Delivery As A Factor Affecting E-Commerce In Saudi Arabia – Literature review Example
DELIVERY AS A FACTOR AFFECTING E-COMMERCE IN SAUDI ARABIA Lecturer: Literature Review Delivery is a determinant factor in the progression of e-commerce in Saudi Arabia. This is because delivery enhances the flow of goods to various destinations in conjunction with the online business directives. The delivery helps in a dancing the online trading, because different traders and customers must fulfill their contractual obligations pertaining to the business transactions. Delivery of goods forms part of these contractual obligations. According to Buchele (2008, p. 71), the delivery factor enables the customer to confirm the identity and quantity of the goods delivered according to the online agreements made prior to the delivery of goods. E-commerce in Saudi Arabia is developed because of the ease in delivery of a variety of products produced by the many companies in this nation. This notwithstanding, there are many factors, which negatively and positively influence e-commerce in Saudia Arabia. One of these factors is delivery of products from the suppliers to the final consumers. Delivery is a factor, which boost e-commerce through the streamlining of different kinds of transactions.
Moreover, the delivery of services, enhanced the flow of goods and services through the use of various delivery devices. These include airplanes, vehicles, motorbikes and ship. In this regard, the finalizing of business transactions, were implemented through final delivery of the goods to the customers. In order to have swift delivery of services of goods and services infrastructure must be well developed. This is because infrastructure covers communication networks, which are crucial in conveying of information. In the region, Saudi Arabia, delivery of the product as is easy given the abundance of petroleum fuel. This boosts the flow of goods and services from one location to another. The payment gateways help in the delivery of products from one place to another place. According to Alkhalifa (2010, p. 41), e-commerce is subject to logistical issues with regard to the delivery of products.
The physical addresses contribute to the progression of e-commerce because the distance of physical addresses determines the cost incurred by various e-commerce traders in ferrying their products to customers. According to Buchele (2008, p. 34), a physical address system is necessary in participating in e-commerce. This is because a sophisticated physical address will make the process of transporting goods to clients easier. In this regard, the numbering of various paces is crucial. This will facilitate the delivery of products. Saudi Arabia has an established physical address system. This has enhanced e-commerce in this country. According to Okane (2011, p 67), the models of selling and buying of Saudi Arabia are developed. This makes the transacting of business easy. These models include seller-buyer, seller-seller and buyer-buyer models. In this respect, the seller-buyer model refers to the delivery of goods and services from the owner of the products to the final consumer.
This depends on the chain of supply appropriate and the type of product to be delivered to the destination. In Saudi Arabia, e-commerce is well developed (Ramady 2011, p. 54). This makes direct delivery of products to clients impossible. In this case, the buyer-buyer model is the most appropriate given that it takes into account the middlemen like wholesalers and retailers. This process of delivery of products adds value to the products because the prices at each point of delivery are different. Additionally, this process makes the products of a Saudi Arabian company to be known by a wide population within a short time. This in turn boosts e-commerce because many products access the public domain within a short time. The other model of product delivery, which enhances e-commerce in Saudi Arabia, is a seller - seller model, whereby products are sold by producers to various outlets. This helps in reduction of high levels of inventory. E-commerce in Saudia Arabia is greatly influenced by delivery of services. According to Shoult (2009, p. 39), technology and developed infrastructure are crucial in affecting business operations. The country has an advantage with regard to its geographical location. It is endowed with immense economic resources like oil. This is basic with regard to the development of sophisticated infrastructure like roads, communication networks and technology.
Alkhalifa, E. M., 2010, E-strategies for resource management systems: planning and
Implementation, Hershey, PA, Business Science Reference.
Buchele, N., 2008, Saudi Arabia, London: Kuperard.
Okane, M., 2011, Doing business in Saudi-Arabia, [Lexington], [Al-Andalus].
Ramady, M. A., 2005, The Saudi Arabian economy policies, achievements and challenges. New
Shoult, A., 2009, Doing Business with Saudi Arabia, London: Blue Ibex Ltd.