E-commerce is a method of engaging in any form of business or commercial activity by using the internet as a primary platform to trade goods and offer services. With the advancement in technology, it has become vital that businesses establish their online presence and engage in e-commerce in order to stay connected with their customers worldwide.
Reasons for engaging in e-commerce
E-commerce is a method of conducting business via the internet. The rapid growth within the e-commerce industry is due to its unlimited reach to individuals internationally. Companies are able to reach out to clients worldwide by offering their services online, thus expanding their client base and business productivity.
The main elements of e-commerce are the following:
- Electronic funds transfer
- Internet marketing
- Electronic data interchange
It is highly advised that companies engage in e-commerce to expand their client base if they wish to offer their services to a global clientele. Other reasons for conducting business through e-commerce are outlined below:
Due to the global reach and immediacy of the internet, companies are able to cater to their clients anywhere in the world at any given time. The time and financial constraints of having a shop and working within office hours are overcome by use of the internet as it is a 24/7 medium of offering goods and services across the globe.
All payment transactions made via the internet are completed instantly thus reducing the lag time between bank transactions through offline methods. Companies are able to instantly transact online payments and offer their clients the best service possible.
Business entities are able to enhance their brand identity and increase brand awareness through online advertising and internet marketing. It is imperative that companies engage in e-commerce to maintain a prominent online presence.