e-commerce trade

Definition of E-commerce and E-biznisPoimot e-commerce and e-business is often used in a similar context, the term Internet marketing but their range is quite different. It is important for each organizicija and its internal management with digital technology to achieve clearly defined in terms of e-marketing, e-commerce and e-business, how would you define the goal that it wants to achieve.
Electronic commerce is often thought to be only about buying and selling products using the Internet, but e-sales refers to financial information and electronic paths through the transaction between the organization and any third party. From this it follows that non-financial transactions such as incoming e-mail clients and issues of overseas via e-mail message, it appears that buyers are aspects of e-commerce that help the organization in the process of marketing research.
When considering the impact of e-commerce to marketing organizations, it is identified in the role in which one party sells the other product is purchased through e-transaction. Sales refers to the transaction perform online customer payment.
E-commerce refers to transactions which deals with the organization for the sale of products. Internet marketignot uses direct support for the sale of products. This responsibility have operational procurement functions within the organization.Note DSH
When we e-commerce or e-business? The entrepreneur already wrote about internet businesses and I have started a series of articles on Internet businesses. To enter a business category online business article on the internet businesses I wrote the following:

To be able to enter the category of internet businesses business needs to function primarily of the Internet. It is a market that operates the business to be online.
This is a simple categorization of which I used for my internet business mentors and their vebinari you visit. On the other hand, sometimes instead of online business or e-business and e-commerce is the term used internet marketing as a broader term. Although the real situation is reversed (the term is broader internet business). The most famous entrepreneurs in the field of online businesses say they are marketari Internet, not internet businesses. Why is this so?
First and foremost, it is because nearly 90% of the work of an online business is Internet marketing. Internet marketing is your sales team, your promotional team, your team and purchase everything related to the operation of an Internet business. If you succeed in online marketing will succeed and your online business. It is the basic rule. And since an internet business is often equated with the term Internet marketing.

e- commerce, or e-business, the title of a revolution that will shape the economy of the new millennium. But what customers see on-line stores and online portals on their computer screens only the tip of the iceberg of e-commerce, the basis of which economic strategy, business model, operations, infrastructure management, finance, information, finally, the production and delivery of product to the consumer. But any part of this iceberg is actively exploiting modern computer and Internet technology, requires new approaches to control and evaluate the effectiveness, creating a fundamentally new form of organization - an e-organization. Electronic commerce over the Internet: real food for real money online - is now the fastest growing area of ​​e-business. But, as in the real world trade, the main business processes of virtual shops are welcome and execution of customer orders, delivery meets their needs for goods and services - ie Logistics.

Moreover, in the words of the great connoisseur of science of management Peter Drucker, in respect to the compare market conditions, e-commerce, "the delivery of goods becomes a major competitive advantage."

In his article on the revolution that will make e-commerce in all areas of economic activity, he said: "The delivery of e-commerce will become the sole area in which the company can really excel. It will be the main area of ​​expertise. Firms will not trade that produce and that will put the buyer. " (1)

New principles and conditions of e-commerce, on the one hand requires new levels of logistics management and other qualitative change itself logistics. Some associated with these possible trends, some of which have translated into practice, and will be discussed below.

The basic business model of e-commerce built on the principle: "Bits of bricks are cheaper." Real estate, retail space, sales personnel, security, operating supplies, and sometimes even stores - are replaced by online stores - disk space, computer programs and a dozen experts. But, more importantly, reduced time to market and change the range, and the scalability of the business is almost unlimited. The virtual window can be present products that are not in stock.

Changes in logistics and document procedures for handling orders. Using Internet technology initially involves an electronic form of documents and their transmission capabilities for automatic correction of errors, accurate accounting and operational control. Since General Electric costs for documents on the orders of customers generally range from $ 50 to $ 200 (not to mention the time and errors), and on-line today they are $ 1. (2)

Flexible data format in XML makes it possible to transfer data over the WAN, which may displace and has not received universal approval and use of electronic data interchange (EDI).

When centralization is decentralization of a booking of delivery. Theoretically, e-commerce provides unlimited opportunities for companies to conduct international business. If the appearance of means of transport has led to the conquest of space, e-commerce to eliminate. Customer do not care where the provider is located, if it will meet the price and quality, the supplier also does not matter where the customer. He can conduct business in the market without a physical presence, if he can arrange the supply of goods and services.

