Benefits of E-Commerce on the Internet

1257 Words3 Pages
bulb-icon

Recommended: Role of e commerce in a global economy

The internet has been a major contributing factor to the emergence of E-commerce; it has also been the most used platform for the dissemination of virtual goods. Companies are able to use E-commerce to enter new markets that would have otherwise been excluded due to geographical locations and cost. E-commerce has made it possible for companies to extend their products to new sets of customers and new parts of the world. It also means that shopping and customer support for most are now 24 hours due to 24 hour call centers, automated services and 24 hour live help by using interactive chat sessions on the internet “Managerial Issues for expanding Web-based Electronic Commerce.” By engaging in E-commerce companies can lower cost by using an online channel. E-commerce can also reduce cost associated with paper based processes such as postage and printing. It also helps build customer relationships by giving customers faster and more responsive services. Another important factor for using E-commerce is that it allows ability to compete and survive in the emerging digital economy when it comes to the global economy (Tapping the power of commerce, 1999 ) ADVANTAGES AND LIMITATIONS OF E-BUSINESS:Advantages and Limitations of E-Business Advantages: - Plans for improving its business, products, services. - It creates awareness in the society for understanding the technology - Access to global market and information. - Global reach - Better decision making - Ubiquity - Cost effectiveness and increased productivity - Quicker and easier communications - Strengthened marketing capabilities and reach - Access to broader information through research - Information density - Reduces asymmetry - Reducing the cost of doing business by lowering tr... ... middle of paper ... ...ts or loans. The use of e-commerce allows businesses to better serve customers by being able to make information such forms for pre-qualifications for credit cards and other financial documents available online. When organizations go online, they have to decide which e-business model best suit their goals. A business model is defined as the organization of product, service and information flows, and the sources of revenues and benefits for suppliers and customers . The concept of e-business model is the same but used in the online presence. The following is a list of the currently most adopted e-business models such as: - E – shops - E – commerce - E – procurement - E – mails - E – auctions - Virtual communities - Collaboration platforms - Third-party market places - Value-chain integrators - Value-chain service providers - Information brokerage - Telecommunication

Show More
Related

  • Analysis of Amazon.com

    2511 Words  | 6 Pages

    Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...

    Read More

  • Fedex Macroenvironment Study

    1556 Words  | 4 Pages

    The internet and World Wide Web are extremely well suited for conducting business electronically on a global basic, Web-based Electronic Commerce(EC) has introduced unprecedented opportunities for the marketing of products and services, accompanied by features, functionality and innovative methods to serve and support consumers. E-commerce has became a major catalyst of the economy and remains a vital growth engine for businesses today, It successful change the consumer behavior. Consumer purchases over the Internet continue to grow from year to year. The survey involving interviews with 42,238 people in 37 countries worldwide revealed that almost a quarter of internet users have shopped online and 15% plan to do so during the next six month. This represents an opportunity for FedEx as a provider of small-package delivery service.

    Read More

  • A Business Model Analysis of Eli Lilly and Company

    2081 Words  | 5 Pages

    Zott, C., Amit, R. And Massa, L. (2011) ‘The Business Model: Recent Developments and Future Research’, Journal of Management, vol.37, no.4 pp.1019-42 [Online]. Available at http://jom.sagepub.com/content/37/4/1019 [Accessed 24th November 2013]

    Read More

  • Critical Appraisal Of Amazon.Com Current E-Business Strategy And Activities

    1477 Words  | 3 Pages

    According to the definition of Whatis.com "E-business (electronic business), derived from such terms as "e-mail" and "e-commerce," is the conduct of business on the Internet, not only buying and selling but also servicing customers and collaborating with business partners."[1]

    Read More

  • Safaricom Kenya Limited Communication Company

    1732 Words  | 4 Pages

    Shafer, S. M., Smith, H. J., & Linder, J. C. (2005). The power of business models. Business

    Read More

  • Traditional Organization and Learning Organization

    955 Words  | 2 Pages

    When the buzzword of business model was very active and reactive during the internet boom, many individuals did not understand the concept of the proper business model for the proper business (Magretta, 2002). When not utilizing the right type of model for the organization, the model will be misused and distorted (Magretta, 2002). Understanding the traditional organization and learning organization, will allow an organization to determine which time of organization they desire the most.

