E-commerce has had a considerable impact on how business is conducted. It has affected consumers, the value chain, markets as well as business models. This article will look at some of the impacts that have resulted from the advent and development of e-commerce.
With e-commerce, consumers are able to access a wide range of products and services. You can choose your product from anywhere in the world, make an order and have it shipped to you. This has given greater freedom to consumers by ensuring that they can get what they want despite their geographical location. Online stores, unlike the physical ones, have no limitation as to space. As such, the seller can stock as many products as they wish, giving the consumers more options.
E-commerce is very convenient. You can make an order for goods while in your house, office or even while travelling. You do not need to go to the store itself, you only need to have internet access.
E-commerce Saves Time
The process of selection and payment in online shopping is quite short. It is possible to complete everything in 15 minutes and wait for the product to be delivered as you do other things. There is no requirement of travelling to the physical store.
With e-commerce, middlemen are eliminated. The consumer can buy products from the producers themselves. Additionally, e-commerce is not limited by geographical space. Firms can compete globally without the need to establish physical offices in every location. This increases competition and leads to lower prices of goods and services.
Availability of Information to Consumers
One of the advantages of online shopping is that you can search for product description and compare as many products as you wish. You are able to compare prices of various products as well. As a result, you settle on a product based on the information that you have accessed.
E-commerce relies heavily on the World Wide Web as opposed to physical presence. The internet has no physical limit and a trader in one country can advertise and sell his products to consumers in another country despite the geographical distance. In essence, e-commerce businesses are capable of operating globally so long as they have the requisite means of sending the goods to consumers.
Direct Communication with Customers
A producer of goods or services can communicate with consumers directly through the internet. This makes it possible for the producer to obtain feedback from consumers and, therefore, adjust accordingly to meet the preferences of consumers. Any shortcoming of the product can be noted and addressed without delay.
Digital products such as music can be purchased and downloaded immediately. You do not need to go to a shop or make an order and wait for delivery. You purchase and get the product anywhere anytime.
Online advertising, also referred to as online marketing, web advertising or internet advertising, uses the internet to deliver promotional messages to customers. E-commerce has diversified the modes of advertising so that as a trader, you can opt for email marketing, social media marketing, search engine marketing, mobile advertising and display advertising. As a result, traders are able to reach more people at reasonable expense.