The latest e-commerce technology is rapidly altering the business transactions both globally and locally. In the 1980s, the retail trade hinged on location, but the advent of internet technology enabled online trade. Today, the internet is the world’s marketplace as people conduct businesses virtually. Measuring the impact of e-commerce is not easy since the business experts cannot determine the end and beginning of the traditional and modern global economy.
Online retail sector constitutes a significant e-commerce share. The dominant players in this segment include accessories, apparel, and consumer electronics. The American Commerce Department claims that in the year 2011, online trade was worth $195 billion but the figure increased tremendously two years later to $ 262 billion. It is a testament of the improving online trade infrastructure components (Burt & Sparks, 2014).
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In the past decade, the developed world dominated the e-commerce software production industry, but this has changed significantly as developing countries such as China and India adopt the technology. The increased internet connectivity through fiber optics technology has not only ensured efficiency but improved security. In the modern times, the third world countries in the Middle East, Asia, and Africa are embracing the mobile commerce technology (Bosomworth, 2013). As a result, online payment platforms are emerging to bridge the gap between the online vendors and buyers. In addition, the EU and the US subsidize online trade to encourage its adoption, especially in the rural areas.
There is a clear continual evolution of e-commerce technology. Consequently, the online traders understand the importance of consumer experiences to the sales conversion. A section of online retailers in the United States plan introduces and sustain the buyer’s value through the provision of a sophisticated digital experience (Burt & Sparks, 2014). It entails swift product delivery by drones and smart refrigerators. Further, innovations such as augmented reality goggles, and droids are projected to transform the sector.
The success of e-commerce depends on innovations that enhance its appeal to a new customer segment. For instance, the established corporations such as Walmart, Delta Airlines, and eBay, must embrace pop-up storefront to improve the digital experience. Implementing the latest technology leads to process simplification, ease of use, and convenience (Howard et al., 2012). The consumer comfort increases the profitability and resources for investment. Today, businesses have fitted iPad at strategic points so that consumers can use them to read reviews and seek assistance. On the other hand, transport corporations such as Uber employ a sophisticated software that enables the customers to order and pay for their services online.
Data integration is fundamental to the future e-commerce platforms. Firms such as Aldo adopted the new software technology to link the modern trading system to its retail legacy. As an accessory and shoe store, the organization’s latest e-commerce platform combines online buying experience with the in-store activities. In essence, it employs Hybris software for personalization of the consumer needs, despite that Aldo still utilizes the IBM SOM (Sterling Order Management) software for order fulfillment and inventory tracking. Aldo is not an exception. Other firms in the United States have adopted this strategy to minimize operation cost and maximize profit.
While e-commerce has come a long way, the Majority of buyers in the developed world still prefers physical store shopping. Cash sales accord adequate security since the transaction is face-to-face. Hacking and credit card fraud has intensified since the early 2000s (Khorsow-Pour, 2015). The security lapses discourage buyers from conducting online acquisitions, but large multinationals such as Amazon and Google are investing heavily in countermeasures. Forrester Research projects assert that by the end of 2017, the e-commerce sales will peak at $380 billion (Burt & Sparks, 2014).
- Bosomworth, D. (2013). Mobile marketing statistics 2015. Smart Insights site.
- Burt, S., & Sparks, L. (2014). E-commerce and the retail process: a review. Journal of Retailing and Consumer Services, 10(5), 275-286.
- Howard, R., Samuelsson, O., & Kiviniemi, A. (2012). The latest developments in communications and e-commerce–IT Barometer in 3 Nordic countries. In CIB W78 Conference, Aarhus.
- Khosrow-Pour, M. (2015). Emerging trends and challenges in information technology management. Los Angeles: Idea Group.
