The notion of electronic commerce is steadily becoming the most preferred way of conducting business for both merchants and consumers. This is because the world is becoming an electronically connected global village. Almost all types of businesses can now be conducted over the internet in an effort to increase the number of hours in a workday. When you conduct business over the internet, you do not have to waste time sitting in traffic waiting to go line up at the bank just to make a deposit or pay your suppliers. This is one of the many advantages of ecommerce.
Other advantages include the ability to conduct business with markets that would be impossible geographically without spending so much money. Businesses can expand their market simply by creating a website and marketing their business from there. This eventually reduces the amount of money that would have been used to expand that business in different parts of the world in terms of processing and distributing information on paper. Reduction of paperwork also reduces high printing and mailing costs as most transaction receipts are in form of electronic mails. Therefore, the biggest advantage of using the internet for businesses is reduced costs.
Increase in Sales
Another great advantage of electronic commerce is increased sales due to increased marketing. This happens because the cost of marketing is reduced right down to creating a good website and marketing at no extra cost. With better marketing come better sales and therefore increased profits. In addition to that, businesses can focus their marketing to their target market group as opposed to marketing to everybody when only a small percentage will eventually be converted to sales.
Another advantage of electronic commerce is the eradication of trade barriers such as distance, time and cost. Instead of making phone calls, emails have become more common and internet chat services such as googletalk and yahoo messenger have taken precedence. These allow for easier communication in real time ensuring that all businesses are conducted immediately.
Advantages for Buyers
Buyers also find use of an online shopping cart more convenient for them because they can do all their shopping on the internet and make their payments there. The online market has an unlimited variety of goods and services from many different suppliers. This allows buyers to buy whatever they want from whomever they want and at whatever time of day or night. With so many online payment options available, the internet has become one large shopping mall with everything that consumers might need. In addition to that, they have the ability to window-shop for as long as they want and at no extra cost.