The Role of Ecommerce in the Growth of the Economy

A lot of merchants in the business sector of the economy have opted to use the internet as their primary platform where they interact with their customers. This has come after a lot of individuals have joined the market and the only way out that has been left is to compete for the available customer base. To withstand the competition, the merchants have to get out of their geographical cocoons and hunt for customers even from other regions as long as they are interested in their products. However, this would be quite challenging if they were to use the physical approach since they can only approach a few customers, while the larger part of the clientele base would remain underutilized.

For this reason, the introduction of e-commerce has opened a lot of business opportunities for these business people since they can sell their products and services to a broader market than they would have done without the presence of the internet. Below are some of the benefits that businesses and customers are reaping from e-commerce:

Reduced Costs of Operation

As we would all agree, there are some fixed costs that every company operating from a fixed premise has to incur. These include costs such as rent, the wages for the employees and other costs that are associated with the running of business, like buying furniture and office fittings. However, when a merchant decides to transform their business so that it can operate from a digital platform, some costs are reduced or eliminated. For instance, they are not required to pay for the office rent since they only need a computer and a virtual space to run their operations. They are also not required to pay for the office fittings, a cost that remains as a challenge to many of the physical retailers and wholesalers.

Easy Startup and Management

Starting an e-commerce business can be described as one of the most comfortable things to do for any person. This is because the process does not require any technical knowledge from school and hence any person can begin and run an e-commerce business. All that an individual is required to have is access to the internet and a website in place. The beauty of this is that the merchants do not have to create the websites on their own, they can purchase from the website developers who are very willing to assist them. They can also learn how to develop the website using the same internet in sites such as https://www.stitchlabs.com/learning-center/what-is-demand-forecasting-in-retail/.

Enhanced Efficiency

The introduction of the technology into the business sector has brought about a lot of efficiency in the way the operations are run. Transactions that would take days or even weeks to complete are now taking hours to close. This is an advantage to both the merchants and the customers. To the customers, this is convenient for them since they do not have to commute to access the services that they require from the merchants. They also have access to the merchants’ information and the products that they offer, and hence they can freely choose the merchants with whom they would wish to transact business. To the merchants, e-commerce has made it easy for them to access a wider market than they could have accessed physically.

 

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