If you will be able to ... Declaration of goods, payment of duties, customs clearance, taxes, etc., which change depending on the country of origin and destination country - that is the main barrier to international trade. Basically it is difficult for the buyer because the seller is not profitable even try to overcome these barriers. "Customs procedures are the most serious obstacle that has ever existed on the free movement of goods in the international market" - said Deputy Patricia Malcolm. Director of the WCO. Forester Research estimated 85% of companies, the leading e-commerce, are not able to fulfill orders from overseas. Neither the EU nor the U.S. - the leader of e-commerce is not yet ready to appropriate customs and taxation of e-commerce.

There is a distinction the time of sale and purchase. Sale takes place immediately after the selection of goods to customers in the shop, and purchase to be completed only when the buyer receives the product or result from its use. According to eMedia Metrix the majority of American Internet users prefer real shopping - only 2 to 10% of visitors to online stores decide to purchase.

The newly created commercial Internet companies, in the event of a successful start, succeed the first time through an innovative championship in its commodity niche and major economies of scale. But with the emergence of competitors and the growth of the business, their success increasingly depends on the effective functioning of the business: reaction time, accounting and control, quality of products received by customers, logistics. Organization of logistics - it is not only a choice of delivery methods, but also information and accounting systems, planning tools and decision support systems, evaluation of suppliers and partners, the establishment of warehouses and distribution centers. Assortment of goods, the number of partners in virtual and traditional worlds of Amazon.com is growing every day. Its success depends on the physical distribution system. In 1999, the U.S. was built by the sixth operational and warehouse facility of 7-fold greater central center in Seattle.

All this requires, first of all, serious investment, and, secondly, the professional knowledge and skills. With the latter just having major problems. Originally created as a virtual e-commerce companies face complex, time consuming and they do not know the problems of the real distribution of products. Businesses, which open virtual trading in parallel with their traditional activities, faced with inconsistencies due to differences in business models, management and accounting of real and virtual logistics, which can lead to a deterioration of the situation in general.

Natural way is to establish a contractual relationship with the specialized logistics operators, or by using the Internet terminology providers. No wonder the avalanche growth in the number of electronic stores, resulted in the almost simultaneous, the growth in traffic carried by courier services: Fedex, TNT, UPS. For a more fruitful relationship, optimization of logistics scope of the virtual companies may include logistics firms in the alliance.

Here's another case of practice, the leader of retail Wall-Mart Stores Inc., Accused of e-commerce leader Amazon.com a brain drain of the Information and Logistics Technology, who had access to confidential "know-how" and knowledge of the company.

Thus, logistics knowledge, expertise, as valuable to the e-commerce, as well as knowledge in the fields of computer, telecommunications and Internet technologies. This means that demand will grow and professionals who have this knowledge - Logistics.

E-commerce in the world and in Russia
According to the results of sales of online stores November 24, 2006, in "Black Friday", as referred to in the West, beginning a month of pre-Christmas sales, analyst at research firm Nielsen / Net Ratings released its traditional rating Holiday eShopping Index, which contains information about the activities of more than 120 online shopping -points. "Black Friday" is always characterized by extremely high activity of buyers, according to which investors are judged on the state of the consumer sector. The report shows that sales growth in the U.S. segment of the web is gradually declining. The corresponding figure grew by only 12% compared with 2005 (previous year it grew 29%).

Composition of the top three online retailers are nothing new. In the first place by a considerable margin was auction site eBay, which in this day looked 7.5 million unique visitors. Second place at the online store Amazon.com with 3.4 million, and "bronze" to get a site supermarket chain Wal-Mart with 3.2 million visitors. Stable position of the leaders and the decline in the growth of consumer activity indicates maturation of e-commerce market, at least until the U.S. and its major segments.


Year by year, only change the most popular products. Consumer hits of the season are determined by analyzing data from eBay. Since the boom quickly lead to a shortage of goods in the store (and online outlets that usually do not keep large inventories in warehouses, and even more so), the standard practice is for Americans to purchase the desired items on eBay from individuals, prudently obzavedshihsya party demanded the goods. Thus, in late 2006 Advent sales hit the web has become TMX doll Elmo of the company Mattel, character child transmission of "Sesame Street". Toy enjoyed huge popularity and bought up as a gift to children almost immediately at an average price of 70.1 dollars Comparable consumer interest in the past year have caused the seventh generation video game consoles Sony PlayStation 3 and Nintendo Wii, which sold on eBay in 1186 and an average of 412.53 dollars respectively.

