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Managing the Digital Enterprise


When, one of the original Internet platforms, acknowledged the first adverts from large firms in 1995, it promoted the idea that now the web might be utilized as a digital paradigm for marketing and promotion. No one could have predicted that e-commerce retail sales would double as well as triple in the early years, resulting in an exponentially growing trajectory (Simakov, 2020). Initially, the word e-commerce was known as the performing commercial transactions online using advanced know-hows such as Electronic Data Interchange and Electronic Funds Transfer, which allowed operators to share corporate information and conduct electronic transactions. In the late 1970s, fresh technologies were found, allowing companies and institutions to exchange business documents electronically (Simakov, 2020).

Internet users can search, evaluate, and make purchases using a variety of online venues. Even though some websites provide especially to business-to-business clients, individual customers have access to an extensive variety of digital choices (Soegoto & Eliana, 2018). Virtual marketplaces comprise a large number of internet transactions globally as of 2019. Smartphones accounted for over 70% of all retail website visitors in 2021. However, conversion rates on desktop and tablet visits were higher in 2020. According to Moriset (2018), mobile connectivity will continue to define the future buying experience as the penetration of mobile devices accelerates, especially in areas where other digitalization is lacking. This report will discuss the growth and importance of mobile devices and software. It will show demonstration that social media is becoming a more important factor in purchasing decisions, as well as how firms can use social media and location to boost E-commerce revenues. Besides, the report will demonstrate a grasp of the challenges that could stifle the use of social media to influence purchasing decisions.


The current context of e-commerce

The level that e-commerce has grown extra social, local and mobile is one of the most significant shifts. Making a corporation website, purchasing display advertisements on Yahoo, buying search-related ads on Google, as well as delivering email messages were previously the mainstays of online marketing (see appendix A). Consumers purchasing choices are increasingly influenced by their social network’s interactions, preferences, tastes, and opinions (Beyari, 2021).

Today’s e-commerce is a captivating experience. It has totally altered old-style shopping. It is far greater to any other technique of shopping, besides, it has already garnered a big number of e-commerce devotees. A few years ago, if e-commerce was a buzzword, it has now become the norm. A few years back, if e-commerce was a buzzword, it has now become the norm. During lunchtime and rush hour, when there is nothing else to do but get on their laptops and smartphones and start browsing, people appear to shop virtually all over at their jobs (Sabino et al.,.2017).

Even traditional stores have been alarmed since e-commerce now provides so much luxury. Since everyone acknowledges that e-commerce will take a long time to replace brick-and-mortar retailers, it has a good possibility of coming to pass. Ecommerce, as we see it today, brings much more adventure into our lifestyles than the entire online community enjoys it.

Analysis of whether e-commerce is becoming more ‘mobile, local and social.’

When the e-commerce is compared to physical retail formations, services, and entertainment, it remains to be the quickest growing method of business. According to (Moriset,2018), the quickest components of e are social, local and mobile commerce. E-commerce is expanding, particularly among the services economy of social media, transportation, retail clothes, jewelry, equipment, entertainment as well as household items.

Traditional retailers such as Walmart, JCPenny, and Macy’s are establishing Omnichannel business models to enhance their dominant physical retail assets, while pure e-commerce commercial models are being honed more to attain more profits (Pantelimon,.2020). Walmart, the largest retailer in the world, decided to take on Amazon with a one-billion-dollar e-commerce investment. Small firms and entrepreneurs keep flooding the e-commerce market, frequently relying on infrastructure built by industry behemoths like Amazon, Google and Apple and progressively utilizing cloud-based computing capabilities.

In the U. S., mobile e-commerce has exploded, with location-based service area besides recreational downloads such as e-books, music, movies as well as television series. Smartphones and tablet computers with strong processors allow access the Internet, music, and entertainment, together with voice communication. Streaming and podcasting are gaining popularity as platforms for audio, video as well as user-generated content dissemination. The wearable computers, like the Apple Watch, as well as Fitbit trackers have joined the ranks of mobile gadgets (Moriset,2018). As communication costs decline, the internet broadband foundation in homes and companies becomes stronger.

