Research Paper Sample on Critical Success Factors In E-Commerce

Critical Success Factors In E-Commerce

            Electronic commerce corresponds to the purchasing, sale, and transfer of commodities over internet platforms. Electronic commerce acts as an endowment for supply chain management and the coordination of distribution links. The features of e-commerce contribute immensely to the economy of any country, and wealth creation in many territories (Al-Fadhli, 2011). E-commerce is growing at an alarming rate, and the amounts of business transactions that occur over the web have significantly increased. Figure 1 depicts the transaction structure in e-commerce platforms. In addition, e-commerce incorporates servicing customers and collaborating with various business relate to partners (Sebora, Lee & Sukasame, 2009). The study endeavors to scrutinize the critical success factors that couple with E-Commerce activities. E-Commerce activities are vital in any enterprise, and the scope of the study is of much significance to scholars, companies, and all business entities. E-Commerce activities certify the authoritative objectives of all business, and this guarantees consistency in the increase of net profits in subsequent years.

Figure 1: An illustration of how E-Commerce Works

            First, a critical success factor for E-Commerce is reliability. In all business operations, it is crucial to nurture the utmost levels of reliability at all times. More precisely, reliability is the capacity to execute the promised E-commerce service accurately and consistently in daily operations (Sung, 2006). Moreover, reliability comprises frequent updates of the website and guaranteeing the accuracy of online purchasing and billing at all times. The technical functioning of the website also comes into play, and the website has to be available at all times and it has to function appropriately. In addition, it is crucial to reply to customer queries accurately and promptly, and customers appreciate it when they have access to the information they desire when they need it. In addition, the customer needs to be sure that the decision they will make is dependent on reliable data available at the website (Usman & Shah, 2013). More intently, the principles of reliability articulate that the information availed at the website ought to be accurate and current. Reliability is critical in all e-commerce activities because it is one of the significant indicators applicable in evaluating customer perceptions of the service quality in regards to electronic commerce.

            Responsiveness is of extreme vitality in all e-commerce activities, and customers on the online platforms require more than a service they desire responsiveness. Online customers value a quick response when an urgent need arises be it during the transaction or after the transaction (Al-Fadhli, 2011). The aspect of responsiveness is the ability to address complaints and to avail prompt services at all times. All online customers expect internet retailers to respond to their concerns in a prompt and swift manner. More intently, the research conducted on the features of responsiveness highlights that enhanced responsiveness guarantees speed in delivery of services and user satisfaction in all e-commerce transactions. Many online clients contact the company to inquire about particular products, or these customers may submit questions and complaints linked to an online transaction (Sebora, Lee & Sukasame, 2009). A swift response assures the online customers that the company values their respective opinions and the online experience they receive. More intently, an adequate response tells customers that the company is working diligently appease them at all times. Reliability is critical to the success of e-commerce systems in all contexts.

            User friendliness of electronic commerce platforms is of utmost vitality, and it is a critical need that internet retailers ought to fulfill for prospective online customers. User friendliness relates to simplicity in accessing and downloading content, and ease of navigating the respective website (Sung, 2006). For instance, the Amazon Kindle platform allows online customers to access and download digital books and magazines, and in the process, this platform eases the customers’ frustration. The ease of use is crucial because it enables the customers to enjoy their online experience, and in the end, the client is sure about coming back for the online services in the future. In addition, e-commerce platforms ought to prioritize the customers’ needs at all times (Usman & Shah, 2013). The ease of using the online platforms is an aid to the activities linked to e-commerce. More intently, online platforms such as Amazon Kindle, eBay, and PayPal highlight the utmost levels of user friendliness.Moreover, the progress of these platforms attests to the fact that user friendliness is of extreme vitality to the success of e-commerce activities.

Figure 2: Illustration of a User Friendly Interface by Amazon

            Self-service features are critical to the success of e-commerce activities. Moreover, the online platforms are an inspiring and innovative framework for customer service and support. More importantly, the success of online platforms depends on the nurturing of technology-based self –service structures (Al-Fadhli, 2011). The E-commerce services that support self-service features enable the online customers to execute services for themselves in quick and convenient manner. In addition, an e-commerce platform ought to have a self-service mechanism that is adequately designed. Such mechanisms enable customers to access answers to their respective questions at all times. During off hours, online clients can check their orders’ status and obtain responses to the frequently asked questions. In addition, they access a diversified knowledge and information base to assist them in solving persistent problems (Sebora, Lee & Sukasame, 2009). More intently, adequate self-service structures promote brand building and customer relationship building strategies. In addition, self-service platforms enable the customer to obtain the online commodities they need, and this enhances the levels of customer satisfaction at reduced expenditures. The success of e-commerce platforms depends on self-service mechanisms in an immense manner.

