Electronic Trade In Ecuador

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Electronic trade in Ecuador

With the emergence of communication technologies, a new business model known as E-Commerce is also born. The following trial is discussed about electronic commerce in Ecuador, with their respective advantages, disadvantages, the current state and the problems in reference to the insecurity that the population feels when using this new form of trade. Terms Index-E-Commerce, Laws. Yo. 

INTRODUCTION 

For 2017, the population in the world is 7.496 billion inhabitants, according to Population City figures. Of the total population 54% is urbanized and has access to multiple services such as health, education, housing, food, employment and remuneration. Thanks to this, countries developed their industries, political and legal regulations, as well as their commercial activities worldwide. Electronic commerce for 2017 reaches 22% of the world’s population, distributed among Internet users that total 354 million, the 482 million that correspond to active users in social networks, users who sail the web only throughMobile devices that are 222 million and, active users in social networks, using their mobile devices only that there are 581 million people, where the Asian continent concentrates the largest number of Internet users. This influences these countries based on their population that reaches 4469 billion inhabitants, equivalent to almost 60% of the world’s population, which has seen significant growth in countries such as: Japan, South Korea, Singapore, Singapore, Singapore,Hong Kong, Malaysia, Thailand, Vietnam, Philippines India and China. For the growth and development of electronic commerce of the great powers in this sector, it was the use of logistics and transport, through companies such as Amazon, Otto, Zalando, Notebooksbilliger, Bonprrix. Electronic commerce in Latin America is in a stage of development, where it has had significant growth, according to Marcos Pueyrredón, Global VP Hispanic Market of VTEX and president of the Latin American Institute of Electronic Commerce Ilce. Latin America is a region of 997 million inhabitants, of which 665 million inhabitants are active Internet users, of these, 511 million register the use of social networks, Jonnathan Damián Espinoza Errráez Student of the Faculty of Energy, in theSystems Engineering Race of the National University of Loja, which allows to show that there is a very attractive market for electronic commerce. 

Ecuador advances a bit slow in terms of electronic commerce. 10 years ago there were few local businesses that offered the e-commerce option. Therefore, only 1% of online transactions were made in Ecuadorian pages. However, this has changed. Now, 25% are made in local pages and more and more companies invest in logistics and security measures necessary to provide this service. There are 4 factors that have influenced the development of the e-commerce in Ecuador which make it continue to encourage and companies continue to implement this modality. 

The first factor is the increase of establishments that offer the option to buy online. In recent years we have seen the expansion of portals like Olx, already.com, free market or linio.com. This has made many brands feel the need to implement sales web platforms. 

The second factor is growing Internet access. According to INEC data, the Internet penetration index is at 50.5%. And the greater the access to the web exists, the more possibilities of developing has electronic commerce. 

The third factor is the increase in the number of mobile devices, from which online sales platforms can be accessed. According to data from Banco del Pacífico, in 2016, digital transactions reached $ 183 million. And this was, mainly, thanks to cinemas and taxis applications. The fourth factor is the amount of credit cards in the country. 

According to the Leaders magazine, the number of people with access to credit cards is found in 2.5 million people and according to data from Banco del Pacífico, the average baucher is $ 200. This leaves us with a considerable population that has the ability to execute online purchases.

Electronic commerce 

Electronic commerce, also known as e-commerce, is a way to buy and sell products or services, through the Internet. People can make the purchase through a cell phone or computer in electronic stores and receive their order in the comfort of their home, thanks to the parcel services. 

A. Advantages and disadvantages of e-commerce 

As advantages referring to electronic commerce you have:

•  Agilita the purchase, sale and distribution of goods and services. 
•  Companies have greater access to their audience electronic commerce in Ecuador Espinoza and. Jonnathan National University of Loja, Espinoza Erráez. Electronic Commerce in Ecuador 2 Objective and Better Communication. 
•  Benefits commercial operations, reducing errors, time and cost overruns in the treatment of information. 
•  The consumer has greater access to information, allowing him to make quotes since his home comfort. 
• You can also find a series of disadvantages, such as: 
•  Technology costs. 
•  Safety in money transactions. 
•  Shipping costs. 

B. Types of electronic commerce 

There are 5 types of electronic commerce:

•  B2B (business to business). 
•  B2C (consumer business). 
•  B2E (employee business). 
•  C2C (consumer to consumer). 
•  G2C (consumer government). 

The electronic commerce that is applied in Ecuador is the B2C that means “Bussines to Consumer”, where a relationship between a company or online and consumer store is established, offering direct negotiation in a virtual way through an electronic device between buyer and seller for theacquisition.

