It also offers a larger purchase per transaction, ordering from regular catalogues often becomes a tedious process unless the customer knows exactly what they need. Online presence makes it easier for a customer to find products, translating into more sales, or in the Egg Plc example, it in fact offers the customers more information, better access and unlimited freedom of banking However, Lets not get too excited about e-commerce, as on the other hand even though e-commerce is providing a quick, easy to use business transaction, it does not allow personal contact between the business and the customer, which is a strong disadvantage, as without the personal link, it may seem like there is no customer relations, or that it makes it much harder to trust the business.
The costs of a suitable site design, which will be updated daily, with full logs of customers and stock etc, will also take up large space as well as manpower, and bandwidth, and also to get it running on popular or faster servers, will cost the business more money. Another concern is that customer have to be notified somehow of the businesses site, otherwise it wont be visited, so uses of advertising, or extra notification in the business stores will cost more money, in order to get the pubic in the know about that businesses site. To conclude, I strongly believe the potential to reach a global audience, and the potential to leave your business open at all hours, all the time, is a fantastic advantage for any company to have, not to mention the other advantages, which clearly outweigh the disadvantages I already mentioned earlier. This tied in with the demand for new technology, and the seeming consumer hunger for better service, and more opportunity opens up an amazing amount of potential.
I wish to fall back onto two statements, which I feel sums up the beliefs of e-commerce perfectly, but still shows that e-commerce is only the beginning of what’s to come in the future, and is defiantly a possible standard to what the world might see in future businesses. “The appetite continues to grow for new and exciting innovations that are either already on the market or on the technological horizon. Consumers have developed a liking for the value and flexibility that digital technology affords them, and are becoming increasingly confident in the possibilities of transacting online.” – Mark Nancarrow, Chief Operating Officer, Egg. “No other aspect of e-business has garnered more attention then that of e-commerce. After all, consumers are expected to spend roughly $180 billion online in the next four years” Spokesperson, IBM e-business solutions. Charles Mallah Economics ; Business Coursework.