Individual essay dang gia bao AEn T321WSB 6 21000444

SCHOOL OF Western Sydney University

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Student
name:
Dang Gia Bao
UNIT AND TUTORIAL DETAILS
Unit
name:
Academic English
Tutorial group: Individual Essay
Lecturer or Tutor
name:
Mr. Gabriel Ryan

Student ID
number:

Unit
number:
Tutorial day and
time:

21000444

AEn-T321WSB-6
Mon – Tue – Thu
8am-11.30 am

ASSIGNMENT DETAILS

Title:
Discuss the benefits of E-commerce in supply and demand relationship.
Length
Due
Date
:
1319 words
date:
02/02/2022
submitted:
02/02/2022
Home campus (where you are
enrolled):
Vietnam
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ARO 00380 08/15

Discuss the benefits of E-commerce in supply and demand relationsip.
Dang Gia Bao
Western Sydney University
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AEn-T321WSB-6
Mr. Gabriel Ryan

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In the last few decades, there have been significant developments in digitalization. Hence,
numerous industries have been transforming into online businesses, and conventional items like
traditional marketplaces are progressively being forgotten as they no longer keep up with

technological advancements. Convenience is valued highly in today's world, so consumers' need for
e-commerce rises. However, if supply is not flexible, this may easily lead to an imbalance between
supply and demand, making it impossible to connect. The assertion was confirmed during the
COVID-19 epidemic, when customers faced a pandemic period during which businesses were forced
to close due to social distancing, leaving them with the dilemma of seeing their vital products and
personal care become gradually reduced. Furthermore, because of the advent of e-commerce, during
this time, FMCG companies on e-commerce platforms have tried their best to satisfy customers'
needs for products, (Chaudhary, 2020). A study by Kim (2020) demonstrated that after the COVID19 outbreak, web traffic to online electronics merchants has surged by 16 percent. According to the
World Trade Organization, this is a chance for e-commerce to preserve the global economy. The
creation of e-commerce is the key to usher in a new age of remarkable scientific and technological
growth, allowing collection and order to link more readily and build a balanced and long-term
supply-demand connection. This article will discuss the benefits of e-commerce on supply, demand,
and its relationships.

The ongoing Fourth Industrial Revolution has become a driving factor for global ecommerce growth it is progressively drawing supply because of the benefits it provides, and it is
gradually becoming an unstoppable trend that no country can resist. According to Whelan & Msefer
(1996), supply is described as a seller's activity dictated by their willingness and capacity to supply
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things and a limitless quantity of a particular good or service available to customers, (Kenton, 2019).
The first advantage that e-commerce can provide is that it allows providers to extend their consumer
base. Customers are no longer confined to a single region or nation but rather the entire world.
Mason and Harris (2005) claimed that e-business has offered a global platform for individuals and
enterprises to network, communicate, contract jobs, and gather data. As claimed by (Havinga et al.,
2016), Alibaba, a Chinese e-commerce platform, has given services for firms in more than 240
nations worldwide to interact and trade globally. Furthermore, Shopee's total average monthly users
topped 200 million in 2019, making it the most popular online marketplace in seven nations and the
largest e-commerce platform in Southeast Asia, (Heng, 2019).

Similarly, some suppliers have built up virtual trade sites on the network platform to
continually refine the conventional business structure to meet the trend better and enhance the
company's breadth and size. In line with Capgemini Consulting, Internet merchants could treble their
profit margins or cut prices by 12% compared to other retailers by removing the physical shop and
associated running costs of usual merchants. Furthermore, the expansion of e-commerce will lower
the need for physical store space because suppliers anticipate that instead of physical store ecommerce will diminish the need for physical storage space. Companies might pay a trivial fraction
of their budget in website development and administration after spending a substantial amount of
money on space, employees, or storage, (Baen, 2000; W, C, L, & W, 2000).

