Research Paper on E-Commerce

Introduction

Technological advancement in the 21st century has caused an immense shift seen a vast improvement in helping make our daily lives more convenient and never have we been more connected with each other (Mansi, Prakashbhai & Bosamia, 2013). More importantly, it has changed the way we look at Internet-enabled commerce, thus having paved the wave of a new digital economy, E-Commerce. Never could businesses amplify their reach to customers and change the traditional practices of commerce with just a click of a button. The use of e-Commerce goes so far as to breaks down the language and geographical barrier that once kept us away from purchasing products elsewhere. Therefore it is impossible to overlook the role of the internet about the global economy (Sarmento, 2000).

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Companies like small and medium enterprises (SMEs) are substantially increasing in numbers as people learn more and more about this convenience of selling things on the internet. Entrepreneurs are now able to provide sales and services both domestically and internationally without having the necessity to open a front door business or a multinational chain allowing them to gain access to global digital competitiveness (Manyika et al., 2011). In this aspect, as the internet continues to grow at exponential growth, e-commerce is a subject where many countries are aware of and eager to foster a strong updated governing body adequate to support changes. Policy makers need to recognize this phenomenon and provide for what is going to be the framework of internet-driven success for the developed and developing countries, respectively (Manyika et al., 2011).

The current situation is that many emerging countries are facing challenges in which the legal framework that is utilized to govern the e-Commerce is outdated or absent therefore making it insufficient to access the complexity of issues present in the e-commercial trade (Manyika et al., 2011). Therefore, making it very important that supporting developing countries to intergrade faster into the digital trade a very crucial part of a greater multinational framework. A framework that is secure, predictable, and reliable to enhance consumer trust and promote interest towards it (Manyika et al., 2011).

In the series of this part of digital evolution, we could see that there is importance towards provisions that are needed for the fostering innovation to flourish. As mentioned above, no development in the e-Commerce sector could be taken place if there is no protection for the companies and customers ("Why E-commerce Is Taking the Retail World by Storm," 2019). In addition to that, the main key concept is allowing and adapting towards this innovation that is the digital trade era and breaking all barriers that would restrict market access.

Allowing them to expand and create new markets in the future digital economy is important ("The Ticking Time Bomb Of E-commerce Returns," 2019). The approach that is necessary to understand and resolve these problems lies between building or improving the existing law on e-commerce and its consensus on digital trade; addressing the current and projected challenges that the industry is facing, and establishing provisions in the evolving areas where businesses and customers interact in their e-commerce activity ("Why E-commerce Is Taking the Retail World by Storm", 2019).

Background of Study

When a startup company in the West would like to move its business and set up an e-Commerce site to sell its product online, their online transaction and activity are subjected and backed up by national law. This form of security helps to reduce problems that could be a result of fraud, theft, and infringement on intellectual property.

At the same time, when a dispute arises between the firm and its customers, suppliers, or competitors, these issues are negotiated in a rich legal and justified environment. Because Cambodia lacks a strong legal infrastructure, a similar venture attempting to sell by the website is far riskier. Therefore, small and medium enterprises (SME) who want to sell products on their website are considerably more vulnerable than similar ventures in Europe or the United States (Calogirou et al. 2010) as they would have a more robust and enriched framework and policies to govern over potential disputes that could arise online.

This is where the research of this study starts as it highlights the success story of Taobao and the reform it was able to bring to China's e-Commerce ("China's ecommerce market remains strong, but problems lie ahead," 2019). How to foster market consumer protection in the absence of a strong formal rule of law?

Since its launch over a decade ago, Taobao has begun to develop many aspects of market infrastructure that the Chinese government has been unwilling or unable to provide; that is, it has been forced to create law ("China's ecommerce market remains strong, but problems lie ahead," 2019). Taobao's has the assertion of authority to experiment with various components of private law, including contracts, property rights relevant to the platform, prevention of theft and fraud, and especially the resolution of disputes. We may overlook the complexity that is Taobao, but it has come a long way from selling knock-off products and dollar store goods. Today, it is not merely an exchange platform, but the stepping stone in developing a modern legal system that enforces contracts resolves disputes and prevents fraud.

As a private supplier of market legal infrastructure when formal institutions are lacking, Taobao essentially provides a means for creating law, Chinese style. We argue that both serve as institutional underpinnings for markets and economic growth in the absence of a strong, public legal system. As an internet platform, Taobao has shown that it has been able to break down internal trade barriers differences presented in China's provinces. When local governments currently lack effective means to regulate market platforms, Taobao creates a solution to overcome these obstacles. The growth of China is all the more remarkable, given its lack of either a well-developed legal or financial system.

With such a success story, we can understand that the experience present in China, in terms of Taobao, holds lessons for other developing countries struggling with imperfect legal systems and emerging financial markets ("China's ecommerce market remains strong, but problems lie ahead," 2019). This is relatable to the economies which are in an early stage of development, much like Cambodia.

What is e-Commerce? This paper has mentioned many times the word e-Commerce and its relevance towards building a strong digitalize economy. Therefore in this section, we will clarify its meaning, significance, and the components that make it functional in a working economy.

The word "E-commerce" is a term primarily used to describe any form of business transaction that is conducted on the internet that crept in the business vocabulary in the 1970s (Laudon & Traver, 2013). By definition, it is the "interaction between communication systems, data management systems, and security about the sales of product and services" (Nanehkaran, 2013). We can also call it the marriage between business and information technology (Kutz, 2016).

One of the many fundamental changes to our daily lives because it has overcome the limitation of traditional business practices. It has evolved over the years to transform into the channel that is commonly associated with online shopping; therefore, all types of buying and selling through the internet are subjected to it. The existence of a virtual market and stores that do not need to occupy physical space has allowed for access to products through a virtual "window shopping" experience (Kutz, 2016). This medium of trade is extensive so as it consists of the exchange of goods and services, manage production, and link market to customers domestically and internationally.

Categories of E-Commerce

Business-To-Business E-Commerce

Business-to-business makes up the largest category in e-Commerce (B2B). This involves companies conducting e-procurement, supply chain management, network alliances, and negotiating purchase transactions over the internet (Nanehkaran, 2013). Businesses use e-commerce to lower transaction costs of conducting business and to make savings in terms of time and effort when conducting business (Nanehkaran, 2013).

Business-To-Consumer E-Commerce

Business-to-consumer (B2C) e-commerce involves businesses introducing products and services to consumers via internet technologies (Nanehkaran, 2013). This includes companies selling software and hardware through the internet, taking orders for products that are subsequently delivered to the consumer, and providing digital services such as online magazines and search engines (Nanehkaran, 2013)....