customers from all walks of life, globally and locally. Online gadgets and services enhance and make it easier for small firms to venture online and promote the enhancement of procedures and processes involved.

Works Cited

Galliers, Robert D., and Dorothy E. Leidner, eds. Strategic information management: challenges and strategies in managing information systems. Routledge, 2014.

Jehangir, Muhammad, P. D. D. Dominic, and Alan Giffin Downe. “Technology resources and e-commerce impact on business performance.” Digital Information Processing and Communications. Springer, Berlin, Heidelberg, 2011. Pp. 440-447.

Seetharaman, A., et al. “A Study of the Moderate Growth of Online Retailing (Ecommerce) In the UAE.” The Journal of Developing Areas vol. 51, no. 4 (2017): pp. 397-412.