Transforming the Healthcare Marketplace through E-Commerce

Electronic commerce or e-commerce is generally defined as a system or activity of
promoting, buying and selling products or services online or over the internet. The system
traces its beginnings in the 1970s in the US when students used the ARPANET (forerunner
of the internet) to arrange a product sale and purchase, followed by the development of an
online transaction processing as well as online shopping system.

have become the dominant names in the e-commerce marketplace. Their enterprising
founders were able to explore the commercial use of internet technology to become major
players in the online market.

With a wide spectrum of products and services, these companies along with other
internet-based retailers and service providers cover the vast segments of the market: B2B
(business-to-business), B2C (business-to-consumer), and C2C (consumer-to-consumer),
depending on what kind of product or service is being demanded and supplied.


The healthcare marketplace is one sector where e-commerce is significantly changing
the game. Both product and service providers – hospitals, clinics, laboratories, pharmacies,
even HMOs; as well as suppliers – manufacturers and distributors, recognize e-commerce as
a new way or system of ordering and purchasing healthcare products and services that is
worth exploring.

While the traditional form of commerce and marketing (face-to-face interaction,
brick-and-mortar store) are still preferred by people for its usual advantages (physical
experience, secure transaction), e-commerce is continuously gaining recognition and
acceptance among industry players, as it promises more convenience in terms of reduced
time and effort in both the marketing and purchasing processes.

E-commerce has become an important tool for small and large businesses, not only
to sell to customers, but also to engage them. As there is no limit of time and space, the
online marketplace has more opportunities to reach out to customers anywhere the world.
And without unnecessary intermediate links, logistics and inventory costs, products and
services can be offered at a reduced price. Likewise, e-commerce provides companies a
more efficient and effective way to collaborate with each other within the supply chain.

In the healthcare marketplace, e-commerce provides an option of accurate and
timely business information, which could take the form of real time order tracking that can
be viewed on the supplier’s website. Purchase orders can be entered electronically and
become part of the record, eliminating lost or misplaced POs, which in turn can lead to order
delays. In most cases, administrative activities like these may constitute 60%-80% of all
costs related to purchasing. Online payment processing can also benefit from similar
efficiencies. Streamlining processes in any way possible goes straight to the bottom-line.

Lastly, e-commerce provides an opportunity for increased and faster way of
communication among the suppliers, marketers and customers. Online transactions
complemented with modern communication tools such as the mobile phone and social
media, promise to greatly enhance the customer-supplier relationship, as they facilitate the
process of providing inputs and feedback from one person to another.