It all began due to a combination of some regulations and innovativeness. Although the predecessor of the Internet appeared in the late 60s, e-commerce took flight with the advent of the World Wide Web (WWW) and browsers in the 90s. This led to a remarkable progress in the field of information technology with the liberalisation of telecommunication and innovations, which greatly expanded the volume and capacity of the sensitive communication sector. In the context of this development, barriers that affected trading fell, and business began to look up. Earlier forms of e-commerce were mostly custom-made, complex, expensive and the province of large firms. This has changed with time. Today, for a few thousand dollars, anyone can become a merchant and reach millions of consumers world-wide. What used to be business-to-business (B2B) transactions among the privileged is today a necessity with any establishment that seeks to do business globally. Millions and millions of dollars change hands across the globe and involve vast numbers of individuals who may never have met before. Internet has revolutionized the way people think and do business. Today, people enjoy the comfort of this technology and the time difference acknowledged with other parts of the globe to their advantage. The advantages are immense and we take a look at some of these in this paper.
The growth of e-commerce is much more likely to be determined by the B2B segment of business, which accounts for 80% of the total e-commerce activity. The notable factors that can contribute to further growth are:
1. A reduction in transaction costs, and improvement of product quality and customer service
2. A defensive reaction to competitors engaging in e-commerce
3. An insistence by large and medium-sized business houses that their suppliers link into their e-commerce system as a condition of doing business. Internet and web-based electronic commerce allows more business partners to be connected than by the traditional EDI
4. E-Commerce can help reach a more geographically dispersed customer base
5. Procurement costs can be lowered
6. Purchasing cost improves
7. Reduction in inventories
8. Lower cycle times
9. Better customer service
10. Lower sales and marketing costs.
Reduced transaction costs have a direct influence on defensive reactions to competitors, and suppliers linking to their business house's e-commerce system. It is most likely that the biggest impact of b2b e-commerce will be on small and medium-sized enterprises (SME), and not the larger ones as expected. This is because many of these large business enterprises have EDI.
Accessibility to the Internet makes electronic commerce viable for the numerous SME. The competition surrounding the impact of e-commerce among business houses is closely monitored and guarded such that not much is known about this business segment making it an important student for future studies. The United States undoubtedly, accounts for the major share of this