This paper addresses five core questions in electronic commerce, covering recommended e-payment methods for online content sellers, the challenges of reverse logistics particularly for small and medium enterprises, UPS's self-identification as a technology company, the conditions under which outsourcing EC services is inadvisable, and the rationale for using consultants in e-strategy development. Drawing on established scholarship, the paper offers concise, practical analysis of each topic, making it a useful introduction to key operational and strategic considerations in e-commerce.
A textbook publisher interested in selling individual book chapters on the web should consider several established e-payment methods. Commonly used options, as identified by Doerberg and Hinnekens (1999), include "electronic cash; smart cards; electronic checks" (p. 93). These are the e-payment methods most suitable for a publisher operating in this space. It should be noted, however, that although each method carries its own unique advantages, the publisher may also encounter specific problems depending on which method is selected.
With regard to electronic cash, this method is susceptible to forgery. Because it provides no audit trail, tracing counterfeiters can become a costly undertaking. Additionally, significant ancillary charges — such as bank processing fees — may discourage customers from completing purchases.
When it comes to smart cards, there is always a risk of theft, which may deter some users from relying on their cards. Furthermore, deferred payment is generally not possible with this method, which limits its flexibility for some consumers.
With respect to electronic checks, transactions may be delayed whenever the supporting network or system experiences downtime. This is a notable concern given that reliable networking is essential to processing transactions through this method.
As the opposite of forward logistics, reverse logistics presents unique challenges for businesses engaged in e-commerce. Reverse logistics is largely inevitable because goods sold may be returned for a wide range of reasons, including damage and malfunction. Because this process is typically initiated by the customer, the selling company has limited control over it. Issues businesses face with regard to reverse logistics involve the receipt, warehousing, and triage of returned goods.
Small and medium enterprises are likely to suffer the most in this area. Given their size, these businesses face significant challenges in efficiently managing the movement and storage of goods returned by customers. Such firms may lack "the efficient means and locations to handle returns, unlike a brick-and-mortar firm" (Keillor, 2011). This puts them at a structural disadvantage compared to larger retailers with dedicated reverse logistics infrastructure.
Over time, UPS has invested heavily in technology. Regardless of its long experience in trucking, technology has played a central role in the company's growth, and it is for this reason that UPS identifies itself as a "technology company with trucks" rather than a trucking company with technology. Technology is integral to the control and optimization of the company's operations, enabling efficiencies that go far beyond traditional logistics management.
"Why UPS identifies as technology-first company"
"Conditions making EC service outsourcing inadvisable"
"How consultants add value to e-strategy development"
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