Benefits of E-Commerce on the Internet

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The internet has been a major contributing factor to the emergence of E-commerce; it has also been the most used platform for the dissemination of virtual goods. Companies are able to use E-commerce to enter new markets that would have otherwise been excluded due to geographical locations and cost. E-commerce has made it possible for companies to extend their products to new sets of customers and new parts of the world. It also means that shopping and customer support for most are now 24 hours due to 24 hour call centers, automated services and 24 hour live help by using interactive chat sessions on the internet “Managerial Issues for expanding Web-based Electronic Commerce.” By engaging in E-commerce companies can lower cost by using an online channel. E-commerce can also reduce cost associated with paper based processes such as postage and printing. It also helps build customer relationships by giving customers faster and more responsive services. Another important factor for using E-commerce is that it allows ability to compete and survive in the emerging digital economy when it comes to the global economy (Tapping the power of commerce, 1999 ) ADVANTAGES AND LIMITATIONS OF E-BUSINESS:Advantages and Limitations of E-Business Advantages: - Plans for improving its business, products, services. - It creates awareness in the society for understanding the technology - Access to global market and information. - Global reach - Better decision making - Ubiquity - Cost effectiveness and increased productivity - Quicker and easier communications - Strengthened marketing capabilities and reach - Access to broader information through research - Information density - Reduces asymmetry - Reducing the cost of doing business by lowering tr... ... middle of paper ... ...ts or loans. The use of e-commerce allows businesses to better serve customers by being able to make information such forms for pre-qualifications for credit cards and other financial documents available online. When organizations go online, they have to decide which e-business model best suit their goals. A business model is defined as the organization of product, service and information flows, and the sources of revenues and benefits for suppliers and customers . The concept of e-business model is the same but used in the online presence. The following is a list of the currently most adopted e-business models such as: - E – shops - E – commerce - E – procurement - E – mails - E – auctions - Virtual communities - Collaboration platforms - Third-party market places - Value-chain integrators - Value-chain service providers - Information brokerage - Telecommunication

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