Discussion specialized english 1 topic factors affecting the development of e commerce

INTRODUCTION In the era of digital technology 4.0, with the rapid development of Internet usage, online business or sales has brought economic efficiency to many business fields.. So i o

THUONG MAI UNIVERSITY FACULTY OF MARKETING

DISCUSSION SPECIALIZED ENGLISH 1

TOPIC:

FACTORS AFFECTING THE DEVELOPMENT

OF E-COMMERCE

Lecturer: Nguyen Quynh Mai

Class code: 241_ENTI1011_61

Group: 09

Ha Noi, Octorber 2024

INDEX

MEETING MINUTES (1) - GROUP 9 4

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TABLE OF TASK DISTRIBUTION

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MEETING MINUTES (1) - GROUP 9

1 Time - location

- Time: 21:00; September 16, 2024

- Location: Google meet

2 Participants

- Members: 7/7

- Absent: 0

3 Meeting content

- After choosing the discussion topic about “e-commerce”, the group conducted to draw up an outline and researched the necessary content that needed to be implemented Then, we assigned tasks for each member

4 Conclusion of the meeting

- Everybody discussed positively and actively At the end of the meeting, the group reached a consensus of all members

- The leader summarizes the main points about discussion outline requirements, reference materials, method of evaluating scores and deadlines for each content section

- The meeting ended at 22h00 on the same day

Leader (Sign and write full name) Trang

Dao Thu Trang

MEETING MINUTES (2) - GROUP 9

1 Time - location

- Time: 21:00; Octorber 6, 2024

- Location: Google meet

2 Participants

- Members: 7/7

- Absent: 0

3 Meeting content

- Complete the discussion

- Rehearsing for a presentation,

- Give comments (if any)

4 Conclusion of the meeting

- Everybody discussed positively and actively

- All members of the group agreed and completed their tasks

- The meeting ended at 23h00 on the same day

Leader (Sign and write full name) Trang

Dao Thu Trang

INTRODUCTION

In the era of digital technology 4.0, with the rapid development of Internet usage, online business or sales has brought economic efficiency to many business fields This has opened up new paths for business companies and made them drastically change their business operations The mcreasing number of Internet users has encouraged many companies to engage in online business Using the Internet to conduct business has given rise to a new form of transaction between buyers and sellers Therefore, "e-commerce" is

no longer a strange concept in society and is no longer a new field for us In developing countries, information and communication technology is one of the most important factors affecting e-commerce Technological efficiency plays an important role in the success of e-commerce However, e-commerce must also be considered from many other aspects such as human and economic issues, So i order to successfully apply this new concept of commerce, group 9 will conduct a brief study on the factors affecting the development of e-commerce

In this discussion, we will learn more about the concept, history and classification

of e-commerce Simultaneously, we also can understand the reasons for using e- commerce and the factors affecting e-commerce Therefore, propose some solutions to improve it

DEVELOPMENT

1 Introduction to e-commerce

As technology advances and shopping demand rises, e-commerce has emerged as a new form of commerce Its growth is transforming how businesses and consumers interact online So in order to successfully apply this new concept of commerce, group 9 will conduct a brief study on the factors affecting the development of e-commerce 1.1, Definition of e-commerce

According to Forbes Advisor, E-commerce (electronic commerce) 1s the exchange

of goods and services and the transmission of funds and data over the internet E- commerce relies on technology and digital platforms, including websites, mobile apps and social media to make buying and selling possible

1.2 History of e-commerce development

The development of e-commerce traces a dynamic evolution of online business, from the inception of basic online transactions to the emergence of today's expansive digital marketplace In 1991, when the Internet was first opened for commercial purposes,

it created the foundation for e-commerce by allowing companies to conduct business over

a secure, connected platform This breakthrough enabled organizations to begin experimenting with online sales, though security protocols and technologies were still in their infancy

