ADVANTAGES OF E-COMMERCE

E-commerce is now available anywhere, anytime and to anyone. As soon as you click onto the Net, some very attractive banner advertisement invites you to its website and tries to tell you the products or services on offer. Areas that have grown by leaps and bounds as a result of e-commerce revolution include financial services, entertainment, travel, retailing, etc. If you planning to get your ecommerce website outsourced from India It’s always recommended to get your ecommerce website developed from experienced outsourcing website Design Company in India who have experience of developing such portals after checking their complete profile and portfolio.   Online E-commerce Web Solutions are gaining popularity because it offers the following benefits to the business community:


(i) Wider Reach. E-commerce has increased the reach of business firms. They can make sales to customers spread over all parts of the world. Use of multimedia technologies can help sellers in making new customers by reaching them in different geographical areas and prodding them complete fast information about their products. Mostly people use PHP web application development in India for developing e-business solution using Open cart technology.

(ii) Economical Operations. E-commerce based media of communication and advertising can reach wide sections off customers who are geographically dispersed in different areas. This results in low cost of advertising and maintaining contacts with customers. There is also reduced need for maintaining inventory. Marketers do not have to maintain expensive stores and spends money on their rent, insurance and maintenance. There is, thus, reduction in overall cost of production and distribution resulting in low prices, large volume of sales and high profits.

(iii) Lower Cost of Staff. There is paperless exchange of information. This saves a lot of time, money and energy in receiving orders and executing the same under the traditional mode of commerce: Thus, less clerical work is involved As a result, there is reduction in labour cost of the business. It has been observed in many cases that shifting from brick and mortar mode to e-commerce has reduced manpower requirements of business. A single computer operator can handle 511 operations from the receipt of business queries to the executions of Thus; there is economy in terms of the cost of the employees.

(iv) Direct Contact with customers. E-commerce helps the business firm to establish direct contact with the customers through the internet. It allows the firm to focus on specific types of customers. Costs off intermediaries or middlemen are saved.

(v) Better Customer Service. E-commerce allows quick response to the queries of customers about price, product features, quality, etc. It also increases customer satisfaction through quick delivery of goods and redressal of customer complains, if the customer need not visit the store of the business firm for making purchases or redressal of grievances.

(vi) Sharing of Information with Customers. As against limited knowledge dispersed by brick and mortar firms to consumers through personal contacts, ecommerce helps in fast dissemination of information through the Web. This enhances consumers’ knowledge about the products and helps them in making wick and effective buying decisions. They can interact with the seller’s site, find out the exact information and order for goods on the spot.

(vii) Launching of New Products and Sales Promotion. It is easier to launch a new product through the internet. Complete information about the product can be provided over the internet. E-mails about the launch of the new product can be sent to the dealers and the customers. E-commerce can also be used as a tool of sales promotion. Catalogue and other business information (like launching of a new product) can be transmitted to people and traders through the internet.

(viii) Higher Profits. E-commerce facilitates higher profit margins for the business by reducing the costs of various kinds of commercial transactions and cutting delays in receiving payments from the customers. It also saves a lot by replacing manual transactions with electronic transactions. Business firms also’ earn higher profits became of higher sales volume.

(ix) Flexibility. E-commerce provides flexibility to marketers. Information sent to consumers about products through mailed catalogues cannot “be changed until the next mail is sent but online catalogues can be changed any moment the’ seller wants. There is, thus, flexibility of changing the product features and related services and promotion strategy according to customer needs.

(x) Greater Efficiency and Productivity. Electronic communication is faster than the traditional mail or courier system. Information can be shared with the customers and business partners speedily with the help of new technologies. Further, the firms using internet and intranet throughout the organization are more productive than the brick and mortar firms. The firms operating through e-commerce can respond to customer enquiries and also execute their orders quickly.

(xi) Teamwork. E-commerce helps people in the organization work together. E-mail is one example of how people collaborate to exchange information and work an solutions. It has transformed the way organizations interact with suppliers, vendors, business partners, and customers. More interaction means better overall results.

(xii) Quick Supplies. The business firm can get quick supplies from the vendors, who are connected through the net. It needs not .main huge inventories. of materials. Thus, less capital is blocked in the inventories.

(xiii) Speedy Payments. Payments between business firms and customers and also between business firms can be made online without any loss of time. Ecommerce eliminates the need of issue of cheque (or check) by the customer, deposit of cheque by the seller with the banking, and sending the cheque for clearing by the bank. The facility of electronic transfer of funds has given a great boost to trade and commerce.

(xiv) Swapping of Goods. E-commerce has enabled swapping or barter of goods between business firms. Swapping means offering something a firm has for something it wants. Swapping of goods and services between firms has gained popularity through sites like web-swap, u-barter, etc.

(xv) Customization. Digital products are highly customizable. They are easy to reorganize, revise, or edit. With information about customer tastes and preferences, products can be differentiated (customized) and matched to individual needs.

(xvi) Ensuring Secrecy. EC devices invariably have in-built securely measures. For example, password, encoding encryptography, cipher, etc. is some of the mechanisms/measures which provide security and prevent unauthorized access and use of data, information -and-transactions.

(xvii) Other Benefits. The other benefits include improved image, improved customer services, new found business partners, simplified processes, compressed cycle and delivery time, eliminating paper work, expediting access to information, reduced transportation costs, and increased flexibility.

Relevance of e-Commerce for the Society

E-commerce helps the society in the following ways:

(i) It enables in individuals to work at home and to do less  travelling for shopping, resulting in less traffic on the roads and lowers air pollution.
(ii) It allows some merchandise to be sold at lower prices and helps in increasing standard of living.
(iii)  It enables people in third world countries an rural areas to enjoy product and services that otherwise are not available to them.
(iv) It facilitates delivery of public services such as health care, education and distribution of government social service at reduced cost and/or improved quality.

 

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