The business productivity and the costa are highly affected by e-commerce at a very high rate due to the simple applications that it has. The economic impact that is portrayed by the E-commerce is the high opportunity that is availed as a new entrants of the business model that is used as a key boundary of separating one boundary form the other. E-commerce bring high impact on prices that later leads to high competition that is experienced together with high innovations that boost the economy to more efficient that there before. E-commerce is a good way that will be used to conduct business via the internet leading to reduced prices on reasonable ground. Purchasing of goods through the internet is cheaper following that there is no cost of traveling and time is highly saved.
E-commerce lead to elimination of middlemen who have been linking the customers with the organizations. The presence of the middlemen used to increase the prices of items but their absence has led to the reduced prices; since customers can now link with the organization direct through the e-commerce that is now available in the internet. Their direct link is cheaper in terms of prices that they pay on items due to the fact that they order them directly. E-commerce has really impacted on prices and reduced them because, people have access to compare prices of items and purchase the cheaper ones thus they have to be reduced.
E-commerce has impacted so much on the prices of items and this is the reason as to why companies have changed the way they relate to their customers and also the way they do business. Due to the changes that have led to business being done electronically, prices of items have really changed. The organizations structures have been altered due to the use of e-commerce together with the prices they allocate to different items. This is to explain the rise that has also been evident in the efficiency in the delivery of goods by many of the organizations. The microelectronics have really been advanced leading to the decline in prices of the memory chips and semi-conductors. The fall of the prices has led many of the firms to engage in the use of e-commerce in their business.
The regulatory environment has led to the impact of prices evident through the use of e-commerce in many of the organizations. The cost of attracting new customers has been reduced through the use of the e-commerce wit high effect being experienced on the manufacturing processes. This is the reason as to why customized products are being produced at a wide range. E-commerce has provided base of recognizing impediments that aid in capturing the cost savings of the internet and more so the inertial issues that are related to the organizational issues. E-commerce has as well brought the compatibility importance that is connected with the legacy system that has to be employed by any organization that is out to prosper with reduced non-technological transactions costs.
How e-commerce reduces the cost of logistics
E-commerce reduces the cost of logistics by ensuring that speed and precision is highly employed for use in the production of goods and services in the industries and even in delivering them to the customers on the required time. Use of e-commerce ensures that goods are available anywhere and at any time to avoid inconveniencing the customers who are very key in the business. Availability of goods and services anywhere and anytime is the key characteristic of the e-commerce retailer’s logistics system that ensures customers get all that they want without failure. E-commerce is key in ensuring speed and precision and this is the key reason as to why distribution centers are designed to handle the order process as fast as possible.
E-commerce reduces the cost of logistics by ensuring that fast order processing of goods is enhanced to satisfy the wants of their customers on timely basis. It also ensures that there is efficient returns when handling goods to prevent any damage that might occur during transportation; since, this will interfere with the cost of logistics of the organization. There is mini-load warehouse that is used to reduce the cost that is incurred in logistics that works well under reduced software integration. Customized solutions is a key to success in ensuring that the cost of logistics is reduced in the organization. Control of the sorting, packaging and shipping process of the organization have to be well controlled for the sake of ensuring that customer satisfaction is increased. This will as well guarantee reduced packaging costs and reduction of the freight, sortation and shipping costs of goods form the organization to customer’s premises. This type of control in the organization will reduced the cost of logistics by ensuring that there is decrease in labor and increase throughput through optimization that is done on the sortation system in the organization. The cost of packaging has been reduced due to the carton and software strategies that are now being used to reduce boxes that have been used to make packaging more effective.
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