Consider a scenario in which you are not permitted to go outside to purchase goods and commodities because the government is shielding you from a terrible, extremely infectious virus. Of course, this scenario is familiar, as it occurred in recent years while we battled the hyper spread of the covid-19 virus. One of the ways our administration has stopped its spread is by limiting people’s mobilization, thus leaving our houses is severely prohibited. Fortunately, we now live in an era where we can buy items and book services, particularly food and medication, with the press of a button on our mobile devices. This is one of the ways E-commerce accompanied Filipino households in the Philippines during the lockdowns.
Read Also: The Impact of the Pandemic on Philippine Infrastructures
What are E-Commerce Sites?
Have you ever heard of Lazada, Shoppee, or Zalora? With an estimated monthly traffic of 74.9 million people, these are the top e-commerce sites in the Philippines. Mailchimp defines e-commerce sites as “a website that allows people to buy and sell physical items, services, and digital products via the internet rather than at a physical store.” An e-commerce website can be used by a company to process orders, accept payments, manage shipping and logistics, and give customer services with different prices.
There are 4 different types of e-commerce website:
Business to Customer
A Business-to-Consumer site, which is presumably the most familiar to the average person, allows for the exchange of goods or services between a business and a consumer, such as ordering food from your favorite fast-food chain using the Grab App.
Business to Business
A Business-to-Business website enables two companies to conduct online transactions. It is a platform where a business entity can search for suppliers who can meet its operational needs. For example, if you own a shoe company, you might buy those shoes from a overseas online wholesaler.
Business to Administration
A Business-to-Administration site, such as the website of a company that designed your city’s web portal, facilitates online exchanges between an organization (web design business) and a public institution (Local Government).
Consumer to Consumer
A Consumer-to-Consumer site, also known as a “online marketplace,” allows two or more consumers to exchange goods and services. Consumers on this site tend to sell their personal property to declutter, but they may also post items because they purchased them by mistake. Whatever reason you have for selling your personal belongings, you are welcome here. Two examples are Carousell and OLX.
Consumer to Business
For the Consumer-to-Business website, individuals sell goods or services to businesses. This could be a professional who works with businesses as personal clients in a specific industry, such as law or accounting, or an influencer who is paid to promote a company’s products.
Consumer to Administration
This type of E-commerce site enables a consumer to provide information, goods, or services to government administrations and governmental organizations, such as paying a violation ticket from a non-contact apprehension through the city’s web portal.
Do People Prefer to Buy Goods through E-Commerce Because of the Prices?
One of the most common reasons people use the internet is to shop. According to Statista, retail ecommerce sales worldwide totaled $3.53 trillion in 2019, with online retail revenues expected to reach $6.54 trillion by 2022.
E-commerce has changed the way consumers buy goods and avail services. With a single tap of our fingers, we can have the product delivered to our door. Now, as it simplifies some of the problems for sellers, such as location, market penetration for competitors has emerged, resulting in different prices in the e-commerce world.
Consumers prefer to purchase goods through e-commerce sites because it has been demonstrated that these sites offer the best prices for all types of goods. It has forever altered the way retail is conducted. Here are some of the reasons why e-commerce should be providing consumers with the best prices on the market:
Low Cost for Business
This is due to the lower costs, which can be in the form of discounted prices. Costs for the business may be reduced as a result of the following: an e-commerce website allows for the automation of the process of taking orders, billings, and payments, as well as providing real-time inventory records; as a result, employees for personnel and warehouses may be reduced, resulting in lower costs. Furthermore, additional costs associated with running a retail store, such as electricity, manpower, rent, water, and so on, are included in the final price.
Convenient Price Comparison
In the Philippines alone, there are over a hundred e-commerce sites. We can also buy from different e-commerce sites from other countries as consumers with internet access, the lists of sites are limitless. Customers can use these online services to compare prices from various e-commerce merchants as a result.
Reduces Travel Time and Costs
Customers frequently travel long distances to visit their favorite physical store. With a few mouse clicks, they can virtually visit the same store. With gas prices constantly rising, it is impractical to drive to the mall just to buy a shirt. In addition, physical store has a limited amount of information that can be displayed. A salesperson is usually relied on to provide this information and persuade the customer that they need the product. Customers, on the other hand, can now easily access additional information on e-commerce websites. There are also customer reviews, which provide feedback on the product. The majority of this data is provided by vendors and is completely free to create and maintain.
Provides a Platform for Bargains
Are you familiar with OLX’s tagline? “Hanap (Search), Usap (Talk), Deal,” as the tagline suggests, creates an environment in which bargaining between two users is possible. There are also a number of coupons and deals that persuade buyers to purchase the product because it is on sale. While there are physical counterparts to deals, bargains, coupons, and group buying, online shopping is far more convenient.
What Effect does E-Commerce Have on Market Prices?
Indeed, the internet makes it simple to compare prices across sellers, the cost of posting a new price is low, the best price is only a few clicks away, the physical location of online sellers is largely irrelevant, and numerous services advise online shoppers on the best time and location to make a purchase. So, should one expect sticky prices to vanish?
Online prices are more flexible than prices in traditional stores. That is, despite the internet’s power, the behavior of online prices is consistent with smaller but still significant frictions, calling into question the price setting. According to some metrics, the prices of goods sold online may be as imperfect as those in traditional markets.
Bria Homes as an E-Commerce Site
Bria Homes had been keeping up with technology and modern customer demands. Bria is now offering virtual property expo showcases for consumers who do not need to visit the property in person as a result of the lockdown. Every transaction can now be completed quickly and easily online. For more information, please contact us via our website and own your affordable house and lot today.
Also Read: BRIA Homes to Hold Worldwide Virtual Property Expo This March
