THE REASONS FOR E-COMMERCE

THE REASONS FOR E-COMMERCE

In a very short time, the web has grown from being an academic experiment in hypertext to an important part of thousands of businesses worldwide. Businesses and consumers are attracted to e-commerce for many reasons. Three of the most important reasons are:

·         E-Commerce opens new markets.

·         E-Commerce increase efficiency.

·         E-Commerce expands the capabilities of traditional commerce.

Now will discuss the above three reasons in detail.

E-COMMERCE OPENS MARKETS

On the internet, merchants are able to sell goods without the substantial overhead costs and geographical limitations of a physical store. Even merchants will existing real-world stores are able to sell more goods to more consumers, such as those living in remote areas or simply outside of the merchants geographical coverage, if they have an e-commerce presence. With e-commerce, consumers can buy goods from a merchant without accessing the physical store.

E-COMMERCE INCREASE EFFICIENCY

Any barrier that stands between a business and its customers creates inefficiency. In the world of physical stores, some of the barriers include distance, business hours and the need for distributers and middlemen. E-commerce appeals to businesses because it allows them to have a more direct relationship with customers.

The reasons that e-commerce appeals to shoppers vary. The reasons can range from a physical handicap, to limited free time, to an aversion to real world shopping. E-commerce also gives shoppers the ability to easily compare prices and products. An additional bonus of online shopping is that purchases are often exempt from sales taxes. Any way you look at it, e-commerce is helping people introduce more efficiency into their lives.

E-COMMERCE EXPANDS THE CAPABILITIES OF TRADITIONAL COMMERCE

One of the finest examples of e-commerce today is Amazon.com the first major online bookstore. Amazone.com has been imitated and emulated repeatedly by other retail Web sites. Amazone.com provides something that real world bookstores generally cannot, an extremely deep inventory. This means that Amazone.com stocks not only the most popular books on a given subject, but also pretty much everything else in print on that subject.

Whereas a good real world bookstore has a fairly deep inventory and can order anything in print, access to this inventory and this service require physical proximity to a good bookstore, not something that we are all fortunate enough to have in our hometowns. Amazone.com solves this problem by bringing this capability to the Web. As a result of their success with book selling. Amazone.com has branched out and now sells music, videos, electronics and other products.