Benefits of electronic/web commerce to the 21st century marketers
https://www.blogger.com/blog/post/edit/1991252217317526875/8522859121534291799
Electronic commerce increases the speed, accuracy, and efficiency of a business, and personal transactions. This time around business-to-business electronic commerce (for example EDI) is already been used for cutting costs related to the purchasing process. Commerce over the internet is relatively inexpensive, even at the high end. Carrier for example TCG (Staten Island in New York) produces TI speed low in concentration internet access for about $4000 per month or less. Though this is cheaper than the rent a store owner has to pay for (prime) physical real estate, at the same time, it has a much broader reach. The real benefits of electronic commerce are as follows:
× Reduced cost to buyers from increased competition in procurement, as more suppliers can compete in an electronically open marketplace.
× Reduced errors, time, and overhead costs in information processing by eliminating requirements for re-entering data.
× It reduces inventories, as the demand for goods and services are electronically linked through just-in-time inventory and integrated manufacturing techniques.
× It also reduces costs to suppliers by electronically assessing online databases of bid opportunities by online abilities to submit big, and by online review of awards.
× It increased access to real-time inventory information, faster fulfillment of orders, and lower costs due to the elimination of paperwork.
× It will reduce the time to complete business transactions, specifically reducing the time from payment delivery.
× Electronic commerce reduces overhead costs through uniformity, automation, and integration of management processes that enable flatter, wider, and more efficient processes.
× Better quality of goods as specifications are standardized and competition increases, also, as better variety through expanded markets and the ability to produce customized goods.
× Ability to create new markets so that it can easily and cheaply reach potential customers.
× To enter into new markets is very easy, especially in geographically remote markets, as the playing field becomes more even between companies of different sizes and locations.
× Faster time to market as business processes are linked, eliminating time delays between steps and the engineering processes.
× Opportunities for new business, Businesses, and entrepreneurs are continually on the lookout for new and innovative ideas as viable commercial ventures; electronic commerce provides that kind of opportunity.
× Optimization of resources selection as businesses build cooperative teams to better tailor capacities, to work opportunities, to increase chances of success, to share economic successes more broadly, and to give the customers mixed capacities more precisely meeting the customers' requirements.
× E-commerce will allow the marketers to have more access to a client base, identifying and locating new clients and new markets which is not a trivial task since it involves analysis, product marketing, and consumer base testing, electronic commerce can alleviate the challenge.
× It also improves product analysis as businesses can perform product analysis and comparison and report their findings on the internet and online.
× Improved market analysis. The large and increasing base of internet users can be targeted for the distribution of surveys for an analysis of the marketability of a new product or service idea. Surveys can reach many people with minimal effort on the part of the surveyors. Once a product is already marketed, the business can examine the levels of customer satisfaction.
× Much access to assistance and advice from experts and peers. However, users can utilize the internet to obtain expert advice and get help.
× Constant interpersonal communications, contact others through e-mail has both the speed of telephone conversations and the semi-performance of regular mail can be sent from anywhere there is an internet service or (dia-up) access. Business people in a moment can keep in touch with the office.
× Wide spread of information and documents place on servers on the internet and it can be accessible to millions of users. This creates web documents and websites that improve the availability of the documents to a client base larger than the circulations of many major newspapers.
× Cost-effective document transfer, sending online documents over the internet takes a short period, particularly if they are text-based. This can save money on regular mail or courier services. Internet access providers do not charge by the raw numbers of bytes transferred across the links, unlike other commercial information services.
In a nutshell, the vital advantages of electronic commerce for participating business organizations are the ability to streamline and automate the purchase order while they are online, thus minimizing the
company's costs associated with handling sales orders. The order methods of retail electronic commerce will also be advantageous to a service provider by reducing transaction costs.
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