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Benefits and Limitations of E Commerce

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QUIZ 1: Explain the benefits and limitations of E-commerce.

Ecommerce or electronic commerce: involves carrying out business over the Internet with the assistance of computers, which are linked to each other forming a network.

To be specific Ecommerce would be buying and selling of goods and services and transfer of funds through digital communications.

THE BENEFITS OF USING E COMMERCE

Benefits to Organizations • Using E-Commerce, organization can expand their market to national and international markets with minimum capital investment. An organization can easily locate more customers, best suppliers and suitable business partners across the globe.

• E-Commerce helps organization to reduce the cost to create process, distribute, retrieve and manage the paper based information by digitizing the information.

• E-commerce improves the brand image of the company.

• E-commerce helps organization to provide better customer services.

• E-Commerce helps to simplify the business processes and make them faster and efficient.

• E-Commerce reduces paper work a lot.

• E-Commerce increased the productivity of the organization. It supports "pull" type supply management. In "pull" type supply management, a business process starts when a request comes from a customer and it uses just-in-time manufacturing way.

Benefits to Customers • 24hour support. Customer can do transactions for the product or enquiry about any product/services provided by a company any time, any where from any location. Here 24x7 refers to 24 hours of each seven days of a week.

• E-Commerce application provides user more options and quicker delivery of products.

• E-Commerce application provides user more options to compare and select the cheaper and better option.

• A customer

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