Question

E-commerce, digital markets, and digital goods are increasing throughout society. After reviewing the key features of e-commerce, digital markets, and digital goods, why do you think firms are increasing the use of these tools? What benefits do these tools provide firms? What potential drawbacks do you see in the use of these tools? What are the benefits and drawbacks these tools bring to retailers?

Answer 1

Answer:-

key features of e-commerce digital markets, and digital goods:-

1. Ubiquity- The traditional business market is a physical place, access to treatment by means of document circulation. For example, clothes and shoes are usually directed to encourage customers to go somewhere to buy. E-commerce is ubiquitous meaning that it can be everywhere. E-commerce is the worlds reduce cognitive energy required to complete the task.
2. Global Reach- E-commerce allows business transactions on the cross country bound can be more convenient and more effective as compared with the traditional commerce. On the e-commerce businesses potential market scale is roughly equivalent to the network the size of the world’s population.
3. Universal Standards- E-commerce technologies is an unusual feature, is the technical standard of the Internet, so to carry out the technical standard of e-commerce is shared by all countries around the world standard. Standard can greatly affect the market entry cost and considering the cost of the goods on the market. The standard can make technology business existing become more easily, which can reduce the cost, technique of indirect costs in addition can set the electronic commerce website 10$ / month.
4. Richness- Advertising and branding are an important part of commerce. E-commerce can deliver video, audio, animation, billboards, signs and etc. However, it’s about as rich as television technology.
5. Interactivity- Twentieth Century electronic commerce business technology is called interactive, so they allow for two-way communication between businesses and consumers.
6. Information Density- The density of information the Internet has greatly improved, as long as the total amount and all markets, consumers and businesses quality information. The electronic commerce technology, reduce the information collection, storage, communication and processing cost. At the same time, accuracy and timeliness of the information technology increases greatly, information is more useful, more important than ever.
7. Personalization- E-commerce technology allows for personalization. Business can be adjusted for a name, a person’s interests and past purchase message objects and marketing message to a specific individual. The technology also allows for custom. Merchants can change the product or service based on user preferences

why do you think firms are increasing the use of these tools:-

1- Highly convenient
The most attractive feature of e-commerce,
Customer can purchase products as per their requirement in a click at any time.
2- Wide exposure: Your business gets wide exposure through ecommerce website.
3- Easy to run: Managing ecommerce site is an easier task than running a business.
4- Global customers
5- Social media presence

drawbacks these tools bring to retailers:-

1) No One Can Buy During a Site Crash

2)Customers Can’t Try Before They Buy

3)Ecommerce Is Highly Competitive

4)Customers Can Be Impatient

5)You Need To Ship Your Products

6) Physical Retail is Still More Popular Despite Decline