ELECTRONIC COMMERCE PROCESS AS A METHOD TO IMPROVE THE PRODUCT AND PROCESS

Electronic commerce, or E-commerce, is conducting business over the Internet. Usually it refers to buying and selling goods and services, and transferring funds digitally. There are many benefits to Electronic commerce business, not the least of which is reduced transaction costs. When offline stores calculate transaction costs, they have to factor in countless business expenditures along with the actual number of transactions. When there are fewer transactions, the cost of per transaction is higher. On the other hand, transactions arriving in high quantity can overwhelm your personnel and distributors. In an Electronic commerce business, the transaction cost is the same across the board, whether one order or thousands come in. Electronic selling nearly eliminates processing errors that run rampant with human processors. This translates into less wasted time solving order and invoice problems. Although inaccuracies do not incur fees or penalties, they do take up considerable employee time and energy. Electronic commerce frees up staff members to focus on profit-generating activities. Electronic Commerce can improve the process of buying/selling. Communication happens very fast if business happens over Internet. Both the buyer and seller get benefited using Electronic Commerce.