Question- Explain the myths and realities of E-commerce?

Ans.

Myths and realities of E-commerce

There are as under:

1. Low Prices are the Most Important Thing : In a different kind of a world, and it is the imperfections that allows for e-commerce business owners to find a competitive edge.

There is plenty of consumer research showing price is not the most important factor in a purchasing decision. To be a low-price leader a business generally has to have massive buying power. The edge for any business comes in the form of customer services.

2. No Business Plan Necessary : The big myths is that online E- Commerce businesses are somehow different than traditional businesses. Asaid form the lack of physical presence in the real world, there is little difference. A business is a business. A business plan is the blueprint of the business and writing one is the first step in creating new E-Commerce business. Business plans address aspects of the business.

3. Intermediaries are out : Intermediaries are the traditional organisations that deliver products to the retailer. Despite the interface between consumers and merchants who deliver products directly to t consumer, new intermediaries have surfaced on the web.

4. Customers can be bought : Customers bought with price promotions and giveaways are rarely loyal customers.

5. Online firms face less pressure to grow and achieve economies of scale : Economies of scale remain crucial for even the web business models. Scale is important in businesses that carry physical inventory.

6. Size is not that important for online firms : To a first time visitor, a small website is no different than that of a major seller. Yet size is critical to online firms as it pays off in brand awareness and allows the firm to cake advantage of lower costs.

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