The Adaptability of Products to E-Commerce: Transaction Cost Economics Perspective

Abstract

Although e-commerce is prevailing, not all products are suitable for it. Most of extant ways of measuring the adaptability of a product are too complex or unconvincing. Based on transaction cost economics (TCE), this paper finds that a product is adaptable to e-commerce if its degree of both perception and price transparency are high. The two dimensions can help companies judge whether their products suit e-commerce or how to make their products become more suitable for e-commerce.