|What is E-commerce? What are its outstanding advantages?|
The technology industry is constantly evolving, and we can easily see the increasing trend of online buying, selling, and exchanging, and e-commerce is no exception. E-commerce is an electronic commerce platform that has been rapidly growing in the Vietnamese market in recent years. So what exactly is E-commerce? What advantages does it offer that attract businesses’ attention? Let’s explore some information through this article.
What is E-commerce?
E-commerce (the full English term is Electronic commerce) is also commonly known as electronic trading. It is a place where buying and selling activities of products or services take place through internet connections, mainly through websites. Currently, this form is rapidly developing and becoming more popular.
|What is E-commerce?|
E-commerce has the outstanding feature that you can buy and sell products globally without any time restrictions. This is something that traditional stores cannot achieve.
Some of the most common industries that use e-commerce are inventory management systems, mobile commerce, supply chain management, internet marketing, online transactions, online shopping, and more.
4 E-commerce Models
- Exchange of electronic data or commercial transactions between two businesses (B2B model).
- Directly participating in the online market, quickly processing business volume from businesses to consumers (B2C) or from consumers (C2C) of third parties.
- Conducting online shopping to sell directly to consumers through websites, mobile applications, or direct chat sections.
- Online marketing with potential customers and establishing communication through email or fax.
Advantages of E-commerce
E-commerce has many outstanding advantages that attract a lot of businesses to participate. Some notable advantages include:
No Time Restrictions
This advantage is easy to understand; most traditional stores have fixed opening and closing hours, typically from 8 am to 11 pm. However, with E-commerce, customers can view and choose products at any time of the day or during their free time.
|Make use of free time to purchase essential goods and products|
E-commerce operates 24/7, without any off days. This allows customers to have more opportunities to make purchases, and businesses can access and attract a large number of customers.
No Distance Restrictions
For example, if traditional stores are currently operating in Vietnam and you want to increase your income, you would need to open additional stores in foreign countries to reach new customers. You would have to figure out tax calculations and shipping fees from Vietnam to deliver products to foreign customers.
|No Distance Restrictions|
However, with e-commerce, geographical distance becomes less significant. Customers only need to visit the store’s website and then choose the desired products through internet services. The goods will be delivered right to their doorstep. This way, you can sell to many customers not only in the country but also abroad with ease.
Automatic Inventory Management
Online tools are available to facilitate convenient inventory management for businesses. This helps reduce operating costs and inventory significantly. Moreover, thanks to e-commerce, you save time searching for and recording product data.
This is a significant advantage of e-commerce that has a considerable impact compared to traditional business operations.
No Limitation on Store Location
|Simply connect to the internet to handle all tasks|
With traditional stores, you would have to fix a specific selling location. On the contrary, with e-commerce, business owners don’t necessarily have to be at a fixed location to handle all business tasks. They only need a computer or a phone connected to the Internet. Everything will be updated instantly, and they can handle everything directly on their website.
E-commerce is continuously developing and attracting many businesses to reach a broader customer base. We hope that the information shared above provides readers with useful insights.