Electronic Commerce Explained 101

For companies that produce goods or services, electronic commerce, through the establishment of e-commerce web pages, represents the opportunity to develop a new sales channel. This has already happened within the past thanks to the combination of opportunities provided by technology and organizational solutions depending on the availability of the sales force and money.

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

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

Electronic commerce implies that the company should start to think in terms of global trade policies. The prices on internet sites and promotional offers are visible on the net to customers in each country.

If this sort of globalization becomes too frightening, it's possible to fall back on Web sites dedicated to specific markets, in local languages, but a qualified customer would notice any variations within the offers on the different web sites online.

E-commerce Sites are an opportunity for SMEs

It must be underlined that this new adverting channel has lower costs than existing ones, and especially it really is able to cope with growing volumes of contacts without the need 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 in the business market you don't must have vendors, branches or shops, except what is strictly necessary to maintain physical contact with customers. The development 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 effortlessly transportable (ie, parcels, or packages), it shall be almost irrelevant to buy them from your country or perhaps a distant country dealer. In fact these kinds of products may be sent quickly real-time via the network, in the case of digital products, or within 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 and services. Since we can simply buy English books in discounted international web pages, why should we waste time to sort through a library locally, where they cost more and not be available until much later.

E-commerce Websites cancel the distance between firms tech and finance markets

Many businesses, throughout the E-commerce web 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. Several of the savings are retained through the company, with obvious profit advantages, as well as other savings can be transferred to the market in terms of selling price reduction.