The share of value added that potentially lends itself to electronic commerce represents around 30 per cent of GDP, most importantly distribution, finance, and business services (Pérez-Esteve and Schuknecht, 1999). E-commerce is also likely to boost international flows of many services significantly10. At present the biggest volume of electronic trade by far is business-to-business (B2B), mainly involving big firms setting up online exchanges to buy industrial inputs, such as steel, chemicals, or car components. A recent Goldman Sachs report estimates that firms’ possible savings from purchasing over the Internet vary from 2 per cent in the coal industry to up to 40 per cent in electronic components11. Yet some of the biggest potential gains from B2B may lie in smaller firms’ purchases of indirect inputs, such as telephone services, office equipment and furniture, and electricity, which together account for 30-60 per cent of firms’ total non-labour costs. By pooling the buying power of small businesses, online intermediaries can negotiate discounts. And by making the procurement process more efficient, they can also cut processing costs12. The businessto1consumer (B2C) segment is the second-largest form of e-commerce, embracing normal retail activity on the Web, such as Amazon.com. A third type of market is consumer-toconsumer (C2C), which covers auction sites, while a fourth — consumer-to-business (C2B) — involves reverse auctions, taking advantage of the power the Internet gives to customers to drive transactions (e.g. with airlines competing to give travellers best offers on tickets). Finally, business-to-government (B2G) e-commerce refers to the use of the Internet to move public procurement, licensing procedures, etc., online.
There are at least four different channels through which e-commerce may impact on developing country entrepreneurs:
i) making it easier for artisans and SMEs to access B2C world markets; ii) facilitating activity on the global market for agricultural and tropical products; iii) allowing firms in poorer countries to tap into the B2B and B2G supply chains; and iv) allowing service-providing enterprises in developing countries to operate more efficiently and to provide certain services directly to customers anywhere in the world.
OECD DEVELOPMENT CENTRE Working Paper No. 164 E-COMMERCE FOR DEVELOPMENT: PROSPECTS AND POLICY ISSUES by Andrea Goldstein and David O’Connor
To learn more about this author, visit OECD Development Centre's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
eCommerce
|
| |
eCommerce, The Newest Business Frontier: It's Time To Get Connected
|
Ecommerce Web Hosting
|
| |
Nowhere is the increasing popularity of the Internet more evident than when it comes to the rapid growth of ecommerce. Of course, right along with that is the booming ecommerce web hosting industry. More and more, p...
|
SEO, why are you hiding?
|
| |
All businesses, including SMEs, need to critically evaluate their online strategies to ensure they are not left behind in this fast-paced environment, a new report concludes.
Business Insights produced the report...
|
Free Web Hosting
|
| |
There are a number of providers out there offering free web hosting services. Before you start spending hours on setting up your website with them, here are some tips to help you make sure you know what you’re getti...
|
Small Business Loans for Women
|
| |
Not only are the number of small businesses on the rise throughout North America, but so too are the number of women-owned small businesses. Female entrepreneurs are rapidly becoming a major playing force in the wor...
|
 |
Related Businesses - Evan Elite Authors |
|
Leanne Hoagland Smith
Are you or your business where you want to be? Are you facing constant struggles in business or life in general? Would you like to "unlock" those obstacles keeping you from greater business or personal success? As your results partner, we can work together to unlock those desired results by achieving tomorrow's solutions today. Let’s use your strengths for real change through proven and affordable solutions where the real problems are identified. Are you seeking loyal customers, great attitudes, increased sales, improved profitability or just some sleep filled nights? Then we should talk because my clients have experienced exactly those types of results. Learn more about customer loyalty at http://www.processspec ialist.com/customer-loyalty.htm Give me a call 219.759.5601 for a free strategy session. I look forward to speaking with you. P.S. If you are seeking a motivational speaker, sales trainer or small business expert that will leave your audience smiling and remembering, please feel free to contact me at 219.759.5601. - Visit Leanne Hoagland Smith's Website |
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
OECD Development Centre
(Visit OECD's Website)
Created in 1962 by the Organisation for
Economic Co-operation and Development
(OECD) in Paris, the Development Centre is
an interface between OECD Member countries
and the emerging and developing
economies.
The Development Centre occupies a unique
place within the OECD and in the
international community. It is a forum
where countries come to share their
experience of economic and social
development policies. The Centre
contributes expert analysis to the
development policy debate. The objective
is to help decision makers find policy
solutions to stimulate growth and improve
living conditions in developing and
emerging economies.
|
|
|
OECD Development Centre's
Complete
List Of
African-Accounts
Articles
|
|
If you enjoyed this article, get OECD Development Centre's Complete List of African-Accounts Articles For FREE!
|
|
|
|