            Secure platforms are crucial to the success of all e-commerce activities. Many companies are introducing enhanced security frameworks, and they endeavor to eradicate fraud in e-commerce activities (Sung, 2006). More precisely, it is essential to offer services that relate to authentication and authorization in all e-commerce platforms to minimize fraud. Figure 3 depicts an example of a secure online payment system. The important security features of e-commerce platforms comprise of antivirus software, encryption, and firewalls. Entities such as major credit card companies introduce digital wallets that enable online clients to save their shipment address and payment information securely in online databases. E-commerce platforms have to highlight the utmost levels of security, and in an event, whereby customers doubt the safety features of an online company, then that company might end up closing its doors sooner than expected. Security certifies the success of e-commerce systems. For instance, the PayPal systems check the credit card details before the transaction even begins, and this enables real-time payments, and the cases of fraud become extinct or minimal (Usman & Shah, 2013). Security is of much vitality to the success of all e-commerce platforms in existence.

Figure 3: Security in Online Payments

            An in-depth understanding of the Internet culture is fundamental to the success of all e-commerce activities. The activities linked to e-commerce have to exhibit the features that are prevalent on the internet (Al-Fadhli, 2011). Such features incorporate online chat, instant messaging, blogs, feedback commenting system, file sharing, and so forth. For any e-commerce platform to be successful, it ought to nurture the cultures that online clients anticipate to find on the web. For instance, a feature such as online chat is of extreme importance for all websites linked to e-commerce activities. Understanding the internet culture enables a prospective entity that intends to utilize e-commerce platforms to be successful when launching and operating the business. The customer gets a value of their time and resources when a company incorporates the prevalent features of the internet on their websites. For instance, a company transacting online ought to have a blog on their website (Sebora, Lee & Sukasame, 2009). The blog enables the company to update its clients about new products and enhancements to the existing products. Such a feature comes in handy in e-commerce activities and understanding the internet culture improves the chances of succeeding in e-commerce activities.

            Getting the technologies right is necessary for any company that opts to engage in e-commerce activities. More precisely, a company ought to understand all the types of technology that will be applicable when conducting its e-commerce transactions (Sung, 2006). The process that couples with starting an online business is important, and if any company overlooks the applicable technologies, the effects will be catastrophic. For example, when a new online business is coming in into the market the business ought to understand the Turnkey solution. The Turnkey solution refers to a prepackaged software intended for new businesses (Usman & Shah, 2013). In addition, such a company has to employ an individual who understands the transmission of data via packet switching technologies. More intently, it is critical to comprehend the ARPANET and the TCP platforms. E-commerce depends on data transmission technologies and understanding the technologies enables a company to troubleshoot, optimize, and configure the e-commerce platforms (Al-Fadhli, 2011). Tech-savvy companies such as Google and Microsoft thrive in e-commerce activities because of getting the applicable technologies right. When companies get the suitable techniques right, they guarantee the success of their e-commerce systems.

            Price and choice are of extreme importance in all forms of entrepreneurship in existence including e-commerce activities. It is crucial for online retailers to formulate attractive pricing packages for their prospective clients at all times (Sebora, Lee & Sukasame, 2009). An adequate pricing mechanism acts as the best catalyst for increasing the online sales volumes of any product. It is crucial to implement aspects such as free shipping to particular regions and discounts, and such procedures will increase the online sales volumes in an immense manner. The client’s choice is of much significance in all e-commerce platforms. When a customer decides to shop online, that particular customer searches for variety and not commodities confined to a single brand (Sung, 2006). For instance, on eBay when a client shops for tablets, the client will be able to access the iPad Air from Apple, Nexus 7 from Google, Samsung Galaxy Note, and so forth. The online client has to access variety, and that makes the companies in the e-commerce business including eBay to be successful in their daily activities. An adequate price and choice framework are critical to the success of e-commerce activities.

Figure 4: Illustration of Variety offered by eBay

            In conclusion, e-commerce spawns a variety of applications and products that facilitate transactions over the internet and its activities touch humanity as a whole (Usman & Shah, 2013). The scope of the study is of much significance because a business will only thrive if it comprehends the critical success factors relevant to e-commerce. When a company in the e-commerce industry appreciates the scope of this study, it guarantees the endowment of its daily activities.


Al-Fadhli, S. (2011). Critical Success Factors are influencing E-Commerce in Kuwait. Journal of Internet Banking & Commerce, 16(1), 1-7.

Sebora, T. C., Lee, S. M., & Sukasame, N. (2009). Critical success factors for e-commerce entrepreneurship: an empirical study of Thailand. Small Business Economics, 32(3), 303-316.

Sung, T. K. (2006). E-commerce critical success factors: East vs. West. Technological Forecasting & Social Change: An International Journal, 73(9), 1161-1177.

Usman, A. K., & Shah, M. H. (2013). Critical Success Factors for Preventing e-Banking Fraud. Journal of Internet Banking & Commerce, 18(2), 1-15.