Benefits of E-Commerce
1. Global presence
E-commerce is not restricted by geographic boundaries of cities, counties or even continents. A small business trader can reach the global audience with the help of e-commerce. For example, a trader based in city of India can sell products to a UK based customer.
2. Enable buying and selling world-wide
An individual can sell or buy item of his choice using his computer with an internet connection. Wider varieties of goods and services are accessible without physical signing and inspection of them.
3. Product Analysis
E-commerce improves customer’s satisfaction. The potential customer can research on products, product description; compare prices online before arriving at the buying decision. It enables the sellers to improve competitiveness by becoming closer to the customers.
4. Satisfy Customer Need
E-commerce applications in this arena of mass communication include easy-to-use ordering systems that allow customers to choose and order products according to their personal specifications.
5. Target Potential Customers
You can target your customers globally. The cost of reaching the target customers is low compared to traditional marketing. Your customers are geographically dispersed but are connected to each other via computer networks.
6. Reduction in cost
A business can reach out to a worldwide customer at a very low cost. Order processing cost is reduced, as the manual data entry is also reduced.
7. Lower freight cost
Companies can shorten their traditional supply chains, minimize transport obstacles and reduce delivery costs. These benefits are particularly pertinent for electronically based goods or digital goods.
8. Lower of cost of operation
E-commerce can do the job of exchange of transactions quickly and correctly with less number of employees resulting in reduction of staff expenses.
9. Lower Marketing Cost
You can select your target potential customers and place your advertisement with Google Ad sense. Your pay only when someone clicks on your advertisement and visits your website. The Pay-per-click model of advertising works great to acquire new customers.
Some of the e-commerce companies in developed countries like US, UK etc. have been very successful. Companies from emerging countries like India, China, and Brazil are also doing very well. Some of the e-commerce websites from these countries are among the top 1000 websites of the world reflecting the potential of e-commerce in emerging world.
10. Lower inventory Cost
As transaction time is reduced, inventory size is also reduced. Thus the carrying cost of inventory is also minimal.
11. Saves Time
An E-commerce transaction ensures fund transfer safely and quickly. Transaction time is reduced. It reduces delay in inter-exchange of goods and services.
12. Easy distribution process
Different information and services can be delivered to the customers through computers. This simplifies the distribution process of goods and services.
13. Availability of information
The individuals can avail access to varied information, such as – financial information, legal information, product reviews etc. from different portals. A larger number of genuine reviews are available in respect of the goods and services.
14. Convenience to customers
Online stores remains open 24 hours, it can take orders at any time and maintain feedback on the delivery of the goods and services and payment for the transaction.
15. Instant Communication
A large number of potential business enterprises and customers are quickly interconnected and they can establish business relationship though e-mail. It allows the message to traverse the world almost instantaneously.
16. Live Chat
Live chat allows live communication between the customer and the seller. Live Chat drives E-commerce sales.
17. Better Product Display
Unlike traditional shops, eCommerce websites offer better display of using three dimensional technologies. The products can be shown from different angles by revolving them in the internet. Some eCommerce stores display hundreds of thousands of products and the customer can get information for the selected product.
18. Elimination of the middlemen
Manufactures or wholesalers can establish direct link with consumers and hence no middlemen are required in such business transactions.