The Analysis of e-Commerce Utilization in Micro, Small and Medium Enterprises (MSMEs) at Jember

Abstract

Globalization era is a challenge for MSMEs to survive and have a competitive advantages. Information technology development, specifically social media, offers benefits for MSMEs to increase marketing and sales, to expand market share, and to help business decisions. A couple of business world development today, e-commerce is a necessity to improve and gain business competition and product sales. In the process of using e-commerce, trading and marketing activities are more efficient where the use of e-commerce show the transactions ease reducing costs and speeding up the transaction process. Operational costs can be reduced as good as possible by speeding up time and reducing the possibility of human error. Reducing paper used in various work activities is starting from designing, producing, sending, distributing to marketing. Social media as part of e-commerce media is an innovative tool for MSMEs in supporting business systems. This current study was descriptive study with a qualitative approach. The results proved that MSMEs in Jember has utilized e-commerce in developing its business. The internet used in business on MSMEs strategies deployed in increasing its competitiveness. Moreover, the factors that constrain the implementation of e-commerce included the frequent mistrust between sellers and buyers, intense competition in online market, the strength amount in the offline market, the availability of internet facilities and infrastructure, as well as the perception on e-commerce systems are complicated.