Benefits of Ecommerce to Online Business Owners
We have many benefits of ecommerce, especially when it comes to technological advancement in the business world.
These benefits of ecommerce have grown thousands of businesses around the world.
Do you want to know why these online businesses are flourishing?
We have a lot to tell you about the ecommerce niche.
Inter-Organizational Information System (IOS)
This is an integrated system containing various business partners. An example of IOS is a company and its supplier and customers.
IOS helps traders arrange better transaction techniques. Information is exchanged over a communication network using specific formats.
There is no need for telephone calls, papers, documents, or correspondence. These are some of the benefits of ecommerce.
There are different types of IOS which are:
– EDI (Electronic Data Interchange): It provides secure B2B connection over a value-added network(Van’s)
– Extranet: This provides a secure B2B connection over the internet.
– EFT (Electronic Fund Transfer): Electronic Fund Transfer from one account to another.
– Electronic Forms: Online (web-pages) forms on the internet.
– Shared DataBase: information stored in repositories (collection of data) shared by trading partners
– Supply Chain Management: Co-operation between the company and its suppliers and customers regarding demand forecasting, inventory management, and order fulfillment.
Benefits of ecommerce
The benefits of ecommerce to businesses are as follows;
• It simplifies the market into a national and international market with minimal capital outlay, thereby making it easy for companies to grow fast.
• It reduces drastically the cost of creating, retrieving paper-based information, storing, distributing, processing, and many more.
• It can create highly specialized businesses.
• Some of the benefits of ecommerce let inventories and overhead to be reduced by enabling “pull” type supply chain management.
• Expensive custom-made products and services that give a competitive edge to its users is enabled by this pull-type processing.
• The time between capital spending and the receipt of products and services is reduced by electronic commerce.
• Business processes reorganizing of projects is originated by electronic commerce by changing processes, knowledge of workers, the productivity of salesmen, and administrators.
• Telecommunication cost is reduced by electronic commerce because the internet is way cheaper than value-added networks.
• Other benefits of ecommerce include; better customer service, improved image, new better business partners, easy to follow processes, compacted cycle, and delivery time.
Benefits of ecommerce to Consumers
The benefits of ecommerce to consumers are as follows;
• It enables customers to shop or perform other transactions all day, all year round from any location.
• It makes available more choices for the customer, which means they can select any vendor, and from many more products listed.
• It makes available less expensive products and services by allowing customers to shop in plenty of places enabling quick comparisons.
• E-commerce permits quick delivery in some cases, especially with digital products.
• Relevant and detailed information is received in seconds by customers instead of delays extending to days and weeks.
• Virtual auctions are made possible by electronic commerce.
• Electronic commerce permits interaction between customers in electronic communities, exchange ideas, and also compare experiences.
• Electronic commerce eases competition, which leads to substantial discounts
The benefits of ecommerce to the Society
The benefits of ecommerce to the society are;
• It enables working from home, reduces transportation to shops, and eliminates traffic on roads as well as lower air pollution.
• It enables some merchandise to be sold at the lowest prices so that are not wealthy can buy more and increase their standard of living.
• It enables people living in rural areas and in third world countries to access and make use of products and services that are not available to them.
• It fast tracks delivery of public services, which include health care, education, and distribution of government social services at a reduced cost and sometimes improved quality.
The Limitations of E-Commerce
Limitations of electronic commerce can be grouped into two categories;
• Technical limitations and
• Non-technical limitations
Technical Limitations of E-Commerce
The technical limitations of E-Commerce are;
• There isn’t sufficient stem security, reliability, poor communication protocols, and standards.
• The telecommunication bandwidth is not adequate.
• The internet and electronic commerce software is not easy to incorporate with preexisting application software and databases.
• Some hardware may not synchronize with electronic commerce software may not be compatible with some operating systems.
• Proper planning can reduce the impact of these limitations as time passes or even overcome them.