The Effect of E-Commerce on Small Businesses

Electronic Commerce or most people known for E-Commerce is a type of online business that buy and sell goods over the internet. It operates in four major division: Consumer to consumer, business to consumer, consumer to business, business to business. It also refers to any form of business transaction that was conducted online.

E-commerce don’t require the small businesses to have a large office and stock room facilities to run their errands daily. They are not needed to hire lot of people to do the work. They won’t lose money over paying some rents for their office space, nor lose it purchasing something they don’t even need. They can just run it in a small shop or even at the comfort of their home. Displaying their business online in a form of website or online application.

The e-commerce affect all types of businesses in may aspects. While small business are more flexible to respond to the needs of their clients, than big and established business because big company need to file a proposal first then the process will just begun until the bosses approves it, while small businesses doesn’t need to do that. Small amount of money, internet connection, gadget and simple online skills are the basic things you need to have so you can start up your small business.

However, in e-commerce small businesses have lots of competitors in the market. They offer the same thing, same brand, same use but at a lower price. Being in e-commerce business needs you to be creative and careful in posting your goods online.

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