The benefits and popularity of e-commerce are undeniable today, and it has become an
essential instrument for both supply and demand. Likewise, the demand here is defined as the rate
consumers want to buy a product (Whelan & Msefer, 1996). The buyer's rights are considerably
expanded with e-commerce. Customers can select things, obtain information, compare costs,
purchase goods from any source on the Internet, and request that vendors supply goods that meet
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their specific needs. For instance, as claimed by (Havinga et al., 2016), Taobao, China's largest ecommerce website, owns small retailers with more than 800 million items and over 80 million daily
visitors. Furthermore, if a buyer is fortunate enough to purchase on special days, over 10,000
supplies provide half-price things. E-commerce also aids demand sources in reducing search time by
improving customers' access to information and identifying the most competitive rates for items or
services (Gupta, 2014). Moreover, customers benefit from the ease of e-commerce since they do not
have to spend time visiting stores or waiting for payment and so on, they can stay at home and use a
computer to access the Internet and order the goods they desire for themselves in a few simple steps.

E-commerce also employs rich, intuitive interfaces to deliver human-like service
interactions around the clock, seven days a week (Jun, Ha, & Johnson, 2020, p. 264). According to
research by (Sawhney, 1999), Amazon's advantages to a single consumer are about the same whether

there are 100 customers or even 100 million because the value to the buyer is mostly time. The
convenience of e-commerce also resides in the fact that the goods will be delivered to the desired
location as quickly as possible, at any time and from any site. Alibaba's e-commerce platform is also
working on a 24-hour delivery service unaffected by the distance between the vendor and the buyer,
(Havinga et al., 2016).

Before investing in any platform, including e-commerce, it's critical to understand supply
and demand since the relationship is the foundation for success. The advantages of e-commerce for
the supply-demand relationship, on the other hand, are substantial. The ineligible business now can
trade without an intermediary, saving money. According to (Mehta & Mehta, 2020), e-commerce
benefits farmers by allowing them to sell food directly to wholesale purchasers such as corporate
supermarkets, restaurants, and agribusinesses. As a result, suppliers do not have to worry about
paying more money to get their items into the hands of demand sources, and demand sources do not
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have to worry about being duped into buying unorthodox phony goods. This is also evident when
looking at the World Trade Organization's (2009) clothing export statistics, that China accounts for
34% of total global exports while Indonesia accounts for only 1.9%. It can be argued that Indonesian
SMEs (small and medium enterprises) have successfully marketed their products abroad through ecommerce.

Furthermore, with the growth and integration of artificial intelligence into e-commerce,
suppliers are using analytic approaches to analyze their consumers' wants to market what they
require. According to Soni (2020), almost 90% of customer contacts will be completed without
human intervention by the end of 2021. Well-known websites like Amazon, eBay, Netflix, and
Monster utilize these systems, in which purchasers input information such as owners and
preferences, and electronics providers respond appropriately to ideas tailored to their requirements,
benefiting both parties (Le & Liaw, 2017). Likewise, instead of importing many items, merchants
may utilize consumer demand analysis techniques to choose what to provide and how much to offer

to avoid block inventory and minimize risk.

To conclude, e-commerce has become the phrase that everyone understands today, and it
has emerged practically everywhere. It has a clear benefit for the supply-demand relationship.
Although there are advantages and disadvantages, if one considers clear-sightedness, it is clear that it
is progressively altering the world for the better and more convenient. This article discusses various
advantages that e-commerce provides for supply and demand, particularly in terms of their
interaction. In terms of supply, it allows businesses to reach out to a wide range of clients worldwide,
and it is inexpensive to create an online store. E-commerce also provides an easier and more
comprehensive range of products for demand sources. Furthermore, it has two significant advantages
for the supply-demand relationship: suppliers can now run their own companies without paying extra
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for intermediaries, and businesses can now employ e-commerce analytic tools to analyze client
wants to sell what they need. Based on the advantages mentioned earlier, it is reasonable to conclude
that the benefits e-commerce provides to the supply-demand connection will be essential
components in developing a more robust economy.

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Gupta, A. (2014). E-commerce: Role of E-commerce in today's business. International Journal of
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