An Analysis of the Social and Economic Impact of E-Commerce
Chapter One
Objective of the study
The primary objective of the study is as follows
1) To evaluate the challenges of E- commerce in Nigeria.
2) To examine the economic impact of E- commerce in Nigeria.
3) To find out the social impact of E- commerce in Nigeria.
4) To investigate the socio-economic conditions underpinning e-commerce in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
E-Commerce and Its Importance
E-commerce is referred to as electronic commerce. It means the electronic media and the internet for dealing with goods and services. E-Commerce entails a company accessing the internet as well as IT, such as the electronic data interchange (EDI). E-commerce concerns an internet vendor’s website, trading goods or services to the user directly from the platform. The gateway uses a wireless purchase cart or a purchase basket to pay by credit card, debit card or Electronic fund transfer (EFT). A further description is as follows: Electronic communications and digital information processes in business transactions are used to create, modify and redefine value generation relations between, and between, organizations and individuals. With the increasing spread of ICTs, specifically the Internet, the global corporate world pushes rapidly into ecommerce (Business-to-Business). As the Internet enables consumers to enter the global economy, they can compare prices across areas, find out how they vary by request, and become aware of substitution. The buyers obtain a distinct advantage. Thanks to market openness, consumers can conveniently compare e-commerce offerings from different websites. The rivals would immediately be one click away from the customer if the company is electronic. If consumers aren’t comfortable with certain e-goods, content’s pricing or services, they can adjust even more quickly than in traditional terms. They don’t need a physical store from the point of view of the vendors
E-Commerce Facilitators
Internet: E-commerce has grown through huge penetration of the internet. The Internet and intelligent mobile telephones have literally been part of every life. Internet no longer constitutes an intelligence source, however, it is an efficient means in which horsemen, and carpenters, physicians etc. can buy, read, communicate and even receive service. The supply chain is slender and intelligent, as digital networks can quickly link to customers, which greatly minimizes pollution and benefits green businesses. In the last 15 years, the ICT revolution has powered the economy unprecedentedly. The Internet and its services have helped grow new markets with huge technological advancements. In the 1980s the population of internet users was small, and there was a gradual but steady increase until 1994 when the number of test users was growing. The number of network users exploded with the advent of the World Wide Web and later the expansion of multimedia content. The internet has in turn evolved even quicker than any other previous medium. The United Nations International Telecommunication Union (ITU) recently forecast 3.2 billion users online in 2015. There were 7.2 billion inhabitants in May 2015. In 2000, worldwide Internet subscribers were just 400 million.
Payment Gateway: The payment transfer, which allows e-commerce, online shops, bricks, and clicks and traditional brick and mortar payments via credit card, is an ecommerce application service provider service. The main variables in internet transactions are payment routes that include credit cards, debit cards, online banking purchases, and transfers of electronic funds. There is a need for payment gates for sustainable future e-Commerce, and the environment shifts from cash into digital currency.
Analytics: Analytics is the empirical way of transforming data into decision-making intelligence. Analytics assists organizations in collecting, arranging, reviewing and commenting on their clients. The vast rise in data volume has caused organizations to rely on research to know the customer’s behavior. Retailers must have real-time access to knowledge to compute returns on internet investments and a channel blend. Basic analytics are available for e-commerce players; for customer insight, average order volume, basket size measuring, conversion ratios are required and a deeper analytical approach is needed.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine an Analysis of the Social and Economic Impact of E-commerce. Jumia in Lagos state forms the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain an analysis of the Social and Economic Impact of E-commerce. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of an analysis of the Social and Economic Impact of E-commerce.
Summary
This study was on an analysis of the Social and Economic Impact of E-commerce. Three objectives were raised which included; To evaluate the challenges of E- commerce in Nigeria, to examine the economic impact of E- commerce in Nigeria, to find out the social impact of E- commerce in Nigeria and to investigate the socio-economic conditions underpinning e-commerce in Nigeria. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Jumia in Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
E-commerce is emerging as an important tool to ensure inclusive growth. The traditional model of business is undergoing a sea change to reduce the prominence of physical infrastructure of big cities as an essential condition for the smooth functioning of business. Emergence of international shipping options creates the opportunity to reach online consumers around the globe. Emerging economies with a rapidly growing internet penetration offers an attractive option for the retailers to expand. China with the world’s largest online population provides a great opportunity for the retailers. The concept of virtual companies is taking concrete shape and will usher into an era of boundary less world. The micro, small, and medium size companies will get the advantages of low cost operations, and opportunity to market the products globally on the click of a mouse. Hitherto neglected remote villages and states will get a chance to grow economically, socially and also contribute to empowerment of women, and minority classes. E-commerce has the scope to lead India into an Economic superpower.
Recommendation
To reap the potential cost savings fully, firms must be willing to open up their internal systems to suppliers and customers. This raises policy issues concerning security and potential anti competitive effects as firms integrate their operations more closely.
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