Electronic commerce, also called
e-commerce, has become very popular in the last few years. There has been a
non-stop increase of e-commerce used around the globe and it will continue to
grow for many years to come. As technology continues to develop, the industry
continues to expand. E-commerce enables consumers to exchange goods and
services over the internet with no restrictions regarding distance or time. In
this World Economic Forum, Rick Samans, Terriz Fernandez-Ruiz, Mercedes Araoz,
Jack Ma and Roberto Acevedo discuss whether enabling e-commerce will be a
vehicle for development or if it will benefit large companies or businesses. The
main reason for this belief is because of the young people around the world. The
young people today are the ones who will control the future of global business.

They have researched and discovered how popular technology and internet sales
have become over the year and this is mainly due to the youth of the nations. Not
only do they all believe e-commerce will be a vehicle for development, they
also believe it can improve foreign relations. Doing business with other
countries involves heavy communication. When business agreements go smoothly,
it causes everyone to be content which can increase relations. Enabling e-commerce
allows all companies and business access to global sales.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Many different companies have
decided to take part in expanding their business to the online market. Walmart
is known for their low prices and their broad selection of products. Amazon has
recently bought out Whole Foods and has started to take part in selling groceries
online. They have also linked the online purchases to the local stores, so the
consumers are able to pick up their groceries instead of having them delivered.

With this recent advancement, Walmart has decided to add this feature to their
website. “Walmart projects their global e-commerce sales to hit $17.5 billion
this year” (Nassauer 2017). Due to the popularity of Amazon, Walmart is
planning on dropping their online prices to increase sales and they believe
that this will help increase the competition with the fierce competitor. Marc
Lore, the new president of Walmart, plans to redesign Walmart in order to entice
the millennials. Since he accepted the job, he has joined with companies like
Jet.com, Bonobos, and ModCloth in order to make Walmart’s website more
attractive to the youth. Since these additions, Walmart’s U.S. e-commerce sales
have increased by 50% (Wolfe 2018). Lore wants to transform the store into a
more modern feel. This should increase sales and should help them compete with
Amazon.

Discussion

The main trend in these articles
and discussions are that the millennials are the future. The millennials are
heavily involved with online shopping and it will only increase in the future.

These major businesses have decided online shopping is the best way to attract
that group. This is the way that young people live and do business. E-commerce
allows smaller businesses to compete with larger companies. In the future, it
will not be about how much space or product a company sells, it will strictly
be about the importance of the product to the consumers. With the ability to
sell globally online, the opportunities are endless.

E-commerce has also caused the
shipping networks in the United States to increase. New York and Los Angeles
are the United State’s most common locations of entry. “In October, they
imported a combined 1,031,127 20-foot units” (Phillips 2017). Although there
was a 2.5% increase from the previous year, these numbers will not last. The
larger increase comes from the truckload carriers. Since the previous year, the
freight shipments have increased by 5.5% (Phillips 2017). In the World Economic
Forum meeting, Ma discussed how the world will start to see the number of
container cargo decrease while the number of packages increases drastically. Ma
is under the impression that as the e-commerce industry erupts, the demand for
products in bulk will decrease because there will be more consumers purchasing
personal products than ever before.

Conclusion

Walmart and many other large
companies have done a great job of adapting to the changes. With the additions
that have been made, Walmart should continue to be at the top of the list when
it comes to general merchandising stores. Lore has mastered his knowledge of
the online industry and continues to find ways to improve his company. The
amount of shipping domestically and internationally should continue to increase
in the future. However, the future of shipping will be strictly through
packages. Enabling e-commerce is a must in order for global businesses to
succeed. Enabling online businesses will create many opportunities for small
businesses to compete with larger companies, and it will provide jobs to many
individuals. It will be exciting to see how important of a role e-commerce will
play in the business world in the future.

The world needs to trade. When
trade stops, wars can begin. Trade is what brings everyone together. Currently,
there are many sanctions out on countries. When a country is sanctioned, this
causes the small businesses to suffer. The government should not be worrying
about different regulations, they should try to help grow this industry. E-commerce
should be used as a tool, not a weapon. This tool should help small businesses
grow, should increase foreign relations, and should reshape the business world.

In 2020, the e-commerce industry is projected to be worth one-trillion-dollars in
value. In the world we live in, it is much easier to build mobile systems than
it is to build new roads. Not only is the online business cheaper, it is also
easier. The millennials love cheap and easy. This group is what controls the
future of business.