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Ecommerce
Articles >> Benefits of Internet for Electronic Commerce
Benefits of the Internet for Electronic Commerce:
1. Ease of access and global reach:- World Wide Web (www) is an ideal mechanism for providing relevant information to the public globally. It allows organizations an opportunity for publicizing their products and services at minimal cost. By putting information on routinely asked questions on the home pages, organizations are saving costs by reducing the no. of customer service representatives. Customers can place orders through the Internet once security issues are worked out. The WWW holds the potential to increase the market share and helps expand new markets by virtue of its global reach. Additionally, easy access to information through the Internet gives the opportunity to compare the costs and characteristics of product and services.
2. Low-cost advertising medium:- There is no doubt that Internet has become an inexpensive advertising medium for organizations and is being effectively used by some firms for commerce. The comments made by the vice-president of IT of a large multinational firm allude to this issue: “The purpose of the Internet offerings are to open our products and services to a new customer base who prefer to use the internet for their shipping needs and to maintain a leading-edge technology position and image in the market place and against our competitors.”
3. Low barriers to entry:- Small & large firms alike have the opportunity to be on the WWW and conduct business on the internet. The barriers to entry to the Internet are minuscule. This point was noted by the President of a consulting and staffing agency who was interviewed:” home pages give equal footing to small organizations with large national firms”.
4. Perceived image enhancer:- Several executives mentioned that they have to have presence on the Internet as their competitors are already on the Internet. Without it their reputation can be tarnished and they will be perceived as laggards in employing stat-of-art technologies. Many executives admitted that on the issue of determining the value and direct benefits of Internet to their bottom line, the ‘jury is still out’ but they must keeping moving forward for the reasons above.
ternet Commerce stands at a critical juncture. After an exhilarating start-up, further development hinges on bridging the chasm between early adopter and a true mass market. We envision Eco System ad the foundation of that bridge.
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Information last updated: 8th May 2006.
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