METHODOLOGY FOR ELECTRONIC COMMERCE EFFECTIVENESS ASSESMENT OF SMALL BUSINESS

Abstract

Electronic commerce (e-commerce) has revolutionized how businesses operate, interact with customers, and deliver value. For small businesses, e-commerce offers avenues for market expansion, operational efficiency, and competitive positioning. However, assessing the actual impact of e-commerce initiatives remains a complex task, particularly in the case of small enterprises with limited resources and analytical capabilities. The objective of this study is to develop a methodological approach tailored for evaluating e-commerce performance and effectiveness specifically in small business settings.

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Aripov, U. . (2025). METHODOLOGY FOR ELECTRONIC COMMERCE EFFECTIVENESS ASSESMENT OF SMALL BUSINESS. Solution of Social Problems in Management and Economy, 4(11), 16–20. Retrieved from https://www.inlibrary.uz/index.php/sspme/article/view/134192
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Abstract

Electronic commerce (e-commerce) has revolutionized how businesses operate, interact with customers, and deliver value. For small businesses, e-commerce offers avenues for market expansion, operational efficiency, and competitive positioning. However, assessing the actual impact of e-commerce initiatives remains a complex task, particularly in the case of small enterprises with limited resources and analytical capabilities. The objective of this study is to develop a methodological approach tailored for evaluating e-commerce performance and effectiveness specifically in small business settings.


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METHODOLOGY FOR ELECTRONIC COMMERCE EFFECTIVENESS

ASSESMENT OF SMALL BUSINESS

Ulugbek Aripov

PhD, Tashkent state university of economics, Tashkent city

Republic of Uzbekistan

https://doi.org/10.5281/zenodo.16778902

Electronic commerce (e-commerce) has revolutionized how businesses

operate, interact with customers, and deliver value. For small businesses, e-
commerce offers avenues for market expansion, operational efficiency, and
competitive positioning. However, assessing the actual impact of e-commerce
initiatives remains a complex task, particularly in the case of small enterprises
with limited resources and analytical capabilities. The objective of this study is to
develop a methodological approach tailored for evaluating e-commerce
performance and effectiveness specifically in small business settings.

The government acts as a guarantor, ensuring through the development of

an appropriate legal framework the legality of transactions in the electronic
commerce system.

The second group of elements of the e-commerce system that characterize

the variety of organizational forms that can be used include: electronic store;
electronic department store; electronic kiosk; electronic auction; electronic
storefront; electronic store of settlements; electronic market of third countries;
virtual community (<community); consulting firm; brokerage information office
or a separate broker; research service providers.[1]

An electronic store is a kind of shop window providing a user-friendly

interface, a web server offering goods or services for sale. The main criterion for
the effectiveness or successful functioning of such a store is the real volume of
satisfied demand for goods or services.

Issues of e-commerce performance indicators, e-business and e-commerce

management were studied by Nazarova I. B., Dianova T. V [4], Manyika J. M.,
Roberts R. P., Sprague K.L. [5], Vershinina S.V. [6], Zueva O.N., Donskova L.A.[7]
and others.

An electronic department store functions similarly to a traditional

department store, where multiple businesses offer a variety of products. The
primary indicator of its effectiveness is often the strength and recognition of the
product brand or its overall image.

An electronic kiosk, also known as an interactive kiosk, refers to an internet-

connected hardware-software system that grants users interactive access to
various services and information. Typically, such kiosks include a computer with


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a hard drive, keyboard, CD-ROM, and a monitor equipped with audio and video
cards. Users can interact with the system through multiple input methods—
keyboards, microphones, cameras, or magnetic card readers—either individually
or in combination. These kiosks enable full Internet functionality, including
browsing websites, using search engines and databases, sending and receiving
emails, and completing online forms.

According to a study by Frost & Sullivan, electronic kiosk revenue reached

$369.7 million in 1996 and was projected to grow to $2.94 billion by 2003.

An electronic auction is the digital counterpart of a traditional auction,

leveraging internet technologies. This format predominantly aligns with the
Customer-to-Customer (C2C) e-commerce model, although Business-to-Business
(B2B) versions also exist. Examples include commodity exchanges and energy
auctions, especially prevalent in the United States and Western Europe. These
platforms often create online communities of users with shared interests—such
as collectors of rare books or niche products. Transaction values at Western e-
auctions typically range from $35 to $80. In the Russian-speaking digital space,
platforms like Molotok.ru enable users to buy and sell a wide range of products.
However, such auctions face legal limitations, including the absence of electronic
signature legislation in Russia and limited usage of bank cards for secure
identification of participants—unlike Western auctions, where card verification
is mandatory.

Electronic auctions rely heavily on multimedia interfaces and internet

access, as visual presentation of goods is essential. Auctions function as
competitive marketplaces, with sellers aiming for the highest price and buyers
seeking the lowest. These can be categorized based on bid direction—ascending
from a minimum to a winning maximum, or descending from a set maximum to a
minimum bid.[8]

Products best suited for auction-based sales include computers, high-tech

goods, discounted or surplus inventory, previous bestsellers, and collectibles. A
key motivation for the growth of electronic auctions is their ability to reflect true
market prices.

Compared to traditional formats, electronic auctions offer several

advantages: broader product and buyer availability, real-time interaction
between participants, diverse auction formats, 24/7 accessibility, global reach,
detailed product descriptions and images, and improved customer service.

An electronic storefront is a specialized software solution designed to create

and manage web pages showcasing goods and services.


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An electronic billing shop is software that integrates an e-storefront with a

specific payment processing system.

The electronic marketplace of third-party countries consists of service

providers offering tools for building and managing online stores, technical
support, and hosting services—typically facilitated by intermediaries who
manage server space and ensure integration with payment gateways.

