IMPORTANCE OF E-COMMERCE

E-Commerce becomes inevitable because of the following:
a) Low setup cost:
Any body can easily set up a website. In fact there are many organizations and training
institutes who help customers in developing and launching websites. To market a product large
retail showrooms are not required, just a web site showing the characteristics of the product
including cost details are sufficient.
b) Global Free Market:
Nobody can dominate the global market as presence on the internet is easy not only for
global giants, but even small organisations can participate actively at low costs and compete with
stiff competition.
c) Global Access:
Since more than 200 countries are hooked onto the Internet, anybody who can afford a
TV and a telephone can fully access the Internet and gain the information required.
d) Availability of Technology:
Since the same technology like web servers, browsers, engines, internet, etc., is used
throughout the world therefore business can be easily conducted.
e) Multiple Opportunities:
By using E-Commerce multiple activities like selling, renting, purchasing etc. can be
performed. In fact a whole variety of transactions can be provided all under one roof.
f) Others:
E-commerce systems are being established for automating and enhancing many aspects
of communications, publishing, marketing, sales and customer service such as

• Customer Research;
• Pre-Sales Enquiries;
• Information Publishing and Dissemination;
• Sales;
• Advertising;
• Promotions;
• Public Relations;
• Purchasing;
• Transactions;
• Funds Transfer;
• Production; 
• Delivery;
• After-Sales Service;
• Ongoing Relationship Management; and
• Customer Support.

The benefits of electronic commerce are not just available to large corporations and
government departments, and many small to medium businesses are discovering new cost -
effective opportunities to use Internet-related technology to help their business operations locally
and internationally