SOCIO-ECONOMIC IMPACT OF E-COMMERCE E-commerce has a great economic and social impact. It has the great potential to alter economic activities and social environment of an economy. It affects various sectors such as communication, finance and retail trade. It holds promises in the areas such as health, education and government also.
ECONOMIC IMPACT OF E-COMMERCE Growth,prosperity and competitive advantage of any modern economy depends to a large extent on innovation of new technology. Continuous growth of e-commerce is expected to have deep impact on structure and functioning of economies at various levels and overall impact on macro economy. E-commerce helps in increasing the GDP:- It helps in generating the economic wealth. It is expected that by 2020 e-commerce will contribute around 4% to GDP of India. It is mainly because of growing number of online buyers. Currently, the internet penetration in India stands at 11% of population, a third of world average, which is bound to increase in near future.
E-commerce has been driving business transformation and economic modernization:- E-commerce provides a new venue for connecting with consumers and conducting transactions. Our country has witnessed e-commerce revolution accompanied by widespread use of the internet, web technologies and their applications. E- commerce has changed the way business is conducted around the world. It minimizes the cost of transportation, advertising and marketing. It reduces the distance between buyer and seller, thus permitting rapid exchange of information o services which mean buyers and sellers for business purposes entrepreneurs often utilize the social networking sites like face book and twitter.
E-commerce helps in the creation of employment:- It is true that some jobs became obsolete with the arrival of e-commerce but it is also true that e-commerce is a “net job creator”. These jobs are created in the internet sector such as engineers, designers and sales people. The extremely rapid growth of e-commerce retail sales has provided a boost to courier services. It has created employment opportunities in industries producing softwares and systems used by e-commerce and other occupations associated with websites and networks. In India Flipkart, Amazon, Snapdeal and Caratlane are e- commerce players hiring temporary staff for delivery, online marketing and customer services.
Promotion of industry E-commerce help in development of MSME’s(micro small & medium enterprises. It solves the problem of funding, technology, infrastructure & ineffective marketing. It helps in creation of employment opportunity. E-commerce provide new market access, business opportunity, enhance competitiveness. Helps in globalization Local companies have became international just by having internet presence enables companies to reach more customers& prospects on an international level earlier only large organization could have think of becoming international but now it is possible for all.
Act as a medium of foreign trade Helps in increasing export Helps in balance of trade Reducing national debt Reducing inflation rate Help in increasing GDP Promote comprehensive growth Opportunity to reach online customer Enhance Economic development Provide option for the retailer to expand Companies also do recruitment & selection through e commerce
Encourage entrepreneurship It encourages innovative ideas, creativity of entrepreneur investors also invest because of less cost involved E business are even commenced by new blood because of e- commerce Encourage entrepreneur because online business lead to high margins
Lowers transaction costs One significant economic effect is the reduction of transaction cost compared to traditional commerce. E - commerce reduces transaction cost by removing many of geographic and time barriers that buyers and sellers previously faced. The existence of intermediaries i.e wholesalers and retailers, increases the transaction cost but in the process of e - commerce transaction it is possible for the consumer to conduct and place an order with the manufacturer instantly and directly.It results in more accurate information flow, low distribution cost, closer trading relationship and improved cash flows. Facilitates agriculture sector of economy E - commerce is able to provide information flow and market transparency in agricultural sector. It also offers tremendous opportunities to create collaborative market places at low cost.It can tighten up the supply chain and cut the transaction cost which is beneficial for local producers.
Facilitates promotion of rural community E - commerce offers a great opportunity to the developing countries like India to greatly expand their market internally and externally. It has helped a lot in the context of overall development of Indian rural community. As a result of e - commerce rural areas which were earlier considered unprofitable have become focus for investment and market expansion. In rural areas there may not be adequate market to make it viable to open a shop to sell products such as digital television or fashion products. However there are consumers who may have purchasing power and hence e - commerce is the perfect route to deliver their products to those who can afford from non metros.