A virtual community refers to networks of specialized e-commerce platforms

(such as Geocities, Amazon, or Ozon), where users are grouped based on shared
interests. The effectiveness of such communities lies in audience segmentation,
which often leads to reduced marketing expenses. These communities frequently
evolve from pre-existing social groups like fan clubs or associations.

Consulting firms specialize in offering guidance on setting up and managing

online stores, conducting market research, and assisting with staffing needs.

A brokerage information office, or individual brokers, serve to provide

detailed and necessary market information to prospective buyers.

Research service providers are entities that perform various forms of

internet and e-commerce-related studies and data analysis.

Managers can communicate with the first company using some interface (for

example, a browser). Managers can receive (for example, by e-mail or through a
browser) the necessary information from the first company, and then enter data
into their management system and carry out their business process. Managers of
the second company act as consumers of the first company. The features of the
second model of e-commerce organization - business consumer - are as follows.

1. The seller (firm 1) does not trade using an automated trading system

integrated with the Internet interface, but "manually" through his managers.

2. There is no full integration between the business process of the trading

company and the external interface of the online store.

Through the Internet, you can successfully sell any goods or provide certain

types of services. It has been established that the business-to-business market
does not depend on the name and range of goods and services sold through the
Internet. Meanwhile, for the business consumer market, there are such types of
goods and services that do not bring sufficient economic benefits.

The third type of e-commerce model - business administration - includes all

types of transactions between firms and government organizations. For example,
in the United States, information regarding government planned purchases is
published on the Internet. All companies can send their offers electronically. In
addition to procurement announcements, administrative authorities may also


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offer the possibility of electronic exchange in operations such as, for example, a
refund of value added tax. This model of organizing an e-commerce system is at
the initial stage of development.

The fourth model for organizing the functioning of the e-commerce system -

consumer-administration - is currently under development. Its implementation
will expand electronic interaction in areas such as, for example, social security.

An additional model - Consumer-To-Consumer (C2C) - is a sector in which

consumers communicate with each other, united by visiting one web site. It is
believed that any electronic store can be attributed to this area of electronic
commerce. A certain web site forms a certain community of people united by the
same interests. An example of a more or less stable community is electronic
auctions. They become an excellent advertising platform on which the
quantitative and qualitative composition of the audience is known in advance.
Moreover, all visitors are usually divided into fairly clear subgroups of "interests":
someone more often attends car auctions, someone book. According to experts in
the field of e-commerce, the effectiveness of advertising on sites that have united
around themselves a certain and constant community of potential buyers is
relatively higher.

Evaluating e-commerce effectiveness in small business settings requires a

context-specific, scalable approach. The framework proposed in this paper
integrates critical digital performance dimensions while accommodating the
resource limitations of small enterprises. Future research may extend this model
to cross-border e-commerce or integrate AI-driven predictive tools for better
forecasting.

REFERENCES:

1.

Yokoo M., Ito T., Zhang M., Lee J., Matsuo T. Electronic Commerce: Theory

and Practice (Studies in Computational Intelligence). Springer, 2008.
2.

Denisova A.L., Molotkova N.V., Blum M.A., Ulyakhin T.M., Guskov A.V. E-

commerce: the basics of organizing and conducting business: textbook. allowance.
Tambov: TSTU, 2012.
3.

E-commerce:

a

course

of

lectures.

Electronic

resource:

http://5fan.ru/wievjob.php?Id=4749 (accessed: 02.25.2020);
4.

Nazarova I. B., Dianova T. V. E-commerce: advantages, problems and the

“slip effect” while reducing transaction costs // Vestnik MGIMO University. 2012.
No. 4 (25). P. 173-178 .;
5.

Manyika J. M., Roberts R. P., Sprague K.L. Eight business technology trends

to watch// http:// www.mckinseyquarterly.com/Information_ Technology
/Applications/Eight_business_technology_trends_ to_watch_2080


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6.

Vershinina S.V. Problems of information security in modern society: a

culturological approach // Innovations and Investments. 2016. No. 5.P. 12-16 .;
7.

Zueva O.N., Donskova L.A. Ensuring the quality and safety of goods in the

context of modern logistics integration / Manager. 2015. No 3 (55). P. 68-71 .;
8.

Schneider G. Electronic commerce. L.: Course Technology, 2010. P. 40.;

References

Yokoo M., Ito T., Zhang M., Lee J., Matsuo T. Electronic Commerce: Theory and Practice (Studies in Computational Intelligence). Springer, 2008.

Denisova A.L., Molotkova N.V., Blum M.A., Ulyakhin T.M., Guskov A.V. E-commerce: the basics of organizing and conducting business: textbook. allowance. Tambov: TSTU, 2012.

E-commerce: a course of lectures. Electronic resource: http://5fan.ru/wievjob.php?Id=4749 (accessed: 02.25.2020);

Nazarova I. B., Dianova T. V. E-commerce: advantages, problems and the “slip effect” while reducing transaction costs // Vestnik MGIMO University. 2012. No. 4 (25). P. 173-178 .;

Manyika J. M., Roberts R. P., Sprague K.L. Eight business technology trends to watch// http:// www.mckinseyquarterly.com/Information_ Technology /Applications/Eight_business_technology_trends_ to_watch_2080

Vershinina S.V. Problems of information security in modern society: a culturological approach // Innovations and Investments. 2016. No. 5.P. 12-16 .;

Zueva O.N., Donskova L.A. Ensuring the quality and safety of goods in the context of modern logistics integration / Manager. 2015. No 3 (55). P. 68-71 .;

Schneider G. Electronic commerce. L.: Course Technology, 2010. P. 40.;