Infrastructure: Barrier to E-Commerce Growth & Development - Essay Sample

Introduction

The information and communication technology have changed how business around the work is conducted (Kwadwo et al. 2016). Internet access and technology in computing devices play an essential role in facilitating e-commerce along with other infrastructural factors such as electricity, logistics, and transportation. Internet and the infrastructure are vital factors that fuel growth and development of e-commerce. This paper, therefore, discusses the impacts of infrastructure as a barrier to e-commerce in chili.

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The infrastructure is the back-born of e-commerce in Chili, information communication technology infrastructure is faced with many challenges. The main barrier is a lack of sufficient internet access, transportation challenges, unreliable source of electricity, and logistics (Andreeva & Shmat'ko, 2017). The adoption of e-commerce significantly depends on these factors; however, infrastructure denies most retailers and consumers to unveil full potentials of electronic commerce.

Lack of access to fast and reliable internet resource deleteriously influence success of e-commerce for most of the companies, the internet is the primary source of information for products, most of the organizations use social media platforms for advertising their and services and incontinences associated with this factor leads to low income for the companies and the State. E-commerce is a multichannel based platform, infrastructure provides a medium for interconnection to allow e-commerce to take place and therefore unreliable infrastructure contributes to low growth rate and development of e-commerce (Agwu, & Murray, 2015). E-commerce is a competitive business platform; most of the companies depend on internet access and transport network to increase value and interest of their products and services therefore poor infrastructure hinders their potentials (Monardes, 2016).

Computers and other electronic devices such as mobile phones play an important role in facilitating growth and development of e-commerce; however, lack of a reliable source of electricity is of significant concern. In cases where energy is a vast topic, e-commerce is of significant concern, most of the industries may be forced to seek for their source of power to maintain their operations since e-commerce depends on electronic devices that must remain active to maintain and update their databases. This problem accounts for high expenditures and low profits for the companies.

Transport network also plays a vital role in e-commerce, companies, for example, uses shipping service to add value to their products, shipping time and cost, therefore, is greatly affected by the level of infrastructure in the transport network. Poor transport network affects the extensive product offerings provided by the business organization hence negative influence of growth and development of e-commerce in Chili (Van Cleynenbreugel, 2017).

Challenges associated with infrastructure in Chili reduces the opportunities in international e-commerce, local merchants, for instance, may want to engage in international trade; however, poor infrastructure is a hindrance. International e-commerce requires reliable internet access and transport network for shipping and information a communication technology purpose (Mikalef et al. 2017).

To overcome this barrier, the companies and the government must make ICT infrastructure a business priority as one of the strategies, and this involves reducing inconveniences involved in transportation by improving shipping operations. Also, to improve internet access the internet service providers can reduce charges on online shopping platform and improve on their performance based on internet coverage and reliability.

Conclusion

In summary, infrastructure is one of the barriers influencing the growth and development of e-commerce Chili. Information and communication technology services and devices considerably rely on internet access and electricity; therefore, inefficiency and unreliability of these factors negatively affect the growth and development of e-commerce. Issues associated with transportation affects shipping experience; it accounts for high shipping cost and convinces. Also, this barrier increases the cost of purchase and affect the process of online shopping. The government and e-commerce adapters must priorities e-commerce challenges as a deleterious business an engages in strategies to overcome them to match growth and development of e-commerce in Chili and other states.

References

Agwu, E., & Murray, P. J. (2015). Empirical study of barriers to electronic commerce adoption by Small and Medium scale businesses in Nigeria. International Journal of Innovation in the Digital Economy, 6(2), 1-19.

Andreeva, E., & Shmat'ko, L. (2017). INNOVATIVE POTENTIAL AS A FACTOR OF LOCAL ECONOMY GLOBAL POSITIONING. The EUrASEANs: journal on global socio-economic dynamics, (2 (3)), 07-19.

Kwadwo, M. S., Martinson, A. T., Evans, T. T., & Esther, A. (2016). Barriers to e-commerce adoption and implementation strategy: an empirical review of small and medium-sized enterprises in Ghana. British Journal of Economics, Management & Trade, 13(1), 1-1.

Mikalef, P., Pappas, I. O., Giannakos, M. N., & Sharma, K. (2017, November). Determining Consumer Engagement in Word-of-Mouth: Trust and Network Ties in a Social Commerce Setting. In Conference on e-Business, e-Services and e-Society (pp. 351-362). Springer, Cham.

Monardes, R. (2016). Challenges for countries in trade in services' negotiations with the Nafta approach: The experience of Chile in the free trade agreement with the United States. British Journal of American Legal Studies, 5(2), 371-394.

Van Cleynenbreugel, P. (2017). The European Commission's Geo-Blocking Proposals and the Future of EU E-Commerce Regulation. Masaryk UJL & Tech., 11, 39.