Electronic commerce or e-Commerce is a term, which is widely used to describe any type of business transaction that involves the passing of information/data over the Internet. In the last decade, we have witnessed an explosion of e-Commerce websites appearing on the Internet. So, what is driving this new trend and what are the perceived benefits that are drawing so many businesses to create e-Commerce websites?
Low Operational Costs
To create an e-Commerce website requires very little capital outlay compared to purchasing business premises. The difficulty with ‘physical’ business premises is that there is a need for high visibility and the location will always be a key issue. The design and development of an e-Commerce website can be a comparatively moderate investment relative to a businesses turnover. A further cost saving avenue for e-Commerce websites is the ability to save money on personnel as checkout, payments, delivery, and all over operational processes can be fully automated.
Increased Customer Base
One of the difficulties of having a physical business location is that there may be a limitation to the geographical area that a business can service. Businesses which may rely solely on foot traffic for instance, can find that they are severely disadvantaged in their customer reach. An e-Commerce site however, has the potential to be far reaching by having search engine visibility and possibly even social media integration.
Speed and Convenience For Customers
From an end user perspective it can be very convenient to purchase goods and services over the Internet. The process is usually very quick and orders can be placed in a relatively short period of time – without ever having to leave the home or office. Further, an end user can purchase from a number of businesses without ever having to physically move around. Customers can be provided with an abundance of information to make their shopping experience easier as well as receive an improved customer service. They will also benefit from the ability to purchase goods and services 24 hours a day, 7 days a week and provide constant turnover for the business.
Minimal Barriers To Entry
Any new or existing business has the ability to create and run a successful e-Commerce website. The technology is in place for any business to embrace the Internet and enjoy the many benefits which e-Commerce offers. As discussed, the costs of running such a business are minimal and the initial investment is moderately low. Many of the barriers which are associated with having a physical business location are removed and a business only has to concentrate its efforts on creating a service which addresses the needs of its customers. At Meltem Technology we specialise in e-Commerce solutions and would welcome the opportunity to discuss your requirements.