E-commerce or simply e-business is the purchase and sale of goods and services over an electronic medium, like the Internet. The business involves transferring data and funds between two or more parties electronically. Compared to the traditional retail market, e-commerce has lots of advantages which have made many e-commerce website owners consider it as the holy grail of retail. Here are some of the main advantages explained in details.
E-commerce has provided solutions to geographical limitations
If you operate a physical store, you know that your operation is limited to a specific geographic area. With an e-commerce website, however, the entire world is your playground. Also, the introduction of m-commerce, i.e. e-commerce on mobile devices has dissolved the remaining limitation of geography.
E-commerce has helped traders gain new customers through the use of search engines
Physical retail stores depend entire on branding and relationships. Apart from these two drivers, e-commerce stores depend on traffic from search engines. In this tech-savvy world, it is not unusual for customers to easily follow links in different search engine results and land on an e-commerce website that they have never heard of.
E-commerce is by far much cheaper to open and operate
One of the most particular positive attributes of e-commerce is the lowered cost. As an e-commerce website owner, your cost is mainly limited to monitoring your site which can be quickly done in the comfort of your home. A part of the lowered cost can be quickly passed on to customers in the form of discounted prices.
E-commerce allows a quicker and more efficient transaction process
Think about it, when making an online purchase, you only need a few minutes to go through different options before identifying one that suits you and proceeding to make payments and checking out. This is by far very different from when you are physically visiting a retail store to make a purchase. Some e-commerce websites have unique features which remember customer preferences and shopping lists which help facilitate repeat purchases.
E-commerce provides comparison shopping
E-commerce facilities convenient comparison shopping. It allows customers to browse multiple e-commerce merchants and identify the best regarding pricing, service provision and customer reviews. From the online traders’ point of view, e-commerce provides a great platform to showcase his products without necessarily having to spend an extra dime or time.