BENEFITS OF E-COMMERCE IN BUSINESS GROWTH
The introduction of information technology has had a tremendous impact on the growth of many businesses. Traditional methods of advertising products are no longer effective in the modern world. Many companies get digital space at a lesser cost; posting a product or service via Facebook, LinkedIn, Twitter, Bing, and Google, is instant and straightforward; anyone can post any product with a simple click of the button on their phone, laptop, or computers.
The emergence of ICT in business has led to the expansion of many enterprises because many people can market or sell their products on digital platforms. It is important to note that the internet plays a significant role in the growth of many enterprises. Ignoring the importance of the internet in modern trading can be very harmful to your business. After all, you will be left behind because your competitors will have the upper hand in trading platforms. It is vital to understand that global networks allow people to exchange information without restrictions regarding their geographical location and time frame, thus increasing the speed of doing business; there is economic efficiency in business procedures such as procurement.
What is E-Commerce, one might be asking? In simple terms, E-Commerce or Electronic Commerce is the trading of goods or services using computer networks like the internet on digital platforms. This digital platform includes; Google, LinkedIn, Facebook, Twitter, Instagram, Bing, Yahoo, Pinterest, Fiver, etc. E-commerce involves using ICT to enable business activities between organizations, individuals, companies, governments, etc.
E-commerce involves mobile banking, digital trading, digital marketing, automated data collection systems, online transactions, electronic funds transfers, inventory management systems, electronic data interchange and supply chain management, etc. The next question that many people might be asking is the importance of E-Commerce in business growth? First, E-Commerce reduces the cost of trading between businesses in B2B –Business to business trading, B2C –Business to Client trading, or G2C –Government to Citizen Interaction.
Secondly, online shopping websites enable direct trading. A seller can sell to their client directly; no broker is needed, thus no commission fee for the brokers. E-commerce reduces the expensive cost of advertising and marketing products or brands in mainstream media like Television, Newspapers, Radio, etc. It also enables electronic data interchange between business to business. E-Commerce allows retailers to introduce new services, brands, and products on digital platforms at a minimal cost; launching new products or brands has become very easy. E-Commerce has made trading easier in that you can trade at the comfort of your location; in some instances, people do not require an office or store to keep their products.
E-Commerce enables the execution of business processes between suppliers and their clients via both private and public networks. It allows dispersed clients and suppliers to interact and execute purchase transactions; with each step in the process captured electronically, all transactions data is routed electronically, thus reducing the cost and time of procurement.
E-Commerce has led to a reduction in administration costs in most organizations. Companies today can minimize paperless processes, thus reducing paperwork that comes with an extra charge; it has led to efficiency in doing specific tasks; it also reduces the space needed for filling and the consequent workforce that comes with it. The filing job that requires many people can now be done by very few people, thus reducing labor costs in an organization.
Government services are faster as a result of E-commerce. Government interaction with its citizens has become very easy because governments have digitized most of their services to their citizens. Transactions between government and its citizens have become very efficient due to E-Commerce. E-Democracy– Electronic Democracy has made it easier for people to participate in the democratic process, such as electing their representatives in government. With the introduction of ICT, people can vote electronically, thus making the voting process more accessible and transparent.
The introduction of ICT has led to the emergence of E-Commerce which has significantly lowered the traditional barriers to trading entry; thus, new and small traders can position themselves together with giants and well-established firms. Many large companies change their trading strategies to remain relevant in the market. E-Commerce has made the world a global village; people can trade easily irrespective of their geographical location. It doesn't matter where you are in the world; if you have good products or services, you can sell them in the comfort of your location.
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