Impact of an E-commerce Website on the Business
Economy
 Introduction
In the modern world, an E-commerce website is one of the most important parts
of a business. Through an E-commerce website, a business can connect to
customers worldwide without any geographical restrictions, only need of
internet. In the world, there are nearly 26.2 million E-commerce websites
(Boukarroum, 2024). According to Boukarroum (2024), approximately 19% of
global retail sales were produced by E-commerce websites in 2023. Additionally,
many big businesses, like Walmart and Best Buy.
Whether a business is small or large, nowadays it is necessary to have an Ecommerce website to show credibility and professional presence. Customers
increasingly turn to research products and services on the internet; a welldesigned website serves as an online storefront that is accessible 24/7. With the
help of a website, consumers can get support from customer service and support
very quickly. (Sky Web Design Technologies, 2024)
E-commerce websites have many advantages over traditional chains. With the
help of websites, a customer can easily connect to businesses and view products
and services any time they want without any geographical problems with global
reach. Moreover, from a website, a person can easily purchase or order any
product while sitting in their home, also view more products, and from customer
reviews, they can check if it is worth buying or not.

Economic Growth in Business
E-commerce is one of the most significant developments of the 20th century,
and the most important driver for the 21st century. With an E-commerce
website the reach of a business grows globally with incredible speed, and it
accelerates the business. Companies connect to the world easily with multiple
advantages, such as speed, connectivity, and information (Van Der Klashorst,
1999). According to Capital One Shopping, the revenue of E-commerce in the
world was $5.82 Trillion in 2023 and it is estimated that by 2025 it will reach
$6.86 Trillion; moreover, between two years 2022 to 2023, the revenue
increased by 27.2% ($570.7 billion).
SMEs are a very important part of a nation as it contributes about 40% of a
nation’s GDP and more than 50% of employment. For many small and medium
enterprises(SMEs) website is a significant part of the expansion of a business.
Like Market expansion, without any geographical borders, a company can reach
its customers. For example, many SMEs have seen 20% of the growth in export
activities after connecting to e-commerce. E-commerce can reduce operational
costs significantly by eliminating the need for physical storefronts and saving on
rent, utilities, and other overhead expenses. Additionally, Improved Customer
Engagement with the help of a website, enhances personalized marketing
strategies, and customer feedback mechanisms, and improves service delivery.
Many SMEs have reported that with the use of customer relationship
management (CRM), they have seen higher customer satisfaction and loyalty.
With the help of a website, SMEs can easily get analytical data on customer
behavior, trends of the market, and sales performance, which helps them to
make better decisions on marketing strategies. (Sharma, 2020)
Many businesses like Walmart, Best Buy, and Amazon, have grown their
economy with the use of e-commerce websites. For example, Walmart which
was founded in 1962 by Sam Walton, is one of the largest retail stores in the
world. The digital transformation of Walmart was started by CEO Mike Duke
back in 2009. In the first year of their e-commerce website “Walmart.com”
successfully converted online visitors into buyers by 10 to 15 percent. In the
next few years, they scaled to global e-commerce and managed to have 3600
associates, with more than 2200 of them from Silicon Valley. Walmart’s
service, ‘Buy Online, Pick up in Store’(BOPIS), had expanded to more than 1000
locations in the year 2013. In its current state, Walmart is the second-largest
online retailer in US market and has revenue growth of more than 6% year by
year which is $ 161.508 Billion in the first quarter of 2024 (Gomes, 2024).
Another company “Best Buy” which was founded in the year 1966, now has a
revenue of over $46 Billion and 93% brand recognition by customers. After
releasing their E-commerce website, they witnessed a total of 73% growth in
customers, and with the increasing popularity of the BOPIS buying method,
Best Buy experienced 40% growth in service due to an effective e-commerce
strategy. In February 2020, Best Buy generated 25% of its total revenue from ecommerce websites (Sheridan, 2024). Moreover, another prime example of an
e-commerce website like “Amazon”, Jeff Bezos founded Amazon in 1994 as an
online bookstore
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