E-commerce or Electronic Commerce is the trading activity of buying and selling goods over the Internet or over online personal services. It is fast becoming a very popular way for businesses to make their product available to a wider audience. E-commerce can be defined as a combination of the terms e-marketing, electronic commerce, and electronic money transfer. This modernized trading system has many benefits and uses including reducing the cost of conducting business. Below are some of them:
Convenience: E-commerce offers a lot of convenience in terms of not having to stock a physical store. The overhead of a physical store and the rent that you need to pay are just too much. On the other hand, with an electronic commerce website, you can simply set up your own web page with your products and services available for sale. Thus, you will only need to spend on a domain name and web hosting.
Online Sales: Another benefit of e-commerce or electronic commerce is that it brings in more online sales. There are several methods on how a person can advertise and sell his products or services to people. However, the most effective and preferred way by which you can get more business online is by establishing an online store through an e-commerce website. In this case, you are merely displaying your product for sale on the web while earning from every sale that you get from these displays.
Better Customer Experience: A person does not want to go out again just to buy a product that he already purchased before from a brick and mortar store. If this happens then there is a better chance that a person will get fatigued and might eventually lose interest in purchasing things that he wanted to purchase in the first place. This would then translate to a loss in profit for an e-commerce business. Hence, better customer experience is a key takeaway here.
Convenience: E-commerce has made it possible for small businesses to be able to provide quick responses to their consumers. They do not have to wait too long or deal with too much hassle just to get their products to their customers. E-commerce websites such as Amazon offer a wide variety of digital products such as books, music, gadgets, clothes, shoes and many other consumer durables. All these items can be bought from the comforts of your homes. This means that consumers no longer have to rush out of their homes just to shop for these goods.
Ease of conducting business: One other major advantage of buying digital products over tangible ones is that e-commerce websites are very easy to conduct business. This is because everything is already available online. There is no need for you to go out of your homes to go and see a real retailer who is selling the exact same goods that you are interested in buying. Since all the transactions are online, the entire process is very convenient for both the buyers as well as sellers. Hence, ease of doing business is another major advantage of buying and selling through an online store.
Cost efficiency: E-commerce websites are also very cost-efficient. The entire process is quite automated, which reduces the amount of labor that you would require to do in order to run the business. This is why many small businesses prefer to buy goods and services online rather than having physical stores. Ease of doing business and reduced costs are some of the other key takeaway here.
Overall, the advantages of e-commerce are quite helpful for all the stakeholders in the industry. The consumers benefit from better quality products at lower prices, as well as reduced service costs and other associated factors. The sellers benefit from increased sales volumes and a better customer experience. Online stores provide convenience to buyers while allowing sellers to expand into different niches that they may not have been able to before. It is no wonder then that over 70% of the US population is currently indulging in some form of online commerce – and this number is only set to increase in time.