Facebook, Twitter, LinkedIn, Instagram, and other social networking apps and sites are attempting to establish themselves as a major free platform for marketing, e-commerce as well as advertising. Over 2.2 billion Facebook members globally, with more than 214 million people in America (Facebook 2018). According to Chetioui et al, (2021). Smartphone applications, software as a service, cloud computing and database software are all examples of internet-based cloud computing that significantly cut the cost of e-commerce websites. More than 70% of internet users have established blogs, uploaded photographs and music, and joined an online social network. These sites, when combined, provide an online viewership comparable to that of television, which is appealing to advertisers. Traditional digital marketing still makes up the bulk of digital marketing (58 %), but it increases far more gradually than social-mobile-local marketing. Mobile advertising now accounts for 70% of all online advertising (Pantelimon et al.,.2020). Clients and buyers are following marketing dollars from their PCs to their mobile devices. Social media, mobile commerce, and local e-commerce are all intertwined. Mobile appliances are becoming handier for surfing Facebook or other social media sites as they get more capable (See appendix B).Clients can use mobile phones to discover local businesses, as well as vendors can utilize them to notify clients in their area of special offers as smartphones become increasingly widespread.

Factors that drive the customer purchase decisions

When making a purchase, clients rely mostly on traditional advertisements as well as word-of-mouth suggestions. Although these techniques are still effective, technological developments have transformed the way firms and consumers socialize. Alongside brand perceptibility, other aspects can impact a purchaser’s choice (Martin et al.,2015). Over time, customer behavior has changed. Because of the rise of social media, review systems, and other online platforms, today’s consumers want to do more than buy something; they want to build a relationship with a business. Fortunately, a consumer-driven approach makes this simple. A brand could be the greatest valuable asset a corporation has, but this does not mean it is easy to recognize. Maybe this is since, in the digital era, the meaning has prolonged to cover not only a company and its main commodity but also individuals (Younus et al., .2015). A sound of the name of a brand and the pictures it raises up influence purchasing decisions. This is why, if launching a corporation or a product, coming up with strong corporation names is so vital.

Besides, Product placement is essential in physical retail venues. When the commodity is on an end cap in a high-trafficked part of the store rather than hidden away on the bottom shelf in a back section, one will notice far better results (Younus et al., .2015). This has little to do with the product and all to do with the place. Product placement is a little unique for e-commerce firms. When vending on, having the merchandises listed on the upper page or even in the sidebar is essential. In these places, one is substantially more likely to make more sales than on page number six.

In addition, for reputation, word-of-mouth is essential for building and sustaining a favorable reputation in this age of social media. “Customers no longer value vendor messaging,” argues Kristin Zhivago, a business specialist. “They communicate directly with one another. What your existing consumers say about you may either help you market more or attract business away. “One would be able to impact client purchasing choices more often if you can build a solid brand image in the market (Ramya et al., .2016). People will consider the product, think about what has been said about it, and choose the product above the competition. A noble reputation could even compensate for shortcomings in other domains in many circumstances.

Pricing is a non-product the element that consumers examine. A lower price enhances consumers’ purchase decisions. The trick is to figure out how sensitive to prices one’s target market is. Price is the most important non-product element in several sectors (Pantelimon et al.,.2020). In others, it has a minor part to play. For instance, a buyer is purchasing a mop may be sensitive to prices. If that mop costs $9.99 and another cost $24.99; they are more probable to choose the less expensive. When you are selling 75,000 dollars convertibles, however, a few thousand bucks might not seem like much of a change. Furthermore, although word-of-mouth advertising is arguably the most important factor influencing a customer’s buying decision, it is critical to understand the other methods the audience learns about the brand. One may use social media platforms to keep track of your clients and engage with them. Because 78 percent of consumers are impacted substantially by a company’s social media behavior, venues like Instagram and Facebook can help you to increase the company’s online presence (Gutiérrez et al., .2017). If you have a webpage, adding a section and landing page dedicated to client testimonials will offer potential prospects an indication of whatever they can anticipate when they work with business.

