8 Important Facts That You Should Know About Internet Commerce

For companies that produce goods or services, electronic commerce, throughout the creation of e-commerce web pages, represents a chance to produce a whole new sales channel. This has already happened within the past thanks to the combination of opportunities offered by technology and organizational solutions depending on the availability of the sales force and money.

This new electronic channel has two exclusive features in respect to the previous channel:

It's global, and may also reach potential customers who are anywhere in the world.
It has relatively low development costs and it's therefore also accessible to smaller businesses.

Electronic commerce implies that the company should start to think with regard to global trade policies. The prices on sites and promotional offers are visible on the internet to customers in each country.

If this kind of globalization becomes too frightening, it is possible to fall back on Sites dedicated to specific markets, in local languages, but an experienced customer would notice any variations within the offers on the different sites online.

E-commerce Web sites are the chance for SMEs

It must be underlined that this new adverting channel has lower costs than existing ones, and especially it's able to cope with growing volumes of contacts with no need to increase advertising spaces or staff.

The low cost investment necessary to develop this channel is a great opportunity for the small to medium sized companies to compete with bigger ones. To enter within the business market you don't need to have vendors, branches or shops, except what is strictly essential to maintain physical contact with customers. The creation of electronic commerce will eliminate protective barriers represented within the past by geographical distance.

E-commerce enhances the business intelligence

Should the products are either digital or conveniently transportable (ie, parcels, or packages), it will be almost irrelevant to buy them from your country or possibly a distant country dealer. In fact these kinds of products can be sent effortlessly real-time via the network, when it comes to digital products, or in a few hours via shipping companies in the matter of physical products.

The dismantling of these barriers will emphasize the importance of business intelligence and creativity in promoting their very own products and services. Since we may very well buy English books in discounted international web sites, why should we waste time to sort by way of a library locally, where they cost more and not be available until much later.

E-commerce Internet sites cancel the distance between firms and markets

Many businesses, throughout the E-commerce web sites, may establish a direct channel with their end-customers. It bypasses the traditional distribution chain and tries to grab a portion of the product's value that was previously left to intermediaries downstream.

Direct contact with end customers can significantly reduce the expenses of product's marketing. Some of the savings are retained by the company, with obvious profit advantages, as well as other savings can be transferred to the market with regards to selling price reduction.