Impact of e-commerce on the country’s economy: A revolution in the way of doing business

This industry has experienced exponential growth in recent decades, changing the way businesses operate and people transact business. This digital revolution has had a significant impact on markets, creating a series of changes and opportunities such as Cyber ​​Monday events that have fueled growth and changed the dynamics of doing business online.

E-Commerce Growth:

E-commerce has seen impressive growth in recent years. The convenience, accessibility and variety of products and services offered online have attracted an increasing number of consumers. This has led to an increase in online sales, which in turn has fueled the expansion of companies operating in the digital space. This growth created employment and encouraged technological innovation.

Alvaro Umana, Manager of Corporate Affairs at the Colombian Chamber of Electronic Commerce, shared the following statistics with Infobay; “According to the Quarterly Report on the Conduct of Electronic Commerce in Colombia 2023, total online sales in the first quarter of the year (January to March) during this period were 15.1 billion Colombian pesos. If we want to see this data in percentage terms, it represents an increase of 24.1% compared to the first quarter of 2022 and 83.2% compared to the same quarter of 2021..

As Alvaro Umana explains, it is important to note that each quarter of the year has a different behavior.For example, the last quarter of the year is affected by the holiday season, the Christmas season and New Year’s Eve, when Colombians have the opportunity to make purchases in line with Christmas gifts and receive additional income from premiums, which allows They should increase the average ticket.

One of the major advantages of e-commerce is that e-commerce offers new opportunities for small and medium businesses, which has leveled the playing field for small and medium enterprises (SMEs). In the past, these companies found it difficult to compete with larger companies due to scope and financial limitations. However, electronic commerce has allowed it to reach a wider audience, both nationally and internationally, without the need for large investments in physical infrastructure. This facilitated the growth and expansion of SMEs, which created employment and stimulated the local economy.

The Colombian Electronic Commerce Chamber, led by its spokesperson, tells us, “ Within the structure of the union, along with the various commissions made up of its affiliates, they contribute through their expertise and experience to strengthen the efforts we lead as a union, supporting the provision of appropriate tools that promote the brands that all participate in. Cyberloons®. These commissions focus on key links in the e-commerce value chain:

• Knowledge and Faith (Exchange and Exchange of Knowledge)
• Electronic Invoicing (Proliferation of electronic invoicing and technical matters)
• Government and Regulation (Regulatory Schemes)
• Payments and Fraud Prevention (Value Chain Payment Management)
• Logistics (developing a digital ecosystem based on logistics)
• Egrosary (developing strategies for the growth of the sector)

Each of these points leads to the idea of ​​improvement of the Chamber of Electronic Commerce, which seeks to promote improvements that allow more knowledge about electronic commerce among the public, thus creating more opportunities for SMEs and entrepreneurs to achieve an increase in sales.

Transformation of traditional business models:

E-commerce has radically changed traditional business models. Physical stores now face the challenge of adapting to the changing needs of consumers who prefer to shop online. Alvaro Umana told Infobay “With the support of the Colombian Chamber of Electronic Commerce and Google we promote e-commerce in all types of companies YaEstoyOnline.co, which promotes training and understanding of the eCommerce ecosystem so that small and medium-sized companies gain visibility of their business across digital channels, creating sustainable, profitable and scalable projects over time. The program is completely free and easy to navigate and understand for those who still don’t know where to start in this digital world.

Many companies have had to develop cross-channel strategies to combine the online and offline experience to provide a unified shopping experience. Those that failed to adapt faced difficulties and, in some cases, had to close. At the same time, new business models have emerged, such as sharing economy platforms, which have created new opportunities and regulatory challenges.

Challenges and Considerations:

E-commerce presents significant challenges and areas of focus. Online security and data security is an issue that needs to be addressed by businesses that need to worry about adequate security with secure payment systems and possible encryption of data for security. Customer information.

This type of trade has had a transformative impact on the country’s economy. It has boosted economic growth, created employment, facilitated the internationalization of companies and expanded business opportunities for small and medium enterprises. However, it presents challenges such as online security, logistics, proper regulation and digital content. As e-commerce continues to evolve, there is a need to adapt and develop policies and strategies that allow it to fully realize its potential and mitigate its associated challenges.