e commerce or electronic commerce is the most popular format to run and grow the business in the information age. Due to technical integration with deep business, eCommerce has emerged as a significant source of increased revenue and reduced cost. The integration of Internet technology and database management systems, enabling companies to operate their businesses in an orderly manner.
eCommerce curbs costs underutilized or increase the added expense of the economy at the end of the fiscal year. The concept of e-commerce reduces transaction costs in the following manner:
Efficient Method: Electronic sell almost reduces claims processing as papers for invoice generation, billing errors and manual measurement units sold in stores. Electronic sell is more efficient system, which saves time, money and manpower efforts of the company. This means a hassle free service without carrying heavy personnel costs, required at the time of check out of a physical outlet. In addition to that, especially inaccuracies and minimum errors transaction make eCommerce staff to enjoy the focus on more profit generating activities
Obsolete Brick & Mortar :. E-stores reduce the cost of physical outlet establishment and later their maintenance costs. Counterpart of e-commerce is – all earning retail sector is further divided into numerous expenses such as maintenance of the environment of the outlet, electricity bills, wage labor is employed, telephone bills, equipment and machinery to keep records and inventory, security and rent. However, revenue generated from e-commerce has fewer elements to spend, between the process of getting an order and deliver it to the customer
Optimize Inventory Management :. Managing inventory is expensive property. Whether selling cars or apparels, one has to spend a good amount of money showcases, storage, packaging and other requirements stock conservation. All these extra costs spread margin significantly. Yet e-commerce does not have the physical space to display and store items; However, component packaging costs of e-commerce format too, but it does not act as an extra cost, because the packaging needed for the sale of goods and not for unsold items.
Reduced Payment Method Cost: A physical store, employees, telephones, computers and payment machines to complete payment; For e-commerce, companies only need a good payment gateway to host their business successfully, and in a safe environment.