Benefit of E-Commerce to a business organisation.
1. Access to Global Market:
The Internet spans the world of E-Commerce, and it is possible to trade with any business or a person who is connected with the Internet. It helps to access the global marketplace. Simple local businesses such as herbal product stores are able to market and sell their products internationally using E-Commerce. Thus, the whole world becomes a potential market for an ECommerce company.
2. Lower Transaction Cost:
E-Commerce reduces the cost of business transactions substantially. For instance, significant number of customer service representatives in a bank can be reduced by using net banking. Since these interactions are initiated by customers, the customers provide a lot of data for the transactions that may otherwise need to be entered by employees. This means that some of the work and costs are effectively shifted to customers; this is referred as‘customer outsourcing’.
3. 24×7 working:
A website is open all 24 hours, 7 days in a week. As ECommerce firm can provide information about its products and services to customers around the clock it can thus, take orders, keep an eye on delivery of goods and receive payments at any time.
4. Low cost of entry:
Though E-Commerce was fist emerged in private networks it did not remain the same. Internet has changed the face of E-Commerce. The Internet is all about democratization. Internet is a place where the small guy can effectively fight against the giants and hope to win. Days when E-Commerce was only for affordable large national chains are gone. Today, it is common for retailers to move their traditional store to online with very less add-on only for building a good website.
5. Computer platform-independent:
Most computers have the ability to communicate via the Internet, irrespective of operating systems and hardware. Consumers need not have to upgrade their computer or network to participate in E-Commerce. They are not limited by existing hardware or software.
Also the E-Commerce company need not worry about fast changes in computer network technology. ECommerce applications can be more efficiently developed and distributed because they are platform independent. Internet’s altruism helps E-Commerce.
6. Snapping middleman:
E-Commerce enjoys the benefit of bypassing middlemen and reaching the end customer directly through Internet. In B2C E-Commerce business firms establish a direct contact with their customers by eliminating middlemen. It helps to increase the sales of the organization without any interventions. This results in cheaper price for consumers and higher profit margins for the companies