Other economic impacts - Facilitates artisans access to global market E - commerce facilitates the access of artisans to world market. It is very helpful in creating new opportunities for them. It facilitates the marketing of handicrafts and other such products in global market helping the artisans to gain more and empower the developing countries. Facilitates promotion and development of tourism The earning level of all those people concerned with industries like tourism increases to a large extent. Improved demand forecasts Improved demand forecasting leads to reduction in current inventory level which will have a significant economic impact. E - commerce can dramatically reduce production costs which results in price reduction.
Conclusion E - commerce has some negative consequences in volatile business environment. It may create rapid savings and so the managers must develop suitable strategies to deal with such issues. It is believed that e - commerce may result in widening the gap between developing and developed countries. Some traditional businesses do face rigorous e - commerce competition, therefore there is a need of finding the right mixture of online and offline commerce which is very much challenging.
SOCIAL IMPACTS OF E- COMMERCE E-commerce has become integral part of modern society. Today many consumers can simply use their computers, smartphones or portable electronic devices to shop online
Cash on delivery Cash on delivery Indian society is very much attracted by cash on delivery facility offered by various e-commerce companies Introducing cash on delivery has been one of the key factors for the success of e-commerce Digital society e-commerce has enabled the public to find expert advice Now a days business and government set the digital society Increasing no. of activities whether government or non government are now deliver online
Combine personal life with professional life Growth in e-commerce has enabled many workers to perform some or all of their work even from phone resulting in work life balances this is extremely useful particularly to combine personal life with professional life Raise standard of living Raise standard of living On an individual level citizens having internet facility may perform transaction world wide their by raising their own standard of living
E-Commerce helps in creating more and more lucrative jobs at all the levels, some of these jobs may be very high paying also. It provides new business opportunities to an entrepreneur to venture and establish an enterprise with global market access. Create lucrative jobs Beneficial to rural community Beneficial to rural community E-Commerce is beneficial to the majority of rural community. It brings unanticipated effects on cultural and social norms.
It has been found that e-commerce is of prime importance mainly to Indian middle classes because they have the financial and cultural capacity to make the best use of e-commerce. Indian middle classes Potential of converting traditional society to digital society E-Commerce has the potential of converting traditional society into a digital society. Digital world has also revolutionized the social concerns in a society. The growing reach in terms of internet connectivity of end consumers when buying online beyond the metros and big cities are key drivers of e-commerce boon in India.
The society is now aware of the considerable benefits of e- commerce. These are:- Convenience of home shopping. Wider range of goods and services. The convenience of consolidated. Easy delivery of goods and services. Convenient and secure payment. Lower prices. Considerable benefits
Impact on transport system E-commerce also impacts the transport system have to be delivered directly to the home.E-commerce provides environmental benefits because it has a potential to reduce transport for shopping. Tool for public participation E-commerce can be use as a tool for public participation and online voting particulary for local democracy and participation. Access of educational institutions E-learning enhances the access of educational institutions in remote areas.Many educational institute offers online educational courses.Through use of technology,thus developing our society
Helpful for disabled children E-commerce is helpful in supporting disabled children. It provides the most helpful source of information and advice from others with similar experiences. It provides retails of products/services available world wide in this regard. Provide speedy and personalised service Through e-commerce companies collect customers information to provide more personalise and to speed up online transactions.Since these data details not only provide the information that how much merchandise were sold,but also where and to which demographic group these are solds.Market researchers can use these data to target their prices.
E-Commerce has improved the standard of living of Indian society. Use of mobile, internet and smart phones has given a push to the society. Standard of living Online jobs and matrimonial sites Our society has gain a lot from other online classifieds relating jobs (Naukri.com) and Matrimonial (Shaadi.com). These emerging models are useful to the society at large in case of intangible assets like relationships,knowledge etc. There are number of websites like OLX and Quikr which are very useful to sell the old used products in an easy manner and at competitive prices. Selling websites
The growth in e-commerce has a few negative social consequences as well. E-Commerce has resulted in Me-Oriented Society in which the main focus is on personal growth and decline in family values.E- Commerce has adversely affected the earnings of various micro retail traders.E-Commerce, If used properly can prove to be beneficial to the society otherwise it may be the reason of spoiling the environment for forth coming generations. Conclusion