What is the e-commerce?

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e-commerce

E-commerce is a system for the sale of goods and services, usually, but not always, carried out by an entrepreneur, within the internet.

Online commerce, in most cases, is organized through a structure that follows, although in a virtual way, the organization of a real activity; very often the e-commerce starts of a basic structure, such as the availability of surplus from the sale classic, and then developed into real online showcases.
Electronic commerce comes into being by setting up of internet sites are able to manage all phases of commercial negotiation, from the offer to the back office, by way of the sale.

Today, online commerce means tight battle with strokes of marketing and positioning within the search engines, with multinational giants attacked by cyber entrepreneurs who not have big capital and with a minimal organization, they provide goods and services at competitive conditions.
Electronic commerce allows anyone to get in the game, without the need for the direct production of any good or service.

Rapid growth: a market that knows no crisis.

You can imagine it as a giant metropolis of purchase, where department stores, shops, travel agencies exist side by side; it is the metropolis of e-commerce, which only a few years ago was a village of the province and today continues to expand.

Digital technology has become a critical component of our business, and now one “real” purchase on ten is decided for information on the Web.

E-commerceMobile is the key factor in the growth of e-commerce. The spread of smartphones and tablets has expanded greatly the access to the online market. The e-commerce in Europe continued to grow although at different rates and in different ways in different countries.
Online shopping is a well-established practice in Britain, Germany and France, the markets that represent for 70-80% Europe e-commerce, while it is just starting out or is growing in the rest of Europe, including countries such as Italy and Spain.
The most rapid growth, however, concerns the emerging economies of Eastern Europe, led by Russia, the market for which is expected to grow by up to 200% over the next three years.

In mature markets, growth is driven primarily by an increase in the frequency of purchase by the consumer and by the tendency to spend more across online channels, while in countries where e-commerce is developing growth results mainly by the increase in online shoppers.

China has become the second home market in 2013 in terms of revenue after the United States. The forecasts indicate a gradual reduction in the gap between the two countries, up to a likely overtake the former over the latter between 2016 and 2017.

The two giants of e-commerce: Alibaba vs Amazon – Who will win the world war?

There’s a new leader of e-commerce on the web. With its triumphal $ 21.8 billion initial public offering, Alibaba has eclipsed Amazon, being today the largest and most valuable company in the world of e-commerce.

E-commerce

We speak of a great empire of Alibaba, which includes wholesale, retail, buying group, and payments.
Meanwhile, Amazon is making efforts to expand its small presence in the lucrative Chinese market of e-commerce.

Alibaba will therefore be a viable competitor to Amazon in the West? And Amazon will be able to compete in the home of Alibaba?
The battle is just beginning, but we can make some predictions by looking at the similarities and differences between Amazon and Alibaba. At first glance, companies seem to have much in common. Both are focused on helping people to buy a wide range of products at low prices, without going into a store.

Like Amazon, Alibaba has built a massive infrastructure based on customer and business data, and has emerged as the dominant player in its home market.
But Alibaba is not a traditional society of e-commerce. Operates in an “open market”, which connects buyers with sellers. Do not sell anything directly and does not have stores. As a result, Alibaba is far more profitable than Amazon, with margins of nearly 40% and profits by about $ 2 billion in the most recent quarter, according to its IPO filing documents.

E-commerceOn the contrary, Amazon is in a “managed market”, which is closer to the traditional retail. It has distribution centers of mass, sells most of its products directly.

Amazon’s model gives the company far greater control over the customer experience.
Both Amazon and Alibaba are fitted with e-commerce platforms suited to their domestic markets.

Alibaba has a deep understanding of Chinese consumers and nuances in terms of approach and variety of products. The company has mastered the complexity of Chinese regulations and how to work with national governments. In contrast, Amazon is a master of logistics and supply chain, and is the global leader in cloud infrastructure services. To win Alibaba, should rein in its dizzying array of acquisitions and investments and focus on e-commerce, cloud computing, digital content and logistics.
Amazon in the strategy for China and India will instead focus on understanding the local market and the ability of the same. This will require smart acquisitions of local companies by e-commerce and a differentiated value proposition.

So, may the best win!

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