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e-Commerce Business Applications in Manufacturing, Retail, Wholesale and Service sector

Updated on June 1, 2013

The Internet

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eCommerce business applications

Now a days nearly every company and organization makes use of the Internet to perform business deals and transactions, let us take a look at this a little more closely.

eCommerce or Electronic Commerce, that is business done online or electronically with the use of Internet or any other computer networking system is applied into the four main section of business given below:

  • e-Commerce applications in the Manufacturing Sector
  • e-Commerce applications in the Wholesale Sector
  • e-Commerce applications in the Retail Sector
  • e-Commerce applications in the Service Sector

I will now attempt explain the application of eCommerce in each of these sectors in brief...


Manufacturing

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e-Commerce applications in Manufacturing

Manufacturing can be defined as the process of collecting and then converting raw materials into finished, qualitative goods or products for the consumers..

Manufacturing requires a web of various components, contracts personnel etc working intricately together and in synch in order to produce goods or services..

Manufacturing requires components, assemblies, transportation, storages, paper works, etc..

eCommerce applied to the supply chain management process helps in reducing the overall costs drastically and improves quality and efficiency by automating most of the supply chain ..

eCommerce application in Wholesale

Selling goods or products in large quantities to anyone other than the consumers, take for example the retailers, industrial/ commercial or other business users or even distributors are known as wholesalers...

Physical assembling, sorting & grading goods in large lots, breaking bulk, repacking & redistributing in smaller lots is all a part wholesale...

Problems faced by the traditional system of wholesale:

The local wholesalers could not compete with the foreign wholesale enterprises who had acquired highly advanced management and operational skills over due time..

The wholesale sector was characterized for its high input and low output...

Wholesale operating costs which included staffing, setting up and acquiring land for local warehouses, establishing distribution centers,etc were extremely high...

Role of eCommerce in wholesale:

  • Reduced operating costs, access to accurate and correct information on time & quick responses helps in qualitative and efficient decision making..
  • Ability of doing global marketing in less time and cheaper
  • Gaining and catching up to the competitive edge held by foreign wholesalers such as MNC’s
  • Offers a wide and extensive range of information, intermediary and business services..

eCommerce application in Retail

Selling of goods and services to the consumers for their personal consumption and use is known as retailing...
Take for example... Ebay.com, departmental stores, then services like dentists, doctors, hotels, etc...

Retailers provide a link between the consumers and the manufacturers and add value to the product and service by making their sales easier..

Retailers answer any queries that you may have, they display and demonstrate products to the consumers before selling it to them... this makes the services by retailers less risky and more fun to buy products..

They even provide extra services from personal shopping to gift wrapping and home delivery!!

Role of eCommerce in Retailing:

The Internet has made retailing an exciting and challenging field in recent days with various companies hosting their stores online via the internet..

People can now sit at their computers, open the website they desire to do so and browse their the catalogues put up by the company (retailer), choose their product and either pay for it online itself or on delivery... You don't need to step outta your room to make a purchase nowadays..

Having your store online helps drastically in cost cutting as companies don't need to purchase stores, they can cut down on staff, provide services to a much wider audience, etc

eCommerce

To know more about eCommerce click here: All about eCommerce

eCommerce application in the Service sector

One of the three main industrial categories of a developed economy is the service sector..

It involves basically the provision of all services such as distribution and sales of goods to other businesses and consumers such as pest control, entertainment and even services such as transportation.

It also includes the public utilities and the soft parts of the economy such as insurance, banking, education, insurance, etc...

The service sector focuses mainly on people to people services...

Issues faced by the service sector:

Since services are intangible, its extremely difficult to make customer understand and aware about their benefits...

Quality of services depends solely on the quality of the individual providing the services..

There's no special technology or anything like in manufacturing to attract people.

Role of eCommerce in the Service Sector:

eCommerce helps in improving and increasing the speed of transactions, reduces management expenditure, increases efficiency and increases competitiveness..

Helps the insurance, banking and mainly all the financial sectors, real estate, telecommunications, tourism, logistics, and postal services..

eCommerce also helps services gain a competitive advantage by providing strategies for differentiation, cost leadership and customer satisfaction....

© 2013 Paiva

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