Companies are interested in E-Commerce simply because it can help increase sales and profits and decrease costs. Even a small firm that advertises well on the Web can get their message out to potential customers in every country in the world. E-Commerce has proven to have many benefits and advantages, therefore, explaining why so many businesses have turned to E-Commerce in the past few years.
According to Turban et al. (2002, p.17) E-Commerce plays a major role in global reach. It expands the marketplace to national and international markets. E-Commerce allows firms to now reach narrow market segments that are geographically scattered. People in third world countries are now able to enjoy products and services that were unavailable in the past. "These include opportunities to learn skilled professions or earn a college degree" (Turban et al. 2002, p.19). E-Commerce has also made it possible for people living in remote and rural areas to learn skills and earn degrees through distance education.
It is important to realise that not only does E-Commerce benefit the seller or the company, but also benefits the buyer or customer. One main benefit of E-Commerce is it is particularly useful in creating Virtual Communities that become ideal target markets for specific types of products and services (Schneider, 2003, p.14-15). Just as
E-Commerce increases sales opportunities for the seller, it increases purchasing opportunities for the buyer. With minimal capacity outlay, a business can use E-Commerce to easily and quickly identify the best suppliers, more customers and the most suitable business partners worldwide. By expanding the base of consumers and suppliers, enables an organisation to buy cheaper and sell more (Turban et al. 2002, p.17).
Many buyers choose to use E-Commerce because they are provided with a wider range of choices than traditional commerce. They can consider many different products and services from a wider variety of sellers (Schneider, 2003, p.15). E-Commerce frequently provides consumers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons. The fact that an E-Business is always open on the Web, allows consumers to shop or perform transactions all year round, 24 hours a day, from almost any location (Turban et al. 2002, p.18).
In May 2004, Auvi and Emerson, a company that designs, markets and licenses several electronic products, entered an OEM to grant Emerson exclusive rights to distribute Auvi's SA100 MP3 player through retail channels in the United States. The company focuses on building new technology and utilizing alternative avenues for selling its products. Auvi concentrates on supplying technology through the e-commerce door (Amour, 2004).
E-Commerce benefits a buyer by allowing them to locate relevant and detailed product information in seconds, rather than days or weeks. Some of the benefits that E-Commerce provides to the seller or a company are:
Cost reduction: E-Commerce decreases the cost of creating, processing, distributing, storing and retrieving paper-based information. High printing and mailing costs are lowered or eliminated.
Customisation: The pull-type production or built-to-order, allows for inexpensive customisation of products and services and provides a competitive advantage for companies who implement this strategy.
Up-to-date company material: Any material on the Web, such as prices in catalogs can be correct up to the minute. Company information can always be current.
These are just some of the benefits and advantages of E-Commerce. It is important to realise that not only does E-Commerce provide benefits to an organisation, but also to consumers and society in general. E-Commerce has truly made one of the largest impacts on today's economy and will continue to do so.
===Reference List:===
1. Amour, A. (2004, September 10). Auvi Technology enters second original equip. manufacturing agreement. St Charles County Business Record, retrieved from Proquest Database on October 28, 2004.
2. Schneider, G.P. 2003. Electronic Commerce. 4th Ed. Canada: Thomson Course Technology. ISBN 0619159553.
3. Turban, E. King, D. Lee, J. and D. Viehland. 2002. Electronic Commerce: A Managerial Perspective. 3rd Ed. USA: Prentice Hall. ISBN 0131230158.
4. University of Idaho. 2004 Distance Education At A Glance. http://www.uidaho.edu/eo/distglan.html (accessed October 26, 2004).
5. WIKIPEDIA: The Free Encyclopedia. 2004. www.wikipedia.org (accessed October 2, 2004).
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Melanie Mackrodt 11:28, 28 Oct 2004 (EST)
