Advantages Of E-Commerce

The E-Commerce market is the trading in products or services using computer networks, in this case, the Internet. Its market has increased promptly with technological and structural advances, since it is easier and faster for consumers to obtain products from elsewhere.

Recently, companies such as eBay, Amazon, Uber and Google have launched an innovative service called ‘‘same-day delivery’’, that ‘‘allows shoppers to order something online and have it that same day, without ever leaving home’’. This modern and efficient service is related to negotiations being rushed nowadays, and thanks to certain market failure issues, customers opt to buy or sell items through the Internet. The perfect competition model is seen as a market structure that has a large number of firms which supply homogenous products to a hefty number of buyers. The e-commerce market could be seen as a perfect competition model since other firms are able to enter the competitive market as there are no entry and exit

For instance, Amazon and eBay offer this particular service; hence both will expect a significantly large increase in demand (including their consumer’s brand loyalty). Even though it is stated that few consumers won’t use shop online unless the ‘‘same-day delivery’’ alternative is available, it still won 't be easy to find people to pay for these services because most consumer are willing to wait as long as they need to receive their e-commerce packages. Additionally, it also depends on the consumer’s urgency and need for the product, or if it is worthwhile to withstand the normal delivery time. In my opinion, the efficiency of the same-day delivery service depends on the necessity of the good by the consumer, and if firms are increasing their profit in the short-run with this improvement in the e-commerce industry, since the market is the price-maker while firms are the