In: Categories » Business » Small business and online » Positive Influences of E commerce for Businesses
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Electronic Commerce or e-commerce is the exchange and processing of business transaction information using computers connected through a network. E-commerce does have unique advantages for businesses. It allows a shop, a showroom or an office to open 24 hours a day, seven days a week. It also means that time zones are not a problem. A Web site can bring a prospect from the point of advertising and information directly to the point of sale, seamlessly, without involving any other medium. E-commerce has reinvented the way businesses operate. E-commerce has also allowed the establishment of completely new types of businesses such as online shopping and Internet banking. These new ways of thinking, and processes involved in commerce, provide many benefits and advantages. E-commerce brings substantial net benefits to the economy. The real impact of e-commerce is its ability to reduce costs and prices and make doing business more efficient. The increased productivity will result from lower production costs, lower inventory holding costs and lower overall input costs to a business. These savings permeate through the entire value chain and impact significantly in business interactions with other businesses. The Internet is providing considerable opportunities for firms to streamline their business operations as well as offering greater choice and lower prices to customers shopping online or alternatively obtaining product information before making a store or catalogue purchase. A large number of enterprises have migrated to Internet-based systems for increased efficiencies, lower costs and the ability to operate in real time across different platforms. E-commerce is changing business economics and as a result many firms are re-engineering their core business processes. Suppliers and retailers are able to collaborate on product forecasts and product flow and inventory management decisions using the collaborative Internet-based networks between suppliers and retailers. In addition to reducing costs, e-commerce solutions permit customers to custom order products based on individual needs and preferences. Retailers are able to allow customers to mass customize orders based on virtually thousands of choices. Internet-based systems are more efficient in communicating customized product information to suppliers. The entire value chain makes better decisions collaboratively with the end result being vastly improved performance throughout the entire chain. The Net economy or digital economy will result in lower prices for consumers, better information access and increased competitiveness of small and mid-size businesses. It will also pave the way for a true global trading community.
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