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E-Commerce: Doing Business on the Internet - page 32 / 47





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Advantages of E-Commerce: Summary

Electronic commerce can increase sales and decrease costs.

Web advertising reaches a large amount of potential customers throughout the world. The Web creates virtual communities for specific products or services.

A business can reduce its costs by using electronic commerce in its sales support and order-taking processes.

Electronic commerce increases sale opportunities for the seller. Electronic commerce increases purchasing opportunities for the buyer

Lower transaction costs

if an e-commerce site is implemented well, the web can significantly lower both order-taking costs up front and customer service costs after the sale by automating processes.

24/7 -online shops do not close

Larger purchases per transaction

Amazon 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". That is, you can see the related books that people are actually buying. Because of features like these it is common for people to buy more books that they might buy at a normal bookstore.

Integration into the business cycle

A Web site that is well-integrated into the business cycle can offer customers more information than previously available. For example, if Dell tracks each computer through the manufacturing and shipping process, customers can see exactly where their order is at any time. This is what FedEx did when they introduced on-line package tracking - FedEx made far more information available to the customer.

People can shop in different ways.

Traditional mail order companies introduced the concept of shopping from home in your pajamas, and e-commerce offers this same luxury. New features that web sites offer include:

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