What is e-Commerce? AND ARE RETAIL STORES BECOMING OBSOLETE?

Gone are the days when the posh most residential areas would be coveted because of the presence of swank boutiques and availability of premium services. “What is e-commerce?” This question has been the death knell for many large retail brands that got most of their revenue from sales in physical stores across the globe.

E-commerce is the Gen X name for electronic commerce. Sale of products and services though the various forms of electronic media. Old school traditionalists may argue that e-commerce has robbed many aspects of shopping of its charm. But e-commerce is not just Amazon and Flipkart. Not by a long shot. E-commerce has revolutionized the very way we transact and purchase. The tele and internet banking facilities provided by almost every prestigious Bank can also be categorized as e-commerce. The brain child of Michael Aldrich dubbed “The father of online shopping”, is no longer something very simple and its effects are multitudinous and far reaching. To facilitate the whims and fancies of luxury loving consumers is now no longer the sole target or purpose of e-commerce. We need to take a look at the assisting technologies that make e-commerce possible to understand that it is a multi-billion dollar industry. Christmas 2011...almost 70% of people made their purchases online. That is no small number and it also means that the myriad shops with physical outlets experienced a 70% slash in their clientele and revenue. It may seem shocking but without realizing it, we are indeed becoming addicted to and depending more and more on the internet — not only for entertainment but also purchase and business.

When we enter the domain of e-commerce, the entire Universe becomes electronic. Books,clothes,jewellery and even healthcare facilities like blood tests have gone E. We browse the website of a particular business venture or brand and we get a comprehensive view of all products and services. We choose without the hassle and hustle bustle of an actual store and we can literally take all the time in the world. And if we don’t find what we need…we can access another website at the click of our mouse without having to bear the disapproving glances of the shop assistants for wasting their time. In case we do find something we like, we “add to cart”... a phrase that has become the mantra of success and the embodiment of convenience and choice. Unlimited choice. E-commerce websites function on a technology called Electronic Data Interchange. Wherein we provide personal information pertaining to delivery address, delivery date and mode of payment and in return the  vendor site provides us with the invoice electronically without human intervention. Next comes the actual  payment. No tangible cash changes hands. And another technology that primarily owes its existence to e-commerce, Electronic Funds Transfer, wraps the deal up. We are guided to a secure payment page where we enter our credit/debit card details and make the payment. Or we avail of net banking where our bank acts as the middle man and makes a payment to the vendor site without revealing any sensitive information to any payment gateway. It sounds easy and uncomplicated but leaving electronic money trails may have severe repercussions. If the  encryption of data is not strong enough then there is a very real possibility of a proficient hacker hacking into the database of the Payment gateway host and stealing our credit card information. But most of the well-known sites scrupulously follow the stringent security protocol and enforce SSL encryption that is the industry standard and considered to be pretty much hacker proof.  But the real surge in e-commerce came with three little words. Cash on Delivery. And the world went mad! Now the intrepid shoppers could shop from any site they wanted without revealing sensitive information and pay after they received the goods. Children without credit cards could now actively participate in the joys of online shopping! Suddenly stores became obsolete. And going out for shopping cumbersome!  Suffering huge losses many large brands succumbed to e-commerce and opened online shops together with the physical ones and those who couldn’t change with the changing consumer needs…filed for bankruptcy.  E-commerce allows small entrepreneurs to open businesses and host on sites like eBay with minimum investment in inventory and store set up. Hosting a website is much cheaper and a tie up with a reliable courier service is the majority of the need of e-commerce taken care of.  Some large hospitals and pathological centers allow customers and patients to request for, pay online and avail at home: services like blood sugar testing and pressure checkups. This especially helps senior citizens, who may be incontinent or may find driving to the hospitals a deterrent.  It is e-commerce that has exploited the business   potential of social networks to the fullest:  advertising, hosting and selling online for the   complete e-experience.  “What is e-commerce?” has a simple answer.  It is the future. ■