In its simplest form e-commerce is the buying and selling of products and services by businesses and consumers over the Internet. People use the term “e-commerce” to describe encrypted payments on the Internet.
Sometimes these transactions include the real-time transfer of funds from buyer to seller and sometimes this is handled manually through an eft-pos terminal once a secure order is received by the merchant.
Internet sales are increasing rapidly as consumers take advantage of lower prices offer by wholesalers retailing their products. This trend is set to strengthen as web sites address consumer security and privacy concerns.
Benefits of E-Commerce
E-commerce can provide the following benefits over non-electronic commerce:
- Reduced costs by reducing labor, reduced paper work, reduced errors in keying in data, reduce post costs.
- Reduced time. Shorter lead times for payment and return on investment in advertising, faster delivery of product
- Flexibility with efficiency. The ability to handle complex situations, product ranges and customer profiles without the situation becoming unmanageable.
- Improve relationships with trading partners. Improved communication between trading partners leads to enhanced long-term relationships.
- Lock in Customers. The closer you are to your customer and the more you work with them to change from normal business practices to best practice e-commerce the harder it is for a competitor to upset your customer relationship.
- New Markets.The Internet has the potential to expand your business into wider geographical locations.