How Google Is Changing How We Approach Ecommerce

For companies that produce goods or services, electronic commerce, over the creation of e-commerce websites, represents the chance to produce a new sales channel. This has already happened in the past as a result of the combination of opportunities provided by technology and organizational solutions in accordance with the availability of the sales force and money.

This new electronic channel has two exclusive features in respect to the previous channel:

It is global, and may also reach potential customers who are anywhere in the world.
It has relatively low development costs which is therefore also accessible to smaller businesses.

Electronic commerce implies that the company should begin to think with regard to global trade policies. The prices on internet sites and promotional offers are visible on the internet to customers in each country.

If this kind of globalization becomes too frightening, it is possible to fall back on Web sites dedicated to specific markets, in local languages, but a qualified customer would notice any differences in the offers on the different websites online.

E-commerce Websites are the chance for SMEs

It has to be underlined that this new adverting channel has lower costs than existing ones, analytical background and especially it is able to cope with growing volumes of contacts without having to increase advertising spaces or staff.

The low cost investment required to develop this channel is a great opportunity for the small to medium sized companies to compete with bigger ones. To enter within the business market you don't must have vendors, branches or shops, except what is strictly essential to maintain physical contact with customers. The creation of electronic commerce will eliminate protective barriers represented within the past by geographical distance.

E-commerce enhances the business intelligence

In the event the products are either digital or easily transportable (ie, parcels, or packages), it's going to be almost irrelevant to buy them from your country or possibly a distant country dealer. In fact these products may be sent effortlessly real-time via the network, in the matter of digital products, or in a few hours via shipping companies when it comes to physical products.

The dismantling of these barriers will emphasize the importance of business intelligence and creativity in promoting their very own products or services. Since we may very well buy English books in discounted international websites, why should we waste time for you to sort by way of a library locally, where they cost more and not be available until much later.

E-commerce Web sites cancel the distance between firms and markets

Many businesses, through the E-commerce sites, may set up a direct channel with their end-customers. It bypasses the traditional distribution chain and tries to grab a portion of the product's value that was previously left to intermediaries downstream.

Direct contact with end customers can significantly reduce the expenses of product's marketing. Some of the savings are retained through the company, with obvious profit advantages, as well as other savings can be transferred to the market when it comes to selling price reduction.