Benefits of Ecommerce

Benefits of Ecommerce

September 23, 2015
4:31 pm

Benefits of Ecommerce

ECommerce is one of the most important facets of the Internet to have emerged in the recent times. Ecommerce or electronic commerce involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network. To be particular ecommerce would be buying and selling of goods and services and transfer of funds through digital communications.

The benefits of Ecommerce:

  •  Ecommerce permits people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
  •  The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.
  •  Ecommerce is ideal for niche goods. Customers for such goods are generally few. But in the vast market place i.e. the Internet, even niche goods could generate viable volumes.
  •  Another important benefit of Ecommerce is that it is the cheapest means of doing business.
  •  The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to invest in improving their competitive position. A mature market, increased competitions have all reduced the amount of money available to invest. If the selling price cannot be increased and the manufactured cost cannot be decreased then the difference can be in the way the business is carried out. Ecommerce has provided the solution by decimating the costs, which are incurred.
  • From the buyer’s perspective also ecommerce offers a lot of tangible be.

1. Reduction in buyer’s sorting out time.
2. Better buyer decisions
3. Less time is spent in resolving invoice and order discrepancies.
4. Increased opportunities for buying alternative goods.

  •  The strategic benefit of making a business ‘ecommerce enabled’, is that it helps reduce the delivery time, labor cost and the cost incurred in the following areas:

1. Document preparation
2. Error detection and correction
3. Reconciliation
4. Mail preparation
5. Telephone calling
6. Data entry
7. Overtime
8. Supervision expenses

  • Operational benefits of e commerce include decreeing both the time and personnel required to complete business processes, and reducing strain on other resources. It’s because of all these benefits that one can harness the power of ecommerce and convert a business to ebusiness by using powerful turnkey ecommerce solutions made available by ebusiness solution providers.