E Commerce benefits both the Organization as well as the Customer. Organizations need to keep finding new markets and new customers to ensure they grow. This means covering new geographical territories.
Engaging new customers requires efforts in carrying out the pre sale process. When it comes to managing huge volumes of transactions, as well as with limitations in the traditional selling methods, the sales processes gets tougher. Humanly it becomes difficult to provide quality pre sales and marketing services to a huge market and court potential customers effectively. In case of E Business the concept of geographical boundaries as well as availability of information have no limitations. Understanding these dynamics, the service sector businesses like airlines, travel, real estate, finance, insurance etc have quickly moved to E Commerce platform and benefited from the use of technology.
the term “e commerce” or “online shopping” to describe the process of searching for and selecting products in online catalogs and then “checking out” using a credit card and encrypted payment processing. Internet sales are increasing rapidly as consumers take advantage of
- lower prices offered by vendors operating with less margin than a bricks and mortar store
- greater convenience of having a product delivered rather than the cost of time and transport and parking of going to a store
- sourcing product more cheaply from overseas vendors
- great variety and inventory offered by online stores
Benefits of E-Commerce
E-commerce can provide the following benefits over non-electronic commerce:
- Reduced costs by reducing labor, reduced paper work, reduced errors in keying in data, reduce post costs
- Reduced time. Shorter lead times for payment and return on investment in advertising, faster delivery of product
- Flexibility with efficiency. The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.
- Improve relationships with trading partners. Improved communication between trading partners leads to enhanced long-term relationships.
- Lock in Customers. The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.
- New Markets. The Internet has the potential to expand your business into wider geographical locations.