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What are the Advantages of Ecommerce?

Article Details
  • Written By: Felicia Dye
  • Edited By: Heather Bailey
  • Last Modified Date: 08 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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Ecommerce is a shortened way to say electronic commerce. Doing business this way can be a benefit to both merchants and consumers. Advantages of ecommerce include convenience, expanded consumer bases, and cost reduction.

Being the owner of a physical business can be as inconvenient as it is to be a customer of this type of business. Owners of physical businesses are usually required to do a great deal of work before their site is even suitable to serve customers. This work can include finding a location, developing a design for the site, and being present to make sure the work is completed satisfactorily. Once the business site is completed, an owner often has to travel to and from that place to ensure that operations are running smoothly.

One of the advantages of ecommerce is that it eliminates this element of doing business. Since operations are conducted mostly online, the owner does not have to deal with any issues that surround choosing or maintaining a location to service her customers. This can save a great deal of time and decrease her workload substantially.

Operating online instead of from a physical location can also be beneficial for customers. One of the consumer advantages of ecommerce is that customers do not have to be burdened with travel or business hours. People often prolong transactions because conducting them is not convenient. Ecommerce allows people to make purchases and utilize services according to their schedules instead of the schedule of the business.

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Savings is another of the prime advantages of ecommerce. This also applies to both the business owner and the consumer. An ecommerce business owner is spared many overhead costs. These generally include rent for business space, various insurance fees, and wages or salaries. The savings can generally be passed on to consumers. In many cases, consumers recognize this and become repeat customers with higher spending averages.

Starting a business can require a substantial amount of money depending on the type of business. Ecommerce generally opens opportunities to a wider range of people. Savings on overhead greatly contributes to this. In some cases, merchants never stock the items they sell. Instead, they can set up a storefront, process purchases, and allow a distant warehouse to handle inventory and shipping.

Ecommerce can also expose a business to a wider consumer base. It is unlikely that many people will travel from one country to another to purchase a desired item at a store. Internet businesses provide an easy solution where consumers do not have to consider this nor do they have to deny themselves items or services that can be conveniently delivered.

Another of the advantages of ecommerce, which is often understated, is automation. Live transactions can involve a lot of people doing a lot of manual work. Internet businesses are often linked to systems that make these tasks much easier. Money handling, for example, becomes much easier, because funds are dealt with quickly and electronically. Even a task that can be tedious, such as record maintenance and accounting, can be greatly simplified.

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