Advantages of E-commerce

ADVANTAGES OF E-COMMERCE 1. Advantages to Consumers • Wide range of products and services: Electroniccommerce through internet enables the customers to choose a product or service of their choice from any vendor anywhere in the world. Due to space constraint, a vendor can stock only a minimum amount of goods in the physical store. A virtual store enables a business organization to stock a lot of goods without considering the inventory cost. Hence, a business also provides a lot of choice to consumers to choose a product of his /her choice. • Convenience: Customers can buy any product from anywhere in the world without moving away from their workplace or home through internet. Due to bad weather, people may restrict their shopping even if necessity arises. E-commerce provides convenience to buy goods or services without causing any physical constraints to the consumers. • Saves money: The cost incurred by the business on the middlemen generally falls on the consumer. Since the middlemen are eliminated, the customer is free from bearing the cost of the middlemen. To attract customers and to combat competitors, several business organizations offer product and services at cheaper price. Certain goods like e-books, music audio clips, software can be purchased and delivered through internet. It saves cost for the buyers. • Saves time: Time saving is one of the prime benefits of online shopping. Time taken for selection, buying and paying for an online product may not take more than 15 minutes; the products are delivered to customers’ door steps within a week. It saves delivery time for the buyers. • Adequate information: Internet is used as a main vehicle to conduct transactions in e- business. Internet allows customers to search for product information, compare the prices and benefits and finally evaluate its value before committing purchase. Through internet, customers can get their queries clarified and track their delivery status when the goods are being sent to them. If any doubts arise while handling the products, the customers can easily contact the business through internet. 2. Advantages to Business • Decrease in cost: The cost incurred on advertisement and communication is lower as the business uses e-mail and online advertising channels. The cost incurred on human resources is also low as most of the business processes are automated. Middlemen are eliminated to a considerable extent as there is a direct link between the business and the consumers. Due to effective supply chain, the cost incurred on maintaining inventories is reduced. • Effective customer service: E-commerce through internet provides up-todate information about the business and its products to customers. By answering customers’ queries quickly and arranging immediate delivery of goods, a business organization is able to win the loyalty of customers. Effective communication and quick delivery of goods lead to total customer satisfaction. • Increase in revenues: Decrease in cost and increase in sales help the business to enjoy greater profits. The business being open 365 x 24 x 7 fetches revenues throughout the year. • Transaction efficiency: Automation of business processes helps the business to streamline its operating processes. Efficient procurement cycles reduce delivery delays. Minimum time taken to complete transactions also results in transaction efficiency. • Effective information management: E-Commerce helps business to create, process, distribute, store and retrieve any information cheaply and quickly. The above benefits enable a business organization to remove any communication gap between the business and consumer, or between business and business associates or between business and its employees. Communication is considered as the lifeblood of any business organization. Good information management enables the top level management to take quick decisions and make use of the business opportunities at the right time. E-Commerce helps at every stage for an effective information management. • Global reach: Business organizations are able to send messages worldwide with the help of electronic medium explore new markets and reach globally at lower cost. E-commerce helps to attract customers and business clients from anywhere in the world due to global reach of the internet.