Use of Online Sales in International Business

In the global trading platform, many multinational organizations are competing for a limited market. Thus, it prompts for the creativity and innovation of a company to remain competitive and profitable. As such, there have been instantaneous changes in the way that business operations are conducted. These methods are generally known as business trends and some of them include; online advertising and trading, adoption of technology in business, mergers and acquisitions and diversification of a company’s products. In this report, the new trend of online sales in international business has been chose. Some of the sample companies studied in this report include; Zappos, Amazon, JetBlue, MasterCard, The WireCutter, and Airbnb. These companies were chosen because they have demonstrated excellence in online advertising and trading.

As a result, it was important to analyze their strategies of trade in comparison with the stated factors. Results The results obtained in this study were merely comparative because the research implemented a qualitative design. Therefore, the analysis established major benefits and drawbacks that a company may experience by engaging in online advertising and trading. When companies embrace online retails in their operations, operational costs in terms of utility expenditures become greatly reduced. Online business eliminates the need for expensive premises or other miscellaneous costs that might have been incurred in the day to day office operations (Ye, Law & Gu, 2009). One example is JetBlue Airlines which has embraced the use of twitter to facilitate customer services. As a result the company is minimizing expenses that might have incurred in other forms of advertising.

The amounts saved by the business can then be utilized in promoting its online marketing activities. Usually, companies that provide high-quality services benefit from instant reviews and testimonials from satisfied customers. Such customers can then proceed to invite their family and friends to purchase from that particular sore. In another aspect, the high number of online users who happen to read the reviews and testimonials will not hesitate to acquire commodities from the said firm. As it can be observed, all these instances are beneficial to the company in terms of sales volume, brand reputation and market coverage. Over time, it will be realized that the company’s market dominance has increased more than the predicted standards. Online sales can help improve the rate of business discovery (Rao, Goldsby & Iyengar, 2009).

For example, Airbnb has gained global recognition because of its online presence. Currently, the company is one of the leading online companies in terms of revenue at a value of $ 31 billion. When a new enterprise is launched, it usually takes some period of time before its existence is recognized. This implies that it can take a longer duration for such a business to be known on the international platforms. It can be a privilege that by participating in internet marketing and sales, the company gets exposed to real-time data about the most important events like trends and change in prices (Rao, Goldsby & Iyengar, 2009). Since this information is concurrent with the prevailing market conditions, it can therefore, be used by the respective company to plan its future operations.

Additionally, the data obtained can be utilized in making short-term decisions aimed at improving the company’s financial performance. Since the international market is highly competitive, it can advisable for a business to engage experts who might provide insights into future investment decisions. But obviously, this might cost a company more than it had predicted. The use of online sales in international business has been confirmed to improve accountability in transactions. As a result, it builds on a company’s reputation thereby leading to improvement in market performance. A perfect example is MasterCard, which has improved people’s confidence in conducting financial transactions. According to market analysts, businesses will always strive to win the trust of their customers by ensuring that each step of the agreement is honored responsibly (Zentner, 2008).

In an international platform where established companies are competing, it is likely that some rogues can decide to damage another firm’s reputation by frustrating customers under the pretense of their victim. By delivering such highly personalized commodities, a company can continue attracting more customers thus consolidating its position in the competitive market. The volume of sales can also increase significantly as many people will be demanding to receive items that are designed for their preferences. Arguments against the Claim Even though online sales have acquired much recognition in the modern markets, it can also influence a company’s performance in a negative way. Some of the disadvantages of engaging in online sales are listed below. Involvement in online sales can result in unnecessary costs for a business in a competitive platform such as the global market.

Likewise, competitors can launch defamatory activities to damage the reputation of a large business so that competition level is reduced. Companies which become unlucky to be conned by online hackers usually suffer large losses in terms of financial costs and brand reputation. As a result, it is always advisable to monitor a company’s website and to protect it by installing updated versions of security software. These are costly and also reduce a company’s profits. The use of online sales in international business is marred with complicated legal issues that may hinder a company’s operation in global markets. In addition to the costs of maintaining online operations, a business which focuses on internet sales must also prepare to incur additional expenses in renting a warehouse.

By owning a physical store, a company is assured of a constant availability of items which are displayed in its online marketing platforms. This idea has been considered because overreliance in a partnership with instant suppliers has sometimes resulted in inconvenience (Park & Nicolau, 2015). Therefore, in a situation where a company is operating both an online platform and a physical warehouse, it becomes costly when the volume of sales is not proportional to the efforts invested. Conclusion Therefore, it can be observed that the benefits of involving in online sales in international business by far outweigh the disadvantages. Are online and offline prices similar? evidence from large multi-channel retailers. American Economic Review, 107(1), 283-303. Kacen, J. J. , Hess, J. U. S. Patent No.