Despite the market took shape e-commerce, its impressive financial returns and active competition, to this day remains a pressing problem of unfair relationships online retailers to customers. Most often customers complain about the delay in delivery, but there are cases of non-completely or sale of defective products. Final data for 2006 from the European Centre for the consumers (ECC), to monitor the situation yet. It is known that in 2005, ECC has processed 3775 complaints about online shops of the Old World. This is a 74% (!) More than in 2004. The greatest number of complaints voiced British customers.
However, the high figures indicate not only the deteriorating for stores to consumers, but about the readiness of the past to defend their rights with no less certainty than offline. By analyzing the incoming data, ECC has concluded that consumers annoying inability to contact the seller if you have problems, as well as difficulties in obtaining compensation for defective goods and c cancellation. However, the majority in a similar situation of users made purchases at auction or in foreign shops. In the ECC believe that correct status is possible by making appropriate changes in legislation. Today, buyers are still quite difficult to bring charges against unscrupulous Internet sellers.
This is a problem for Russia. Although the lack of decent service - is not the only reason that domestic users ignore online stores Runet. Success of the past can not be called impressive, especially compared with their foreign counterparts. According to the Romir Monitoring, only 23% of Russian Internet users are buying computers and accessories, mobile phones, cameras, household appliances, furniture, clothes, shoes and jewelry on the web. The largest consumer activity - 39% of the surveyed consumers - often respondents with high income levels (above 25 thousand rubles.). The researchers note that the higher the income, the more computer equipment purchased through the Web. The geography of customers of online stores is also not surprising: 41% of them live in Moscow, 10% - in St. Petersburg. Among the users of the Ural District, only 8% in the outfit shops, from the Siberian - 3%, from the South - 2%.

The survey also asked respondents to list factors that they believe can improve the popularity of online shops. Among the most frequent responses may be noted the relatively low prices, convenient and secure payment system, as well as addressing the reduction of time delivery and exchange of goods.

The domestic trade

As for websites - national leaders of online trading, then, according to the rating NAUET, of the 20 most-visited online retailers 13 are online showcases of known retailers. And despite the fact that prices for goods and delivery costs of such sales are often higher than those of Internet companies, users are ready for the extra spending for the familiar logo. In addition to the power of marketing as such, promoted offline brand instills confidence in buyers, the lack of which still remains one of the main factors hampering the development of electronic commerce. However, the methodology of the rankings in NAUET traditionally attracts criticism and bewilderment by many experts and market players, but it should be noted that other organizations, as well working with intelligence on the domestic segment, is not there.

Apart from the "hit parade" of shops, NAUET investigated the structure of financial turnover in the Russian e-commerce and found that most of the companies increasing revenues, respectively, the overall growth of the market - about 40% per year. However, revenue online store network "Peace" rose by 3.5 times, while the corresponding figures "Sportmaster" and "The Messenger" has doubled. It is worth noting that the online success of large retail chains - this is not a national specificity, and global trend. Recall, that the solid pace of U.S. Internet Wal-Mart sales are much higher than almost all the projects dotcoms, despite the fact that prices for online representation of the network is relatively high.

Easy victories retailers in the field of e-commerce due to the fact that they cumulatively spend on advertising their brand is 5-20 times greater than the dot-com. Their ads appear on billboards and in press and on television. In addition, they use the advertising opportunities of their suppliers. So gradually the network may ultimately supplant the pioneers in e-commerce market segments such as home appliances, audio, video and other electronics. At online stores that do not have such a powerful database offline, there is only one trump card - low prices, but if you want retailers can afford, and dumping.

Russian Internet companies, in addition to the potential threat from domestic retailers must take into account increased attention to the market of Western players. In particular, Chief Marketing Officer of the American company Dragon Media Online Elizabeth Lloyd in an article in August 2006, urged his colleagues to focus on the rapidly growing Russian segment of Internet sales and advertising. She recalled that in the ru-zone, there are already more than half a million domains, users prefer broadband, rapidly growing Internet TV and mobile penetration exceeds 80%.

However, Runet as the investment environment is not free, and from serious shortcomings. The first is the lack of legal regulation that meets international laws. For example, in the domestic segment of the web in quite legally, there are digital music stores that do not make direct payments to copyright holders of tracks, and can therefore afford to trade tracks for 15 cents, while the lowest price you are able to offer companies operating in the western circuit - is 60 cents. It should be noted that on direct agreements with rightholders and pass some domestic online sellers of music content. As a result, Runet last year shook the scandals. And the company even went out of Softkey.ru NAUET in protest against cooperation with the Association of companies who have problems with the observance of copyright.