The Tribune

By Ian Ferguson

It is 2013, and because the world has changed the way we do business must as well. Technology and all of its trappings has become the order of the day. Many Bahamians have ridden the wave of technological advancement and, with the ever-shrinking global marketplace, our expectation for business to join us in the 21st century is mounting.

E-commerce opportunities have perhaps been around since the advent of the Internet. It seems natural that since communication is the crux of industry and trade, having the ability to communicate electronically facilitates e-commerce for almost every industry. Most of the internationally-successful Fortune 100 companies have taken full advantage of e-commerce opportunities.

For those not so familiar with e-commerce, the complete platform includes:

• E-tailing or ‘virtual storefronts’ on websites with online catalogues, sometimes gathered into a ‘virtual mall’

• The gathering and use of demographic data through Web contacts and social media

• Electronic Data Interchange (EDI), the business-to-business exchange of data

• E-mail and fax, and their use as media for reaching prospective and established customers (for example, with newsletters)

• Business-to-business buying and selling

• The security of business transactions

There are any number of advantages and encouragements given for businesses to venture into greater e-commerce prospecting. Here are seven of these advantages:

1. E-commerce allows organisations to overcome geographical limitations. No longer do you need to have a physical location to provide goods and services to the general public. In fact, many businesses find that having a location can be quite limiting.

2. E-commerce provides the opportunity to gain new customers because online and search engine visibility is immense. Online retail is driven by traffic from search engines, and this source of traffic can be the tipping point for some e-commerce businesses.

3. E-commerce facilitates lower costs in advertising and marketing, in staffing and real estate. A portion of these lowered costs can be passed on to customers in the form of discounted prices.

4. E-commerce allows the consumer to locate the product quicker. With the click and scroll of a computer mouse, customers can easily access products and services they demand.

5. E-commerce eliminates Travel Time and Cost. It is not unusual for customers to travel long distances to reach their preferred physical store. E-commerce allows them to visit the same store virtually, with a few mouse clicks.

6. E-commerce provides the opportunity for comparison shopping. Within less than one minute, consumers are able to move from one provider to the next, testing quality in brand, prices etc.

7. E-commerce provides abundant information to customers. There are limitations to the amount of information that can be displayed in a physical store. It is difficult to equip employees to respond to customers who require information across product lines. E-commerce websites can make additional information easily available to customers. Most of this information is provided by vendors, and does not cost anything to create or maintain.

8. E-commerce allows you to remain open all the time. Store timings are now 24/7/365. E-commerce websites can run all the time. Stores that are open all of the time are viewed as convenient by consumers.

NB: Ian R. Ferguson was educated locally, regionally and internationally, having earned a Master’s Degree in Education from the University of Miami. During the course of his nearly 20 years in education, talent management and human resources, he has served both the public and private sector in senior management roles. He currently serves as manager of the Chamber Institute, and as a local consultant in the field, having assisted hundreds of local and regional businesses in improving business and service excellence through their human capital.