What Online Shopping Tells Us About International Trade 2018
August 24, 2018
The boundaries of e-commerce is no longer limited to the geographical boundaries of countries. This creates a rising importance in understanding the impact in international trade as well.
- Online pricing is vastly different
The geographical location of the customer is a completely irrelevant factor to e-commerce. Which means there is very limited role of administrative borders. This gives the online markets a unique ability of pricing, as the physical cost of changing prices is negligible for retailers who trade on the internet. This means the pricing online can be fluctuating vastly on a daily basis.
- Opportunities for SMEs
Internet has created a plethora of opportunities for the small and medium sized enterprises. These businesses in the developed countries are now much more active players in international trade, giving them a chance to become the part of the global economy. When small and medium businesses can easily access strategic telecommunications, information, legal access to the overseas markets, easy consulting services, it gives developing countries a better and competitive edge in international trade, strengthening the economy.
- Diverse trading options
With the advancements of major analytical tools like non repaint indicators available online, more and more investors and traders are investing in foreign markets, exchanging currencies and stocks of international businesses, ultimately impacting international trade majorly.
- Big data
The involvement of Big Data ensures businesses online can make an impactful statement of their products by collecting, analyzing, managing and targeting the data of their user bases through mediums like searches, social media, websites and mobile applications throughout the world. Entrepreneurs can easily categorize and extract consumer information. Companies like Amazon collects user data and then compiles it in ways to optimize the e-commerce experience that their customer base experiences.