How e-Commerce has Changed the Marketing of Goods?

e-commerce has changed the marketing of goods by bringing a transformation in the customer-manufacturer relationship. The term e-commerce was coined and first employed by Dr. Robert Jacobson, Principal Consultant to the California State Assembly’s Utilities & Commerce Committee, in the title and text of California’s Electronic Commerce Act, carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and enacted in 1984.

You may consider e-commerce as the integration of technology, network, processes, and digital & physical assets to efficiently and effectively manage the demand & supply of goods and services across regions and time zones. 

e-commerce has changed the marketing of goods by bringing a transformation in the customer-manufacturer relationship.

With e-commerce, customers now have lots of product choices. And all the information they need to review and decide on a product/brand. Online buyers are able to do all this efficiently. Along with the convenience of shopping from home and favorable payment options.

Similarly, manufacturers have direct access to individual users in mass in terms of their online and social footprints. Hence businesses have a better understanding of ongoing trends, expected market demands, and supply-side resources to fulfill the demand.

Based on the above foreground you may consider the following three major attributes of e-Commerce that changed the marketing of goods:

Market Intelligence

e-commerce (including AI, Data-Warehousing, Data-Mining, and Analytics) has brought customers and manufacturers very close to each other. Companies are able to connect with customers at their individual levels. Have insights into their geographic, demographic, psychographic, and behavioral aspects.

For example, most e-commerce websites like Amazon, Flipkart, Intelliware, etc. promote Account creation wherein you maintain your personal details like your First and second name; location, etc., and also certain confidential details like Bank Account, Credit/Debit Card… As a part of your online interactions, you review the products over the internet. Compare them and keep selected items in your cart. Share your wishlist, place orders, and buy products and services on e-commerce websites.

All of your activities on the e-commerce websites and transaction details leave a trail of your online activities. And provide your insights to the companies. Accordingly, marketers harness the advantage of AI and Big data Analytics and serve you based on your historical searches, internet engagements, and online social behaviors.

ratings and reviews captured by e-commerce platforms play a vital role in product evaluations and conversions by the customers

On the other hand, customers also have easy access to valuable information pertaining to products, services, and Brands. Including the technical specifications, quality, performance feedback, reviews, ratings, comparisons, etc… For example, you must be checking reviews and ratings of any product on e-commerce websites before buying a product. And you must have found the customers’ feedback and comments very helpful in making a decision about buying a product or not. OR else buying the selected item from which e-commerce website.

Hence with the bi-directional flow and availability of vital information for both B2B and B2C businesses, e-Commerce has promoted transparency, competitiveness, and innovation in the market.

As the information is easily available, it has led to better awareness of the users. Better awareness and vital infographics have also helped users to mitigate the purchase risks and adopt the trend of online purchasing


As one step further, e-commerce is participating with the customers in their buying cycle. And helping them with each of the steps like, Need Recognition, Information Search, Comparative Evaluation and Analysis, Purchase, and Post-Purchase Evaluation. So that the customers can make an informed purchase decision and have better buying experiences.

For more information on the customer buying process, you may please refer to the following article: Urban Customers, Purchasing Process, and Value-Buying!

Through your laptop or Smartphone, you can search for products or services online. You can compare products of multiple brands. Take advantage of online services like JustdialIndiamart, and Policy Bazaar to reach prospective suppliers along with information on ratings, reviews, and best offers.

online and Realtime comparison of alternative options by experts have reduced the risks of buyers thereby helping them in best buying experience

You can place orders 24×7, and pay online safely while enjoying the comfort of your home. As a cherry on the cake, you also receive easy payment options along with cash-backs, rewards, charity options, etc.

This convenience and easy access has increased the role and involvement of the whole family esp. kids in household purchases. 

Economies of Scale

As you know that a major proportion of the population across the globe including India has access to e-commerce platforms like AmazonFlipkartMyntra, and Tata Cliq… economies of scale are playing a vital role in changing the marketing of goods…

The economies of scale are playing on both the Demand Side and the Supply Side of the transactions. Suppliers have an access to a large number of prospective buyers. So that they can sell more and distribute the fixed costs over a large customer base. Customers also have unlimited options for them to satisfy their needs. Users get easy information about the optional products/brands and their market ratings. Keeping the market highly competitive for the suppliers.

Economies of scale have promoted innovations and collaborations in packaging and supply chain management. This is required to create a robust yet resilient network of order fulfillment to sustain e-commerce growth. Porter is an example of intracity delivery service through two-wheelers which is cost-efficient and a quick service option. Meesho is another aggregator market bringing together sellers and buyers in mass. And reducing the overall costs through economies of scale …

 Meesho is an aggregator market bringing together sellers and buyers in mass and reducing the overall costs through economies of scale

Social Media platforms like Facebook (Meta), LinkedIn, Instagram, and Twitter have a huge audience that spends considerable time on these platforms. These users actively engage with each other and share personal information including product choices, purchases, and experiences.

Companies are also investing large money in Social Media Marketing to manage these social media platforms. These platforms help them to engage with the public comprising existing and potential users of their products. And develop a relationship with the audience based on trust and relevance. The fundamental principle behind Social Media Marketing is also economies of scale and economies of scope. That’s why online marketing is considered an economic way of advertising and customer relationship-building activities. 

You know that we all make online searches before purchasing a product these days. And that’s how we continuously feed the internet system with our information. As a feature of e-Commerce, we are being tracked that we need a product. Also, what product options we have evaluated so far, at which stage of purchasing we are; our age, place, buying behavior, etc……

With the above knowledge and technological advancements, it is easier for companies to follow you. Wherever you go with their product ads, reminders, etc… based on your recent searches to influence your purchase……



2 thoughts on “How e-Commerce has Changed the Marketing of Goods?”

Leave a Comment