The Basics of E-Commerce and the Influence of Social Media
Almost thirty years ago, a British grandmother named Jane Snowball was using a Videotex device to order her groceries. She could now place an order for her groceries over the phone. These innovations have since become an ubiquitous force on the global business landscape. From this humble beginning, e-commerce has evolved into a highly sophisticated business model. This article outlines the basic fundamentals of e-commerce and the influence of Social media.
Basics of e-commerce
The basic concept of e-commerce is the buying and selling of products or services over the World Wide Web. In many ways, it is the ultimate form of disintermediation. E-commerce uses Electronic Data Interchange, or EDI. Most major corporations use EDI for transactional purposes. These networks are also referred to as value-added networks or virtual private networks. They are typically run by major corporations such as AT&T, GE Information Services, IBM Global Services, and countless others.
Electronic commerce can involve the buying and selling of virtually anything over the internet, including used and new items. It connects people from all over the world with what they're looking for, and sellers can reach an unlimited market through various systems and transactions. E-commerce is one of the fastest growing forms of business and is estimated to generate $175B in revenue in the US alone in 2007.
Security of e-commerce
In the current day, security of e-commerce websites has become a crucial part of the online business. A reputable online store will invest in reliable hardware and software, as well as use robust security protocols. Malware and ransomware can lock out vital systems and data. Downtime can cripple a business, and regular backups are essential. In addition, e-commerce websites that use SQL databases are at risk of being hacked. Malicious queries can access the database and steal personal information.
As consumer acceptance of e-commerce increases, so does the threat of cybercrime. Cybercriminals are able to cause significant financial and reputational damage to companies. That's why it is so important to take security of e-commerce systems seriously from the very beginning. Unlike traditional security, e-commerce sites can be vulnerable to phishing and virus attacks. So, when designing your e-commerce software, consider these security concerns and take steps to implement strong security measures.
Data encryption is a crucial part of e-commerce security. Encrypting and signing IP packets requires a certificate that adds a lock icon to the web address and a secure HTTPS link. Likewise, the PCI DSS (Payment Card Industry-Data Security Standard) standard requires businesses to follow specific security measures, such as maintaining security policies and monitoring web hosting facilities. Finally, it's essential to train employees to protect sensitive data and to make sure their sites are encrypted to avoid the possibility of theft or loss.
Cyberattacks have become increasingly sophisticated and frequent, and ecommerce sites are no exception. While online retailers strive to incorporate new technologies and services to their websites, cybercriminals are constantly hone their skills and discovering new vulnerabilities to exploit. This makes it essential for online retailers to understand ecommerce security best practices, as well as the various types of attacks and how to protect against them. And, despite the fact that many attacks are prevented by sophisticated software and best practices, they continue to grow.
Social media's influence on e-commerce
Today, nearly half of the world's population uses social media. With the creation of social media, businesses were able to reach new customers and expand their reach through keywords and keyword phrases. Within a few years, the rise of social media sites like Facebook and Twitter gave companies and customers the opportunity to interact with one another globally. But, the influence of social media on e-commerce has not always been clear. Here are some reasons why this is important for businesses.
Consumers want frictionless transactions and social media is experimenting with e-commerce to meet this need. In the next few years, social commerce is expected to grow much faster than e-commerce as a whole and will have a penetration rate of 6% worldwide by 2025. As social media is here to stay, businesses must adapt and create a marketing strategy that engages users. But what are the benefits of social media in e-commerce?
Using social media as a marketing channel is a good way to increase brand awareness and boost sales. In fact, without a proper social media strategy, luxury brands are unlikely to survive. Furthermore, it's expected that social media will become increasingly integrated with e-commerce, with 80% of consumers claiming to purchase something after seeing it on social media. And while social media may not seem like a huge factor today, it is a growing trend for brands to embrace and take advantage of.
Although social media can help businesses grow, it isn't a sure fire way to increase sales. Despite the hype, sales figures rarely reflect the real impact of social media on the bottom line. According to IBM research, only one percent of visits from social media sites led to actual sales. So, how does social media influence e-commerce? To get the most out of it, you need a high-quality social media presence.
Customer service issues in e-commerce
In the age of instant information and online shopping, customers are demanding faster responses and better customer service. While this is important for ensuring a positive customer experience, it can also pose several challenges. Here are a few things to keep in mind when handling customer service issues in e-commerce. First, remember that customers have high expectations when they shop online. For instance, consumers are no longer willing to wait over 12 hours for an email response. Instead, they expect to receive a response within three hours or less.
Second, customer service in e-commerce should focus on providing a personalized experience across multiple channels. An example of this is a recent COVID-19 pandemic, which illustrated the increasing demand for digital products. Businesses that failed to deliver a quality customer experience were mishandling expectations. According to the same survey, 54% of consumers have higher service expectations now than they did one year ago. Additionally, 96% of consumers surveyed say that excellent customer service is important for building brand loyalty. For these reasons, businesses should ensure they provide an omnichannel customer experience that includes email and phone support.
E-commerce is a booming industry and continues to grow. More businesses will be online, increasing competition. Developing a strategy to retain and earn customer loyalty is vital to surviving in a saturated market. As such, customer service in e-commerce is essential to ensure an overall positive customer experience. Here are some helpful tips for building an effective support strategy:
Impersonality of e-commerce
A lack of trust in e-commerce transactions is one of the major restraining factors for e-commerce growth in Nigeria. But to establish trust, consumers must first be able to see the person they're dealing with. Despite the many benefits of e-commerce, the impersonality of the process seems to place consumers at a disadvantage, especially if they can't see the person behind the website. E-commerce buyers are also at a disadvantage compared to platform operators or sellers. This is largely due to the impersonality of e-commerce, which weakens the relationship between providers and buyers. Impersonality is also an issue due to the fact that the web-based environment is highly susceptible to unfair commercial practices.