What Are the Advantages Of Ecommerce?

The key factors for the future development of e-commerce are payment, logistics, and data. How to seize these three key factors is both a challenge and a great opportunity for all the Internet industry and all those interested in future economic development. The predicaments of high logistics cost, low efficiency, and poor service have become the key factors hindering the future development of e-commerce, and self-built warehouses may become the key to the transformation of e-commerce.

E-commerce development

With the increase of the Internet penetration rate in China, the development of e-commerce has taken off, and the average annual transaction volume has increased by 28%. In 2010, the transaction volume of China's e-commerce market reached 4.5 trillion yuan. And because of the surge in netizens and the increase in e-commerce platforms in recent years, online shopping has "

The core of e-commerce development is service. Although the e-commerce industry is showing a booming development momentum, there are still some problems that need to be solved urgently. It can be said that the environment for the development of e-commerce is not yet perfect, the construction of related laws and regulations is lagging behind, and the service supervision system, statistical monitoring system, and industrial investment and financing mechanism need to be established.

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E-commerce has greatly improved the efficiency and efficiency of traditional business activities. Compared with traditional business systems, e-commerce on the Internet has its own unique advantages. These advantages include:

1. New Time and Space Advantage Traditional commerce is shop-style sales characterized by fixed sales locations (ie stores) and fixed sales hours. Sales on the Internet are carried out through online stores featuring information databases, so its sales space extends with the extension of the network system. There are no geographical barriers, and its retail time is determined by the consumer, the online user. Therefore, sales on the Internet have a new time and space advantage over traditional sales models. This advantage can meet the consumer needs of online users to a greater extent. In fact, shopping on the Internet has no national borders, Day and night.

2. Alleviate the dependence on materials and comprehensively display the advantages of products and services Traditional business operations must have a certain material foundation to carry out business activities, and virtual enterprises can be established through the Internet, such as online stores and online banking. Physical infrastructure, while companies can also transfer savings to consumers, which is why the well-known online bookstore Amazon can provide consumers with discounts that traditional bookstores can't provide. At the same time, online sales can take advantage of the performance of online multimedia, and can fully display the internal structure of product and service functions, thereby helping consumers to fully understand the goods or services before buying it. Although traditional sales can display real products to customers in the store, for general customers, the knowledge of the purchased product is often superficial, and it is impossible to understand the intrinsic quality of the product, which is often easily affected by the appearance of the product, External factors such as packaging are confused. Theoretically, the rational purchase of consumers is not only to improve their own consumption effectiveness, but also to save social resources.

3 Reduce inventory and transaction costs. To cope with the unpredictable market demand, enterprises have to maintain a certain inventory of products and raw materials. The root cause of inventory is poor information. Information technology-based e-commerce can change the problem of inaccurate and untimely information in enterprise decision-making. Through the Internet, market demand information can be transmitted to enterprises for decision-making and production. At the same time, the enterprise's demand information can be immediately transmitted to suppliers to supplement supplies in a timely manner, thereby achieving zero inventory management. At the same time, companies can improve marketing efficiency and reduce promotional expenses through online marketing activities. According to statistics, advertising on the Internet can increase the number of sales by 10 times, but its cost is 1/10 of traditional advertising; moreover, e-commerce can reduce procurement costs, because companies using the Internet can seek the best price in the global market Suppliers to reduce intermediate links. Some data show that the use of EDI can usually save 5% to 10% of procurement costs for enterprises.

4 Close user relationships and the advantages of deepening user understanding. Because of the real-time interactive communication on the Internet and the absence of any external factors, it makes it easier for consumers of products or services to express their evaluation of products or services. Retailers can gain a deeper understanding of users' inherent needs. On the other hand, the instant interactive communication between retailers has promoted the close relationship between the two.

5. The advantages of reducing intermediate links and reducing transaction costs E-commerce has redefined the traditional circulation model and reduced the intermediate links, making direct transactions between producers and consumers possible, thereby changing the overall socio-economic operation mode to a certain extent.