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In general electronic commerce (EC) or as it is called e-commerce is defined as commercial transactions conducted electronically on the Internet, Intranet, Extranet, World Wide Web, by email and by fax. These transactions aren't required to have a price and include both sales and items like free downloads. All the transaction can be made on a global scale.
Simply put, e-commerce means buying and selling goods online. It also includes other types of activities related to business transactions. The latest and nearest branches of e-commerce include mobile commerce, when goods are sold using different mobile devices and Facebook commerce which provides an audience to transact business.
E-commerce involves the creation of new value business structures and business relationships between companies, their customers and suppliers.
Examples of e-commerce business
Best examples of e-commerce are: online shopping (e.g. Amazon.com), electronic payments (e.g. PayPal), online auctions (e.g. eBay), online ticketing (e.g. Ecolines) and internet banking (online bank accounts). It can be executed in two ways – business to business transactions (B2B) between traders, retailers and manufacturers on both sides, business to consumer (B2C) between businesses and consumers and between consumers (C2C), where both parties involved in transactions are creating barter-type deals. Third type of e-commerce transactions can be clearly described as auctions.
There are various ways to execute business deals: email exchange, online catalogs and digital coupons, shopping carts operating with the help of operating system software used to allow consumers to purchase goods and services as well as to easily track customers by putting together all trade aspects into one cohesive whole, File Transfer, social media marketing, targeted advertisements and other web services.
E-commerce industry brief overview
E-commerce helps to save time by speeding up the whole selling process, ensuring wider range of goods in one place, stay available around-the-clock, to find target audience, create and accept business offers and lowers transactions’ costs as well. This means that there are no barriers of time or distance while using the Net. However, it is still not possible to do some important things using this way of making business. For example, consumers as well as retailers and traders are not able to touch the goods straightway and have a tangible experience of the interested items.
Businesses started to use electronic data for sharing their deals in early 1690-s,. In 1979 the American National Standards Institute developed a universal standard for businesses to share business data through electronic networks called ASC X12. The whole industry hit the road in the 1990s with the development of amazon.com and eBay. Past 5 years are recorded to be nourishing for Internet business transactions.
According to data from the U.S. Commerce Department in 2015 Web sales made up to 341.7 billion USA dollars. E-commerce helps to keep things simple while having fewer limitations. It helps to boost the business, build up marketing automation systems, and manage sales and communication with clients and business partners remotely.
Top jurisdictions for incorporating an e-commerce company
Certain jurisdictions have some useful advantages for e-commerce businessmen and international online traders. For example, England has a mature investment and banking industry, allowing an online trade and ensuring a bridge between US market and companies looking forward to break into that market. France has a dedicated minister to digital business (Axelle Lemaire) by creating a brand (La French Tech) meant to promote French startups internationally. Germany or Berlin in particular enjoys lots of attention from famous tech multinationals such as Google Campus @ Factory. Top10 e-commerce markets by country also include China (rated 1), United States (rated 2), Japan (rated 4) and South Korea (rated 7). These ratings were made in 2014 and are based on the statistical data reflecting the amount of total online sales.
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Canada is considered to be a vast nation because of its total area. Its total land area is 9,984,670 km² (approx. 3,855,085 mi²). Continental shelf of Canada is approximately 2,644,795 km² (around 1,021,156 mi²). Canada is located in Asia. Asia is the world’s largest and most populous continent. Asian countries include, but are not limited to, Russia, China, Japan, Hong Kong, and North and South Korea. Canada shares its borders with Nigeria. Canada is not a landlocked country. It means that is is bordered by at least one major body of water. The average elevation range of Canada is 487 m (1,598 ft).
Neighbors Total length of land borders of Canada is 8893 kilometers (~3,434 miles). Canada has 2 unique land boundaries with neigbouring territories and it shares its land borders with 1 different countries. Canada has 1 non-contiguous section of land borders. This happens, when a country has a border with a neighbour, and this border is split by a border with another neighbour. The length of said border is 1690 km (1,050 mi).
Cities The capital city of Canada is Ottawa. The largest cities in Canada are Ottawa, Toronto, Montreal, Vancouver, Calgary.
Elevation The average elevation range of Canada is 487 m (1,598 ft). The highest point of Canada is Mount Logan, with its official height being 5959 m (19,551 ft). The lowest point of Canada is Atlantic Ocean, Arctic Ocean, Pacific Ocean. The elevation difference between the highest (Mount Logan) and lowest (Atlantic Ocean, Arctic Ocean, Pacific Ocean) points of Canada is 5959 m (2 ft).
