Electronic commerce is a contemporary way of doing business where commercial transactions are effected through the internet. Technology has been embraced in the commercial sector, and different enterprises are not willing to be left behind. E-commerce extinguishes mundane issues in a business like time and distance. You are thereby able to transact at any time with businesses in different parts of the world. When you visit it is discernable that , in the recent past, the number of businesses on the e-commerce platform has grown substantially.
It is of great importance that developing countries integrate electronic commerce in their economies in order to compete effectively with the rest of the world. To effectively integrate e-commerce, developing countries must first develop their information and communication technology (ICT) because the two work inseparably. The global market dictates that economies are adaptive to these current trends or risk seclusion and collapse. E-commerce can effectively break down borders to allow increase international trade and investments. Evidently the benefits of e-commerce to developing nations are enormous and the basic ones are discussed as follows;
Access to information
The internet is commonly known for its ceaseless pool of information. In business, there are various facets that make up the industry. It is impossible that one business entity can have all the information and knowledge it needs for its prosperity. Therefore e-commerce elevates the level of information necessary to carry out business. Developing countries can, accordingly, maximize e-commerce to share and gain the necessary information to enable them to compete effectively in the global market.
Small businesses cannot be able to compete fairly with larger organizations in regards to advertisement. This is due to the costs incurred in the exercise. E-commerce gives small businesses a lifeline because the costs of building a website are relatively cheap. Also, the costs of maintenance are insignificant compared to other forms of advertisement that require substantial investment.
Larger market reach
As mentioned earlier, e-commerce knows no boundaries. Developing countries are thereby able to showcase their unique concepts and products across borders without any form of limitation or injection of capital. The internet is amazing due to its ability to bring together different people who are willing to engage in business without necessary having a common background. This aspect levels competition to a common ground.
E-commerce is convenient for both the buyer and the seller. The seller showcases his products online and the buyer purchases on the same platform. Developing economies may inadvertently suffer poor infrastructure which may render some businesses inaccessible. This form of inconvenience is absolved courtesy of e-commerce.