For years developed nations have continued to enjoy the labors of e-commerce however, it is the rising participation of developing countries that is piquing the interests of many.
E-commerce refers to the sale or purchase of goods and services conducted through computer networks, by methods specifically designed for receiving and placing orders. An e-commerce transaction can be facilitated between enterprises, governments, individuals, households or any other public or private organization.
Due to technological advancements, e-commerce has ushered in faster economic transactions. The government can benefit from e-commerce as well as being able to provide faster services to citizens spread across the nation. India’s high COVID vaccine application rate is credited to the presence of e-commerce. Through apps and other technological initiatives, the government was able to provide secure bookings for people willing to be vaccinated.
E-commerce and development
E-commerce has often been hailed to alleviate the status of developing nations. Through governmental interaction in e-commerce, developing countries can enhance their performance when it comes to multilateral or bilateral trading with other nations. By making faster transactions in trade, governments acquire the ability to draft faster deals of export and import.
E-commerce also eases the burden on corporate entities looking to gain advantage from digitalization. Companies like Amazon provide customers with the ability to track their packages and provide customers with the mobile numbers of individuals looking to deliver their packages. This provides the customers with greater satisfaction. Thus, preventing them from communicating with the company regarding easily resolvable matters.
A country with a good e-commerce network promotes the entrance of reputable MNCs. By providing them platforms to easily communicate with their potential customers, companies are able to gain insight and are able to facilitate better services. This helps provide customer satisfaction with little effort from the side of the business.
Challenges of e-commerce
The internet revolution was accompanied by its fair share of disrupters. One of the biggest challenges faced by e-commerce is the presence of hackers. While there may be practices prevalent in hacking, that are good for the society, most hackers have been known to abuse the possession of this power.
Hackers can conduct frauds and security breaches with individuals who have no prior knowledge of e-commerce. The victims of these frauds are mostly elder individuals who haven’t had enough education related to the digital era. By stealing debit card numbers and CVs, hackers can extract money from anyone’s account to their heart’s content.
Such instances repulse younger individuals as well. Governmental authorities should issue alerts and warnings to people regarding which messages one should ignore. Not only is governmental intervention required in issuing warnings, but the government should reverse engineer the tactics of these hackers by locating their operating centers and stopping their procedures.
While e-commerce provides wonderful opportunities for businesses to flourish under the ambit of technology, developing nations should practice caution. They should prioritize the development of local industries within the era of globalization and open markets. Once a nation is able to achieve such a feat, only then shall it ponder on the advantages that e-commerce may provide.