Benefits of E-Commerce

e-Commerce Benefits for Businesses

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Electronic Commerce

01/30/2011

e-Commerce Benefits for Businesses

The Internet has changed the way we do business and has open a door of opportunities that offers great benefits to busineses and at the same increase customer satisfaction. “E Commerce is one of the most important facets of the Internet to have emerged in the recent times” (“Benefits,” 2007, para. 1). Some of the advantages of e-commerce a business can benefit include a more cost effective way to do business, reach potential customers worldwide and increase sales.

Worldwide Customer Base

An e-business has the opportunity to reach potential customers all over the world. E-Commerce gives a business competive advantage because it removes distance and time limitations. A retail store at the mall is limited to do business only with customers that shop at that specific location and can only open its doors for specific times. On the other hand an e-business overcomes these barriers. An online store is open 24/7 and is set up in a way that extends to even remote parts of the world.

Cost Effective

Another great advantage a business can benefit from when using the internet is cost reduction. First, the initial investment for starting a business online is only a fraction of what it would cost to open a local business. Also the cost of running an online business is much lower then the cost involved when operating a regular store. Because there is no need for a face to face interaction the cost of sale is cheaper.

Also marketing can be substantially cheaper for an online business. “Online advertising is not only more efficient, but it is often less expensive than traditional advertising” (“E-Business,” 2011, para. 2). Strategic advertising can reach potential customers from any part of the world. Online busineses today are focusing on specific customer segments by targeting virtual communities for even a more effective way to reach...