Why Gamble On E-Commerce?

Electronic commerce, or as I like to refer to it as "the convenient way to shop," is a low cost, high reward payoff method of providing goods and services for purchase over the World Wide Web. Ever heard of Amazon.com? Exactly. E-commerce typically operates within two markets: business-to-business (B2B) and business-to-consumer (B2C). Regardless of the market, e-commerce provides a customer with convenient 24 hour a day, 7 day a week access to products and services. We all know that the Internet is pretty much taking over our lives, but really, does anyone actually buy products using the Internet? Well, according to the US Census Bureau, the total estimate for e-commerce sales during the 2nd quarter of 2009 alone was $32.4 billion. Also, a 2007 Pew Internet and American Life Project survey stated that 49% of Americans have purchased a product online, with 60% relying on the Internet to conduct product related searches. And that was 2007! These numbers pretty much prove that if offering a product, a business should definitely consider the option of e-commerce purchasing. Some advantages of E-commerce:

• 24/7 Access. As mentioned above, probably the biggest advantage of e-commerce is providing products any time, everyday, for everyone. Time constraints no longer apply. Customers will be given the means to access products on their own time, whether it be 4:00pm or 4:00am. Customers will be able to simply sit back, relax, and browse for the product they want, when they want it.
• Low Development Cost. Now instead of finding a location, building a store, and paying rent, if a business believes they offer a great product, simply create a website. This provides a customer with the ease of access and allows them to possibly consider an alternative product rather than what is located in their town. With the low cost of website development and marketing tools, a vendor will definitely have an upper hand to promote their superior product.
• Customer Does the Work. When considering the e-commerce option, it is important to remember that the sales and customer service reps will pretty much be cut out of the equation. A customer will read through the verbiage on the website and be able to research products and compare prices on their own. This promotes the idea of low cost for the business, but high return when the customer purchases the product.

Whether an organization consists of one that provides a $10 t-shirt for visitors or members, a non-profit organization that relies on donations, or a company that produces a hard product available for purchase, giving a customer the option to purchase these goods over the Internet is only going to help an organization reach their maximum potential.