Essay about The Impact of E-Commerce

1052 Words 5 Pages
With the invention of the internet, trade experienced a fundamental transformation; its inception introduced Electronic Funds transfers thus enabling banks and businesses to transfer money in a timely and efficient manner, as credit cards allow consumers to obtain credit easily. Moreover, the creation of the World Wide Web changed the dynamics of business dramatically, bringing many troubles along with its benefits. By the mid-nineties, many different companies started to boast online retail options and services which created a substantial breakthrough in banking and shopping. Graphical user interfaces created a comfortable shopping atmosphere, and Secure Electronic Transaction (SET) facilitated secure financial transfers. Thus, electronic …show more content…
The consumers also gained from the renewed competition that it generated which enables them to shop better by comparing prices, quality and service. Reviews and costumer rating assists a buyer in researching a product before purchasing it. Online banking eases the transfer of money as well as provides several services for the savers and investors.
However, the growth of eCommerce did not come without ramifications; its meteoric rise created many challenges and placed many economic sectors in jeopardy. Stock prices increased rapidly because of the companies’ rising equity value based on speculators. Companies altered their measures of performance by computing website visits instead of utilizing traditional metrics to predict proceeds, and investors were encouraged to invest in risky businesses. When the profits did not materialize and oxygen of the hype depleted, the dot-com bubble burst, and individuals lost faith in electronic commerce. Eventually, business-to-business eCommerce was hampered by integrity and accountability concerns, consumers were afraid of business-to-consumer transactions because of authenticity matters, and consumer-to-consumer eCommerce grappled with confidentiality and security issues. This led to many reforms and changes to protect investments and encourage participation in eCommerce.
Congress and other regulatory bodies enacted various measures to standardize accounting principles for

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