What is E-Commerce & how is it growing in Dubai, UAE

According to AlAkklouk, Faraj, and Faraj AlAkklouk (45) Electronic Commerce commonly denoted as e-commerce are the selling and buying of services and products or the transfer of data or funds through electronic networks mostly through the internet. This form of business occurs as a customer to customer, customer to business, business to business or business to customer. E-commerce is also denoted through the use of the term e-business. The concept and application of electronic commerce began in 1960 when most organizations started using electronic means in conducting their operations. There are various ways through which business conduct e-commerce and include using online catalogs, shopping carts, email, web services among other means. E-commerce has been growing tremendously over the years. For example, in Dubai online sales were more that third of the total sales in the area and have been improving the efficiency with which the companies and other forms of businesses have been conducting their operations. Through e-commerce, the firms have been able to develop strategies for getting to the customers through promotional and advertisements creating practical significance in the performance of the companies. The study will evaluate the concept of e-commerce in Dubai and the various contributions it has on the functioning of the businesses.

Electronic commerce in Dubai

Most of the organizations in Dubai have been applying electronic commerce in selling and buying the products and services. The application of technology has been made possible in the region because of the massive technology innovation. Gupta (13) states that half of the population in the area was expected to be competent in using e-commerce and ensure growth in the companies through the use of technology in conducting operations.

According to Zhao and Yun (29), Dubai has come up with major contributions or efforts in establishing itself to be e-commerce hub. The trend of electronic commerce development in Dubai has further been enhanced by an increase in new markets and development of social media. In the Middle East, the use of the internet has been growing over the years and has contributed to the immense use of online operation of businesses. For example, forty-two percent of shoppers in UAE were able to access the internet that helped in online shopping in 2012 that showed an increased as compared to 33 percent in 2010. Other online techniques including pay pal have been encouraging the transfer of funds in Dubai and other parts of the world. The phase of e-commerce has been changing over the years in the region and increasing participation and effectiveness of the organizations (AlAkklouk et al., 73). In UAE, e-commerce begun around 2001 with significant technology development and greater use of the internet, therefore, giving a good platform and infrastructure necessitating e-commerce. 

Influence of e-commerce on local markets

E-commerce has shown various impacts on local markets in different areas of the world. Most of the people are usually busy during the weekdays, and they often find a little time to go shopping in the in the local markets. Gupta (76) records that during the days, most people prefer transfer of resources including finances, purchasing good and services through online means rather than going to the markets. Although the local markets have been getting profits on their operations, most of them make fewer returns as compared to when the technology was not available. Most of the people go shopping in the local markets during weekends and other free time and the frequency has not been high because most of the people prefer automated way in conducting their operations.

Zhao and Yun (32) records that enhanced e-commerce reduces the number of customers in the local markets. E-commerce is fast and efficient, and the products and services delivered mostly correspond to the requirements of the customers which is less efficient in the local markets. E-commerce enhances security in business especially in the transfer of financial resources from one person to the other therefore encouraging people to have a higher likelihood of using the service in their business.

In other parts, acceleration on the development of e-commerce has increased the performance of local retails and markets. This has been through the development of other businesses that were not there before e-commerce emergence. It has been through innovation of new techniques and companies that local markets have been able to compete effectively with the increased use of e-commerce. Most of the local markets also adopted and had continued utilizing the technology of electronic marketing that has helped in connecting with people from various parts across the globe and delivering the products and the services.

How e-commerce progressed

Dubai has had appropriate business culture that has contributed greatly to the development of e-commerce in the region. Proper entrepreneurial culture plays a great role in ensuring that appropriate techniques are applied in conducting various business operations. Gupta (41) records that healthy corporate culture has made it possible to develop e-commerce in the businesses. Dubai as an Arab emirate has been using censorship that has helped in coming up with new and net initiatives. The level at which Dubai use censorship has been increasing, therefore, making it possible for the e-commerce to progress. Editing helps in continuous use of internet and therefore played a great role in boosting electronic commerce in the region. Penetration of the Internet in Dubai also enhanced increased development of e-commerce, and its applicability has led to the success of the businesses and progress of electronic commerce in the United Arabs Emirates.

What e-commerce is likely to be over the years?

Electronic commerce is still evolving to ensure that the best services in the market are provided with less effort among the customers. In the next years, there is an expectation that the number of people using e-commerce will be high because of the efficiency that it has portrayed over the years. Development of new technologies is playing a critical role in shaping e-commerce and in ensuring that the application of the technology is efficient. For example, in the coming years, e-commerce will enhance transfer of products and services to other regions of the world. E-commerce is likely to diversify to other fields that would contribute to the effectiveness and ensuring that it covers all activities in the area of business. AlAkklouk et al., (91) state that technology is likely to extend in innovation and the development would encourage e-commerce to adopt new techniques, therefore, becoming more intense in the way it conducts its operation.

Conclusion

Electronic commerce has changed the way people and businesses operate. It is now not compulsory to be in the market physically to be able to buy or sell a product or service. Technology has been developing through innovation of new techniques that have helped in conducting business efficiently. The Internet has changed the way people conduct their business. It is possible to buy products and services from other parts of the world without physical presence because the technology help in the transfer of the requirements including agreement and financial resource needed for the shipment of the products. Various norms of the country including the culture of the business in a state would help in actually shaping and encouraging or discouraging e-commerce. Electronic transactions are expected to rise in future and foster a great pull of people and business to adopt it in carrying their various operations. It will make it possible for companies to make proper orders of the products and encourage the customers to use it because of the benefits that include security that it offers.

Works Cited

AlAkklouk, Faraj, and Faraj AlAkklouk. Doing Business in the Middle East, the Art of Success. Lambert Academic Publishing, 2012.

Gupta, V P. E- Business. Researchco Book Center, 2006.

Zhao, Yun. Dispute Resolution in Electronic Commerce. Martinus Nijhoff Publishers, 2005.

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