ANSWERS: 1
  • E-commerce is a highly efficient way to conduct business. Selling online enables a company to reach potential customers while reducing costs associated with a brick-and-mortar operation.

    Reduced Capital Costs

    Selling online lets businesses reach customers without the expense of building or renting stores. One website can sell merchandise to customers worldwide without the cost of a physical store.

    Reduced Labor Costs

    E-commerce reduces labor costs. Selling online reduces or even eliminates the need for salespeople. Companies can still offer customer support, but the cost of online customer service representatives is less than a traditional sales team.

    Reduced Marketing Costs

    Advertising online is more cost effective than other advertising methods. In most cases the return on investment is much higher for online advertising campaigns than traditional print, television or radio advertising.

    Reduced Distribution Costs

    E-commerce companies ship their products from centralized warehouses. This eliminates the need to stock multiple stores and reduces the total distribution costs. Also, many e-commerce companies pass shipping costs on to their customers.

    Warning

    Although e-commerce can significantly reduce the costs of running a business, companies must still abide by sound business practices. E-commerce customers demand high levels of customer service, product guarantees and return policies, just as customers of traditional businesses do.

    Source:

    Ecommerce Education: Benefits of Ecommerce

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