Wednesday, January 31, 2018
The Advantages Of E Commerce For Business Organization
The Advantages Of E Commerce For Business Organization
My previous post had stated about the advantages of e-commerce for consumers. Generally, we admit that e-commerce had ease our life to perform the trade activities such as online banking, online purchasing and so on.
But, can we say that e-commerce only benefit the consumers?
Of course no. E-commerce also can give a lot of benefits to business organizations especially in term of cost reduction and reaching global market. Now, let we see what they are?
- Reduces Costs for Inventory Management
With e-commerce, the suppliers can reduce costs to manage their inventory of goods because they can automate the inventory management using web-based management systems. This method indirectly can save their operational costs.
�Specifically, e-commerce replaces the manual business processes with their automated electronic equivalents to accelerate ordering, delivery and payment procedures. This electronic paradigm has saved businesses billions in operational and inventory costs.� Rafay Ali (2004)
- Reaching Global Market
E-commerce allows the suppliers to reach global market segment. In other words, it allows the suppliers to increase their sales meanwhile decrease the investment costs.
�Organizations can reach global areas that would have been otherwise difficult.� Pallab (1996)
�It expands the marketplace from local and regional markets to national and international markets with minimal capital outlay, equipment, space, or staff.� Cross-Industry Working Team (1999)
- Monitoring the Consumers� Buying Habit and Interest
The suppliers can monitor the consumers� buying habits and interests so that they can tailors their offer suit to consumers� needs and keep the ongoing relationship with them.
�Internet technologies also permit sellers to track the interests and preferences of their customers with the customer�s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer�s needs.� William King (2006)
- Reduces Costs To Establish Store Front
The overhead costs to build the physical store front may be prevented to the suppliers who use e-commerce as their business operation.
�A traditional business may have large overhead costs associated with maintaining a storefront. But a web-based business does not necessarily have that type of overhead, which may mean that continued growth becomes easier.� Melissa J. Harvey (2002)
- Reduce Labor Costs
The labor costs can be reduced with e-commerce because the sellers can automate their online store fronts.
�Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved.� William King (2006)
- Reduce Advertising Costs
E-commerce can reduce advertising costs because it is easier to update the advertisement using software technology.
�Print advertising can get expensive as there may be a need to update regularly, which requires new work be planned and generated. It is much quicker and more cost effective to update and maintain e-commerce marketing campaigns, especially as technology continues to improve.� eCommerce Optimization (2007-2008)
Sources :
- My degree assignment
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