Introduction of E-Commerce
By Internet commerce, we mean the use of the global Internet for purchase and sale of goods, services, including service and support after sale.
Internet commerce brings some new technology and new capabilities to business, but the fundamental business problems are those that merchants have faced for hundred – even thousands – of years that is you must have something to sell, make it known to potential buyers, accept payment deliver the goods or services, and provide appropriate service after the sale. E-commerce is changing, more devices are being used to access the Internet, and people are accessing more platforms to help guide their purchase decisions.
Role of Social Media:
Social Commerce is a subset of electronic commerce that involves using social media, online media that supports social interaction, and user contributions to assist in the online buying and selling of products and services. Today, the area of social commerce has been expanded to include the range of social media tools and content used in the context of e-commerce, especially in the fashion industry. Examples of social commerce include customer ratings and reviews, user recommendations and referrals, social shopping tools (sharing the act of shopping online), forums and communities, social media optimization, social applications and social advertising.
Some exciting stats related to E-Commerce:
- Fifteen percent of students older than 13 with access to tablets have shopped on their devices while in school.
- Seventy-one percent of social media users are more likely to purchase from brands they follow online.
- Ninety-five percent of tablet shoppers who make a purchase with their devices do so at home.
- Mobile commerce sales reached $4.7 billion in the second quarter of 2013, up 24% year-over-year.
- U.S. e-commerce sales in 2012 accounted for 5.2 percent of total sales.
- Tablet shoppers spend 54 percent more per online order than those on smartphones.
- Fifty-nine percent of households with annual incomes of $200,000 or more have purchased products on their mobile devices while in-store.
- Online comparison shopping sites attract 72 million monthly visitors.
- In U.S. 58% of department store Websites are optimized for mobile devices.
- In U.S 52% of consumers buy brands directly online
Prediction related to Social Media in E-Commerce
Looking at the present influence of Social Media on E-Commerce industry following prediction for 2015 has been derived.
- More M-Commerce than E-Commerce
- 50% of web sales to occur via Social Media
- Facebook to take 6.1% of E-Commerce Market
- More than half of all web commerce will be directed by social media influence
- China to be World’s largest E-Commerce market
- Mobile commerce transactions will reach $3.2 trillion up from $1.5 trillion in 2013