Page 20 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 1: Introduction to E-Commerce and E-Business

6. Improved Customer Service: Customer service can be enhanced using Internet based e-commerce
as it helps the customer to access information before, during, and after a sale. Customers may need
to retrieve information on product specifications and pricing, on the status of an order, or may
need online help in the installation or use of a product that they have purchased. A prompt
customer support service can help businesses to earn the goodwill of customers in the long run.
7. Lower Sales and Marketing Costs: The Internet allows businesses to reach many customers
globally at lower costs. Thus, organizations can bring down the marketing overheads by shifting
the sales and marketing functions to the electronic processes.

Advertisements on the Internet can cut down the cost of printing and mailing
pamphlets or brochures. Any change in product specifications in the case of paper-
based advertisements may mean re-printing. However in Web-based
advertisements, it may mean changes only in the Web site.

8. Lower Telecommunication Costs: Before the emergence of the Internet, only a few organizations
were using private networks and Value-Added Networks (VANs) for their EDI. The cost of
installation and running these systems was very high and beneficial only to the larger firms that
had enough business volumes to justify the cost. But now, because of the low cost of connecting to
the Internet, small and medium businesses can easily afford to do business on the Internet.
9. New Business Partners: The Internet based e-commerce enables businesses to find new business
partners globally on the Web, thus not restricting themselves to a limited choice of suppliers.
10. Faster Access to Information: The Internet expedites access to remote information, thus adding
speed to transactions and processes.
Benefits to Consumers
1. Increased Choice of Vendors and Products: Customers can have an increased choice of vendors or
products because they are no longer geographically constrained to reach a vendor or a product. A
large number of vendors or manufacturers are using the Internet for marketing and selling their
products or services.

An NRI settled in the UK may subscribe to an electronic newspaper of India and
receive the electronic newspaper on a daily basis.
2. Convenience of Shopping at Home: E-Commerce allows the consumers to shop when it is
convenient for them and not strictly during store hours. Also, for physically challenged or elderly
consumers, home shopping on the Internet provides a lot of opportunity and convenience.
3. More Competitive Prices and Increased Price Comparison Capabilities: The large amount of
information available on the Internet is giving more and more power to the consumers.
Consumers can make product or service comparisons and price comparisons to enable them to get
the best deal on a product or service. This comparison of price and product has increased the
competition among the vendors.
4. Variety in Products and Services: The online retailers have quickly learnt that reliable products
and services are also important. Businesses have understood the importance of associated
products and services and e-commerce helps in the realization of offering variety of products and
services.

Amazon.com does not just sell books and music CDs or DVDs, but also provides
books and music reviews, suggests other books that may be of interest based on the
books being examined.
5. Greater Customization in the Delivery of Services: Internet commerce also gives customers a
chance to customize many of the products or services offered by the merchants.

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