Question- Discuss the benefits of E-Commerce to (a) Organisation (b) Conusmers (c) Society

Related Short Answer Questions
Explain the Benefits of E-commerce to Organization.

Ans.  

Benefits of E-commerce to organization

These are as under-

1. Highly Economic for Business Organization : E-commerce is highly economical. Unlike the brick and mortar environment, in e-commerce there is no rental of physical store space, insurance, or infrastructure investment. Doing e-business on the Internet is extremely cost effective; it reduces logistical problems and puts a small business on a par with giants. Every financial transactions eventually turns into an electronic process. The sooner it makes the conversion, the more cost-effective the transaction becomes.

2. Helps people to work together : E-commerce helps people in team work. E-mail is one example, of how people collaborate to exchange information and work on solutions.

3. Greater profit margin : E-commerce provides greater profit margins. Along with higher margins, business can gain more control and flexibility and are able to save time when manual transactions are done electronically.

4. Knowledge markers : E-commerce helps in creating knowledge markets. Small groups inside big firms can be funded with seed money to develop new ideas.

5. Customization : Digital products are highly customizable. They are easy to reorganize, revise, or edit. With information about consumer tastes and preferences products can be differentiated and matched to individual needs.

6. Secrecy : E-Commerce devices have in built security measures. Password, encoding encryptography, cipher etc., are some of mechanism- measures which provides security and prevent unauthorized access and use of data.

7. Gain in Productivity : E-Commerce means productivity gains. Weaving the Web throughout an organization means improved productivity.

8. Swapping goods and services: Offering goods and service through barter is gaining in popularity through sites like WebSwape, Barter Trust.com, and Ubarter.

9. Quick Shopping : E-Commerce helps consumers to comparison shop. Automated online shopping assistant called hopbots scour. Net stores and find deals in everything from applesauce to printer ribbons.

10. Better Customer Services : E-Commerce emphasizes better and quicker customer services. Web-based customer service makes customers happier. The Web merchant gives customer direct access to their personal accounts over the Web. It saves time and money.

11. Other Benefits : Some other benefits of E-commerce to organization are as under-

(i) Reduced time to complete business transactions, particularly from delivery to payment.

(ii) Faster time to market as business processes are linked, enabling seamless processing and eliminating time delays.

(iii) Creation of new markets through the ability to easily and cheaply reach potential customers.

(iv) Optimization of resource selection as businesses form cooperative teams to increase the chances of economic successes.

(v) Reduced inventories and reduction of risk of obsolete inventories as the demand for goods and services is electronically linked.

(vi) Ability to undertake major global programs in which the cost and personnel needed to manage a non-automated system.

(vii) Reduced use of ecologically damaging materials through electronic coordination of activities and the movement of information.

(viii) More opportunity for niche marketing.
(ix) Equal access to markets.
(x) Access to new markets.

(xi) Customer involvement in product and service innovation.

(xii) Improved market intelligence and strategic planning.

(xiii) Reduced costs to suppliers by electronically accessing on-line databases of bid opportunities.

(xiv) Better quality of goods as specifications are standardized and competition is increased and improved veriety of goods through expanded markets.

(xv) Reduced errors, times and overhead costs in information processing.

(xvi) Easier entry into new markets.

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