E-Commerce refers to buying and selling goods and services through the internet. E-commerce is a phenomenon that has grown at a rapid pace over the last few years and now almost any good or service you could want is available through the internet.
Let us take a look at the pros and cons to a business of engaging in e-commerce.
Merits of E-Commerce
E-Commerce, as a business model, is very efficient as it allows an organization to minimize its costs and maximize its profits in many ways. Most businesses that engage in e-commerce tend to be virtual companies that have no physical office space or location. This means that they avoid the costs of renting office space and all the associated costs of utilities; they also employ the minimum number of staff, thus keeping their personnel expenses low as well. This allows them to sell products at low prices while still maintaining a satisfactory profit margin, check this meeting rooms in Causeway Bay.
E-commerce has the advantage of giving a business access to a much wider global market; in other words, they can sell their goods to people in their own country as well as those in foreign countries.
E-commerce businesses, as they have their store online, have the major advantage of being open all day, every day! This gives customers the convenience of being able to shop anytime they wish and thus gives the business more opportunities for sales.
Demerits of E-Commerce
As aforementioned, most businesses that engage in e-commerce tend to be virtual companies. Though this is normally an advantage that allows them to keep their expenses low, it may become a problem if they have no suitable place in which to meet suppliers, business partners or clients when necessary. To overcome this disadvantage, such companies may rent a virtual office, which will give them a phone number and an address on which customers can contact them as well as provide other facilities such as conference rooms when required, you can visit the great site using this link http://www.skybizcentre.com/ for more of great virtual office.
The start-up costs of an e-commerce business are usually very high; the technological infrastructure required by e-commerce needs to be put in place by the business before they can commence operations and this will require the help of specialists, who are expensive to employ. In the case of any failure in the systems, then the whole business will come to a halt and this could mean huge losses for the organization.
Not all products lend themselves to sale through the internet: the sale of antiques, for instance, is a business in which buyers would usually wish to examine the merchandise first-hand before making a purchase decision.
Though many have embraced e-commerce, there remain groups of buyers who remain sceptical of the benefits of the same. Senior citizens are an example of such a group and businesses that trade in goods or services for senior citizens may not benefit from e-commerce.