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Benefits And Limitations Of Ecommerce

Submitted by ethpet on June 18, 2007

Category: Business
Words: 1434 | Pages: 6
Views: 240
Popularity Rank: 30,487
Average Member Grade: N/A (Add a Comment / Grade this Paper)

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

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