The purpose of the following article is to analyze the importance and impact that the use of the Internet has generated through electronic commerce, since the use of electronic commerce has been the main way to guide business and transactions both nationally and international. Therefore, companies have decided to invest more in this type of technology since in this way they have obtained greater benefits and profits. In addition, consumers enjoy more benefits, since they can now purchase goods and services quickly and comfortably.
Introduction
The Internet and electronic commerce have created a global economic chain between several countries, since their use has crossed borders, that is, people and companies use technology to conduct business. Thus, successful online business transactions can be carried out internationally. Currently, most companies, especially small and medium-sized ones, consider that the main component of any economy is electronic commerce, because through this several transactions can be carried out effectively.
The Internet allows companies to effectively use their resources in business transactions. Also, customers have better access to the information they need as they can make immediate transactions, that is, they can order online and monitor their purchase orders. In addition, business can be conducted through electronic transactions of information, services, and products.
Businesses are using the Internet to offer better services and products to customers, to increase profits, reduce inventories, and to expand their market area. In itself, the Internet has grown strongly in recent years (see graph 1), therefore it has generated a new way of exchanging goods and services through computer networks, which has led to electronic commerce.
Graph 1. World growth of Internet users (in millions)
Source: Source: International Data Corporation
Now, Information Technologies are defined as the process, capture and storage of information electronically; which provide new mechanisms for existing information resources (Feng, Min-Cheng and Yuan, Yun-Chien, 2006). Therefore, its use in international trade has produced significant effects due to the fact that the way of doing business has changed, that is, companies are now able to integrate and simplify processes through the use of electronic commerce. For this reason, several companies have begun to incorporate electronic commerce as a fundamental element in their business strategy.
For his part, Atineo A. Nded-Amadi (2004) argues that when companies introduce Information Technologies, they carry out an operational, organizational and strategic restructuring. From an operational perspective, Information Technologies are capable of generating operational efficiency in business. In the organizational part, these technologies are in charge of determining customers, suppliers and products; and from a strategic perspective, they ensure that electronic commerce is an essential tool for conducting business transactions in different parts of the world.
Technologies have led to the growth of electronic commerce, as information technology reduces the cost of producing goods and services, facilitates the efficient flow of information as well as international transactions, and creates new distribution channels. In itself, electronic commerce has had a strong impact on a global level, since the way of doing business transactions has been modified, which has generated greater income for companies (Impacts of e-commerce in the global networked economy, 2003).
Electronic commerce refers to the way to obtain goods and services through the Internet, it arises due to the relationships that take place between consumers and suppliers. Likewise, the impact that electronic commerce has generated has been very large around the world, since just outside the United States it increased from $ 196 billion in 2000 to $ 1.584 billion in 2004. However, the United States has dominated the use of commerce electronic since by 2004 it occupied 38% of this type of commerce (Shih Fong-Chuan, Dedrick Jason and Kenneth, L. Kraemer, 2005).
Electronic commerce has had a great impact in some countries, which is why during 2006 it generated great benefits as can be seen in table one.
Table One. Electronic commerce per capita by country
Source: Sameer Kumar and Palo Petersen. "Impact of e-commerce in lowering operational costs and raising customer satisfaction" (2006).
Now, according to Fingar (2001), electronic commerce has several applications both in product markets and in consumers (see table two). In the markets it refers to online catalogs, purchase orders, marketing and warnings about the use of this type of commerce; while for consumers self-service is generated and the easy acquisition of products through websites.
Table two. Evolution of electronic commerce by User segment. (in millions of dollars).
Source: Intel Data Corporation
Electronic commerce captures the data of social interaction between consumers and websites, in order to see the influence that this type of commerce has on consumer decisions. Because most of the purchasing decisions of consumers who buy online are strongly influenced by this type of commerce, since these buyers obtain new products quickly and comfortably.
E-commerce websites generate great social influence, so that online buyers obtain greater benefits from obtaining high quality products because they can customize the products based on their tastes and preferences (Young, Ae Kim and Jaideep Srivastava, 2007). In themselves, these websites help consumers make a final decision about what to buy.
On the other hand, it should be noted that electronic commerce has been a growth area for many companies, because through it they have increased their profits. Therefore, many companies are adopting electronic commerce as a business strategy (see figure 2), that is, more than 75% of companies use electronic commerce to conduct business, since it represents a competitive advantage for them (Sameer Kumar and Palo Petersen, 2006).
Graph 2. Use of electronic commerce as a business strategy
Source: Sameer Kumar and Palo Petersen. "Impact of e-commerce in lowering operational costs and raising customer satisfaction" (2006).
Electronic commerce is changing the way of doing business, therefore it represents a competitive advantage for companies; since it reduces the delivery time of the goods as well as the errors in the work, increases the capacity of the company, generates low operational costs and the clients are satisfied since by-products arrive at them quickly.
Conclusions
The use of electronic commerce is the main way to guide business, therefore companies need to invest in this type of technology, since in this way they will be able to obtain more profits. In addition, customers will enjoy greater benefits by being able to acquire goods quickly and comfortably.
Electronic commerce has certain regulations which are important for online transactions, since buyers do not know if they will receive their products once they have already paid for them or if their credit card number or other information may be used for a fraud (Fong-Chuan et al. 2005). In and of themselves, these regulations facilitate online transactions, as shoppers feel safe using to shop online.
On the other hand, it is worth mentioning that electronic commerce produces both competitive advantages and profits for companies, since it reduces operational costs and the delivery time of products. Likewise, it generates great benefits for consumers since now they can easily, quickly and comfortably purchase various products (Sameer Kumar and Palo Petersen, 2006, 18).
The adoption of electronic commerce varies significantly from country to country, therefore it is important that this type of commerce is regulated in order to avoid risks associated with online transactions, such as fraud.
Information technologies are an important tool in business strategy, since through the use of electronic commerce, companies reduce their operational costs. It also creates a correlation between the customer and the service provider.
Most companies carry out business transactions over the Internet; This has generated the appearance of electronic stores. In itself, the Internet and electronic commerce have created a global economic chain between several countries, since their use has crossed borders, that is, people and companies use technology to conduct business.
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