The Advantages Of E-Commerce For Business Organization

Tuesday, July 05, 2011

My previous post had stated about the advantages of e-commerce for consumers. Generally, we admit that e-commerce had ease our life to perform the trade activities such as online banking, online purchasing and so on.


But, can we say that e-commerce only benefit the consumers?

Of course no. E-commerce also can give a lot of benefits to business organizations especially in term of cost reduction and reaching global market. Now, let we see what they are?

  1. Reduces Costs for Inventory Management

    With e-commerce, the suppliers can reduce costs to manage their inventory of goods because they can automate the inventory management using web-based management systems. This method indirectly can save their operational costs.

    “Specifically, e-commerce replaces the manual business processes with their automated electronic equivalents to accelerate ordering, delivery and payment procedures. This electronic paradigm has saved businesses billions in operational and inventory costs.” Rafay Ali (2004)

  2. Reaching Global Market

    E-commerce allows the suppliers to reach global market segment. In other words, it allows the suppliers to increase their sales meanwhile decrease the investment costs.

    “Organizations can reach global areas that would have been otherwise difficult.” Pallab (1996)

    “It expands the marketplace from local and regional markets to national and international markets with minimal capital outlay, equipment, space, or staff.” Cross-Industry Working Team (1999)

  3. Monitoring the Consumers’ Buying Habit and Interest

    The suppliers can monitor the consumers’ buying habits and interests so that they can tailors their offer suit to consumers’ needs and keep the ongoing relationship with them.

    “Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs.” William King (2006)

  4. Reduces Costs To Establish Store Front

    The overhead costs to build the physical store front may be prevented to the suppliers who use e-commerce as their business operation.

    “A traditional business may have large overhead costs associated with maintaining a storefront. But a web-based business does not necessarily have that type of overhead, which may mean that continued growth becomes easier.” Melissa J. Harvey (2002)

  5. Reduce Labor Costs

    The labor costs can be reduced with e-commerce because the sellers can automate their online store fronts.

    “Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded then e-commerce firms have no distribution costs involved.” William King (2006)

  6. Reduce Advertising Costs

    E-commerce can reduce advertising costs because it is easier to update the advertisement using software technology.

    “Print advertising can get expensive as there may be a need to update regularly, which requires new work be planned and generated. It is much quicker and more cost effective to update and maintain e-commerce marketing campaigns, especially as technology continues to improve.” eCommerce Optimization (2007-2008)

Sources :

  1. My degree assignment 


{ tiefazatie } at: July 5, 2011 at 4:37 PM said...


btw..kalu sudi tlg komen n3 ifa nie ek..=)

tq so much!

{ Zainal } at: July 5, 2011 at 4:42 PM said...

salam ifa..

tq sudi melawat n menghargai entry saya nih..ok..saya baca n bagi komen nanti yer...:)

{ Ain_ Suke Senyum } at: July 5, 2011 at 6:06 PM said...

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nak mintk tlg cument entry ni leh x ?

{ mutualbehavior } at: July 6, 2011 at 3:29 AM said...

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{ Famili Ceria } at: July 10, 2011 at 7:58 PM said...

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Anonymous at: March 20, 2012 at 5:09 AM said...

Quite intersting, espacially when it comes to monitoring Customers' habits. One can find a lot of useful data analyzing traffic, that is why statical approach becomes more and more important.

BTW, here you can find another related article on e-commerce benefits:

Anonymous at: March 30, 2012 at 5:37 AM said...

it was very helpful as it clearly states and explains each and every advantage. the only thing that can make it better is if it adds and compares to the disadvantages.

{ Stacey Thompson } at: July 24, 2012 at 5:25 PM said...

great post! it is very helpful since it clearly discussed everything about e-commerce.

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Anonymous at: December 13, 2012 at 12:45 PM said...


{ preeti } at: April 19, 2013 at 7:07 PM said...

thanks for sharing good information. online shopping is increasing day by day. mobile application development make it easy. people can easily shop using internet enabled mobile phones.

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Anonymous at: July 4, 2013 at 3:43 PM said...

Nice E commerce tips keep on writing
E commerce for business

Abhinna Srivastava at: August 4, 2013 at 8:49 PM said...

e-commerce really had ease our life to perform.

Abhinna Srivastava

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