Assessment of identified barriers to social networks influencing customers’ decision-making

Various barriers to social networks influence customers’ decision-making, and e-commerce is becoming more ‘social, mobile and local.’ For instance, the cyber security issue is among them. Online transactions have made peoples’ lives easy; they are faster, well-organized, and less complicated than in-store buying (Karim & Gide, 2018). However, buying from an e-commerce store does for clients because it takes away a certain bit of control over the purchasing process. Customers trace their credit cards on a machine in a normal in-store setting, as well as the merchandise is quickly provided to them with a published receipt to authenticate the purchase. (Soegoto, & Eliana,2018). Clients are often required to supply additional personal data when doing online shopping, like the email address, residential address, mobile contacts, as well as personal information like their profession, age, as well as favorite language. Receipt is frequently delivered later, through email, besides the product does not arrive for days or even weeks. It is a wonderful responsibility for business owners to save much financial and personal data about their clients. They become a stress-free target for hackers as an outcome. The virus can not only affect the site as well as sales system, and it can also hack into as well as reveal client data.

Besides, customer experience is also a barrier to e-commerce. E-commerce businesses make purchasing easier than before. When compared to buying in typical retail establishments, the implicit push to buy the product is often absent when exploring things. When it pertains to selling things online, not completing the purchase is one of the biggest obstacles. It is simple for the user to click close and go about their business (Soegoto, & Eliana,2018). As a result, the stakes for turning in customers and closing a deal have increased. One sluggish form or a muddled site structure is all it takes to change a prospective prospect away for good. Providing a superior customer experience is critical for increasing sales and drawing more targeted visitors to the website. When it concerns to e-commerce store consumer experience, initial impressions are crucial.

Maintaining client loyalty is also a barrier to e-commerce. When a customer is searching for a unique commodity, a Google search will uncover thousands of e-commerce businesses that are willing to help. It cannot be easy to go through these findings. Unlike retail locations, where sellers can engage with consumers through face-to-face encounters, selling online is unique in that it eliminates the human aspect (Al-Bakri, & Katsioloudes,2015). The big question is, how can you establish trust and loyalty when you do not have direct contact with your customers?

Compared to traditional retail outlets, where only 9% of things are returned, more goods bought online are produced at a rate of 30%. Most clients are concerned about return and refund policies. Many people choose e-commerce enterprises depending on their rules.

Moreover, verification of identity via the Internet has become a barrier to the growth of e-commerce. It’s impossible to know whether a name of a person is a normal human or if their email and contacts details are phony when they fill out a website form (Karim & Gide, 2018). In the case of fraudulent transactions, blacklisting of the corporate IP address and tainted email lists might result in significant income losses. There may well be legal obligations to gather proper data from clients, depending on where one lives.


As the Internet becomes more accessible in various corners of the world, the leading e-commerce sector is increasingly evolving. Traditional retail firms are making a move to the online world. As a result, they broaden their consumer base while also remaining competitive. Currently, most people use smartphones in doing e-commerce. For this reason, it is true to say that e-commerce has become more mobile, local and social and that “customer purchase choices are progressively determined by the conversations, tastes, choices as well as opinions of their social networks.


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Appendix A

Worldwide retail e-commerce sales were anticipated to be around $4.9 trillion in 2021. This value is likely to rise by 50% within the next four years, approaching $7.4 trillion before the year 2025.

Appendix B

In recent years, online sales have become highly significant in the retail industry. E-commerce is expected to account for 19.6percentage points of global retail sales in 2021. According to projections, internet retail sales will account for about a quarter of the world’s worldwide retail trade by 2025.


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