E-commerce, a short term which means electronic commerce is mainly an online business which include selling and buying of products using digital cards through data transformation between companies with the help of networks like internet. It is actually the collection of processes and tools using internet technologies, that help firms to build, maintain and then optimize customer and other relations. The Use of any electronic device for giving orders like fax, telephone also falls in the e-business techniques. Annual volume of e-commerce is $4 billion. According to estimation, 25% of traditional business will become e-business.
Trends regarding e-commerce:
E-commerce is I.T trends spreading quickly in business world. Today, businesses have a great support of information technology and they are becoming transferred with an estimation of about $400 billion in current year. Although its trends are increasing in Pakistan but more than source of it 78% of activities are USA. With the passage of time, the amount of users using internet is increasing gradually. Usage rate has increased by .01% in 1995 to 15.1% in 2010 in Pakistan. Because its awareness towards benefits is increasing and more people can take best advantage of this opportunity.
E-commerce offers improvement to the level of excellence. It allows entrepreneurs to check their skill before entering into international market. It has solution at individual level. E-business if becoming very popular means for trading all around the world. Usually most of the studies refer four steps for e-commerce. First of all, the thing is to make a website to tell others about yourself. It will tell others about your company, information, product and usage benefits. Secondly, urge customers to spend money from their pocket for making purchases. Here you need latest software for handling orders of customers. At third step, add inventory management in system and fourth and final stage involve payment delivery with the help of online banking.
Pakistan is still working for the better future of e-commerce. Here entrepreneurs said about it that e-commerce includes payment transaction by internet and other ways cannot be considered its part. This thing is still creating hurdle in the way of e-commerce.
Some governmental level activities of Pakistan are as follows:
- Intellectual property: Electronic crime act of 2004, a law has come in front of scene for e-payments. According to act of e-data protection, safety will be provided regarding foreign data, so that such data can be processed in Pakistan.
- Tax rule: yet there is no rule for electronic residence in this country.
- Consumer safety: policies have also been recognized by government for e-transactions and it will provide a great benefit to both parties.
- Enrollment of e-commerce as a subject: Government asked the universities to add this field as a subject in courses.
- Foreign investment: Government is allowing 100% foreign investment for software companies and foreign interest is also increasing in the technology sector of Pakistan.
- Barriers for e-commerce: In Pakistan, there are still many barriers in the growth of e-commerce like low accessibility towards technology, government policies, mistrust etc.
It can become a great mechanism for those who are selling products and services to end user. Firms either medium or small can reach their customers not only in any particular range but all over the world through this inexpensively.
Pakistan is under developed country and is working to increase the availability of technology all over the country. The future of internet is bright in Pakistan and people are becoming more aware with its advantages.
The government of Pakistan is making bold plans regarding e-commerce and banking sector is also playing their role for e-banking.
Low literacy rate is a big issue in the path of e-commerce and time is required to up-lift literacy rate and then awareness towards e-commerce will increase further. Young entrepreneurs and fresh graduates can take great advantages from it with their new ideas.