Advantages Of E-Commerce
Here are some of the many advantages of E-Commerce
Lower transaction costs – if an e-commerce site is implemented well, the web can significantly lower both order-taking costs and customer service costs by automating processes.
More purchases per transaction – Amazon for example offers a feature that no normal store offers. When you read the description of a book, you also can see what other people who ordered this book also purchased. Features like these mean that it is common for people to buy more books than they might buy at a normal bookstore.
More customer information – A Web site that is well-integrated into the business cycle can offer customers more information than previously available. For example many companies allow customers to track their orders so that they can see exactly where their order is at any one time.
People can shop in different ways. Traditional mail order companies introduced the concept of shopping from the comfort of your home. e-commerce offers this same luxury, but with some new features. These include –
The ability to build an order over several days
The ability to configure products and see actual prices
The ability to easily build complicated custom orders
The ability to compare prices between multiple vendors easily
The ability to search large catalogs easily
Larger catalogs – A company can build a catalog on the web that would never fit in an ordinary postbox. For example the millions of books Amazon sells could not be realistically added to any physical catalog.
Improved customer interactions – With automated tools it is possible to interact with a customer in richer ways at virtually no cost. Many companies send the customer an email when the order is confirmed, when the order is shipped, and after the order arrives. This information is likely to reassure a customer, giving them increased faith in the process. A happy and reassured customer is more likely to purchase something else from the company in the future.
Here are some quick tips to bear in mind when thinking of engaging in e-commerce
Your prices – a big part of e-commerce is the fact that price comparisons are extremely easy for the consumer. Your price is very important in such a transparent market.
Customer relations – E-commerce offers a variety of different ways to relate to your customer. E-mails, FAQs, knowledge bases, forums, chat rooms etc. Integrating these features into your e-commerce offering helps you differentiate yourself from the competition.
Customer satisfaction – This can make or break any retail establishment. You must always be prepared to help your customers manually if there is no automated option. You may need to periodically refine your automated processes in order to remain time efficient.
In order to stimulate long term sales, you may also wish to consider these other capabilities of e-commerce.
Affiliate programs – you pay other companies to sell your products. This creates a win-win situation as you only pay when a sale is made. This can both raise your company’s sales, and its profile.