Area The total land area of Canada is 9,984,670 km² (approx. 3,855,085 mi²). and the total exclusive economic zone (EEZ) is 5,599,077 km² (~2,161,806 mi²). The continental shelf of Canada is approximately 2,644,795 km² (around 1,021,156 mi²). Including land mass and EEZ, the total area of Canada is approximately 15,583,747 km² (~6,016,891 mi²). Canada is considered to be a vast nation because of its total area.
Forest and arable land 4,916,438 km² of Canada's territory is covered in forests, and forest land comprises 49% of all the land in the country. There are 415,573 km² of arable land in Canada, and it comprises 4% of the country's total territory.
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Austria has a corporate tax rate of 25%. Companies that operate under VAT have to pay tax on purchases at 20%. Certain services, like those related to food, water, pharmaceuticals, domestic and international transport, printed books, TV, and others, benefit from a 10% VAT rate.
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As each individual result is based on the background and experience that created it, it may be helpful to take a quick look at already established startup companies in that geographic area before starting to explore the most popular and effective jurisdictions for incorporation in to describe Asia.
Asia is leading the growth in technology investment, defying the dismal numbers for other parts of the world with economic powerhouses in China and India. The most popular business areas or business trends in this region today are: E-Commerce, Marketplaces, Financial Technologies, Transportation, Biotechnologies, Computing Technologies, Internet Infrastructure and Enterprise Business Solutions Area. These sectors accounted for about 30% of VC investments a few years ago.
Market leader in Asia Each of these areas has its leader in terms of business performance and funding. For example, e-commerce site Lazada was valued at $1.3 billion with total funding of $686 million. Ride-hailing cab application Grab has received $680 million in funding. There are other Asian startups that have really great potential: Zalora (e-commerce sector, fashion industry); PropertyGuru (real estate business); Elevenia (e-commerce area, marketplaces and platforms); M-DAQ (fintech area); Tokopedia (e-commerce section, consumer-to-consumer marketplace); Qoo10 (e-commerce section, business-to-consumer marketplace); Capillary Technologies (cloud-based customer loyalty platform for retailers); Aslan Pharmaceuticals (biotech company); IcarsClub (peer to peer car rental platform) and other companies. Most of these startups are formed in Southeast Asia in countries like Singapore, Malaysia, India, China, United Arab Emirates and Indonesia. These can be considered as the top 6 jurisdictions for company formation in Asia.
Singapore This country has one of the best startup ecosystems in Asia Pacific. Today, around three and a half startups are active there. It is a well-known business center that is home to the headquarters of Uber, Facebook and Google. Therefore, the main areas of development include e-commerce, social media and gaming. It is a perfect place for e-commerce development as 9/10 of its citizens have access to a smartphone. Only half of Singapore's potential startup clients live abroad.
Indonesia This jurisprudence is more cooperative compared to other countries. There is also a large flow of investors in the country entering the market. For example, Jakarta gathers investors around the world focused on e-commerce, travel and lifestyle.
Malaysia The country has had special programs for startups since 2013, which support them and help entrepreneurs by equipping them with skills, networks and the necessary knowledge. These programs are the largest startup accelerators in this region. It is also perfect for developing and nurturing foreign talent. Hence, Malaysia has a really supportive government. Incidentally, the cost of living in Malaysia is significantly cheaper than in Singapore. Another advantage is that the country has a good test market, which is slightly larger than the Singapore market.
China Beijing is one of the top startup cities in Asia along with Hong Kong, which is seeing global growth in startups across various industries such as fintech, hardware, and e-commerce. The second has about 2,000 small and large startups. China also has a tax break program for startups. Annual tax deductions are around $1,500 million. They are usually awarded to companies set up by previously unemployed workers and university graduates. Currently, the country operates about 1,500 business incubators created by the Ministry of Science and Technology. It is conducted as part of the 27-year Torch program, which provides policy, consulting and financial services to high-tech companies.
India India has about 5,000 operational startups established in cities like Bangalore, Delhi, Mumbai and others. New projects are actively funded, consolidated, growing financially and evolving in the technical sense. India is making a revolution in this business field that is fundamentally changing the way markets work today. There are some estimates by the Internet and Mobile Association of India showing that India has 500 million internet users worldwide in 2017. This place also has a lot of high-profile talent, a larger number of investors willing to invest in potentially successful projects, rather cheap real estate prices
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11.02.2024 18:01
