E-commerce The Cutting Edge of Business

In today's competitive business world, having an online presence is more important than ever. This is particularly true if businesses wish to grow, extend their sales, and reach customers they might not have reached before. E-commerce sites enables businesses of all sizes to reach their target range of customers without being physically present.Since the rise of the Internet in the mid to late 1990s, companies have listed their products and services for sale online. People have caught on, and many enjoy the benefits and ease of being able to browse for products on e-commerce marketplaces from the comfort of their own homes. In effect, ecommerce marketing has become more important than ever for businesses to stay afloat. In fact, businesses can lose customers or revenue by not maintaining an online presence.

E-commerce has become a trend which is fast catching up as a way of life in many societies around the world. E-commerce has helped to bring variety to the consumers and they get cost effective and variety of goods at the competitive price over the internet. E-commerce has revolutionized the idea of setting up and operating a business and has increased the reach of business, thus giving direct benefits to the consumers.

The heart of e-Commerce is providing consumers across many different geographies access to a huge selection of products from many sellers on a safe, easy to use online platform or via a mobile browser or apps. Selection, convenience, deals and access to goods are some of the main drivers of eCommerce

 BENIFITS OF E-COMMERCE

1. Transaction costs. Three cost areas are significantly reduced through the conduct of B2B  e-commerce.

•  First is the reduction of search costs, as buyers need not go through multiple intermediaries to search for information about suppliers, products and prices as in a traditional supply chain. In terms of effort, time and money spent, the Internet is a more efficient information channel than its traditional counterpart.
• Second is the reduction in the costs of processing transactions (e.g. invoices, purchase orders and payment schemes), as B2B allows for the automation of transaction processes and therefore, the quick implementation of the same compared to other channels (such as the telephone and fax). Efficiency in trading processes and transactions is also enhanced through the B2B e-market’s ability to process sales through online auctions.
• Third, online processing improves inventory management and logistics.                 

              

            2.  Disintermediation

•  Through B2B e-markets, suppliers are able to interact and transact directly with buyers,thereby eliminating intermediaries and distributors. However, new forms of        intermediaries are emerging. For instance, e-markets themselves can be considered      as  intermediaries because they come between suppliers and customers in the supply chain.

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            3 . Transparency in pricing.

•  Among the more evident benefits of e-markets is the increase in price transparency. The gathering of a large number of buyers and sellers in a single e-market reveals market price information and transaction processing to participants. The Internet allows for the publication of information on a single purchase or transaction, making the information readily accessible and available to all members of the e-market. Increased price transparency has the effect of pulling down price differentials in the market. In this context, buyers are provided much more time to compare prices and make better buying decisions.