Ecommerce Globalization and Its Negative Effects on Small Businesses

Per IEEE Xplore, “With the advent of E-commerce, many in the world are able to compete in global markets regardless of language, and cultural barriers, physical distance and national boundaries since products, services, and transaction processes can be re-engineered to adjust to changing business environments.” The key word here is “many.” That means not all. For us – Ecommerce Site Designers – that is the question. Why not all?

After all, with the rising cost of fuel and not enough time in the day, many have resorted to the Web for searching and purchasing products, goods, and services. In addition, many businesses have found it advantageous to use the Web where they can reach more people at a lower cost. Although this has resulted in lost jobs, the reduction in expenses for advertising and man power has more than cost justified any expense. Value chains have enabled the reduction of floor space and stocking, reduced need for customer service and telephone charges to take orders, and lower utilities. The list of plus and advantages for moving a business or adding a Web Presence to a company is boundless. The Web offers translation of pages and even shopping carts which will convert monies. Competition keeps prices relatively low, and as a result, inflation is less likely to occur, etc.

So why not “all” companies or markets? What are the negatives that are not being widely discussed? There is some mention of the concerns such as privacy and security – but these are technical issues for which solutions are being sought and constantly developed.

And what about the “small” businesses that want to enter this arena and capitalize on the benefits like the big boys? What should be their concern – if any? Will there be problems with the Internet users of their products? Who will handle the shipping, etc.? What about deregulation or monopolies?

Your mission is to accomplish goal number 1 on the syllabus “The student will demonstrate knowledge of issues surrounding the development of an e-commerce Web site.” You will accomplish this by researching and editorializing information on the “(Ecommerce) Negative Effects of Globalization on Small Businesses.” After reading several articles on the Pros and Cons, Advantages and Disadvantages, create an essay posting on your findings and your opinion of what the negative effects could be on small businesses.

References:

Going Global
Is it Insanity?