Factors Affecting E-commerce

1. Factors affecting E-commerce
(PEST Analysis )
BHARATH KISHORE N K
RA1852001020062

2. ● E-commerce is the activity of buying or selling of products on online services or over
the Internet. Electronic commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management
systems, and automated data collection systems.
● E-commerce is concerned with system and business processes that support:
1. Creation of information sources.
2. Movement of information over global networks.
3. Effective and efficient interaction among producers,
consumers, intermediaries and seller.
What is Online E-commerce

3. PEST
❖ A PEST analysis is a four-point review of potential problems for a business,
covering the Political, Economic, Social and Technological areas. Understanding
what problems might arise, now or in the future, can help a company circumvent
them and avoid a potentially crippling issue.
❖ There are many external environmental factors that can affect e- business. It is
common for managers to assess each of these factors closely. The aim is always to
take better decisions for the firm’s progress. Some common factors are political,
economic, social and technological.

4. ❖ Role of government legislation, initiatives and funding to support the use and
development of e-commerce and information technology.
❖ Several aspects of government policy can affect e-commerce business.
❖ Discouraging rules and regulations of the government.
❖ Ability of the government to adapt and plan for the technological growth and
development.
Political Factors

5. Economic Factors
❖ Economic growth of the country.
❖ Average income of the people.
❖ Cost of the hardware and software.
❖ Cost of access to telecom infrastructure.
❖ Economic fluctuations affects both global and local bussiness.

6. Social Factors
❖ Literacy level of the people and penetration rate.
❖ Number of internet users.
❖ Willingness and ability of the people to adopt the new technologies.

7. Technological Factors
❖ State of telecommunication infrastructure.
❖ Access to new technological developments.
❖ Bandwidth availability and internet rates.