Advantages of e-commerce
The advantages of e-commerce for business entities can be summarized thus: e-commerce can increase sales and decrease costs. A firm can use e-commerce to reach narrow market segments that are widely scattered geographically. The internet and the web are particularly useful in creating virtual communities that become ideal target markets. A virtual community is a gathering of people who share a common interest, but, instead of this gathering occurring in the physical world, it takes place on the internet.
Just as e-commerce increases sales opportunities for the seller, it increases purchasing opportunities for the buyer. Businesses can use e-commerce in their purchasing processes to identify new suppliers and business partners. Negotiating price and delivery terms is easier in e-commerce, because the web can provide competitive bid information very efficiently. e-Commerce increases the speed and accuracy with which businesses can exchange information, which reduces costs on both sides of transactions.
e-Commerce provides buyers with a wider range of choices than traditional commerce, because they can consider many different products and services from a wider variety of sellers. The benefits of e-commerce also extend to the general welfare of society. Electronic payments of tax refunds, public retirement, and welfare support cost less to issue and arrive securely and quickly when transmitted via the Internet. Furthermore, electronic payments can be easier to audit and monitor than payments made by check, which can help protect against fraud and theft losses. e-Commerce can make products and services available in remote areas. For example, distance education is making it possible for people to learn skills and earn degrees no matter where they live or what hours of the day they have available for study.
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