C. Use of electronic commerce in Ecuador 

According to the investigation of the Ecuadorian Chamber of Electronic Commerce (CEDE), 60% of people do not buy online for distrust of providing their data, for comparing things that have not seen or touched, lack of information as a digital consumer,insecurity on websites, lack of education in the purchase process. 33% do not buy online due to ignorance in use. The latest approaches to the Ecuadorian government with the Chinese government and the signatures of cooperation agreements between the two will allow to favor Ecuadorian entrepreneurs offer their products to the world through web portals expanding several markets to consumers. In case they make the payment with bank debit cards, the commission is 2%, however, in current credit card payments increases on 4.5%, finally if deferred three or more time the percentage is between 6 and 7%. In Ecuador, according to the Telecommunications Regulation and Control Agency (ARCOTEL), until December 2016, the number of people who are subscribed to fixed Internet services in Ecuador total 1,613,358, these are equivalent to 9.80% of the population and people who have a subscription to mobile internet services are 7,774,484, equivalent to 47.21% of the same (Arcotel, 2017) of a total “16,776.977 million inhabitants, indicating great growth potential ”. This data shows that Ecuadorians are increasing. 

For this it is important to evaluate the vulnerabilities of the websites: 

• Confidentiality. 
• Integrity. 
• Availability. 
• Authenticity. 
• The non -repudiation. 

The online purchase and sale platforms that most cover in the market are international platforms: 

• Amazon. 
• Free market. 
• Aliexpress. 
• EBay. 
• Alibaba. 

There are also only online stores, marketpla-cces, or informal people who sell their products using social networks, without major security controls. It can be defined within the customer range that can use electronic commerce to the following: 

1. Natural persons with RUC who carry out their activity as independent. 
2. Microenterprises with annual sales maximum of $ 100.000 a year. 
3. SMEs with sales greater than $ 100.000 and less than $ 5.000.000 per year. 
4. Business where sales are among $ 5.000.000 and $ 20.000.000 a year. 
5. Corporate in which its sales are greater than $ 20.000.000 per year. 
6. Government entities that offer products and services for Ecuadorians for development and improvement for the quality of life of the citizen. 

D. Factors that limit or enhance commerce in Ecuador 

The companies and entrepreneurs who are interested in participating in this new way of doing business, present some fears when considering the investment in an online store such as fraud, technical complexity, high costs and lack of trust.

For this, the conditions that generate an adequate environment for the development of electronic commerce in Ecuador are identified:

•  Financial entities and payment method. 
• Infrastructure and logistics. 
• The Government and its regulations. 
• Perception of trust. 
• The innovation. 

In the regulations in 2002, the National Congress of Ecuador approved the Electronic Commerce Law National University of Loja, Espinoza Erráez. Electronic commerce in Ecuador 3 electronic signatures and data messages, establishing the regulations on which commercial operations on the Internet govern, which consists of 64 articles, aiming to boost trade by applying new technologies, which allow to interrelate a merchantNational and international. 

AND. Online purchase motivation 

There are several reasons why Ecuadorians feel motivated to undertake electronic commerce: 

• Have a guarantee of return or change: 53% 
• Information confidentiality guarantee: 41% 
• More information on how to buy: 29% 
• Customer service during purchase: 26% 

E-commerce generates so many expectations of its function in companies which generates a series of characteristics that is based on: 

1.  UBUITY: It is not necessary to have a physical place to make purchases, it is done through mobile devices or other technology from anywhere one is. 
2.  Global scope: the transactions that are made have no territorial or cultural borders. 
3.  Universal standards: technology is the same worldwide. 
4.  Interactivity: Communication between the merchant and the consumer allows the creation of commitments on a more massive global scale. 
5.  Information density: in e-commerce the amount of information always updated is available to consumers in a quick and simple way. 
6.  Personalization: Analytical tools allow merchants to know the interests and purchases made by segments or individuals which allows you to direct specific campaigns. 
7.  Social Technology: Create and share content in different forms such as text, photos etc. to a world community allowing consumption programming. 
8.  Wealth: The sale of goods and services in the e-commerce is carried out thanks to the wealth of information and interactivity.

Conclusions 

Ecuadorians still have the fear of some type of fraud through electronic commerce and for this safer websites are needed, where guarantees of their safety towards the protection of people’s data are offered, in order to increase confidence in these storeson-line. With the arrival of electronic commerce it has reduced purchase times and has generated a new source of income to Ecuadorian people. With the use of legal laws and regulations, which regulate transactions made through electronic means, it will generate business security, favoring large merchants and small merchants who need to expand their market.R Windows 10

REFERENCES

• J. Lisbeth Mieles Loor, to. Daniela Albán Navarro, J. BRICED VALDOSPIN DE LUCCA, AND D. Elizabeth Vera Gonzabay, “Scientific Journal Ecociencia E-commerce: a fundamental factor for business development in equator."
•  C. Zambrano and a. Andres, “Faculty of Business Sciences Machala International Career 2019."
•  Cece, “Background and situation of e-commerce in Ecuador.”[Online]. Available: https: // drive.Google.com/file/d/1za1a8r3yq– 2dv2qztmx18z8afergldi/view. [Access: Dec- 2019].
•  N. K. Esparza Cruz, "Electronic commerce in Ecuador," J. SCI. Beef. Rev. science. and research., vol. 1, no. 6, pp. 29–32, 2017.
•  A.: Paulina, and. Tello Pérez, L. Fabián, and P. González, “Analysis of electronic commerce in Ecuador."