    Read More

  • The Impact of Technology on Business

    1185 Words  | 3 Pages

    E-commerce, a system by which people can buy, sell and deal without even seeing the person on the other side, has taken a front seat in improving the economy of countries around the world. Technology today has made it possible for monetary institutions to help locate the customers resources and help solve their problems at any given time through online banking.... ... middle of paper ... ...

    Read More

  • Technology And World Commerce

    1554 Words  | 4 Pages

    One of the fundamental factors that has affected the process of economic globalization is the improvements in the technology of transportation and communications. This has reduced the costs of transporting goods, services, and factors of production and of communicating economically useful knowledge and technology. There is no doubt that advances in information and communications technology are the most important technological advances of the past quarter century (Mussa, 2000). By far, the most important and business altering advancement is the internet. There is evidence everywhere that the internet has greatly affected international trade. The internet has opened up the world, and brought it right into everyone's home and business. In addition, technology and the internet have greatly reduced the costs of doing business. Even the smallest operation can now go global via the internet at almost no cost. However, there are still some problems that face these e-commerce activities. These problems are shot-term challenges and can be met. The key issues center around two areas:

    Read More

  • Priceline.Com

    1889 Words  | 4 Pages

    Business models are possibly the most discussed and least understood facet of the web. Brokerage models, such as Priceline.com are market makers: they bring buyers and sellers together to facilitate transactions. Priceline.com leads the way to a unique new type of e-commerce known as a "demand collection system". Priceline.com is the world's first online buying service through which consumers name the price they're willing to pay. Leveraging the unique attributes of the Internet, Priceline.com finds sellers willing to meet buyers' needs and price.

    Read More

  • How the Internet Has Changed our Shopping Habits

    3113 Words  | 7 Pages

    The Internet is rapidly becoming widespread and widely used as a tool for globalization across the world. As the Internet became more easily accessible by most people in the world, the web is bringing significant implications and changes to the way we live, including the way we shop. There is a rapid growth with e-commerce and moving businesses onto the web and retail success is no longer about stores and shopping centers. In developed countries, about two thirds of the population have access to the Internet making the option of online shopping is easily accessible to most people (Valerio). With the ease of shopping in your own home there are many benefits of doing your shopping online. Consumers can easily compare prices online, there is a larger range of products on the web, you can save time by having your shopping delivered right to your doorstep and it also overcomes physical barriers. Over the last decade online shopping has challenged and replaced the traditional means of physically going into shops as the digital world has provided customers with further convenience, flexibility and comfort from shopping from your own home.

    Read More

  • The Advantages and Risks of Online Shopping

    1027 Words  | 3 Pages

    The Information revolution is changing our daily lives. With the rapid development of computers and the internet, online commerce has become quite common and plays an important role in the modern world. Online business has been booming in recent years. US online retail sales rose an average of 11% in the first three months of 2009 (“US Online Sales Up,” 2009). The growth of online sales may be due to the growing number of consumers who shop online.

    Read More

  • E-Commerce Essay

    1274 Words  | 3 Pages

    Electronic Commerce as popularly as E-commerce has become a big deal in our growing economy due to the increase use of online systems. E-commerce now of the fastest growing business in the world. The technology has change the way of business. Business that have physical location have now made it an effort to focus their online business. It is the new sort of business platform where you can make use of different technologies like electronic data interchange or transfer document electronically. Online business is an effective of sales.

    Read More

  • The Impact Of E-Business

    1822 Words  | 4 Pages

    According to the author, e-business is conducting business on the internet by not only buying and selling goods, but also servicing clients and collaborating with business partners by using all the human technologies.

    Read More

  • E-Business Architecture

    1853 Words  | 4 Pages

    What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.

    Read More

  • E-Commerce Makes Life Better !

    1570 Words  | 4 Pages

    E-commerce means that the company runs their business online, not like the traditional business way. We have to go the shopping mall or store to get goods that we need, E-Business is the enabling of electronic communication between any two or more participants in a business relationship. It helps companies capture abroad business field, cost saving, and market opportunity. E-commerce is an important factor that is making people’s lives more efficient.

    Read More

More about Benefits of E-Commerce on the Internet

Open Document