E-Commerce - Advantages
E-Commerce advantages can be broadly classified in three major categories −
- Advantages to Organizations
- Advantages to Consumers
- Advantages to Society
Advantages to Organizations
Using e-commerce, organizations can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers, and suitable business partners across the globe.
E-commerce helps organizations to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.
E-commerce improves the brand image of the company.
E-commerce helps organization to provide better customer services.
E-commerce helps to simplify the business processes and makes them faster and efficient.
E-commerce reduces the paper work.
E-commerce increases the productivity of organizations. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way.
Advantages to Customers
It provides 24x7 support. Customers can enquire about a product or service and place orders anytime, anywhere from any location.
E-commerce application provides users with more options and quicker delivery of products.
E-commerce application provides users with more options to compare and select the cheaper and better options.
A customer can put review comments about a product and can see what others are buying, or see the review comments of other customers before making a final purchase.
E-commerce provides options of virtual auctions.
It provides readily available information. A customer can see the relevant detailed information within seconds, rather than waiting for days or weeks.
E-Commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers.
Advantages to Society
Customers need not travel to shop a product, thus less traffic on road and low air pollution.
E-commerce helps in reducing the cost of products, so less affluent people can also afford the products.
E-commerce has enabled rural areas to access services and products, which are otherwise not available to them.
E-commerce helps the government to deliver public services such as healthcare, education, social services at a reduced cost and in an improved manner.