The Undeniable Truth About Electronic Commerce That No One Is Telling You

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One of the clearest advantages of an electronic channel, represented by e-commerce sites, is the ability for the company to get in touch with their end-customers without an intermediary.

Therefore the capability to recognize and treat each customer individually in a personalized way (mass customization). Many bank web sites ask to their customers to specify their needs or interests; as an example, a customer may be considering financing services, others in asset management services and so forth. The result is a customer "profile", which produces a corresponding profile for the commercial offer: consequently the website reconfigures itself on the foundation of the interests declared through the customer and shows only offers that can be presumed to be compatible with his needs.

Direct contact with the market also allows companies to provide better technical details about the products and services. This relieves sellers from having to reply to to customer's questions and permits the product's features and functionalities to be properly presented to customers, something which was not necessarily assured when product illustration is performed through intermediaries, as a result of wholesalers and shop assistants.

Through e-commerce, web sites marketing messages are presented correctly, the strengths of the products are clearly highlighted to customers and different features in comparison to competing products may be adequately emphasized.

A significant benefit of direct contact with the customer is that the company can receive real-time feedback from the market.

By studying online purchases produced by customers, the website pages most frequently accessed by users or e-mail messages sent by customers, the company will immediately realize how the market has seen a new product. They may react with a whole new advertise campaign. The collection of these details may be used to quickly correct any errors in marketing. In place of using the old information channels, companies should anticipate to have more possibilities to catch weak but worrying signals.

Through e-commerce Websites trading operations may also be performed more quickly and effectively.

A price change, if approved, may be seen by all at once, avoiding sales clerks or sellers mistakes. A commercial campaign, published on a web page, becomes immediately operational for the whole market, without spending period to align the sales forces to the new directives.

In the matter of digital products, the electronic channel ensures the immediate delivery of goods without the need to produce a physical copy of the product sent to the customer. Even in the example of physical products sellers can achieve considerable benefits if you take orders using the web. Requests on the web arrive in real time to sales management, which alleviates the requirement for one or even more central warehouses, saving within the storage of goods in periphery warehouses.

An extreme effect of electronic commerce can be represented through the reorganization of the commercial sector, with the disappearance of some figures like commercial intermediaries as well as the restructuring of the supply chain upstream from the manufacturing company.

A computer company that receives orders from customers only by an e-commerce website could conveniently get replenishment orders of computer components to its suppliers and taking delivery of what is only required to meet its commitments to customers. This would generate a really efficient supply chain by reducing inventory and work-in-process.

A digital commercial network allows for greater flexibility with respect to a physical network. A crowded shop can not attract other customers, who will keep away from it.

The Web sites, if properly dimensioned, can handle spikes of visitors without visible degradation of response times (web sites such as Microsoft or Yahoo handle several million hits a day).

The e-shops also can stay open 24 hours a day, seven days a week, answering questions from all around the world without worry or timetables or holidays. Flexibility is also with regard to ability to respond to marketplace. Using information gathered in real time through its web pages, the company can modify its proposals, promoting products which have difficulties, making more attractive deals if users indicate weakness in respect to competition. Compared to a conventional commercial network in which the company proposes more products than the market's demand, for e-commerce it is the opposite. The market "pulls" and also the company follows, trying to stimulate demand, but only from the inclinations observed within the market.

The e-commerce also brings new business opportunities

The ability to sell directly online to a wide audience of customers could generate new areas of business. It really is, as an example, the situation of financial information in the evolution of financial markets (stock exchanges, foreign exchange, etc.). You'll find several Internet providers who joined this business that sell quotes, financial news in real time, or offer possibilities to work online through the stock exchange. In general it's possible to produce many information selling services, which customers are disposed to pay. Currently you can subscribe to a market research firm to be able to receive studies and research reports from their Internet sites. One area where new services are developing rapidly is tourism. In the area, you can find numerous Information Providers that allow you to get details about tourist destinations and make reservations at hotels. By way of example, investment banking analyst the subsector for skiing holidays is developing a very strong competition on the internet between French regions, Swiss cantons and Italian valleys, with very interesting opportunities from tourist perspective.