The Lure of Ecommerce

A Home Business Article Contributed by Elizabeth Fox-Wise

Why are So Many Businesses and Individuals Lured to Ecommerce?

There are several things which will lure an established or a start up business to ecommerce.

Lower Transaction costs - if an ecommerce web site is designed well, a company can significantly lower transaction costs leading to the sale and customer service after the sale by having the process be automated.

Larger purchases per transaction. By offering shipping breaks when an order reaches a certain dollar amount - or even free shipping - an ecommerce business can encourage the customer who was coming for one item to fill their shopping cart before checking out.

People can shop through ecommerce in non-traditional ways. Catalog sale companies used to lure customers by saying you could "shop in your jammies" ecommerce sites offer the same flexible convenience. You can shop on your schedule not according to store hours, build your order over several days and price compare at several eccomerce sites before purchasing.

Larger catalogs - an ecommerce business can offer thousands of product choices - creating a "catalog" that would be much to large to fit in your mail box!

Improved customer communication - With automated tools and electronic communication it is possible for an ecommerce business to interact with a customer in better ways at little or no cost. For example, the customer might get an email when the order is confirmed, again when the order is shipped and after the order arrives! All of the personal contact and feeling like they know where their order is every step of the way makes a happy customer. A happy customer is more likely to purchase something else from the ecommerce business and/or refer their friends.

It is These Advantages and More That Have Created Today's Ecommerce Buzz!

There is one final point to ecommerce which lures business - and that is Ecommerce makes it easier for people to create completely new business models. In a mail order company there is a high cost of printing and mailing out catalogs that often end up in the trash. There can also be high costs involved in staffing the department that answers the phones and takes the orders.

In ecommerce, on the other hand, the cost of producing a catalog and taking orders becomes virtually non existent. Therefore, it might be possible for eccomerce to offer their products at a lower price or to add products to their line that they could not include before because they were cost prohibitive.

However, it is important to realize the impact of ecommerce only goes so far. Ecommerce will not prevent your town from having a mall and the social aspects of going to the mall will ensure that they are around for decades to come!

So the Future Has Ecommerce and the Mall Living Hand in Hand?

Yes. there is enough of a market for goods and services in America and in the worlds to support all kinds of businesses. Because ecommerce is cropping up more and more every day, this does not mean they are replacing traditional commerce.

Tomorrow's shopping will be a blend of real world and virtual world experiences.