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The major benefits of electronic commerce for businesses

The use of Information and Communication Technologies (ICT) in the direction of e-commerce is a critical factor in shaping a new business environment. The concept of e-commerce is such that the benefits for businesses are reflected as benefits for consumers.

• Access to new markets: businesses of all sizes can address customers located worldwide without requiring the existence of the local branch.

o Increase sales: companies expand their turnover traders at all latitudes and with minimum operating costs.

o Increasing competitiveness: companies which face competition in their local market extend their business on the Web.

• Reduction of links in the supply chain: the supplier is addressed directly to the customer without involving intermediaries.

• Direct costs Restriction: use of ICT for the publication and transmission of information can reduce costs compared with communication and publication in printed form. This is achieved by reducing the cost of a series of processes involved in a business, such as operating costs, promotion-advertising costs, communication costs with suppliers and consumers, and the cost of production and distribution of goods, especially products transferred electronically.

• Continuous operation: using the Internet allows purchases at any time (24 hours) without any additional financial burden for business.

• Better communication policy and promotion: online transactions allow the mutual relationship between company and consumer. In this way businesses through electronic transactions can gather information on the habits, needs and preferences of consumers and in accordance with them to adapt their policy and to exploit the potential of the Internet offers, management and consumer information.

• Optimal management of products and orders: electronic commerce allows to shorten the time required for the production and delivery of information and services. At the same time, electronic communications accelerate the completion of the transactions, thus increasing the flexibility of business supplies. Businesses utilize this possibility by applying the system JIT (Just-In-Time), which reduces the potential for restocking, thus greatly reducing the cost of production-distribution of their products.

• Improved company image: through faster processing, the transactions with consumers, as well as communication with other businesses, businesses are allowed to improve competitiveness approaching more to the needs of the customer.

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