Reduces competitive gap:

E-commerce reduces marketing and advertising expenses. So, smaller

companies can also compete on quality, price and availability of goods with
the bigger companies.
 
 

Reduced sale cycle:

The customers access the product listing and the pricing directly from the
Internet without any phone calls and e-mails.
 

Reduced cost of business:

E-commerce reduces the effort required to do business. It reduces the
amount of manpower required, inventory costs, purchasing costs and order
processing costs associated with faxing, phone calls and data entry.
 

Easy business administration:

With the use of efficient software, most of the business-related tasks can be
done automatically. Business processes like storing of inventory levels,
shipping and receiving logs and other business administration processes are
automatically stored.
 

Better payment system:

With the advancement in payment technologies, E-commerce allows
encrypted and secure payment facilities on-line.
 

Reduced burden on staff:

E-commerce simplifies the customer service and sales support tasks , thus
relieving the staff from one of their job responsibilities.
 

Medium to grow business:

E-commerce serves as a medium for start-up, small- and medium-sized
companies to reach the global market.
 
Network production:
E-commerce allows parceling of the production process to the contractors
who are geographically separated but are connected through the Internet.
This helps in selling of add-on products, services and new systems.
1. Facilitates the globalization of business:-e – commerce facilitates the
globalization of business by providing some economical access to distant
markets and by supporting new opportunities for firms to increase economies by
distributing their products internationally.
 
2. Provides increased purchasing opportunities for the buyer:-As e –
commerce increases sales opportunities for the seller, it also increases
purchasing opportunities for buyer.
 
3. Lowering staffing cost:- As in e – commerce, the selling & purchasing process
is outline, the amount of interaction with staff is minimized.
4. Market based expansion:- An e – commerce is open to entirely new group of
users, which include employees, customers, suppliers & business partners.
 
5. Increased profits:-With e – commerce, companies reach more & more
customers where physical commerce cannot reached, thus increasing profits.
 
6. Increased customer service & loyality:- e – commerce enables a company to
be open    for business wherever a customer needs it.
 
7. Increase speed & accuracy:- E – commerce see the speed and accuracy with
which business can exchange information, which reduces cost on both sides of
transactions. It is available 24 hours a day & 7 days a weak.
 
8. Reduction of paper storage.
 
9. Increased response times:- In e – commerce, the interaction with the system
take place in real time & therefore allows customer or bidder to respond more
quickly & thus reduces the time of discussion between then as in traditional
commerce.
Transparent and Faster Business:
Technology now enables people to do video conference which enables people to
be in separate place but still discuss and see each member of the meeting live.
So business decisions can be made faster which is required for the growth of a
business. All sales, supply etc. documents can be viewed and analyzed all the
time through online which enables transparency as these documents will be
generated by computer systems which will have less chance of alteration.
8. Better Customer Service:
E-commerce service can provide better customer service. Buyer can read FAQ
about a product or service online which is always available without any wait,
they can also chat online with customer service as one customer service operator
can serve multiple buyer at a time which enables faster information.
9. Increases Competition Among Businesses:
As businesses can view each other products and study their description along
with prices, the competition among them will increase to provide better product
or service in lesser price.
10. Creates New Employment Opportunity:
E-commerce is creating new employment opportunity as web developers and
designers are required to design and develop e-commerce websites and
applications, IT persons are required to maintain the system, customer service
providers are required to provide supports etc.
11. Advertising and Marketing:
E-commerce facilitates businesses to advertise their product for marketing
purpose which has a global reach. This is easy, less expensive and has more
reach than advertising on paper.
12. Quick Comparison and Instant Order:
In E-commerce system, a buyer can search products and can also filter found
products by various factors, which helps to compare product’s price and
specification. This process takes very small amount of time than visiting different
outlets to do the same thing. Then the buyer can order the product instantly
including making the payment right away.