The main advantage of the e-commerce is reduction in the costs which is use to finish the transactions. Cost in terms of human efforts and time in doing transactions. The cost of transactions done through web is less if it goes for the long run because there is a co-ordination in between organizations and the whole process is automatic. Companies sells their products directly to the consumers without any intermediaries this saves their fees and commission. This result in lower the prices of products and satisfy the customers with their loyalty and brand name. On the other side, the cost spent on e- marketing is less than the traditional approach of marketing because there is no problem of finding any particular location for the customers. It opens the wide market of consumers for organizations.
-Understanding Market & Targeting Consumers
Online procedure helps the organizations in analyzing the customer’s needs and preferences. It also helps in dividing the customers on the basis of their demographic like age, income, gender etc so that they can easily categorize the customers and launch the product that satisfy the needs of the consumers. The analysis of the data about the customer details helps companies to establish new or modify their products. It helps them in achieving the goals by increasing the sales.
-Customers Relations Management
Internet helps in building the new & strong relationship in between the customer and the organization. Companies can directly ask the consumers about their feedback and talk to them directly on their websites. It is the best way to come to know about the customer requirements and they can ask that whether the consumer like their product or not. Companies can also do the advertisements directly to the consumers through their websites. It saves time and they can come to know about the consumer response and opinion.