Ecommerce and Social Networking

In this task I will be discussing how companies will need to develop an online presence in order for their businesses to survive. I will also talk about what ecommerce is and why companies may have to delve into using social networking sites in order to increase sales and survive.

What is ecommerce?

Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. Many companies will use ecommerce as using the internet is now very important to help a company emerge. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time and distance. Ecommerce has rapidly expanded over the last few years because companies have realised that using ecommerce is the most efficient way of reaching their customers. They have also noticed that using ecommerce will enable customers to buy from them no matter what the customers situation is as the product can be delivered. This has helped increase the sales companies have made.

Why companies need to use social networking sites?

The main reason why companies will need to start using social networking sites more often is because this will help them get their products noticed and will dramtically increase the number of people who see the companies goods. This will happen because of the amount of people who use social networking sites daily like Facebook and Twitter. Facebook currently has over 400 million active users, and the average user spends at least 55 minutes a day on Facebook, therefore if a company advertised on Facebook, millions of people would see the advert a day. So the only way a company will be able to compete will be to post advertisements on this hige social networking so, or their competitors will get more notice.

If companies want to carry on developing and increasing their profit margains and the amount of money they make, they will need to advertise on social network sites, like Facebook and Twitter, so more people notice the company and know what they sell.