ECommerce Benefits to the Organization

E-Commerce or Electronic Commerce is all about sharing business information, maintaining business relations and conducting business transactions by means of telecommunications. Typically, E-commerce is divided into different categories such as business to business (B2B), business to consumer (B2C), consumer to consumer (C2C), Consumer-to-business (C2B), Non-business EC and Intrabusiness (organizational) EC. With the introduction of internet, the world of e-commerce got revolutionized and the traditional e-commerce moved towards using internet. Some of the benefits that it offers to any organization arte listed down below.


E-Commerce: Benefits to the Organization

  • It expands the markets to national and international markets spending minimal capital. Through it, the company can easily locate customers, suppliers and suitable business partners.
  • It lessens the cost of creating, processing, storing, distributing and retrieving paper based information. Due to it, the companies were able to cut off about 85 percent of their administrative costs.
  • It has enabled the creation of specialized businesses. Now you can log on to the socialized shops rather than go the general store where all the things are available. For example, for cat stuff, you can find something like an online cat store.
  • It helps to reduce inventories and overhead by facilitating a ‘pull’ type supply chain.  In this system the manufacturing starts with the customer orders. It enables the customization of products and services offering competitive advantage to its implementers.
  • It reduces the time taken between the expenditure of capital and the receipt of products and services.
  • Internet commerce reduces the telecommunication cost as the internet is much cheaper; it also minimizes the requirement of extra value added networks.  Even internet is much more accessible than the telecommunications network.
  • It can bring about various changes in the process, productivity of the sales people, workers and administrators.
  • Other benefits include an improved image, new business partners, improved customer service, less delivery time, simplified process, increased productivity, reduced paper work, access to information, reduced transportation costs and increased flexibility.

Looking at the benefits that the e-commerce offers to the organization, we can concur that it has an immense potential to revolutionize the way businesses work.


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