Benefits and Limitations of Ecommerce

Basic Benefits of eBusiness eCommerce o increase sales - this is the first thing that people consider when dealing w e-commerce o decreasing costs o increase profits o understanding that profits is not the same as sales o Expands the size of the market from regional to national or national to international o Contract the market o reach a narrow market o target market segmentation allows you to focus on a more select group of customers Decreasing costs o costs of creating the product o marketing o of promotional material o costs of distribution o eg. Netscape allowing you to download instead of waiting to get the CD by mail o costs of processing (orders from the customers) o repeat activities and information processing o of handling customer phone calls o of handling sales inquiries o determine product availability (inventory management) o costs of storing information o lowers telecommunication costs o and therefore have a competitive advantages in satisfy
Provide price quotes

- with a web site, you can have the prices listed, and change them - you simply edit the web page
- in a printed catalogue you are stuck with the expense of printing a new version if you need to change many of the prices .
Basic
Benefits of eBusiness eCommerce Other Benefits .... o Pull-type processing o enables customization of products o allows for innovative business models o allows for a high degree of specialization o reduces the time exposure o supports BPR - Business Process Reengineering o increases productivity o improves customer service (in some cases)
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A large component of business these days is dealing with other businesses (B2B) that supply parts and components since