Throughout the late 1990s, advancements in secure electronic transactions, including the introduction of Secure Sockets Layer (SSL) encryption and digital payment methods, accelerated e-commerce growth By 2000, as digital infrastructure improved,

corporations and start-ups alike leveraging the Internet to reach new markets Pioneers such as Amazon and eBay reshaped consumer expectations by introducing an online shopping experience that was convenient, fast, and accessible, setting a benchmark for other businesses

This period marked the rise of the most transformative phase in e-commerce, ushering in rapid global expansion and increased competition Online retail became integral to the global economy, empowering small and large enterprises to access international markets, reshaping traditional commerce, and laying the groundwork for today's complex, competitive, and highly connected digital economy

1.3 Current e-commerce trends

In recent years, the e-commerce industry has undergone significant changes, with leaders like Amazon, Shopee, Alibaba and others taking the lead in commerce (ie, mobile commerce) is growing, due to the increasing use of mobile devices in online transactions (eg: Shopee, a Singapore-based company, put a major emphasis on the mobile app) Personalisation and Al-driven experiences are also key, for example when Amazon and Alibaba use AI to provide personalized recommendations reliant on consumer behavior The integration of social commerce emerged as another important trend — as evidenced by social media-like features such as live streaming and influencer marketing

on platforms such as Shopee and Alibaba’s Taobao live The rise of ‘conscious consumption’ designers and brands, which fall under the sustainability and ethically-made movement, is influencing today’s consumers, who want their purchases to have, for instance, an environmental impact Sustainable products are therefore now integral to Amazon’s lifestyle offerings

Cross-border e-commerce, in which Amazon’s Global Selling and Alibaba’s AliExpress enable consumers to purchase products from overseas, now offers a window onto the retail experiences in distant lands Fast and convenient delivery services such as Amazon Prime’s same-day shipping have become a key staging ground for consumer satisfaction, while subscription services such as Amazon Subscribe

Furthermore, AR is aiding shopping by letting people virtually try stuff on and view products in real-world places

1.4 Common e-commerce business models

Regarding the business models in play, Business-to-Consumer (B2C) remains most common — where firms sell directly to consumers, via platforms such as Amazon and Shopee Business-to-Business (B2B) is also widespread — such as Alibaba’s wholesale model, where companies trade with each other Consumer-to-Consumer (C2C) is also rife, where consumers sell products to each other, such is the case with eBay And other models exist, such as Consumer-to-Business (C2B), where consumers sell services to firms; Direct-to-Consumer (D2C), where brands sell to customers without third parties; and dropshipping, where retailers don’t own stock but forward consumer purchases to third-party distributors Finally, subscription-based e-commerce is on the rise in many different sectors, for example mn streaming or personal care, where various services or products are provided on a recurring basis to the consumer

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2 Effect and purpose of e-commerce

21 Effect of e-commerce

E-commerce has significantly influenced the economy by creating new jobs in logistics, warehousing, and digital marketing It has boosted economic growth through increased consumer spending and expanded market reach Moreover, the rise of online retail has intensified competition, resulting in lower prices and improved product quality for consumers

As a result of these economic changes, consumers have benefited greatly from e- commerce's convenience, allowing them to shop from home Not only do online retailers offer a wider product selection compared to traditional stores, but consumers can also easily compare prices across platforms to find the best deals

In addition to consumer benefits, businesses have experienced increased revenue through e-commerce by reaching new customers globally Furthermore, online operations often have lower costs than brick-and-mortar stores, improving profitability It has also enabled even small businesses to sell products worldwide, expanding their market reach While the economic and business impacts are largely positive, the social impact of e-commerce is mixed On one hand, online shopping convenience has led to reduced physical activity for many On the other hand, it has increased accessibility for those with mobility limitations However, it's important to note that the growth of e-commerce has contributed to a rise in cybercrime, including identity theft and fraud

