Global Replica Sourcing Scenario and Ecommerce
How is ecommerce defined and what does it do to augment Global sourcing?
Ecommerce stands for electronic commerce and it permits merchants to carry out domestic or international or both kinds of trade on the Internet. Ecommerce is a boon for the global sourcing industry and also the import and export industry because the volume of goods coming in and going out of the country has increased exponentially due to the widespread use of ecommerce. The boost for import and export and global sourcing through ecommerce is due to its flexibility. The activities like data and monetary transaction, monitoring supply chain and online marketing can be completed in a dependable and convenient manner.
Evolution of ecommerce due to Global Sourcing
It is difficult to confirm the fact that import and export has increased rapidly due to the emergence of ecommerce, but it has surely made Global Sourcing much easier to monitor through it evolutionary phases. 30 years ago, ecommerce facilitated transfer of funds and exchange of Pos electronically. It also allowed multinationals to send and receive bills and invoices while doing international trade. The new manifestations in the ecommerce industry are Electronic Teller Machines that have overtaken endorsing of invoices that are not signed and internet credit card processing in international trade.
What is the reason for ecommerce to be very popular in Import and Export and International Trade?
From both perspectives trade in conducted with more ease when it is done electronically. The reasons for this are given below:
- Easy and quick setting up of ecommerce stores that can be used for both import and export and global sourcing.
- Automated maintenance of the export and import company as there is no need to keep too many people.
- Global sourcing companies and agents can list or evaluate import and export vendors on the internet.
- Automatic documentation for each import and export and global sourcing transaction.
- Capable of handling many secure and quick money and data transactions that is crucial for international trade.
Security Concerns
Convenience does not come for free which means ecommerce does not come without security concerns such as loss or misuse of data which is one reason why import export operators are not engaging in ecommerce for their international trade. However, the providers of ecommerce services have SSL technology which encrypts data before transferring it to your clients. Therefore, ecommerce is very secure for both the global sourcing agents as well as the import export operators.
Ecommerce has emerged internationally because the international trade partners and the import export companies have accepted it. In spite of its security, ecommerce is very popular only on the domestic front and is yet to be widely accepted on the international front. The primary reason why import export companies adopted ecommerce is to decrease the costs due to delays in the processing of invoices and PO’s. This delay which was caused by traditional methods renders the Global sourcing industry useless.
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