International Trends in the Development of E-Commerce
Numerous data sources demonstrate the current spike in e-commerce activity. All of these figures demonstrate that e-commerce is growing at remarkable rates, and all analysts appear to concur that this is an accurate depiction of the situation, even though the methodological issues may be debated. We feel it helpful to offer two broad observations on the interpretation of the statistical data, despite the fact that we cannot dispute the growth of e-commerce: International Trends in the Development of E-Commerce
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Knowing what kinds of e-commerce activities are covered by the data that are displayed is crucial. As seen above, it is crucial to distinguish between B2B (wholesale), B2C (retail), and C2C (secondary market) e-commerce. Including these flows in the same data may result in inaccurate findings.
The sales of pure entrepreneurs and conventional merchants through their online platforms are not distinguished in e-commerce statistics. Because it entails various value chains and logistics, it is crucial to make this distinction.International Trends in the Development of E-Commerce
Online shopping and the data-driven economy
One aspect of the recently developed data-driven economy is e-commerce. Big data buildup and the potential for monopolistic firms to exploit vast amounts of data present a worldwide concern as they raise the danger of widening the digital disparity between developed and developing nations that are falling behind in technology. Governments are more likely to create comprehensive methods to control information, Internet governance, and trade rules as a result of the growing use of the Internet in international trade.
Opportunities |
Challenges |
| Inclusive trade and development
Competitiveness of companies Increase labour productivity New sources of knowledge and innovation Potential for lower consumer prices,Price transparency,Increased market access.Connects buyers and sellers cross- border to increase product access to a wider range of products,Increased flexibility,Potential to improve customer service,Reduced administrative and transaction costs |
Risks related to privacy, security, ownership and the use of data
 Concentration of market power by companies controlling data Regulation of cross-border data flows Taxation and legal enforceability Capacity building for data analytics needed due to limited skills and technological capabilities,Protection of electronic payments,Protection of intellectual property Communication and use of languages,Universal reachability of workers,De-humanisation of the customer relation,Impact on labour relations and working conditions |
The strategies and financial outcomes of e-commerce’s pure players
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The majority of the rapidly expanding pure players in e-commerce have adopted similar growth patterns and expansion tactics. Their business strategy’s primary characteristic is its aggressive sales growth through cheap pricing, which aims to acquire shares of the market even at the price of protracted losses in revenue and low revenue. These businesses have frequently engaged in what may be referred to as dumping by selling their products at margins lower than their operating expenses. The primary characteristics of the tactics employed by major e-commerce businesses are:
International Trends in the Development of E-Commerce
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| Â | maximizing rapid growth and concentrating on topline expansion, which prioritizes sales above profitability and leads to poor pay, significant employee turnover, and subpar working conditions; Increased workload results from aggressive marketing and an emphasis on volume rather than margin.
maximizing business model flexibility at the price of worker protection and in-job security in order to adjust to seasonal variations in demand Process automation and robotization, particularly in fulfillment centers and warehouses Anti-union management practices: mid-level managers receive training on how to thwart worker organization attempts. |
E-COMMERCE AND VALUE CHAIN
The value chain is a concept that breaks down a firm into a number of operations that provide value or expense at each stage of the process.
E-commerce operations are vulnerable to fragmented value chains, where various tasks are carried out by a variety of smaller organizations, subcontractors, or even individuals without appropriate labor contracts, since they eliminate the requirement for an integrated physical presence. This presents a number of issues:
Although the parties’ bargaining strength is frequently out of proportion, a fair repartition of the value produced by various functions in the process is necessary; International Trends in the Development of E-Commerce
Workers employed by the subcontractors are vulnerable because operational and financial concerns are frequently transferred to weaker peers in the value chain;International Trends in the Development of E-Commerce
For individuals without proper labour contracts
lack of labour rights and social protection poses serious risks.
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IMPACT ON LABOUR best
The influence of e-commerce on the labor market has been the subject of very few research that we could find. The majority of e-commerce studies concentrate on the industry’s rapid growth and essential tactics for businesses to succeed in this market. As a result, it’s critical to discuss topics like how e-commerce affects employment, productivity, working conditions, and trade unions.International Trends in the Development of E-Commerce
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