Lastly, e-commerce has environmental implications, with increased packaging waste and transportation emissions from deliveries Despite these challenges, the overall impact

of e-commerce has been largely positive As the sector continues to grow, it's crucial to address these issues and maximize the benefits while mmimizing negative consequences 2.2 Purpose of e-commerce

2.2.1 Provides detailed customer data

One of the key purposes of e-commerce is to gather and analyze customer data Online transactions allow businesses to track customer behavior, preferences, purchasing habits, and demographics in real-time This data is crucial for businesses to enhance

customer service, ultimately leading to more targeted and efficient business operations 2.2.2 Expand the scale and scope of commerce for everyone

E-commerce democratizes access to the market, allowing businesses of all sizes to reach a global audience Entrepreneurs, small businesses, and large corporations alike can sell products and services to a broader customer base, removing traditional barriers like geographical location, time, and capital investment This expansion facilitates new business opportunities and increases competition, which benefits consumers by offering more choices and better prices

2.2.3 Create an open market with no limitations on space, distance, or product type The online marketplace operates 24/7 and is not constrained by physical limitations e-commerce platforms enable businesses to sell virtually any product, from digital goods to physical merchandise, to consumers anywhere in the world This open and flexible environment reduces the costs associated with physical storefronts and allows companies to quickly adapt to market changes

2.2.4 Promote the development of emerging economies

E-commerce can act as a catalyst for economic development in emerging markets

By reducing barriers to entry and allowing businesses in developing regions to reach international customers, it promotes growth, innovation, and access to global markets This expansion not only enhances local businesses’ profitability but also contributes to

advancements

3 Elements impacting the development of e-commerce

3.1 Technological advancements

Technological advancements play a pivotal role in shaping the modern e-commerce landscape, significantly enhancing the user experience

Artificial intelligence (AI) and machine learning (ML) have revolutionized platform choices, enabling businesses to offer highly personalized shopping experiences based on consumer behavior and preferences With these technologies, e-commerce platforms can recommend products, predict customer needs, and optimize the overall shopping journey For example, shopee offer Al-based tools for product recommendations, inventory management, and customer service

Website performance includes fast-loading, responsive websites are critical for reducing bounce rates and improving customer satisfaction Like ASOS improved their

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website loading speed, resulting in a significant increase in conversion rates and customer satisfaction

Payment and security have led to the implementation of multiple payment options and secure payment gateways, ensuring regulatory compliance and protecting customer data to maintaining customer trust For example, Shopify’s compliance with GDPR and CCPA helps businesses meet legal requirements for data protection and privacy Marketing campaigns also evolved through the use of SEO, social media, content marketing, and email personalization, all of which are driven by sophisticated algorithms

to target the right audience

All of these technological advancements collectively elevate the user experience, making online shopping seamless, efficient, and enjoyable

3.2 Logistics and supply chain management

Efficient order fulfillment is key to ensuring customer satisfaction by providing timely and accurate processing By implementing streamlined systems, businesses can meet customer expectations and reduce delays Offermg multiple shipping and delivery options, such as express or same-day services, further enhances the customer experience

by catering to individual needs Transparency in tracking allows customers to monitor their orders, providing reassurance and increasing trust Moreover, a straightforward and easy-to-understand return policy is essential in building long-term relationships with customers, as it encourages them to shop with confidence A seamless return process not only fosters trust but also increases the likelihood of repeat purchases Businesses that prioritize these elements of order fulfillment are more likely to create positive experiences, leading to stronger customer loyalty and retention By focusing on accuracy, flexibility, and transparency, companies can significantly improve the overall shopping experience for their customers

Together, these elements contribute to a seamless and reliable logistics experience that strengthens brand loyalty

3.3 Customer behavior

3.3.1 Buying decision process

The buying Decision Process begins with recognizing a need or want, often sparked

by digital ads, product recommendations, or social influence Armed with information, customers compare options based on products, brands, and prices before making a purchase Post-purchase, customers evaluate their experience and may share their

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