The customer demands are ever changing and businesses need to adapt to these changing requirements if they want to succeed. The need of any business is not only to keep up with the demands of the customers, but also to support its functions, increase its productivity and keep costs in check.
E-commerce has come up with a perfect solution that addresses all these needs of businesses. It is basically of two types: B2B (business to business) or B2C (business to consumer). Walmart and McDonald are examples of B2C, but there are companies or vendors from where they buy products. Then, those transactions become business to business examples.
Let us see how E-commerce benefits businesses:
- Quantity: The transaction cost of one or many products is the same when it comes to e-commerce. The same cost goes very high in brick-and-mortar stores if there are fewer transactions. Though the costs get justified if the number of transactions goes up, there is a chance of manual error as the personnel dealing with it might get overwhelmed.
- Accuracy: The online transactions are much faster and accurate. Moreover, all processes are automated, which frees up the staff to focus on activities that lead to more profit and revenue rather than solving problems related to order and invoice.
- Costs: In the brick-and-mortar store, the total cost of the product involves overhead costs like salaries, rent, electricity, phone, taxes, displays, and maintenance. The e-commerce or online store involves the cost of hosting and maintaining a site, software and distribution. The fact is that maintaining a virtual store is much less a cost than an offline store and the reach is global as compared to brick and mortar. E-commerce also helps to reduce operating costs, inventory costs and much more. Small things like using the electronic invoicing and emails also contribute to major savings if we compare them with traditional methods.
Both B2B and B2C are going strong and people find shopping online convenient. Although the general population is mostly concerned about the B2C form of e-commerce, there are many business to business examples that are doing great and adding value to their respective businesses.